- Ramp-up of production progressing well
Symbol: LGO (TSX.V)
TORONTO, Oct. 7, 2014 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an operational update for its Maracas Menchen Mine ("the Project") located in Bahia state, Brazil.
The ramp-up of production at the Project has been ongoing since the Company's last announcement (see press release dated September 2, 2014) and continues to progress well.
Production rates remain stable between 8-12 tonnes of vanadium pentoxide per day, or approximately 40% of total capacity, with production having been achieved at 14 tonnes per day, which represents approximately 50% of total capacity.
Numerous shipments of material have been made, and first revenues from sales of material have been received.
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 per annum by or before month 12 of operations.
Michael Mutchler, Chief Operating Officer for Largo, stated "We are extremely pleased with our recent progress. We have established stable operations at each area of the plant and have demonstrated that we can run each system effectively. Although total plant is currently stable at 40% of capacity, it is important to note that we have now successfully run many of the subsystems at their full capacity levels."
He continued "As is to be expected of operations at this stage, our efforts now will focus on de-bottlenecking the areas where we are encountering capacity restraints, and continuing to optimize recoveries and generally improving efficiencies throughout the plant. We are confident that the ramp-up will continue to progress well, and that we will meet or exceed our capacity targets by or before month 12."
Appointment of Production Manager:
Additionally, Largo is pleased to announce the appointment of Allan Venter to the position of Production Manager on its Operations Team. Mr. Venter has in excess of 10 year's senior management experience in the production of vanadium pentoxide and Ferrovanadium. His experience was gained in Xtrata's Vantech operation and at the Evraz Vametco plant in South Africa.
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 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 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