- New production records set in March
TORONTO, April 1, 2015 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an update on production at its Maracas Menchen Mine (the "Mine" or "Project").
During the month of March, production rates and recoveries at the Project stabilized and increased significantly, including at the leaching system. Several new records were achieved for overall production rates during March including a new record for production in a single day of 21 tonnes, or approximately 81% of design capacity.
Recovery rates at the milling, kiln and leaching systems have each met and surpassed design targets over several days in March and daily production rates were at or above 19 tonnes (at or above approximately 72% capacity), for a total of 14 days in March.
Also during the month of March the Company celebrated the conclusion of shipments totaling 2,000 tonnes of material under its offtake agreement since deliveries commenced in September, 2014.
Mr. Michael Mutchler, Chief Operating Officer to Largo, stated: "We are extremely pleased with the recent stability we have achieved at the Project. During the month of March the Project has demonstrated its ability to achieve design recoveries at several systems, while production rates have also grown substantially overall. We are still in the ramp-up period, and as such, there is still more work to do to achieve capacity and design rates on a stabilized basis, but the significant improvement in performance this month has provided an excellent foundation to continue to grow production and consistency."
Settlement - Currais Novos Tungsten Supply Agreement
Largo additionally announces that it has settled its outstanding dispute with Global Tungsten & Powders Corp. ("GTP") relating to the supply agreement between the parties entered into in January of 2011 (the "Supply Agreement") in respect of tungsten to be produced at its Currais Novos project located in Brazil. The settlement provides for the termination of all obligations (both past and future) under the Supply Agreement in exchange for payment by Largo to GTP of US$11.5 million to be paid in monthly installments over the course of the 2016 calendar year. Following receipt of the final payment by GTP, Largo will have no further obligations to GTP.
Quality Assurance Quality Control:
Mr. Michael Mutchler, Chief Operating Officer of Largo, and a Qualified Persons under National Instrument 43-101, has reviewed and approved the technical contents of this press release.
About Largo
Largo (TSX-V: LGO) is a growing strategic mineral company focused on continuing to ramp-up production at its Vanadio de Maracás Menchen Mine.
Largo's Maracás Menchen Mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with Glencore, Largo is well positioned to become a leading producer of vanadium globally and is expected to 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 are used and encountered 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 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".
For more information please refer to Largo's website: www.largoresources.com
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Disclaimer
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.
Darcie Ladd, Manager Corporate Development, 416-861-9406, [email protected]
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