Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) was pleased to announce third quarter 2019 production results from its Maracas 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 Maracas 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 grade of 1.52% were mined and the crushing unit was fed with 329,024 tonnes with an effective V2O5 grade 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 grade of 3.26% compared to 88,075 tonnes produced in Q3 2018 with a grade of 3.30%.
Global V2O5 recovery rates averaged 78.1% in Q3 2019 which compares to 79.1% in Q2 2019 and 77.1% in Q3 2018. Global V2O5 recovery rates 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 rates 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.
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