- Material meets 'specs' for offtake
TORONTO, Aug. 5, 2014 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is extremely pleased to announce that it has achieved first production at its Maracas Vanadium Project ("the Project") in Bahia, Brazil.
The first vanadium pentoxide material was produced at the Project on August 2, 2014. Test-work completed at the Project's on-site laboratory indicates that the material is anticipated by Largo to meet all required specifications as outlined in the Company's off-take arrangement.
Production volumes are expected to continue to steadily increase over the coming months with the goal of reaching the Project's Phase 1 nameplate capacity of 9,600 tonnes by or before month 12 of operations.
Mark Brennan, President and Chief Executive Officer, commented: "Achieving production at Maracas is the most significant milestone in Largo's history and we expect this marks the beginning of a period of substantial growth for the company. With our high quality deposit and anticipated substantive cost advantage, Largo is expected to become a market leader for vanadium in the near-term."
He continued: "I would also like to highlight how rare it is for a mining development company to successfully finance, build and bring a project to production, as Largo has now done, and I hope that our shareholders and market participants will join us in recognizing and congratulating Largo's technical team in acheiving this momentous accomplishment. As we ramp up production at Maracas and begin generating strong cash-flow, I believe that Largo presents a unique opportunity as the only pure play vanadium producer for investors to gain exposure to the vanadium market."
The Company is also announcing that a total of 19,068,240 options, all of which vest over a three year period from the date of grant, were granted effective August 4, 2014, at an exercise price of $0.28, to various directors, executives, employees and a consultant (who was formerly a director) of the Company as part of Largo's regular compensation structure. While these options had been approved by the Board of Largo in late May, 2014, it was determined that the options would not become effective until production had been achieved.
Largo (TSX-V: LGO) is a growing strategic mineral company with projects in Brazil and Canada. The immediate goal of the Company is to ramp-up production at its Maracás Vanadium Project.
Largo's Maracas Vanadium Project boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with commodities giant 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".
Mr. Michael Mutchler, Chief Operating Officer of Largo and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this press release.
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 the private placement, Largo's development potential and timetable of the Maracás and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of 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". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. 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. 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE: Largo Resources Ltd.
For further information: Darcie Ladd, Manager Business Development, 416-861-9406, [email protected]; Mark Brennan, President & CEO