• Maracás construction remains on budget and on schedule
• Largo appoints Mr. Andrew Hancharyk to position of Chief Legal Officer
TORONTO, June 13, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an operational update on its Maracás Vanadium Project in Bahia, Brazil.
Civil and electrical-mechanical construction at the Maracás Vanadium Project is progressing well. At present, the project remains on schedule and within budget for commissioning at the end of the Fourth Quarter, 2013 (see pictures 1-5).
A full summary of recent developments is listed below:
Items Completed Since April 30, 2013:
- Mechanical erection of the electrical switchyard and main substation is complete and pre-commissioning has also been concluded. Final commissioning of these areas will occur upon completion of the 86km power line which is presently in progress.
- Erection of the crushers and conveyors is complete. Pre-commissioning of the crushing circuit will commence soon.
- Construction of the cafeteria building and sewage treatment plant is finished.
- Construction of the medical center has been completed. The center can now function on an operational basis.
- The chloride tailings pond earthworks are complete with installation of the liner to commence shortly.
Highlights of Ongoing Development:
- The foundation for the ball mill has been completed and the bearings which will support the mill are currently being installed.
- Installation of the concrete bases for the magnetic separation unit is complete. The steel structures for the magnetic separation unit, concentrate filter and cyclones are in progress.
- Tanks for the tailings thickener are nearing completion.
- The heavy shells, light shells and live rings for the kiln and the cooler have been shipped from China and are presently en route to the port of Salvador, Brazil.
- Six of the 10 rollers for the kiln and cooler have now been fabricated and are scheduled for shipping by the end of June. The balance of 4 rollers, expected to be shipped in July, required additional work before shipment, which is already in progress.
- Equipment imported from South Africa, including the deammoniator and the sodium sulphate crystallizer, has arrived in port in Brazil and will be transported to the Maracás site after clearance with local authorities.
- Construction of the water treatment plant is expected to be ready for commissioning by early August.
- At present, construction of the 86km power line is progressing with approximately 50% left to be completed.
Overview of Site Development and Critical Path Items:
Significant progress has been made in all areas at the project site. Several areas are now complete with specific locations and equipment entering the pre-commissioning or commissioning stages according to their intended schedules. Fabrication of the majority of international equipment has concluded with shipments either anticipated in the near-term or already underway.
Fabrication of the majority of the items associated with the 90 meter kiln and 34 meter cooler is now complete, including all the heavy and light shells and six of the ten rollers. Many of the completed items are presently in transit to Brazil. Much of the remainder is expected to be shipped in June according to schedule. Due to problems during the fabrication process in China, four of the additional rollers required recasting. As a result, they will be delivered later than the other six. Although the kiln's erection schedule has now been revised as a result, Largo continues to remain on track for commissioning of the project by the end of Q4 2013, provided revised shipment dates are adhered to. It is important to note that the costs associated with the recasting have been assumed by the supplier.
The electrical power line is likewise proceeding with approximately fifty-percent of the construction completed to date. Of the total of eighty-six km of the power line, only fifteen percent (13 km) remains subject to settlement with affected land owners. Management expects to reach settlements by the end of June. In the event agreements cannot be reached with these landowners, the state power agency and Largo have been issued a "right-of-way" for access to the remaining land. A final approval from the judge involved in the process is expected in the near-term. Largo believes the resolution will be rendered within sufficient time to complete the power line so that it can be commissioned and used for the pre-commissioning of the plant.
The bulk of the equipment imported from the Republic of South Africa, including the deamoniator and the sodium sulphate crystallizer, has already arrived in Brazil and will shortly be transported, within schedule, to the project site, with the civil work related to the erection of that equipment already nearing completion.
Tim Mann, Chief Operating Officer of Largo, stated: "Our team has done an exceptional job of monitoring our minute-to-minute progress and responding to and managing potential issues in order to keep us in line with our year-end target. I believe this is largely due to the fact that we have an extremely experienced team of engineers on the ground who have built and operated many projects over the years, who have analyzed potential unforeseen events and who have built contingencies into the construction timeframes." He continued, "I congratulate our team for overcoming the inevitable and unpredictable hurdles associated with these types of projects that we have encountered to date and for working aggressively to sustain the rapid pace of forward development which presently keeps us on track to commission in the Fourth Quarter of this year."
Appointment of Mr. Andrew Hancharyk to position of Chief Legal Officer for Largo Resources
Largo Resources is pleased to announce the appointment of Mr. Andrew Hancharyk to the position of Chief Legal Officer to the Company. Mr. Hancharyk is a lawyer with over 18 years of experience in business law across various industries, including resource companies. Mr. Hancharyk is a member of the Law Society of Upper Canada and has been an executive with, or counsel to, several large public and private companies, including First Quantum and Sherritt International. Mr. Hancharyk is also a former Policy Manager with the TSX Venture Exchange. Mr. Hancharyk holds an undergraduate degree in business and a Juris Doctorate, both from the University of Ottawa, as well as a Master's in Law from Osgoode Hall at York University. He is a member of the board of directors of Discovery Harbour Resources, a publicly company listed on the TSX Venture Exchange.
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. Readers should also review the risks and uncertainties section 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
Image with caption: "View from Primary Crusher (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27990.jpg
Image with caption: "Foundation for Primary Ball Mill with Baseplates Being Installed and Steel Supports for Magnetic Separation in the Background (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27991.jpg
Image with caption: "Pedestal for Kiln with Scaffolding Being Removed (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27993.jpg
Image with caption: "View of Completed Switchyward (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27992.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27985.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27986.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_28005.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27988.jpg
SOURCE: Largo Resources Ltd.
For further information:
Manager Business Development
President & CEO
Continue to Follow, Like and Watch our progress!