TORONTO, Feb. 27, 2017 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is very pleased to announce that Largo's vanadium pentoxide has been qualified for use by a major North American producer of master alloys for the aerospace industry. Additional qualification trials are underway at master alloy producers in Europe and Russia.
High purity vanadium pentoxide is used in the production of vanadium master alloys used by the global titanium alloy industry. Vanadium based master alloys are critical, non-replaceable materials used in the production of various titanium alloys for aerospace, industrial, and other applications.
The qualification of Largo's vanadium pentoxide for these applications represents an important broadening of the supply base for high purity vanadium pentoxide to the global titanium master alloy industry. Over the past two years rationalizations within the vanadium industry during a period of historically low prices has resulted in a significant decrease in the availability of high purity vanadium pentoxide for the titanium, chemical and energy storage (battery) markets. For Largo, the qualification is an important step in ensuring that its product becomes the product of choice in value added specialty applications for vanadium pentoxide including applications in the titanium industry, the chemical and catalyst industries, and the developing energy storage markets.
Mark Smith, President and Chief Executive Officer for Largo, stated: "Now that the Maracás Menchen Mine has demonstrated stable and consistent operations, it is poised to benefit greatly from selling its vanadium products into higher margin market sectors as well as from general increases in vanadium prices, which we anticipate will strengthen further during 2017." Mr. Smith continued "I am very pleased with the qualification of our material for use by the master alloy industry and we look forward to supplying the specialty application segment for years to come."
Largo Resources Ltd. is a growing strategic mineral company focused on the production of vanadium pentoxide at its Vanadio de Maracás Menchen Mine. 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. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to grow 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. For more information, please visit www.largoresources.com.
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SOURCE Largo Resources Ltd.
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