- Record V2O5 production of 2,952 tonnes
in Q3 2019, an increase of 17% over Q2 2019 and 15% over Q3
2018
- Global V2O5 recovery rate2
of 78.1% in Q3 2019 compared to 79.1% in Q2 2019 and 77.1% in Q3
2018
- Average annual cash operating costs excluding
royalties1 guidance lowered to US$3.30 to $3.40
per pound of V2O5; Production guidance
maintained
- Expansion project in final stages of commissioning; Expected
to conclude in October 2019
- Q3 2019 operational and financial results conference call:
Thursday, November 14th,
2019 at 10:00 a.m. EDT
TORONTO, Oct. 15, 2019 /CNW/ - Largo Resources Ltd.
("Largo" or the "Company") (TSX: LGO)
(OTCQX: LGORF) is pleased to announce third quarter 2019
production results from its Maracás Menchen Mine highlighted by a
new quarterly production record of 2,952 tonnes of vanadium
pentoxide ("V2O5") produced at an
average global recovery rate2 of 78.1%. In addition, the
Company has lowered its 2019 annual cash operating cost excluding
royalties1 guidance to the range of US$3.30 to $3.40
per pound of V2O5.
Total production in Q3 2019 from the Maracás Menchen Mine was
2,952 tonnes of V2O5 representing an increase
of 17% over Q2 2019 and a 15% increase over Q3 2018. Production in
July was 1,042 tonnes, a new monthly V2O5
production record for the Company. Higher production in July was a
consequence of the start-up of the second deammoniator as part of
the expansion project in addition to the consumption of
intermediary stockpiles. Production of 975 tonnes of
V2O5 in August was slightly above budget and
was aligned with the ramp-up schedule for the expansion project.
Production of 935 tonnes of V2O5 in September
was impacted by leaching area availability.
In Q3 2019, 267,257 tonnes of ore with an effective
V2O5 grade3 of 1.52% were mined
and the crushing unit was fed with 329,024 tonnes with an effective
V2O5 grade3 of 1.15%. Lower grades
seen in the crushing feed are primarily due to processing lower
grade weathered ore stockpiles built up during the first years of
the operation. The Company also produced 92,629 tonnes of
concentrate ore with an effective V2O5
grade3 of 3.26% compared to 88,075 tonnes produced in Q3
2018 with a grade of 3.30%.
Global V2O5 recovery rates2
averaged 78.1% in Q3 2019 which compares to 79.1% in Q2 2019 and
77.1% in Q3 2018. Global V2O5 recovery
rates2 were down slightly quarter-over-quarter in 2019
primarily as a result of processing low-grade ore stockpiles fed
and some process variability during the expansion ramp-up phase.
The Company expects global V2O5 recovery
rates2 to average approximately 79.0% in Q4 2019.
The Company's expansion project is in the final stages of
commissioning following the start-up of the new ball mill in
September and expects to reach the new nameplate capacity of 1,000
tonnes of V2O5 in October.
A summary of Q3 2019 production results from the Maracás Menchen
Mine is presented below:
|
|
|
|
|
Maracás Menchen
Mine Production
|
Q3
2019
|
Q2
2019
|
Q1
2019
|
Q3
2018
|
|
|
|
|
|
Total Ore Mined
(tonnes)
|
267,257
|
308,858
|
250,109
|
156,664
|
Ore Grade Mined -
Effective Grade (%)3
|
1.52
|
1.21
|
1.29
|
1.42
|
|
|
|
|
|
Effective Grade of
Ore Milled (%)3
|
1.44
|
1.49
|
1.51
|
1.47
|
Concentrate Produced
(tonnes)
|
92,629
|
102,320
|
86,673
|
88,075
|
Grade of Concentrate
(%)
|
3.26
|
3.30
|
3.32
|
3.48
|
Contained
V2O5 (tonnes)
|
3,016
|
3,380
|
2,874
|
3,065
|
|
|
|
|
|
Crushing Recovery
(%)
|
96.5
|
98.0
|
97.0
|
96.7
|
Milling Recovery
(%)
|
97.0
|
97.9
|
96.8
|
96.6
|
Kiln Recovery
(%)
|
88.8
|
88.8
|
89.2
|
86.8
|
Leaching Recovery
(%)
|
97.2
|
95.7
|
97.7
|
97.8
|
Chemical Plant
Recovery (%)
|
96.7
|
97.1
|
97.7
|
97.3
|
Global Recovery
(%)1
|
78.1
|
79.1
|
80.0
|
77.1
|
|
|
|
|
|
V2O5 produced (Flake + Powder)
(tonnes)
|
2,952
|
2,515
|
2,099
|
2,563
|
V2O5 produced (equivalent
pounds)4
|
6,508,038
|
5,544,619
|
4,627,497
|
5,650,441
|
2019 Annual Average Cash Cost Excluding Royalties Guidance
Update
The Company has lowered its 2019 annual average cash operating
guidance excluding royalties1 from the range of
US$3.45 - 3.65 to the range of
US$3.30 – $3.40 reflecting cash operating cost1
performance during the first half of 2019 and the expected positive
impact on foreign exchange for the balance of the year.
Additionally, the Company has produced 7,566 tonnes of
V2O5 year-to-date and continues to maintain
its annual production guidance range of 10,000 to 11,000 tonnes of
V2O5 for 2019.
Paulo Misk, President and Chief
Executive Officer of Largo, stated: "Operations at the Maracás
Menchen Mine continued to produce strong results in Q3 2019
following increased production as result of the expansion project.
Total year-to-date V2O5 production is 7,566
tonnes and the Company maintains its overall 2019 production
guidance range of 10,000 to 11,000 tonnes for the year."
He continued: "Following two consecutive quarters of reported
cash operating costs excluding royalties1 below our
previously stated annual average cash cost guidance, management is
very confident that its newly updated cash cost guidance for the
year will be achieved in 2019. Largo continues to be one of the
lowest-cost producers of V2O5 in the world
which is direct result of our high-quality asset combined with an
operations team that is solely focused on operational excellence.
We continue to remain focused on maximizing organic value creation
at the Company.
Conference Call
Largo Resources plans to release its financial and operational
results after the close of market trading on Wednesday, November 13, 2019. Management will
also host a conference call on Thursday,
November 14, 2019, at 10:00 a.m.
EDT, to discuss the Company's third quarter 2019 operational
and financial results.
Conference Call Details:
|
|
Date:
|
Thursday, November
14, 2019
|
Time:
|
10:00 a.m.
EDT
|
|
|
Dial-in
Number:
|
Local /
International: +1 (416) 764-8688
|
|
North American Toll
Free: (888) 390-0546
|
|
|
|
Brazil Toll Free:
08007621359
|
|
|
Conference
ID:
|
59082301
|
|
|
Replay
Number:
|
Local /
International: + 1 (416) 764-8677
|
|
North American Toll
Free: (888) 390-0541
|
|
|
|
Replay Passcode:
082301#
|
|
|
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").
Forward‐looking 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 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.
1The cash operating cost
and cash operating costs excluding royalties per pound produced
reported are on a non-GAAP basis. Refer to the forward-looking
statements section of this press release. Refer also to the
"Non-GAAP Measures" section of the Company's Management Discussion
and Analysis for the Six Months Ended June 30, 2019 for the cash
operating cost and cash operating cost excluding royalties per
pound produced calculation.
|
2Global recovery is the
product of crushing recovery, milling recovery, kiln recovery,
leaching recovery and chemical plant recovery.
|
3Effective grade
represents the percentage of magnetic material mined multiplied by
the percentage of V2O5 in the magnetic concentrate.
|
4Conversion of tonnes to
pounds, 1 tonne = 2,204.62 pounds or lbs.
|
SOURCE Largo Resources Ltd.