Largo Announces Filing of Technical Report for the Updated Life of Mine Plan and Pre-Feasibility Study for its Vanadium-Titanium Operation in Brazil
Largo has filed a technical report for its Maracás Menchen Mine in Brazil, highlighting significant extensions in mine life and resource growth. The report reveals a 31-year operating mine life until 2054, representing a 13-year increase from the 2021 report. The project demonstrates strong economics with a post-tax NPV7% of $1.1 billion and post-tax LOM undiscounted cash flow of $3.8 billion.
The report shows substantial increases in mineral reserves and resources, with total Proven and Probable Reserves of 101.03 mt grading 0.56% V2O5, representing a 67% increase in total Mineral Reserves. The project will produce 346.6 kt of V2O5 equivalent, 7,766.6 kt of ilmenite concentrate, and offers a TiO2 pigment production opportunity of 2,499 kt.
Largo ha presentato un rapporto tecnico per la sua Miniera Maracás Menchen in Brasile, evidenziando significative estensioni nella vita mineraria e nella crescita delle risorse. Il rapporto rivela una vita mineraria operativa di 31 anni fino al 2054, rappresentando un aumento di 13 anni rispetto al rapporto del 2021. Il progetto dimostra una solida economia con un NPV7% post-tasse di 1,1 miliardi di dollari e un flusso di cassa LOM non scontato post-tasse di 3,8 miliardi di dollari.
Il rapporto mostra aumenti sostanziali nelle riserve minerali e nelle risorse, con riserve provate e probabili totali di 101,03 mt con un grado dello 0,56% di V2O5, rappresentando un aumento del 67% nelle riserve minerali totali. Il progetto produrrà 346,6 kt di equivalente V2O5, 7.766,6 kt di concentrato di ilmenite e offre un'opportunità di produzione di pigmento TiO2 di 2.499 kt.
Largo ha presentado un informe técnico para su Mina Maracás Menchen en Brasil, destacando extensiones significativas en la vida de la mina y el crecimiento de recursos. El informe revela una vida operativa de mina de 31 años hasta 2054, lo que representa un aumento de 13 años con respecto al informe de 2021. El proyecto demuestra una sólida economía con un NPV7% post-impuestos de 1,1 mil millones de dólares y un flujo de caja no descontado LOM post-impuestos de 3,8 mil millones de dólares.
El informe muestra aumentos sustanciales en reservas minerales y recursos, con reservas probadas y probables totales de 101,03 mt con un grado del 0,56% de V2O5, lo que representa un aumento del 67% en reservas minerales totales. El proyecto producirá 346,6 kt de equivalente de V2O5, 7.766,6 kt de concentrado de ilmenita y ofrece una oportunidad de producción de pigmento de TiO2 de 2.499 kt.
라르고는 브라질의 마라카스 멘첸 광산에 대한 기술 보고서를 제출했으며, 이는 광산의 수명 연장과 자원 증가를 강조합니다. 보고서에 따르면 2054년까지 31년의 운영 광산 수명이 확인되며, 이는 2021년 보고서보다 13년 증가한 수치입니다. 이 프로젝트는 세후 NPV7%가 11억 달러이고, 세후 LOM 할인되지 않은 현금 흐름이 38억 달러로 강력한 경제성을 보여줍니다.
보고서에는 총 Proven 및 Probable Reserve가 101.03 mt로 V2O5 0.56%의 등급을 갖고 있으며, 이는 총 광물이 67% 증가한 것을 나타냅니다. 이 프로젝트는 V2O5 등가물 346.6 kt, 일멘라이트 농축물 7,766.6 kt를 생산할 것이며, TiO2 색소 생산 기회가 2,499 kt에 이를 것입니다.
Largo a déposé un rapport technique pour sa Mine Maracás Menchen au Brésil, mettant en avant des extensions significatives de la durée de vie de la mine et de la croissance des ressources. Le rapport révèle une durée d'exploitation de 31 ans jusqu'en 2054, ce qui représente une augmentation de 13 ans par rapport au rapport de 2021. Le projet affiche une solide économie avec une VAN7 % après impôts de 1,1 milliard de dollars et un flux de trésorerie non actualisé LOM après impôts de 3,8 milliards de dollars.
Le rapport montre des augmentations substantielles des réserves minérales et des ressources, avec des réserves prouvées et probables totalisant 101,03 mt avec une teneur de 0,56 % de V2O5, représentant une augmentation de 67 % des réserves minérales totales. Le projet produira 346,6 kt d'équivalent V2O5, 7.766,6 kt de concentré d'ilménite et propose une opportunité de production de pigment TiO2 de 2.499 kt.
Largo hat einen technischen Bericht für seine Maracás Menchen Mine in Brasilien eingereicht, der bedeutende Verlängerungen der Lebensdauer der Mine und das Wachstum der Ressourcen hervorhebt. Der Bericht zeigt eine 31-jährige Betriebsdauer der Mine bis 2054, was eine Erhöhung um 13 Jahre im Vergleich zum Bericht von 2021 darstellt. Das Projekt weist eine starke Wirtschaftlichkeit mit einem nach Steuern berechneten NPV7% von 1,1 Milliarden Dollar und einem nicht diskontierten Cashflow aus LOM nach Steuern von 3,8 Milliarden Dollar auf.
Der Bericht zeigt erhebliche Zunahmen bei den Mineralreserven und -ressourcen mit insgesamt nachgewiesenen und wahrscheinlichen Reserven von 101,03 Mt, die einen Gehalt von 0,56 % V2O5 haben, was einen Anstieg von 67 % bei den gesamten Mineralreserven darstellt. Das Projekt wird 346,6 kt V2O5-Äquivalent und 7.766,6 kt Ilmenitkonzentrat produzieren und bietet eine Produktionsmöglichkeit für TiO2-Pigmente von 2.499 kt.
- 31-year mine life extension to 2054, adding 13 years to previous plan
- Post-tax NPV7% of $1.1 billion and LOM cash flow of $3.8 billion
- 67% increase in total Mineral Reserves to 101.03 mt
- 64% increase in total Mineral Resources
- Significant production potential: 346.6 kt V2O5, 7,766.6 kt ilmenite concentrate
- 29% decrease in V2O5 head grade
- 15% decrease in V2O5 in magnetic concentrate
- 9% decrease in TiO2 head grade
Insights
The technical report reveals significant operational expansion and resource growth at Largo's Maracás Menchen Mine. Key highlights include:
- Extended mine life by 13 years to 2054, with robust post-tax metrics including an NPV7% of
$1.1 billion and LOM cash flow of$3.8 billion - 67% increase in total Mineral Reserves to 101.03 mt, though at lower grades
- 64% increase in total Mineral Resources to 104.78 mt
- Projected production of 346.6 kt V2O5 equivalent and 7,766.6 kt ilmenite concentrate over LOM
The expanded resource base and extended mine life strengthen Largo's position in the vanadium and titanium markets. However, the lower grades could impact production costs. The additional TiO2 pigment production opportunity represents a valuable vertical integration prospect.
All amounts expressed are in
Largo Announces Filing of Technical Report for the Updated Life of Mine Plan and Pre-Feasibility Study for its Vanadium-Titanium Operation in
Daniel Tellechea, Director and Interim CEO of Largo, commented: “The filing of this Technical Report provides a comprehensive update on our Maracás Menchen Mine, underscoring significant extensions in mine life and valuable vanadium and titanium resource growth among multiple deposits. This update highlights our team’s focused efforts to enhance our asset base while carefully considering the operational scenarios that support sustainable, long-term production going forward. The outlined potential strengthens Largo’s position as a reliable and secure supplier of vanadium and ilmenite, contributing to the needs of key industries for the future.”
Technical Report Highlights:
- 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 (the “2021 Technical Report”)
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Strong Economics Outlined over Project Life Including Additional TiO2 Pigment Production Upside Opportunity: Post-tax NPV
7% of$1.1 billion $3.8 billion $9.00 $222.05 $4,040.05 $5.10 USD - 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
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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, yielding2.16% V2O5 in magnetic concentrate for 435.31 kt of contained V2O5 in magnetic concentrate and head grade of7.52% TiO2 for 6,890.99 kt of contained TiO2` in non-magnetic concentrate; representing a67% 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 and8.31% 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 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 connection, located approximately 800 meters from the Campbell Pit, the evaluation and exploration of precious group metals at the Maracás Menchen Mine, the improvement of magnetite quality in its operations and the increase of the Company’s TiO2 grade in its flotation feed
The Technical Report has been filed on SEDAR+, with the SEC and can be found on the Company’s website at www.largoinc.com.
Qualified Person
Porfirio Cabaleiro Rodriguez, Mining Engineer, BSc., FAIG, is a qualified person as defined by NI 43-101, is responsible for the technical information contained within this release.
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE® and VPURE+® products, sourced from its Maracás Menchen Mine in
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com.
Cautionary Statement Regarding Forward-looking Information:
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and
Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited: to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&A which also apply.
Trademarks are owned by Largo Inc.
Information Concerning Estimates of Mineral Reserves and Measured, Indicated and Inferred Resources
This press release has been prepared in accordance with the requirements of the securities laws in effect in
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For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
Source: Largo Inc.
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