Increase In Mineral Reserves At The Maracas Mencken Operation
TORONTO Largo Inc. reported a significant increase in Mineral Reserves, Mineral Resources and mine life as part of results from an updated Life of Mine Plan (LOMP) and Pre-Feasibility Study completed on the vanadium-titanium Maracás Menchen operation located in Bahia State, Brazil. An independent technical report is being prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) for the Company.
Large Scale Vanadium/Titanium Project – Increased Mine Life to 2054: Total operating mine life for the Project of 31 years, representing an increase of 13 years in mine life as compared to the parameters set forth in the Company’s 2021 technical report, titled An Updated Life of Mine Plan for Campbell Pit and Pre-Feasibility Study for GAN and NAN Deposits, dated December 16, 2021. Strong Economics Outlined over Project Life Including Additional TiO2 Pigment Production Upside Opportunity: Post-tax NPV7% of $1.1 billion, post-tax life-of-mine (“LOM”) cash flow of $3.8 billion, reflecting the weighted average long-term forecast prices of $9.00/lb vanadium pentoxide (V2O5) (inclusive of high purity premium), $222.05/tonne ilmenite concentrate, $4040.05/tonne titanium dioxide (TiO2) pigment and $5.10 USD/BRL exchange rate.
Robust and Reliable Supply of Critical Materials through Outlined Operational Scenarios: Total LOM V2O5 equivalent production of 346.6 kt, ilmenite concentrate production of 7,766.6 kt and TiO2 pigment production opportunity of 2,499 kt. Supported by a Significant Increase in Mineral Reserves over 2021 Technical Report Results Following Inclusion of the Novo Amparo Oeste (NAO) and São Jose (SJO) Deposits: Total Proven and Probable Reserves of 101.03 mt grading 0.56% V2O5, yielding 2.16% V2O5 in magnetic concentrate for 435.31 kt of contained V2O5 in magnetic concentrate and head grade of 7.52% TiO2 for 6,890.99 kt of contained TiO2` in non-magnetic concentrate; representing a 67% increase in total Mineral Reserves, 16% increase in V2O5 contained metal, 54% increase in TiO2 contained metal, 29% decrease in V2O5 head grade, 15% decrease in V2O5 in magnetic concentrate, 9% decrease in TiO2 head grade.
Substantial Increase Mineral Resources over 2021 Technical Report – Upgrade of Measured and Indicated Resources from Campbell, Gulçari A Norte (GAN) and Novo Amparo Norte (NAN), and Indicated Resources from SJO, NAO Deposits: The total 2024 Measured and Indicated Resources of 104.78 mt grading 0.62% V2O5 and 8.31% TiO2 for 653.54 kt of contained V2O5 in situ and 8707.50 kt of contained TiO2` in situ, 64% increase in total Mineral Resources, 29% increase in V2O5 contained metal, 66% increase in TiO2 contained metal, 22% decrease in V2O5 head grade, 1% increase in TiO2 head grade. Future Growth Opportunities: The 2024 Technical Report outlines several additional studies in progress meant to improve future results of the Company, including new resource base and exploration potential of the Campbell Pit-Gulcari A South (GAS) connection, located approximately 800 meters from the Campbell Pit, the evaluation and exploration of precious group metals (PGMs) at the Project, the improvement of magnetite quality in its operations and the increase of the Company’s TiO2 grade in its flotation feed.
Daniel Tellechea, CEO and Director, said, “The results of our 2024 Technical Report clearly showcase the long-term potential of the Maracás Menchen vanadium and titanium operation and reaffirm Largo’s position as a secure and reliable supplier of critical materials for the future in the Americas. Over the past three years, our geology and operations teams have made significant progress in advancing the Company’s exploration and project planning, expanding both Mineral Reserves and Resources, which has extended mine life by an additional 13 years over Largo’s previous 2021 Technical Report. While head grades have decreased following the addition of new ore deposits and further understanding and interpretation of the Company’s ore bodies, this knowledge will allow us to better optimize our production plan going forward and maximize long-term resource planning and extraction. Additionally, the economic scenarios presented in the 2024 Technical Report, including a post-tax NPV7% of $1.1 billion and undiscounted accumulated cash flows of $3.8 billion over the life of the Project, demonstrate the Project’s ability to generate sustainable value subject to the outlined CAPEX and cost scenarios.
In the long-term, we see growing demand for our products, particularly Largo’s high-quality vanadium, as industries and governments increasingly prioritize energy storage and the development of advanced technologies, particularly in the aerospace sector. Largo is well-positioned to meet this demand, with a significant resource base to support future production scenarios. Additional growth projects such as implementing a TiO2 pigment production in Camaçari, along with ongoing exploration at the Campbell-GAS connection and platinum-palladium exploration opportunities are expected to enhance overall results at the Company. These initiatives, combined with the outlined expansion scenarios, present a solid plan to strengthen Largo’s role as a key player in the vanadium and titanium markets, meeting the critical material needs of a transitioning global economy.”