- Final construction CAPEX US $241 million vs US $235 estimated in PEA
Symbol: LGO (TSX.V)
TORONTO, July 09, 2014 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") reports that feed to the kiln at the Company's Maracas Vanadium Project has been ongoing, however, certain minor technical adjustments at various areas of the plant have required intermittent interruptions to operations.
Mining of ore, the crushing system and the milling and beneficiation plant are all operational and over 10,000 tonnes of vanadium concentrate have now been stockpiled to feed to the kiln.
The kiln system has required several adjustments, mostly mechanical in nature, relating to the feed system, electrostatic precipitator (dust collection system) and burner management system which have required short-term breaks in the feed of material.
Largo is pleased to report that despite these temporary feed disruptions, material has been successfully processed through the kiln during its operating time and has been building up and retained in the leaching system over the past weeks with approximately 3,000 tonnes of iron ore by-product having now also been stockpiled.
Michael Mutchler, Chief Operating Officer of Largo, stated: "The mechanical issues we have encountered are all typical of start-up at new operations – as such, temporary breaks have been anticipated and budgeted for in our conservative ramp-up schedule. The material we have been receiving out of the kiln and into the leach has been of extremely good quality despite the feed interruptions, resulting in vanadium recoveries that are generally in line with original predictions, and we do not foresee at this time any critical issues with the facility. I applaud our team for their hard work and the swift action they have taken to address and amend minor setbacks and resuming feed when shut downs occur as quickly as possible."
He continued: "We are very near to our first production and we continue to be excited about our near term production prospects."
Construction CAPEX Reconciliation
Largo is additionally pleased to report that the final reconciliation of the construction CAPEX for the Maracas Project has now concluded, with the project's final CAPEX determined at US $241 million versus the US $235 million originally estimated in the preliminary economic assessment ("PEA") completed in 2013.
Stated Mark Brennan, President and Chief Executive Officer for Largo: "I am extremely pleased with the performance of the management team in maintaining strong discipline during the construction process in order to meet our targeted budget."
He continued: "We believe it is exceptional for the construction of a mining project to conclude so close to the original budget estimate, especially considering the delay that we encountered in the deliveries of critical rollers for our kiln. I therefore consider this to be a truly commendable accomplishment."
Largo Resources (TSX-V: LGO) is a growing strategic mineral company with projects in Brazil and Canada. The immediate goal of the Company is to bring its Maracás Vanadium Project to production in the near term.
Largo's Maracas Vanadium Project boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with commodities giant Glencore, Largo is well positioned to become a leading producer of vanadium globally and 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 we use and encounter 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, with concentrated supply 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".
Mr. Michael Mutchler, Chief Operating Officer of Largo and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this press release.
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 the private placement, Largo's development potential and timetable of the Maracás 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 sections 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
SOURCE: Largo Resources Ltd.
For further information: Darcie Ladd, Manager Business Development, 416-861-9406, [email protected]; Mark Brennan, President & CEO