Largo Resources Provides Update to the Market
Date: Oct 12, 2018
Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) is pleased to provide the following corporate update.In accordance with standard practice, INEMA published confirmation of the renewal of our operating license for the Maracas Menchen Mine (the “Licença de Operação” or “L.O.”) on October 5, 2018. The renewed L.O. is valid for a period of 2 years and may then be further extended within 6 months of the L.O.’s new expiry date for an additional 2-5 years period.In addition and as previously announced (see press release dated October 3, 2018), our Maracás Menchen Mine achieved a new quarterly production recording producing 2,563 tonnes of vanadium pentoxide (“V2O5“) in Q3 2018 and Largo exited Q3 2018 with record overall V2O5 recovery rate averaging 82.2% in September. Total production in Q3 2018 was 6% above the plant’s nameplate capacity and management expects production to continue at these levels for the remainder of the year.Vanadium prices continue to surpass decade high averages with the latest European Metal Bulletin price range for V2O5 posted during the week of October 5, 2018 being US$22.25–$23.00/lb. As announced in February (see press release dated February 12, 2018), the enforcement of China’s new rebar standard and the central government’s special action to cut down “substandard steels” comes into effect next month which, in the Company’s view, should add further pressure to the vanadium market.Finally, Largo also wants to clarify that it is unaware of the cause or reason for recent trading activity resulting in a decline in its share price earlier this week. Operations at the Maracás Menchen Mine are “business as usual” and we continue to produce strong results in-line with our operations to date.
