Largo Resources Ltd
Yukon Territory - Brazil - Ecuador: Gold-Copper, Vanadium PGE , tungsten/molybdenum
Message: Largo Provides Corporate Update
http://www.marketwire.com/press-rele...
Dec 05, 2008 16:05 ET
Largo Provides Corporate Update
TORONTO, ONTARIO--(Marketwire - Dec. 5, 2008) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or the "Company") is pleased to provide its shareholders with the following update.
Maracas Vanadium Project (Bahia, Brazil)
Largo has received formal notification from Odebrecht S.A. ("Odebrecht") and Companhia Vale de Rio Doce ("Vale"), that Largo has defaulted under certain of its obligations relating to the purchase of an additional interest in Companhia de Maracas, the Brazilian company that controls the Maracas project. Pursuant to the notice of default and the purchase and sale agreement, Largo has until December 24, 2008 to pay to Odebrecht and Vale an aggregate of US$5 million (plus interest) in consideration for an additional 39.9% interest in Companhia de Maracas.
Largo currently holds a 45.6% interest in Companhia de Maracas, and together with its partner, Metais Nao Ferrosos da Bahia Ltda. ("MNFB"), controls 50.1% of Companhia de Maracas. Upon making the stipulated US$5 million payment, Largo would increase its interest in Companhia de Maracas to approximately 81%, and, together with MNFB, it would hold an aggregate 90% interest. Largo continues to be the operator for the Maracas project. In the event that Largo does not make the additional US$5 million payment to Odebrecht and Vale, Largo shall retain its 45.6% interest in Companhia de Maracas but will forgo its right to acquire the additional interest.
Largo has requested that the vendors, Odebrecht and Vale, extend the payment deadline and anticipate receiving a response to this request in the near term.
Largo continues to work diligently to raise sufficient funds to conclude the payment.
Operations Update
Maracas Project
At the Maracas Project, the Company has completed its feasibility study (see press release dated August 13, 2008) and continues to progress the environmental licensing process. Once the environmental licensing process is completed and approved, the Company will be fully permitted to develop the Maracas deposit.
Continued work by Largo's operating team and the recent weakening in the Brazilian Reais have resulted in improved projected economics for the Maracas project. Estimated capital expenditures have been reduced to approximately US$220 million, as compared to the estimate of US$272 million in the feasibility study. Estimated cash operating costs for the first eight years of the operation have also been reduced to US$12.75 per kilogram, as compared to the estimate of US$15.49 per kilogram in the feasibility study. The latest Ferro Vanadium price quoted by Metal-Pages is US$30.00 per kilogram, as compared to the average price used in the feasibility study of US$45.86 per kilogram over the life of the mine.
Northern Dancer Project
At Northern Dancer, Largo has been encouraged by recent drilling results (see press releases dated November 10, 2008, October 10, 2008, September 25, 2008 and September 4, 2008). The Company awaits final assays from its 2008 drilling program and expects to complete an updated NI 43-101 compliant mineral resource estimate following receipt of final assays.
Tim Mann, P.Eng., the Vice President of Engineering of Largo Resources and a Qualified Person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
About Largo
Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. The company is listed on the TSX Venture Exchange under the symbol LGO.
For more information please refer to Largo's website: www.largoresources.com.
Disclaimer
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Largo's development potential and timetable of the Maracas project; the Largo's ability to raise additional funds necessary; the future price of ferrovanadium and vanadium pentoxide; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, 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". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Maracas project are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates; detailed research and analysis completed by independent consultants; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors involved in building a mine in Brazil and other factors that will be described in the technical report summarizing the Feasibility Study filed under the profile of the Company on SEDAR.
Capital and operating cost estimates are based on extensive research of the Largo and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the Feasibility Study. Production estimates are based on mine plans and production schedules, which have been developed by the Largo's personnel and independent consultants. 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 the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the 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. The Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Maracas Vanadium Project (Bahia, Brazil)
Largo has received formal notification from Odebrecht S.A. ("Odebrecht") and Companhia Vale de Rio Doce ("Vale"), that Largo has defaulted under certain of its obligations relating to the purchase of an additional interest in Companhia de Maracas, the Brazilian company that controls the Maracas project. Pursuant to the notice of default and the purchase and sale agreement, Largo has until December 24, 2008 to pay to Odebrecht and Vale an aggregate of US$5 million (plus interest) in consideration for an additional 39.9% interest in Companhia de Maracas.
Largo currently holds a 45.6% interest in Companhia de Maracas, and together with its partner, Metais Nao Ferrosos da Bahia Ltda. ("MNFB"), controls 50.1% of Companhia de Maracas. Upon making the stipulated US$5 million payment, Largo would increase its interest in Companhia de Maracas to approximately 81%, and, together with MNFB, it would hold an aggregate 90% interest. Largo continues to be the operator for the Maracas project. In the event that Largo does not make the additional US$5 million payment to Odebrecht and Vale, Largo shall retain its 45.6% interest in Companhia de Maracas but will forgo its right to acquire the additional interest.
Largo has requested that the vendors, Odebrecht and Vale, extend the payment deadline and anticipate receiving a response to this request in the near term.
Largo continues to work diligently to raise sufficient funds to conclude the payment.
Operations Update
Maracas Project
At the Maracas Project, the Company has completed its feasibility study (see press release dated August 13, 2008) and continues to progress the environmental licensing process. Once the environmental licensing process is completed and approved, the Company will be fully permitted to develop the Maracas deposit.
Continued work by Largo's operating team and the recent weakening in the Brazilian Reais have resulted in improved projected economics for the Maracas project. Estimated capital expenditures have been reduced to approximately US$220 million, as compared to the estimate of US$272 million in the feasibility study. Estimated cash operating costs for the first eight years of the operation have also been reduced to US$12.75 per kilogram, as compared to the estimate of US$15.49 per kilogram in the feasibility study. The latest Ferro Vanadium price quoted by Metal-Pages is US$30.00 per kilogram, as compared to the average price used in the feasibility study of US$45.86 per kilogram over the life of the mine.
Northern Dancer Project
At Northern Dancer, Largo has been encouraged by recent drilling results (see press releases dated November 10, 2008, October 10, 2008, September 25, 2008 and September 4, 2008). The Company awaits final assays from its 2008 drilling program and expects to complete an updated NI 43-101 compliant mineral resource estimate following receipt of final assays.
Tim Mann, P.Eng., the Vice President of Engineering of Largo Resources and a Qualified Person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
About Largo
Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. The company is listed on the TSX Venture Exchange under the symbol LGO.
For more information please refer to Largo's website: www.largoresources.com.
Disclaimer
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Largo's development potential and timetable of the Maracas project; the Largo's ability to raise additional funds necessary; the future price of ferrovanadium and vanadium pentoxide; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, 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". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Maracas project are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates; detailed research and analysis completed by independent consultants; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors involved in building a mine in Brazil and other factors that will be described in the technical report summarizing the Feasibility Study filed under the profile of the Company on SEDAR.
Capital and operating cost estimates are based on extensive research of the Largo and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the Feasibility Study. Production estimates are based on mine plans and production schedules, which have been developed by the Largo's personnel and independent consultants. 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 the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the 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. The Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For more information, please contact
Largo Resources Ltd.Mark Brennan
President & CEO
(416) 861-5886
Email: mbrennan@largoresources.com
or
Largo Resources Ltd.
Adam Dorfman
Corporate Development
(416) 861-5882
Email: adorfman@largoresources.com
Website: www.largoresources.com
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