Largo provides update on development at its Maracas Vanadium Project
Symbol: LGO (TSX.V)
- Procurement of 40% of CAPEX complete
- Total CAPEX savings of R$26 million to date
- New Resource at Maracas to be disclosed in September
TORONTO, July 31, 2012 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that procurement and earthworks operations at its Maracas Vanadium Project are presently on schedule and under budget.
To date, purchase orders and contracts have been issued for approximately 40% of the total project CAPEX. Further, contract negotiations are in the final stages with purchase orders projected to be issued in the next 2-4 weeks which will bring the total to above 50% of the total project CAPEX. Included in this are the orders for all long-lead and critical-path items including the kiln, electrical powerline, main plant substation, process equipment for the leaching, thickening, filtering and production of ammonium metavanadate, as well as contracts for civil works and steel structure supplies.
Additionally, Largo announces that in its procurement orders to date, it has sustained a total CAPEX savings of approximately R$26.3 million from the projected budget. This savings is in addition to a R$52 million contingency already built into the project budget.
Tim Mann, Chief Operating Officer for Largo Resources stated: "We are extremely pleased to announce that the procurement process is well underway and that orders for all long-lead items have been placed. I would like to applaud the diligent work of both the Largo and Promon Engineering procurement teams who have, even at this early stage, realized significant savings in the project's most integral expenditures. We remain optimistic and hopeful that we will see continued cost reductions as we move forward with procurement and development."
He continued: "Development at the project site is moving according to schedule. Earthworks activities on the plant plateau and in the administration area are highlighted in the model below (see figures 1-5). Overall we are extremely pleased with the project's development and are looking forward to continued efficient development at Maracas. "
Photos of most recent development at the project site will be posted to the Maracas page of Largo's website each month. To view photos and 3D rendering of project site please visit: http://www.largoresources.com/projects/maracas/default.aspx
Maracas Resource Estimate Update:
Largo additionally announces that, further to its February 15, 2012 press release, it anticipates issuing an updated resource estimate for the Maracas Project in September 2012.
Robert Campbell, VP of Exploration to Largo, stated: "We remain very confident in successfully achieving our goal of expanding the Maracas resource significantly but the delay in the closing of the BNDES financing and associated temporary budgetary constraints led to a corresponding delay in the completion of the updated resource estimate." Once received, Largo's team will review the updated resource to consider whether there is a case for increased production potential in the future.
Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo currently holds a 90% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracás Vanadium Project by Q4 2013 and produce WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos. Largo's skilled management team both in Canada and Brazil, are confident in their ability to advance these projects.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
This press release contains forward-looking information under Canadian securities legislation. forward-looking information includes, but is not limited to, statements with respect to completion of the private placement, Largo's development potential and timetable of the Maracas and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, 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". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. 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. 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE Largo Resources Ltd.
Image with caption: "Figure 1: Model of Earthworks Plateaus (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120731_C3811_PHOTO_EN_16531.jpg
Image with caption: "Figure 2: Photo of Cutting & Filling Activity at Plateau 1 (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120731_C3811_PHOTO_EN_16532.jpg
Image with caption: "Figure 3: Photo of Cutting & Filling Activity at Plateau 2 (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120731_C3811_PHOTO_EN_16533.jpg
Image with caption: "Figure 4: Photo of Cutting & Filling Activity at Plateau 3 (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120731_C3811_PHOTO_EN_16534.jpg
Image with caption: "Figure 5: Model of Project Plant (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120731_C3811_PHOTO_EN_16535.jpg
Manager Business Development