Largo Resources’ Maracas operating licence gets renewed
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.
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