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Largo Resources: Enhanced Access to Vanadium and Profitability Indicated by Pre-Feasibility Study Strengthens Foundation for Strategic Commitment to Energy Storage Business
TORONTO / Nov 03, 2021 / Business Wire / Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) is very pleased to announce positive results o
About this update from Largo Inc.
[{"type":"text","content":"TORONTO / Nov 03, 2021 / Business Wire / Largo Resources Ltd. (\"Largo\" or the \"Company\") (TSX: LGO) (NASDAQ: LGO) is very pleased to announce positive results of an updated mining plan to provide enhanced access to the vanadium needed for the Company to continue to execute on its energy storage transition strategy. An independent technical report (the \"Technical Report\") is being prepared in respect of the Company’s Maracás Menchen Mine in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (\"NI 43-101\"). See Appendix A for additional details on the Technical Report. Largo’s Board of Directors has approved the vertical integration of the Company’s foundational mining business with its recently announced energy storage operations, with a view of becoming a global leader in the redox flow battery sector. In executing on this shareholder value creation strategy, the Company has undertaken a comprehensive optimization study for the Maracás Menchen Mine, with the objectives of improving forecast vanadium production efficacy and extending mine life. Drilling and engineering work performed on the Campbell Pit, and NAN and GAN deposits, in addition to the inclusion of titanium dioxide (“TiO2”) has resulted in a significant increase in reserves and resources. In comparison to the Company’s restated 2020 Annual Information Form, the Technical Report details a 305% tonnage increase in Proven and Probable reserves and a 128% tonnage increase in Measured and Indicated resources for the Maracás Menchen Mine supported by a robust economic assessment, which indicates a material increase in the profitability and net present value of the Company’s mining operations. The materially enhanced Company profitability forecast by the Technical Report is driven by expanded V2O5 production and incremental cash flows generated by the production and sale of TiO2 pigment as a co-product. The Company believes the enhanced profitability of the mining operations contemplated by the Technical Report will unlock the flexibility to allocate operating costs between V2O5 and TiO2 in a manner that will drive increased market competitiveness and create additional shareholder value. Ian Robertson, Co-Chair of Largo, stated: “The increase in V2O5 production, extension of planned mine life and opportunity to deliver significa...