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Largo Resources Ltd (2)
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Largo produces 2,515 t V2O5 in Q2 2019

2019-07-10 17:26 ET - News Release

Mr. Mark Smith reports


Largo Resources Ltd. has released its second-quarter 2019 production results from its Maracas Menchen mine with 2,515 tonnes of vanadium pentoxide (V2O5) produced at an average global recovery rate (1) of 79.1 per cent.

Total production in Q2 2019 from the Maracas Menchen mine was 2,515 tonnes of V2O5, representing an increase of 20 per cent over first quarter 2019 and a 2-per-cent increase over Q2 2018. In addition, the company achieved a new monthly V2O5 production record of 926 tonnes in June as a result of greater operational stability at the plant in addition to the optimization of the new and existing deammoniators as part of the commissioning and ramp-up phase of the company's expansion project. Lower V2O5 production of 755 tonnes in April was impacted by the restart of operations following the kiln refractory replacement which was completed on March 31, 2019.

Global V2O5 recovery (1) rates averaged 79.1 per cent during the quarter, in line with Q2 2018, and demonstrate another strong quarter of global recoveries (1) for the company.

The expansion project to increase production capacity at the Maracas Menchen mine by 25 per cent from 800 tonnes of V2O5 per month to 1,000 tonnes continues to advance successfully. The company plans to install an additional ball mill in August, and expects to finalize the commissioning and ramp-up phase in third quarter 2019, reaching the new nameplate capacity of 1,000 tonnes of V2O5 per month in fourth quarter 2019.

A summary of Q2 2019 production results from the Maracas Menchen mine is presented in the attached table.

                      MARACAS MENCHEN MINE PRODUCTION         

                                                  Q2 2019   Q1 2019   Q2 2018  

Global recovery (1) (%)                              79.1%     80.0%     79.2%    
Concentrate produced (tonnes)                     102,320    86,673    85,639   
Grade of concentrate (% V2O5)                        3.30%     3.32%     3.37%    
Contained V2O5 (tonnes)                             3,380     2,874     2,889    
V2O5 flake produced (flake + powder) (tonnes)       2,515     2,099     2,458    
V2O5 produced (equivalent pounds) (2)           5,544,619 4,627,497 5,418,956

Mark Smith, chief executive officer of Largo, stated, "I am very pleased with the operational performance demonstrated in Q2 2019 highlighted by another quarter of strong global recoveries (1) and a new monthly production record achieved in June." He continued, "With additional production being realized as a result of the expansion project ramp-up, we look forward to finalizing the installation of the new ball mill, and completing the commissioning and ramp-up phase of the expansion project in Q3 2019 to reach the new nameplate capacity of 1,000 tonnes of V2O5 per month in Q4 2019."

Conference call

Largo Resources' management will host a conference call on Wednesday, Aug. 14, 2019, at 11:30 a.m. EDT to discuss second-quarter 2019 operational and financial results.

Conference call details:

Date:  Wednesday, Aug. 14, 2019

Time:  11:30 a.m. ET

Dial-in numbers:

Local/international:  416-764-8688

North American toll-free:  888-390-0546

Brazil toll-free:  08007621359

Conference ID:  69944520

Replay numbers:

Local/international:  1-416-764-8677

North American toll-free:  888-390-0541

Replay passcode:  944520 followed by the number sign

A playback recording will be available on the company's website for a period of 60 days following the conference call.

About Largo Resources Ltd.

Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high-purity vanadium flake and high-purity vanadium powder at the Maracas Menchen mine located in Bahia state, Brazil.

(1) Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery.

(2) Conversion of tonnes to pounds: one tonne equals 2,204.62 pounds.

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