Friday 4 October 2013

Largo Resources says Maracas project development continues on track

Largo Resources (CVE:LGO) provided investors Thursday with an update for its Maracás vanadium project in Brazil, saying the civil construction contractor has already begun the demobilization process - an important construction milestone. 
Electrical mechancial erection at the project, which includes the installation of equipment and structures, continues on plan, said the company in its release, with commissioning on track for the first quarter of next year. 
At the mine, pre-stripping of the Gulçari "A" open pit is proceeding as planned, with the main pit access ramp well underway. 
Commissioning of the beneficiation plant and the production of 5,000 tonnes of concentrate is expected to start in November, and pre-commissioning of the crushing plant is currently underway, with full commissioning expected to start before the end of October. 
All but minor civil work remains to be completed by the civil contractor, said Largo, with non-magnetic tailings and iron by-product dams now complete. 
The Canadian strategic mineral company's primary focus is to continue to advance its flagship Maracas vanadium project with the company targeting a production start date in first quarter of next year. The project, which is fully funded, permitted and in construction, is slated to be the world's "premier producer of vanadium", according to Largo, due to its high grade and low operating costs.
The 27,000-hectare property is located 813 kilometres northeast of Brasilia, the capital of Brazil, and 250 kilometres southwest of Salvador, the capital of Bahia State.
Earlier this week, the Toronto-based company received yet another accolade for its Maracas project, getting Latin Finance magazine's best mining finance award for the funding of the asset last year, with the magazine citing "the novel nature of the non-recourse financing structure", as well as difficult market conditions and unique aspects of the project and its chief commodity. The total R$556 million transaction, which was led and financed entirely by Brazilian banks, was completed in June of 2012. The Brazilian property is the first Greenfield mining project ever to be fully funded by Brazilian banks, according to Largo. 
The news, released in a statement late Monday, follows another award earlier this year, when Largo was named the recipient of Project Finance magazine's Latin American Mining and Metals Deal of the Year, 2012.

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