Symbol: LGO (TSX.V)
TORONTO, Jan. 15, 2015 /CNW/ -Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an operational update for its Maracas Menchen Mine ("the Maracas Mine") in Bahia, Brazil.
To date, a total of approximately 1,140 tonnes (2.5 million lbs) has been shipped from the Maracas Mine. This represents an increase of approximately 408 shipped tonnes (.9 million lbs) since the Company's last operational update on December 3, 2014 (see press release dated December 3rd). The Company currently has approximately 60 tonnes of recent production in inventory, and commercial shipments have been continuing on a weekly basis.
During the month of January 2015, the Maracas Mine production output has been running between approximately 55%-75% of capacity.
Stated Mark Brennan, Largo's President and CEO: "We continue to see steady growth in the ramp up of the Maracas Mine. We are achieving greater stability in the operations and expect to see continued momentum in our production growth to reach our Phase 1 target production by the third quarter."
Largo has been producing vanadium at the Maracas Mine since August, 2014, with the ramp-up of production expected to take 12 months. As such, the Company's focus for 2015 is on achieving peak Phase 1 production capacity in Q3, 2015.
Vanadium Market Update:
Vanadium pricing has decreased significantly since January 2014 where it was trading at approximately $6.00 per pound and currently remains at a five-year low trading at $4.85 - $5.15/lb V2O5 on the bid offer (Metal Bulletin). Historically, the $5.00 range has been a floor for vanadium pricing. Since January, 2005 vanadium has traded below $5.00 on both the bid and offer for only 72 days and a total of 158 days where the bid price was below $5.00.
Based on historical trends, Largo believes that vanadium pricing is unsustainable at current levels for a long period of time and continues to monitor the situation carefully.
Ongoing Disclosures Regarding the Maracas Mine:
Going forward, the Company will provide updates on its 2015 production and operational outlook on a quarterly basis in its 2015 MD&A and quarterly/annual statements which will be filed on SEDAR and on the Company's website following their release. The Company also announces its intention to host quarterly conference calls, following the release of its quarterly/annual financial statements. The Company, may also choose at its discretion, to release additional updates and information regarding the Maracas Mine by press release, email and blog updates, or through social media. Largo encourages its investors and interested parties to subscribe to its mailing list at www.largoresources.com
Quality Assurance & Quality Control:
Mr. Michael Mutchler, Chief Operating Officer of Largo, and a Qualified Persons under National Instrument 43-101, has reviewed and approved the contents of this press release.
Largo (TSX-V: LGO) is a growing strategic mineral company focused on continuing 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 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".
For more information please refer to Largo's website: www.largoresources.com
Join our mailing list: www.largoresources.com/English/about-us/contact/default.aspx
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". 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.
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SOURCE Largo Resources Ltd.
For further information: Darcie Ladd, Manager Corporate Development, 416-861-9406, [email protected]; Mark Brennan, President & CEO