Largo Inc (LGO)

[douginil]

Largo Resources Reports V2O5 Production of 2,831 Tonnes in Q1 2020

April 13, 2020

- V2O5 production of 2,831 tonnes (6.2 million lbs1) in Q1 2020, an increase of 35% over Q1 2019
- Global V2O5 recovery rate of 79.9% in Q1 2020 compared to 80.0% in Q1 2019 and 77.3% in Q4 2019
- Planned kiln upgrades and cooler maintenance in April 2020 postponed due to COVID-19 precautions; Enhanced chemical plant preventative maintenance to be performed
- 2020 production, sales and cost guidance maintained

TORONTO, April 13, 2020 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces first quarter 2020 production results from its Maracás Menchen Mine with production of 2,831 tonnes of vanadium pentoxide ("V2O5") produced at an average global recovery rate2 of 79.9%.

Total production in Q1 2020 from the Maracás Menchen Mine was 2,831 tonnes of V2O5 representing an increase of 35% over Q1 2019. Production in January 2020 was 956 tonnes of V2O5, with 915 tonnes of V2O5 produced in February 2020 and 960 tonnes produced in March 2020. Production in January 2020 was impacted by shutdowns of the kiln and cooler to fix the refractory and for maintenance to correct instability in the kiln feed. Production in February and March 2020 was impacted by additional kiln shutdowns to fix hot spots in the refractory. The Company's planned upgrades to the kiln and improvements in the cooler have been postponed until further notice as a result of precautionary measures such as limiting mine site personnel and contractors in light of the COVID-19 pandemic. The Company will instead be performing an enhanced preventative maintenance program in the chemical plant for approximately 15 days and, as a result, estimates that April 2020 production will be approximately 500 tonnes of V2O5.

In Q1 2020, 203,966 tonnes of ore with an effective V2O5 grade3 of 1.61% were mined and the crushing unit was fed with 226,394 tonnes with an effective V2O5 grade3 of 1.43%. The Company also produced 100,072 tonnes of concentrate ore with an average V2O5 grade3 of 3.36% compared to 86,673 tonnes produced in Q1 2019 with a grade of 3.32%.

Global V2O5 recovery rates2 averaged 79.9% in Q1 2020 which compares to 80.0% in Q1 2019. Global recoveries2 in Q1 2020 increased 3% over Q4 2019 (77.3%) following improved recoveries in the crushing, milling, leaching and chemical plant areas but were partially offset by lower recoveries in the kiln.


Read more at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Reports-V2O5-Production-of-2831-Tonnes-in-Q1-2020/default.aspx