Largo Inc (LGO)

[Slashnuts]

Production of High Purity Vanadium Powder Begins!

Largo Announces Agreement to Qualify, Produce and Sell Vanadium Powder & Provides Operational and Vanadium Market Update

March 05, 2018

TORONTO, March 5, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is very pleased to announce that it intends to qualify, produce and sell vanadium pentoxide powder ("V2O5 powder") via Glencore International AG, the existing exclusive off taker of all vanadium products currently produced from the Maracás Menchen Mine.

Largo will begin production of V2O5 powder to supplement its current vanadium pentoxide ("V2O5") fused flake production during Q1 2018. V2O5 powder is required for critical chemical and catalyst applications. Largo is currently being qualified by major chemical and catalyst producers in Europe, North America and Asia.

Mark Smith, President and Chief Executive Officer for Largo, stated: "Adding V2O5 powder production capability allows Largo to service another lucrative market segment in addition to the ferro-vanadium, vanadium master alloys and vanadium chemical (flake) sectors already being served. The inherent high purity of our vanadium enables Largo to effectively expand its production capabilities to include V2O5 powder."

Largo's V2O5 has been qualified or is being qualified at every producer of vanadium master alloys supplying the Western titanium industry and is currently supplying this market with significant quantities of V2O5 each month. Largo's V2O5 has also been qualified for use by vanadium redox flow battery developers and electrolyte producers in North America, Europe and China.

Production at the Maracás Menchen Mine totalled 706 tonnes of V2O5 for the month of January and 645 tonnes of V2O5 for the month of February. Lower production during January and February was attributable to temporary maintenance performed on the cooler refractory system, which has now been completed. Production will return to nameplate capacity of ~800 tonnes of V2O5 per month from March onwards, except for July, when the Company is planning a 7-day shutdown to replace the refractory in the cooler and kiln.
The London Metal Bulletin price for V2O5 as at March 2, 2018 was trading in the range of US$14.00 to US$14.50 per pound of V2O5. This level increased from the December 31, 2017 price range of US$9.60 to US$9.90 per pound of V2O5.

http://www.largoresources.com/English/investors/news/news-release-details/2018/Largo-Announces-Agreement-to-Qualify-Produce-and-Sell-Vanadium-Powder--Provides-Operational-and-Vanadium-Market-Update/default.aspx

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