- Maracás construction remains on budget and on schedule for commissioning in the fourth quarter of 2013
- Currais Novos drought remains unchanged
Symbol: LGO (TSX.V)
TORONTO, April 30, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an operational update on its Maracás Vanadium Project in Bahia Brazil and its Currais Novos Tungsten Project in Rio Grande do Norte, Brazil.
Civil and electrical-mechanical construction at the Maracás Vanadium Project continues to progress rapidly and the project remains on budget and on schedule for commissioning at the end of the Fourth Quarter, 2013 (see pictures 1-5 and Figure 1 below).
Highlights of recent developments:
- The water pipeline has been commissioned and has been running continuously since mid-March.
- Work on the electrical power line is continuing and pre-commissioning remains targeted for August.
- All key equipment and materials for the crushing circuit have arrived on site and are being installed or ready for installation
- The primary crusher is installed and the balance of the mechanical erection is proceeding on schedule (see picture 1).
- Erection of the platforms for the secondary and tertiary crushers and conveyors are well underway and all concrete foundations have been concluded (see picture 2).
- The concrete foundations for the primary mill and regrind mill have been completed and the baseplates for the primary mill are being installed (see picture 3).
- The fabrication and shipping of the components for both mills is on schedule for erection in early May. The motors, baseplates, anchors and linings have been delivered.
- The main shell for the primary ball mill is anticipated to arrive at site imminently. The shell for the regrind mill has already been delivered.
- The fabrication of components for the kiln is in progress with the majority of parts already complete and being prepared for shipment.
- Equipment fabrication of all specialist equipment from the Republic of South Africa is concluded and is either already at sea or ready to be shipped. This includes the sodium sulphate recovery plant, flash dryer, deammoniator reactor, and fusion furnace for production of V2O5 flake.
- Tankage and the erection of the three thickeners is proceeding well and is on target (see picture 4).
- The underground electrical grid for the project is being laid and progressing according to schedule.
- 50% of the electrical panels are assembled and in position in the main substation and 60% of the cables have been laid to connect the main transformers to the electrical room (see picture 5-6).
- The administration building has been completed and is now occupied; the medical centre is about to be handed over for occupancy and use; the cafeteria and kitchen are 90% complete, and the sewage treatment plant and water treatment plant construction is in progress.
Tim Mann, Chief Operating Officer to Largo, stated: "We are extremely pleased with the development of construction at the project to date. We have made substantial progress and continue to remain on budget and on schedule. We remain confident that we will meet our commissioning target in Q4, 2013."
The severe drought which caused the suspension of operations at Currais Novos in late 2012 (see press release October 30, 2012) has persisted. Due to a continued lack of rainfall in 2013, the situation has significantly worsened.
Despite drilling 13 additional wells in November of 2012, the ongoing absence of rain in the region further exacerbated the existing water deficit and has prevented Largo from continuing normal operations at the project.
The "rainy season" for the region generally extends from the November to March time period. The average rainfall per year from 2006 to 2011 was 859 mm. In 2012 there was only 73 mm of rainfall and in 2013 from January to March there was only 71 mm .
The drought has now extended for 2 years and is a very serious situation for the town of Currais Novos, as well as the surrounding area. Largo continues to examine water supply options while also examining methods of increasing the efficiency of the plant once production resumes.
After commissioning additional screens in late 2012, Largo has not successfully achieved targeted recovery levels. In view of the current lack of an adequate and sustainable water supply, Largo has been forced to place Currais Novos on care and maintenance but will continue optimization work on site until the water situation is resolved by a return to a more normal rainfall.
Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo currently holds a 100% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailings 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 Q4 2013 and to produce WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos. 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE: Largo Resources Ltd.
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