Symbol: LGO (TSX.V)
TORONTO, June 8, 2015 /CNW/ - Largo Resources Ltd.
("Largo" or the "Company") is pleased to provide an
update on recent production as well as an overview of its
operational outlook and goals for its Maracas Menchen Mine
(the "Plant" or the "Mine") in Bahia,
Brazil.
Production Update:
The Company is pleased to report that in May 2015 it achieved record monthly overall
production of approximately 487 tonnes, the highest level since
first production commenced in August, 2014. During the month of May
the Company also achieved a record to date for single day
production of 23 tonnes, representing approximately 87% of the
Plant's design capacity.
In general, production rates, recoveries and availability of
operations are improving and greater stability has been achieved.
For example, for about half of the past three month period, the
Plant has operated at or above 18 tonnes per day, or approximately
68% capacity, with over one-third of those days at or above 19
tonnes, or approximately 72% capacity. Additionally,
the operations regularly realize production in a single shift of 8
and 9 tonnes, which management expects will result in the
capability to eventually produce at or above its full Phase 1
capacity level (or approximately, 26 tonnes per day based on 3
shifts per day).
Operational Outlook:
Overall the Company is extremely encouraged by these recent
records and results and believes that they are strong signals of
the Plant's capability to produce at its intended design capacity,
as well as the effectiveness of its ongoing optimization efforts.
Additionally, and importantly, the Plant's end-product vanadium
(V2O5) is of extremely high quality, having met standard
specifications since first production was achieved in August,
2014.
As is expected during the ramp-up of operations of this kind,
various interruptions with respect to equipment are experienced
which temporarily impact daily tonnage rates – some of which are
minor, normal-course occurrences related to a particular piece of
equipment, and some of which are more systemic and require longer
term solutions to address on an ongoing basis.
As the Plant's overall production capabilities are highly
dependent on continuous and stable operations being maintained,
Largo had previously identified and disclosed several critical
optimization projects which will address ongoing variances in daily
production rates (see press release dated March 9, 2015). A few of these optimization
projects have already been implemented and positive results are
currently being realized. For instance, the Company installed a
dry-magnetic separation unit to compliment the milling and
beneficiation system. Since its commissioning, the milling and
beneficiation system has demonstrated its ability to achieve design
capacity targets.
Since completing its previously disclosed private placement
financing of approximately CDN$75.2
million (see press release dated May
28, 2015), the Company has taken action to aggressively
address remaining optimization projects and expects that these will
be completed and commissioned over the next few months.
Some of these projects include:
- A more robust and dependable replacement for its current
pan-conveyor at the leaching system which has been a consistent
limitation on the leaching system's heat retention and has a
significant impact on recoveries as well as requires extensive
maintenance down-time.
- An additional leach tank which will increase the leaching
residence time and improve the system's recovery and
availability.
- A back-up belt filter for the leaching system which will be
utilized to increase the system's capacity and overall
availability.
With these projects, coupled with the other optimization efforts
which have already been completed or are presently underway, the
Company expects to achieve its full Phase 1 design capacity in or
about the third Quarter of 2015.
In the meantime, the Company anticipates that it will continue
to achieve new single day production records, as well as weekly and
monthly records, which will result in modest month over month
increases in production. As each optimization project is completed
and benefits are realized, the Company expects continued growth in
availability and overall Plant stability.
Mr. Michael Mutchler, Chief
Operating Officer to Largo, stated: "We are extremely pleased with
our recent progress. With our recent records and overall growth in
production we have really begun to see the Plant's ability to
operate at its intended capacity. The key systems at the Plant all
work very well and the quality of the material we have been
producing since day one attest to that. However some modifications
will greatly improve these systems and we are excited to see how
much production improves as we bring each of these projects
online."
Quality Assurance/Quality Control:
Mr. Michael Mutchler, Chief
Operating Officer to Largo, and a Qualified Person as defined by NI
43-101, has reviewed and approved the 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 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.