Symbol: LGO (TSX.V)
TORONTO, Jan. 23, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that it is mobilizing for electrical-mechanical erection at its Maracas Vanadium Project in Bahia Brazil (the "Project").
The electrical-mechanical contractor is presently mobilizing to begin construction at the Project site. Electrical-mechanical erection encompasses the construction and assembly of all the main components of the process plant and will continue through to commissioning in Q4 of 2013.
Current construction activities at the Project site continue to progress on schedule and on budget.
Civil construction is proceeding on track with main foundations either near complete or well advanced (see pictures 1-6 below). The erection of administrative buildings is proceeding exceptionally well and the construction management group at site will shortly be relocated from the current temporary site offices (see picture 3).
Installation of the main plant steel piperack (see picture 2) is making headway and will be completed shortly following the laying of electrical and piping materials that they will support.
The procurement process is well advanced with 95% of the required purchase orders for securing equipment and services already having been placed.
All equipment deliveries remain on schedule. Some imported equipment has already arrived in Brazil, been released from customs, and is presently en-route to the Project for installation. Some other imported items are in transit to their intended export ports and will be shipped shortly for arrival at the Project within their targeted schedules. Largo has retained a consultant specializing in the importation of goods to Brazil who is supporting Largo in this process, including making the arrangements for the equipment's arrival with local customs authorities.
Pre-stripping at the deposit and pit area has been initiated with waste material being used for construction of the truck ramp required for dumping ore to the crusher.
The water pipeline which will provide fresh water to the Project is approximately 90% complete and commissioning is anticipated for February, 2013. Meanwhile, a temporary supply of water from wells developed by Largo is providing an adequate flow of water for construction purposes. Largo also notes that the rainy season is in progress and the region has received moderate rainfall recently. The rainy season generally continues into March.
Work on the electrical power line is continuing with pre-commissioning targeted for mid-year.
Additionally, Largo announces that effective today it has granted 37,810,800 stock options to various management, employees, and consultants of the Company. The options will vest over three years and will be priced a third at $0.22, a third at $0.24 and a third at $0.26.
Other than in connection with the hiring of new employees, Largo has not issued stock options generally to management since August 2010. Currently, options issued to management, employees and consultants represent just 2.1% of outstanding shares. Following this issuance, options held by management employees and consultants will represent 6.5% of the Company's outstanding share capital; still below average for comparable companies.
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 continue 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
The Company cautions that the Report is a preliminary economic assessment only which was undertaken to re-scope an advance staged project based on new information and readers should not treat the results as enhancing the Feasibility Study or certainty of the Maracas Project. 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.
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SOURCE: Largo Resources Ltd.
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Manager Business Development
President & CEO