- Places Largo in the lowest cost quartile of primary vanadium producers
TORONTO, April 9, 2015 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that actual production costs for the month of March were US $3.91 per pound of vanadium pentoxide at its Maracas Menchen Mine (the "Project") in Bahia, Brazil. 1
Production costs of $3.91 per pound are based on actual production of 472 tonnes (or approximately 1 million pounds) of vanadium pentoxide and include royalties, as well as operational Sales, General and Administrative costs ("SG&A").2
Mark Smith, President and Chief Executive Officer to Largo, stated: "This is an extremely important milestone for the Project and further demonstrates the phenomenal potential of the Maracas Menchen Mine."
He continued: "To have achieved production costs of $3.91 per pound before operations are fully optimized is a strong indication of what this project is capable of once it reaches full capacity. These costs place Largo within the lowest quartile of primary vanadium production costs globally."
He went on to state: "Our goal now will be to achieve further consistency while continuing to increase our production rates, and with that, we should expect to see continued cost reductions as we go forward."
Quality Assurance Quality Control:
Mr. Michael Mutchler, Chief Operating Officer of Largo, and a Qualified Persons under National Instrument 43-101, has reviewed and approved the technical contents of this press release.
1 The operating costs reported are on a non-GAAP basis. Operating costs reflected are based on a BRL/US dollar exchange rate of 3.20.
2 Does not include corporate SG&A or CAPEX
Largo (TSX-V: LGO) is a growing strategic mineral company focused on continuing to ramp-up production at its Vanadio de Maracás Menchen Mine.
Largo's Maracás Menchen Mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with Glencore, Largo is well positioned to become a leading producer of vanadium globally and is expected to generate substantial cash-flows.
Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range of products that are used and encountered every day; including, rebar, automobiles, transport infrastructure etc. With a compound annual growth rate of over 6% for the past several years (Roskill, 2013), vanadium is a bourgeoning commodity which lacks opportunities for investment in the wider market place. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to continue this growth over the medium and long term.
Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the Yukon Territory, Canada.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
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This press release contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Largo's development potential and timetable of its operating, development and exploration assets; Largo's ability to raise additional funds necessary; the future price of vanadium, tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As.
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SOURCE Largo Resources Ltd.
For further information: Darcie Ladd, Manager Corporate Development, 416-861-9406, [email protected]