V2O5 production of 2,562 tonnes (5.6 million lbs1) in Q2 2020, a 2.0% increase over Q2 2019
Global V2O5 recovery rate2 of 80.8% in Q2 2020 compared to 79.1% in Q2 2019
Nameplate capacity increase by 10%: Planned kiln upgrades and cooler maintenance scheduled for Q4 2020 with a capex of US$1.3 million
First independent vanadium shipment made on May 14, 2020
Operations at the Maracás Menchen Mine continued in Q2 2020; 2020 guidance maintained on a “business as usual” basis
Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) announces second quarter 2020 production results from its Maracás Menchen Mine with production of 2,562 tonnes (5.6 million lbs) of vanadium pentoxide (“V2O5”) produced at an average global recovery rate2 of 80.8%.
Q2 2020 Production Results
Total production from the Maracas Menchen Mine was 2,562 tonnes of V2O5, representing an increase of 2.0% over Q2 2019. Following the completion of the Company’s preventative maintenance program, V2O5 production in April 2020 was 480 tonnes with 1,052 tonnes produced in May 2020 and 1,030 tonnes in June 2020.
In Q2 2020, 257,357 tonnes of ore with an effective V2O5 grade3 of 1.20% were mined compared to 308,858 tonnes in Q2 2019 with an effective V2O5 grade3 of 1.21%. The crushing unit was fed with 304,560 tonnes with an effective V2O5 grade3 of 1.03% and the Company produced 99,059 tonnes of concentrate ore with an average V2O5 grade3 of 3.20%. The decrease in total ore mined when compared to Q2 2019 is due to operational adjustments to limit the Company’s contracted mining workforce during the COVID-19 pandemic as well as operational restrictions due to the rainy season. During this time. the Company used available stocks to feed the crushing plant in order to mitigate the impact on V2O5 production.
Global V2O5 recovery rates2 averaged 80.8% in Q2 2020 representing a 2% increase over Q2 2019 (79.1%). This is primarily attributable to improved recoveries in the kiln and leaching section of the plant during the quarter.
COVID-19 Update: 2020 Guidance Maintained
The Company continues to monitor the evolving COVID-19 pandemic and has taken preventative measures at its mine site and corporate offices to mitigate potential risks. There continues to be no significant impact on our production or on our shipment of product out of Maracás. To date, there continues to be no significant disruption to the Company’s supply chain for its operations and the level of critical consumables continues to be at normal levels. In addition, the restrictions imposed by the government in Brazil have not significantly impacted operations. The Company continues to follow the recommendations provided by health authorities and all corporate office personnel have been instructed to work from home where possible. The Company continues to staff critical functions at the mine site and has encouraged those in non-essential roles to work from home.
In addition, the Company’s 2020 guidance continues to be presented on a “business as usual” basis. Largo continues to monitor measures being imposed by governments globally to reduce the spread of COVID-19 and the impact that this may have on our operations and guidance for 2020. Although these restrictions have not, to date, had a material impact on our operations, the potential future impact of COVID-19 both in Brazil and globally could have a significant impact on our operations, sales efforts and logistics. The Company will continue to monitor the situation and will, if and when necessary, update its guidance accordingly.
About Largo Resources
Largo Resources is an industry preferred producer and supplier of vanadium. Largo’s VPURE™ and VPURE+™ products are sourced from one of the world’s highest-grade vanadium deposits at the Maracás Menchen Mine located in Brazil. The Company’s common shares are principally listed on the Toronto Stock Exchange under the symbol “LGO”.
www.ferroalloynet.com
