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Largo Resources Announces First Quarter 2019 Production Results

  • Q1 2019 V2O5 production of 2,099 tonnes, a 5% decrease from Q1 2018
  • Kiln refractory replacement completed ahead of schedule
  • Global V2O5 recovery rate of 80.0% achieved in Q1 2019, a 5% increase over Q1 2018
  • Q1 2019 financial results conference call: Wednesday, May 15 th, 2019 at 12:00 p.m. EST


TORONTO , April 11, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces first quarter 2019 production results from its Maracás Menchen Mine with 2,099 tonnes of vanadium pentoxide ("V2O5") produced at an average global recovery ratei of 80.0%. The Company is also pleased to announce that the scheduled kiln refractory replacement has been completed and regular production has resumed.

Total production in Q1 2019 from the Maracás Menchen Mine of 2,099 tonnes of V2O5 was 5% below Q1 2018 results. Production of 816 tonnes of V2O5 in January and 735 tonnes of V2O5 in February were both impacted by maintenance in the fusion section of the plant and unanticipated power outages, which mostly occurred in February. Production in March of 548 tonnes of V2O5 was, as anticipated, significantly impacted by the scheduled kiln refractory replacement which resulted in 11 days of production down time, being 2 days less than the expected 13 days previously reported. A complete replacement of the kiln refractory occurs every two years as a consequence of the high temperatures utilized inside the kiln, which weakens the kiln's durability over time and causes stability issues with recoveries. Largo expects that the replacement of the kiln refractory will help to minimize the need for minor repairs that were performed to the kiln throughout 2018.

Global V2O5 recovery ratesi averaged 80.0% during the quarter representing an increase of 5% over Q1 2018. This is primarily attributable to improved recoveries in the leaching and precipitation sections of the plant during January and February.

A summary of Q1 2019 production results from the Maracás Menchen Mine is presented below:

Maracás Menchen Mine Production

Q1 2019

Q1 2018




Global recoveryi (%)

80.0%

75.9%

Concentrate produced (tonnes)

86,673

77,222

Grade of concentrate (% V2O5)

3.32%

3.56%

Contained V2O5 (tonnes)

2,874

2,747

V2O5 flake produced (flake + powder) (tonnes)

2,099

2,214

V2O5 produced (equivalent pounds)ii

4,627,497

4,881,029

 

Mark Smith , Chief Executive Officer of Largo, stated: "Production at the Maracás Menchen Mine was impacted during the quarter by the Company's scheduled replacement of the kiln refractory in addition to unanticipated power outages and corrective maintenance to the fusion section of the plant. I am pleased to report that the kiln refractory replacement has been completed and our operations team was able to minimize the impact on production during the month to 11 days versus the 13 days previously reported. Operations have since resumed and the Company expects to return to a normalized production level in the next quarter."

Conference Call

Largo Resources' management will host a conference call on Wednesday, May 15, 2019 , at 12:00 p.m. EST , to discuss first quarter 2019 operational and financial results.

Conference Call Details:

Date:

Wednesday, May 15, 2019

Time:

12:00 p.m. EST

Dial-in Number:

Local / International: +1 (416) 764-8688


North American Toll Free: (888) 390-0546


Brazil Toll Free:  08007621359

Conference ID:

63330688

Replay Number:

Local / International: + 1 (416) 764-8677


North American Toll Free: (888) 390-0541


Replay Passcode: 496092#

Website:

To view press releases or any additional financial information, please visit our Investor Relations section of the Largo Resources website at:  www.largoresources.com/investors

 

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

About Largo Resources

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 Maracás Menchen Mine located in Bahia State, Brazil. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "LGO". For more information on Largo, please visit our website at www.largoresources.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"). Forwardlooking information in this press release includes, but is not limited to, statements with respect to timing for and completion of the Maracás Menchen Mine expansion project and the costs associated therewith; the duration of the planned kiln shutdown; the timing and amount of estimated future production; costs of future activities and operations; and the extent of capital and operating. 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.

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i

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

ii

Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.


Largo Resources Ltd. (CNW Group/Largo Resources Ltd.)


SOURCE Largo Resources Ltd.


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