Largo Resources Announces Life of Mine Plan for Maracás Menchen Vanadium Mine

TORONTO, Oct. 26, 2017 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is pleased to announce the results of an independent National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") Technical Report (the "Technical Report"), containing a Life of Mine Plan ("LOMP") for its Maracás Menchen vanadium mine in Bahia, Brazil (the "Maracás Menchen Mine"), a Feasibility Study (the "FS") for Campbell Pit at the Maracás Menchen Mine and, a Preliminary Economic Assessment (the "PEA") for Gulçari A Norte, Gulçari B, Novo Amparo, Novo Amparo Norte, Campbell in pit resources and São José satellite deposits at the Maracás Menchen Mine (the "Satellite Deposits").

Largo retained GE21 Consultoria Mineral Ltda. ("GE21") to prepare the Technical Report and it will be filed on SEDAR within the required 45-day period.

Highlights of the Technical Report:

• NPV_(8%) post tax is US$ 542 million for the reserves at the Campbell Pit, representing an increase of approximately 195% over the NPV reported for Reserves in Largo's Updated Mine Plan And Mineral Reserve Report filed on July 8, 2016¹.
• NPV_(8%) post tax is US$ 140 million for the mineral resources in the Satellite Deposits.
• Life of operation for the reserves in the Campbell Pit is 11 years.
• An additional mine life of 12 years was estimated, if the Inferred Resources in the Satellite Deposits come to be converted to Mineral Reserves. 
• The Technical Report is a "Vanadium Only" study. No value was given for any by-products at this time, including iron, ilmenite ("TiO2") and PGMs.
• The Technical Report used a long-term vanadium pentoxide ("V2O5") price of US$ 6.34/lb for the life of mine except for the years 2018 and 2019, where vanadium pentoxide price of US$ 9.00/lb was used.
• The LOMP results indicate an operating life of the Maracás Menchen Mine, including the Satellite Deposits, to be of 23 years.
• The Technical Report contemplates two expansions to increase production at Campbell Pit as follows: in 2019-960 tonnes/month (11,520 tpa) and in 2020-1100 tonnes/month (13,200 tpa).

The reserves in the Campbell Pit were estimated as follows:

Maracás Vanadium Project Mineral Reserves – Campbell Pit
Block dimensions 5x5x5 (m)
Mine Recovery 100% - Dilution 5%
(Effective Date - May 02, 2017)

• The mineral resources, estimated under the PEA was as follows:

Satellites Deposits
Mine Recovery 100% - Dilution 5%

• GE21 recommended the Satellite Deposits be developed sequentially as follows: Novo Amparo Norte, Gulçari A Norte & Gulçari B, Sao Jose, Campbell in pit resources and Novo Amparo.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the PEA will be realized. 

Overview of the Technical Report:

Largo has completed construction, development and ramping up to name plate capacity (9,600 tonnes V₂O₅/year) at its Maracás Menchen Mine.

The Technical Report was prepared by GE21 and was designed to allow the Company to more fully optimize operations in order to maximize the Maracás Menchen Mine's NPV and is based on the production of V₂O₅ from the Maracás Menchen Mine's mineral resources as well as from its established mineral reserves. The PEA examines the incremental impact to the mine plan of mining the Satellite Deposits not previously considered.  The report does not provide any credit for by-products, however Largo will continue to evaluate the technical and economic viability of all potential by-products.

The Technical Report respects the definition of PEA as described in the CSA Staff Notice 43-307- Mining Technical Report – Preliminary Economic Assessments, issued by the Canadian Securities Administrators on Aug 16, 2012.

Mr. Smith, Largo's CEO stated "I am very pleased with the results of this study.  Both the increase in the net present value of our operations and the greatly increased mine life that could be achieved as a result of the Satellite Deposits speak to what I view as a very bright future for Largo.  This Technical Report further reinforces that Largo has a world class vanadium operation and I am confident that our team will continue to meet and exceed our operational expectations."

Qualified Persons

Porfírio Cabaleiro Rodriguez, Mining Engineer, BSc (Mine Eng), MAIG employed by GE21 Consultoria Mineral Ltda, Leonardo Apparicio da Silva, Mining Engineer, BSc (Min Eng), MSc (Met Eng), MAIG associated to GE21 Consultoria Mineral Ltda, and Fabio Valerio Xavier, Geologist,BSc , Geol, MAIG associated to GE21 Consultoria Mineral Ltda, are the Qualified Persons as defined in NI 43-101 responsible for the Technical Report and are all independent of the Company.

Quality Assurance Quality Control:

The scientific and technical information in this press release has been reviewed and approved by Porfírio Cabaleiro Rodriguez, Mining Engineer, BSc (Mine Eng), MAIG, GE21 director; Leonardo Apparicio da Silva, Mining Engineer, BSc (Min Eng), MSc (Met Eng), MAIG; and Fabio Valerio Xavier, Geologist,BSc , Geol, MAIG,both employed by GE21 Consultoria Mineral Ltda, all of whom are Qualified Persons as defined in NI 43-101.

About Largo Resources Ltd.

Largo is a growing strategic mineral company focused on the production of vanadium pentoxide at its Vanadio de Maracás Menchen Mine. Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the Yukon Territory, Canada.

Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range of products that are used and encountered every day; including, rebar, automobiles, transport infrastructure etc. With consumption increasing at a compound annual growth rate of over 8% for the past several years (Roskill, 2015), vanadium is a bourgeoning commodity which lacks opportunities for investment in the wider market place. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to continue this growth over the medium and long term.

Largo is listed on the Toronto Stock Exchange under the symbol "LGO".