- Two new records achieved over consecutive days of 121%
and 125% capacity
- Weekly production record of 188 tonnes of vanadium
produced
- April's production record is an 7% increase over its
prior monthly record
TORONTO,
May 5, 2016 /CNW/ -
Largo Resources Ltd. ("Largo" or the "Company") is pleased to
report that it has produced 730 tonnes of vanadium pentoxide during
the month of April, surpassing its previous record for monthly
production of approximately 681 tonnes set in October 2015 by 7%.
Largo is also very pleased to announce that it achieved
two new daily production records in April with the first being on
Saturday, April 23rd where 32 tonnes
of V2O5 were produced (representing
approximately 121% of the plant's daily design capacity) and the
second occurring on Sunday, April
24th with daily production totaling 33 tonnes of
V2O5 (approximately 125% of the plant's daily
design capacity).
Additionally, Largo is pleased to report another
production milestone of 188 tonnes of V2O5
produced during the week of April 18th to
April 25th (representing approximately 26.9 tonnes per day
or 102% of design capacity).
Mr. Mark A. Smith,
President and Chief Executive Officer of Largo, stated "These new
production achievements highlight the on-going success at the
Maracás Menchen Mine. I would like to applaud our operations team
on these three new production records which demonstrate the plant's
increasing operating efficiency".
He continued "We expect to see continuing growth in
average production rates and with the recent increases to the
vanadium price, the Maracás Menchen Mine will be very strongly
positioned."
These April production levels follow the challenges
experienced in the first quarter of 2016. In particular, as a
result of lower crusher availability (prior to the installation of
the new portable crushing system in January) and extremely heavy
rains in late January, production of 347 tonnes for January was
much lower than expected. In addition and as a result of the
flooding in late January, February production remained low as the
Company worked to re-establish roads, berms and diversion ditches,
as well pumping out the mine pit to re-access the higher grade
ore.
Production in March improved to 436 tonnes but still
remained lower than expected due to process and instrumentation
issues encountered in the precipitation section of the chemical
plant in the first half of the month. As these issues were
addressed, the second half of March yielded stronger production
results and despite the lower than expected production in Q1, the
Company is now experiencing the benefits of the remedial actions
taken in Q1 through the dramatically increased production results
for the first month of Q2, 2016.
About Largo
Largo (TSX-V: LGO) 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
Join our mailing list:
http://www.largoresources.com/English/about-us/email-alerts/default.aspx
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.
Continue to Follow, Like and
Watch our progress!
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY
SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE
SOURCE Largo Resources Ltd.