C O M P A N Y O V E R V I E W
Largo Resources
Pure vanadium producer
With its Maracas project nearly ready for production, Largo vanadium on the map and become the only pure play vana Written by: Robert Spence Produced by: Bobby Meehan
o Resources is gearing up to put adium producer in the world
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LARGO RESOURCES
Crushing system at the Maracas Project as at July, 2014
H Kurt Menchen
Mark Brennan, Largo Resources President and CEO 4
eadquartered in Toronto, Canada, Largo Resources is engaged in the development and exploration of natural resources with projects in Brazil and Canada. The company’s primary focus lies in vanadium, tungsten, and molybdenum. Largo holds interest in a portfolio of other projects, including a 100 percent interest in the Currais Novos tungsten tailing project in Brazil; a 100 percent interest in the Campo Alegre de Lourdes iron-vanadium project in Brazil; and a 100 percent interest in the Northern Dancer tungsten-molybdenum property in the Yukon Territory, Canada. The company is currently focused on the development of its flagship Maracas Vanadium Project in Brazil. With assets in place, Largo
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Resources is establishing itself as the only pure vanadium producer in the world.
Maraca Vanadium Project The Maracas project in Brazil is the world’s premier vanadium deposit. It boasts the highest grade of vanadium resources in the world and is positioned to be the lowest cost producer in the market. “It is one of the first vanadium mines that will be going into production in a long time,” says president and CEO Mark Brennan. “Of every commodity there is typically one superior deposit for ore, and for vanadium, it’s Maracas,” says Brennan. “It’s a total anomaly. It’s the richest, highestgrade vanadium deposit in the world.”
“With
production anticipated in the near term, we will be the only pure producer of vanadium people can invest in” – CEO Mark Brennan
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Commencing construction in 2012, Largo is rapidly approaching commercial production. The project will utilize a simple, cost effective, open-pit mining process and proven industry methods to extract vanadium The Maracas project is expected to produce 9,600 tons of vanadium pentoxide per year and, although the current mine life is 29 years, the company foresees the potential to extend the mine’s lifecycle to exceed 100 years. “The good news is it’s a big system so this will be producing for a long
time and be a significant contributor to a continuous and consistent supply of vanadium for steel users,” says Brennan. Vanadium, which is a commonly used ingredient in steel and titanium, is a strategic metal derived from primary mining and steel slag. The metal imparts hardness, wear resistance, seismic resistance and significantly increased strength to steel. “Asia will be the fastest-growing market for vanadium, led by China, Japan, South Korea and Indonesia,” said Brennan.
LARGO RESOURCES “India is producing low-quality steel, but they are the world’s second largest steel producer after China. Over a period of time, we expect India’s consumption of vanadium to also increase.”
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environmental purposes.”
With almost a 60 percent unemployment rate, the success of the mine has propelled economical benefits the residents of Maracas didn’t have before. Social Responsibility “Since we started construction Along with actively developing the in 2012 we’ve seen a surge in the Maracas project, Largo is striving community in terms of economic to improve the community in which benefits with the addition of it operates. The company provides hotels, restaurants, and shops,” various programs and initiatives says Brennan. “We also provide aimed at improving life for residents, professional qualification programs including health and safety and sustainable projects that allow initiatives, community programs and job creation and income for the environmental actions. local community.” “We have a very strong The Maracas project is expected environmental record that is greatly to generate some 300 jobs at the appreciated by people around the start of operations and 400 new jobs community,” says Brennan. when it reaches full capacity. “We’ve donated 450 living quarters to the community, which Endless potential were built as living quarters for the The future is looking grand for Largo construction of the Maracas project. Resources. With production of the Once the final contractors have Maracas Vanadium Project slated evacuated, we’ll hand it over to the to begin this month, the company is community and we plan on handing gearing up to put vanadium on the map. over another 450 living quarters Largo Resources expects the to donate as a school once the mine to reach an output rate of 9,600 project is finished. We’ve also set t/y of vanadium pentoxide within aside 2,400 hectors out of 4,800 for the first 12 months with the second w w w. l a r g o r e s o u r c e s . c o m
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LARGO RESOURCES
phase of expansion seeing output rise to 14,400 t/y within the next three years. This will give the company the ability to supply 10 percent of the global demand by the time it reaches its phase 2 capacity. Largo has also secured a six-year sale contract with Glencore International for 100 percent of all vanadium products from the Maracas mine. “We’ll expand production and continue to expand production, making Maracas the largest vanadium deposit in the world,” says Brennan. “We will be the only pure producer of vanadium people can invest in.” Largo has other development stage properties within its portfolio including its Northern Dancer project in Canada. 8
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Company Information INDUSTRY
Mining HEADQUARTERS
Toronto, ON Canada
“The Northern Dancer site is the largest undeveloped tungsten deposit in the world,” says Brennan. “We remain very bullish long term on tungsten and our expectations are to develop this deposit in the future.” According to Brennan, the company will need to see a higher commodity price for tungsten before it begins construction. “We’re focusing on immediate return on capital right now.”
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LARGO RESOURCES 55 University Ave. Suite 1101 Toronto, ON Canada M5J 2H7 416-861-9797 www.largoresources.com