Largo Re­sources’ Mara­cas op­er­at­ing li­cence gets re­newed

Stockwatch Daily - - MINES & METALS - An anony­mous di­rec­tor re­ports

LARGO RE­SOURCES Ltd. has pro­vided the fol­low­ing cor­po­rate up­date. In ac­cor­dance with stan­dard prac­tice, INEMA pub­lished con­fir­ma­tion of the re­newal of the com­pany’s op­er­at­ing li­cence for the Mara­cas Menchen mine on Oct. 5, 2018.

The re­newed L.O. is valid for a pe­riod of two years and may then be fur­ther ex­tended within six months of the L.O.’s new ex­piry date for an ad­di­tional two-to-fiveyear pe­riod. In ad­di­tion and as pre­vi­ously an­nounced (see press re­lease dated Oct. 3, 2018), the com­pany’s Mara­cas Menchen mine achieved a new quar­terly pro­duc­tion record­ing pro­duc­ing 2,563 tonnes of vana­dium pen­tox­ide (V2O5) in the third quar­ter of 2018 and Largo ex­ited Q3 2018 with record over­all V2O5 re­cov­ery rate av­er­ag­ing 82.2 per cent in Septem­ber. To­tal pro­duc­tion in Q3 2018 was 6-per-cent 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 Oct. 5, 2018, be­ing $22.25 (U.S.) to $23.00 (U.S.)/pound. As an­nounced in Fe­bru­ary (see press re­lease dated Feb. 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 Mara­cas Menchen mine are “busi­ness as usual” and the com­pany con­tin­ues to pro­duce strong re­sults in-line with its op­er­a­tions to date.

About Largo Re­sources Ltd.

Largo is a Toronto-based strate­gic min­eral com­pany fo­cused on the pro­duc­tion of vana­dium flake, high-pu­rity vana­dium flake and high-pu­rity vana­dium pow­der at the Mara­cas Menchen mine lo­cated in Bahia state, Brazil.

We seek Safe Har­bor.

Sam Abra­ham, Je­sus Al­berto Arias, Al­berto Beeck, David Wal­lace Brace, Mark A Smith, Daniel Tel­lechea Salido, Koko Ya­mamoto

(LGO) Shares: 523,125,535

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