- Two new records achieved over consecutive days of 121% and 125% capacity
- Weekly production record of 188 tonnes of vanadium produced
- April's production record is an 7% increase over its prior monthly record
TORONTO, May 5, 2016 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to report that it has produced 730 tonnes of vanadium pentoxide during the month of April, surpassing its previous record for monthly production of approximately 681 tonnes set in October 2015 by 7%.
Largo is also very pleased to announce that it achieved two new daily production records in April with the first being on Saturday, April 23rd where 32 tonnes of V2O5 were produced (representing approximately 121% of the plant's daily design capacity) and the second occurring on Sunday, April 24th with daily production totaling 33 tonnes of V2O5 (approximately 125% of the plant's daily design capacity).
Additionally, Largo is pleased to report another production milestone of 188 tonnes of V2O5 produced during the week of April 18th to April 25th (representing approximately 26.9 tonnes per day or 102% of design capacity).
Mr. Mark A. Smith, President and Chief Executive Officer of Largo, stated "These new production achievements highlight the on-going success at the Maracás Menchen Mine. I would like to applaud our operations team on these three new production records which demonstrate the plant's increasing operating efficiency".
He continued "We expect to see continuing growth in average production rates and with the recent increases to the vanadium price, the Maracás Menchen Mine will be very strongly positioned."
These April production levels follow the challenges experienced in the first quarter of 2016. In particular, as a result of lower crusher availability (prior to the installation of the new portable crushing system in January) and extremely heavy rains in late January, production of 347 tonnes for January was much lower than expected. In addition and as a result of the flooding in late January, February production remained low as the Company worked to re-establish roads, berms and diversion ditches, as well pumping out the mine pit to re-access the higher grade ore.
Production in March improved to 436 tonnes but still remained lower than expected due to process and instrumentation issues encountered in the precipitation section of the chemical plant in the first half of the month. As these issues were addressed, the second half of March yielded stronger production results and despite the lower than expected production in Q1, the Company is now experiencing the benefits of the remedial actions taken in Q1 through the dramatically increased production results for the first month of Q2, 2016.
Largo (TSX-V: LGO) is a growing strategic mineral company focused on the production of vanadium pentoxide at its Vanadio de Maracás Menchen Mine. 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.
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 consumption increasing at a compound annual growth rate of over 8% for the past several years (Roskill, 2015), 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 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: Alex Guthrie, Coordinator, Corporate Communications, 416.861.9797, [email protected]