Symbol: LGO (TSX.V)
TORONTO, June 4, 2012 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that it has initiated full scale construction activities at its Maracas Vanadium Project.
Tim Mann, Chief Operating Officer for Largo, stated "We are extremely pleased to announce today that we have officially broken ground at the Maracas project site. Our technical teams in both Canada and Brazil have been eager to progress the project into the construction phase and are poised to bring the project into production as expediently and economically as possible."
As stated in Largo's Press Release dated May 28, 2012, procurement orders for all critical long-lead items, including the rotary kiln; primary mill; sodium sulphate crystallizer and the ammonium metavanadate flash-dryer, have been placed. Procurement activity for shorter lead time items continues rapidly and will be ongoing. Likewise, bids for tanks, the main electrical sub-station and fresh water pumps will be finalized by the end of May, 2012.
Additionally, the installation of a 32 kilometer pipeline which will bring freshwater to the project is underway. The engineering and procurement work for the 90 km, 138 kV powerline required for the project continues to make good progress. The construction process will take approximately 14 months and remains on track with targeted schedules.
A contract for the civil-construction works including the pouring of foundations and building of plant structures is being negotiated with the final contract to be awarded in June, 2012 with work targeted to commence in August. Some supplementary accommodations for site technicians are in place and are ready for immediate use and arrangements for the construction of further accommodations have been settled with work to conclude shortly in time for full-scale site activity. During full-scale construction there will be approximately 600 persons working on site per day.
Mr. Tim Mann, P.Eng. and the Chief Operating Officer of the Company, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.
Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo currently holds a 90% interest in the Maracás Vanadium Project, a 100% interest in the CurraisNovos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracás Vanadium Project by early Q4 2013 and continue to produce WO3 concentrate from the reprocessing of tungsten tailings from CurraisNovos. Largo's skilled management team both in Canada and Brazil, are confident in their ability to advance these projects.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
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 Maracas 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.
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