Largo Resources Reports V2O5 Production of 2,562 Tonnes in Q2 2020 and Announces Cost Efficient Nameplate Capacity Increase by 10% V 2 O 5 production of 2,562 tonnes (5.6 million lbs 1 ) in Q2 2020, a 2.0% increase over Q2
Largo Resources Reports V2O5 Production of
2,562 Tonnes in Q2 2020 and Announces Cost
Efficient Nameplate Capacity Increase by 10%
V
2
O
5
production of 2,562 tonnes (5.6 million lbs
1
) in Q2 2020, a 2.0% increase over Q2
2019
Global V
2
O
5
recovery rate
2
of 80.8% in Q2 2020 compared to 79.1% in Q2 2019
Nameplate capacity increase by 10%: Planned kiln upgrades and cooler maintenance
scheduled for Q4 2020 with a capex of
US$1.3 million
First independent vanadium shipment made on
May 14, 2020
Operations at the Maracás Menchen Mine continued in Q2 2020; 2020 guidance
maintained on a "business as usual" basis
TORONTO
,
July 16, 2020
/CNW/ - Largo Resources Ltd. ("
Largo
" or the "
Company
") (TSX: LGO)
(OTCQX: LGORF) announces second quarter 2020 production results from its Maracás Menchen
Mine with production of 2,562 tonnes (5.6 million lbs) of vanadium pentoxide ("
V
2
O
5
") produced at
an average global recovery rate
2
of 80.8%.
The Maracás Menchen Mine (CNW Group/Largo Resources Ltd.)
Paulo Misk
, President and Chief Executive Officer for Largo, stated:
"Following the completion of
the enhanced preventative maintenance program in the chemical plant, the Company's operations
performed well in Q2 2020 with total
V
2
O
5
production of 2,562 tonnes and a global
V
2
O
5
recovery
rate of 80.8%. This represents a 2.0% increase in production over Q2 2019 and the strong
production in May and June further demonstrates the plant's ability to perform above its current
nameplate capacity of 1,000 tonnes of
V
2
O
5
per month. In Q4 2020, we expect to perform the
planned upgrades to the kiln and improvements in the cooler to increase the nameplate capacity to
1,100 tonnes of
V
2
O
5
per month. The total capex for this project is approximately
US$1.3 million
and we do not expect this work to impact production in Q4 2020."
He continued:
"We completed our first independent vanadium shipment on
May 14, 2020
marking a
propitious moment for the Company as we begin to capture the full economic and strategic value
associated with our transition to commercial independence.
The Company continues to maintain its
2020 guidance on a business as usual basis and has not experienced any significant impacts to
operations or to the shipment of material as a result of the global COVID-19 pandemic. We
continue to prioritize the health and safety of our workforce and extend our support to our local
communities as we proactively manage the circumstances related to the global COVID-19
pandemic."
A summary of Q2 2020 production results from the Maracás Menchen Mine is presented below:
Maracás Menchen Mine Production
Q2 2020
Q1 2020
Q2 2019
Total Ore Mined (tonnes)
257,357
203,966
308,858
Ore Grade Mined - Effective Grade (%)
3
1.20
1.61
1.21
Effective Grade of Ore Milled (%)
3
1.29
1.59
1.49
Concentrate Produced (tonnes)
99,059
100,072
102,320
Grade of Concentrate (%)
3.20
3.36
3.30
Contained V
2
O
5
(tonnes)
3,174
3,365
3,380
Crushing Recovery (%)
97.7
98.3
98.0
Milling Recovery (%)
94.7
98.4
97.9
Kiln Recovery (%)
91.7
88.3
88.8
Leaching Recovery (%)
99.1
96.6
95.7
Chemical Plant Recovery (%)
96.1
96.8
97.1
Global Recovery (%)
2
80.8
79.9
79.1
V
2
O
5
produced (Flake + Powder) (tonnes)
2,562
2,831
2,515
V
2
O
5
produced (equivalent pounds)
1
5,648,236
6,241,279
5,544,619
Q2 2020 Production Results
Total production from the Maracas Menchen Mine was 2,562 tonnes of V
2
O
5
, representing an
increase of 2.0% over Q2 2019. Following the completion of the Company's preventative
maintenance program, V
2
O
5
production in
April 2020
was 480 tonnes with 1,052 tonnes produced in
May 2020
and 1,030 tonnes in
June 2020
.
In Q2 2020, 257,357 tonnes of ore with an effective V
2
O
5
grade
3
of 1.20% were mined compared
to 308,858 tonnes in Q2 2019 with an effective V
2
O
5
grade
3
of 1.21%. The crushing unit was fed
with 304,560 tonnes with an effective V
2
O
5
grade
3
of 1.03% and the Company produced 99,059
tonnes of concentrate ore with an average V
2
O
5
grade
3
of 3.20%. The decrease in total ore mined
when compared to Q2 2019 is due to operational adjustments to limit the Company's contracted
mining workforce during the COVID-19 pandemic as well as operational restrictions due to the rainy
season. During this time. the Company used available stocks to feed the crushing plant in order to
mitigate the impact on V
2
O
5
production.
Global V
2
O
5
recovery rates
2
averaged 80.8% in Q2 2020 representing a 2% increase over Q2 2019
(79.1%). This is primarily attributable to improved recoveries in the kiln and leaching section of the
plant during the quarter.
COVID-19 Update: 2020 Guidance Maintained
The Company continues to monitor the evolving COVID-19 pandemic and has taken preventative
measures at its mine site and corporate offices to mitigate potential risks. There continues to be no
significant impact on our production or on our shipment of product out of Maracás. To date, there
continues to be no significant disruption to the Company's supply chain for its operations and the
level of critical consumables continues to be at normal levels. In addition, the restrictions imposed by
the government in
Brazil
have not significantly impacted operations. The Company continues to
follow the recommendations provided by health authorities and all corporate office personnel have
been instructed to work from home where possible. The Company continues to staff critical functions
at the mine site and has encouraged those in non-essential roles to work from home.
In addition, the Company's 2020 guidance continues to be presented on a "business as usual"
basis. Largo continues to monitor measures being imposed by governments globally to reduce the
spread of COVID-19 and the impact that this may have on our operations and guidance for 2020.
Although these restrictions have not, to date, had a material impact on our operations, the potential
future impact of COVID-19 both in
Brazil
and globally could have a significant impact on our
operations, sales efforts and logistics. The Company will continue to monitor the situation and will, if
and when necessary, update its guidance accordingly.
About Largo Resources
Largo Resources is an industry preferred producer and supplier of vanadium. Largo's VPURE™ and
VPURE+™ products are sourced from one of the world's highest-grade vanadium deposits at the
Maracás Menchen Mine located in
Brazil
. The Company's common shares are principally listed on
the Toronto Stock Exchange under the symbol "LGO". For more information on Largo and
VPURE™, please visit
www.largoresources.com
and
www.largoVPURE.com
.
Neither the Toronto Stock Exchange (nor its regulatory service provider) accepts responsibility for
the adequacy or accuracy of this press release.
Forward-looking Information:
This press release contains forward-looking information under Canadian securities legislation,
some of which may be considered "financial outlook" for the purposes of application Canadian
securities legislation ("forward-looking statements"). Forward
–
looking information in this press
release includes, but is not limited to, statements with respect to the timing and amount of
estimated future production and sales; costs of future activities and operations; the extent of capital
and operating expenditures; and the extent and overall impact of the COVID-19 pandemic in
Brazil
and globally. 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 which also apply.
_________________________________________
1
Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.
2
Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery.
3
Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V
2
O
5
in the magnetic concentrate.
SOURCE
Largo Resources Ltd.
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For further information:
Alex Guthrie, Manager, Investor Relations and Communications,
[email protected], Tel: +1 416-861-9797
CO: Largo Resources Ltd.
CNW 07:00e 16-JUL-20