- Daily production record of 34 tonnes representing approximately 128% of daily nameplate capacity
- Weekly production record of 198 tonnes representing 107% of weekly nameplate capacity
TORONTO, June 2, 2016 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to report that it has superseded all previous daily, weekly and monthly production records at its Maracás Menchen Mine during the month of May. The company produced 780 tonnes of vanadium pentoxide ("vanadium" or "V2O5") in May 2016, surpassing its previous record for monthly production of approximately 730 tonnes set in April 2016 by 7%.
Largo is also very pleased to announce that it achieved a new daily production record on Monday, May 23, 2016 of 34 tonnes of V2O5 (representing approximately 128% of the plant's daily nameplate capacity).
The Company also recently achieved a new weekly production record of 198 tonnes of V2O5 during the week of May 24, 2016 (representing approximately 28.3 tonnes per day or 107% of nameplate capacity).
Mr. Mark A. Smith, President and Chief Executive Officer of Largo, stated: "With two months of consistent and record breaking production, our production team in Maracás has once again demonstrated the on-going success of the project. Largo is on the cusp of achieving nameplate capacity with these records and together with cost efficiencies, improved operational performance and an increase in V2O5 price, the Company will continue to be focused on creating strong shareholder value".
He continued "Looking ahead in 2016, Largo is on track to have a successful year and I want to sincerely congratulate the entire team on helping achieve these milestones".
Largo (TSX-V: LGO) (OTCQB: LGORF) 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.
Image with caption: "Largo sets a new monthly production record of 780 tonnes in May (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160602_C3246_PHOTO_EN_704431.jpg
Image with caption: "Largo Resources Ltd. (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160602_C3246_PHOTO_EN_704434.jpg
For further information: Alex Guthrie, Coordinator, Corporate Communications, 416.861.9797, [email protected]