Largo Resources Ltd. [LGO-TSX; LGORF-OTCQX] reported second quarter 2018 production results highlighting a new average daily production record of 29.4 tonnes of vanadium pentoxide (V2O5) produced per day in June from its Maracás Menchen vanadium mine in Bahia State, Brazil.
Total production from the Maracás Menchen Mine in the second quarter of 2018 was 2,458 tonnes of V2O5 representing a 13% increase over Q2 2017 and an 11% increase over Q1 2018.
Overall V2O5 recovery rates for Q2 2018 averaged 79.2%, which represents an increase of 6.6% against Q2 2017, and an increase of 4.3% against Q1 2018.
The company is pleased to report it has achieved a new daily average production record for the month of June with 29.4 tonnes of V2O5 produced per day. Total concentrate produced in Q2 2018 was 85,639 tonnes compared to 88,186 in Q2 2017 representing a decrease of 2.9%.
A summary of production results from the Maracás Menchen Mine is presented below:
|Maracás Menchen Mine Production||Q2 2018||Q1 2018||Q2 2017|
|Overall V2O5 Recovery Rate (%V2O5)||79.2%||75.9%||74.3%|
|Concentrate produced (tonnes)||85,639||77,222||88,186|
|Grade of Concentrate (%V2O5)||3.37%||3.56%||3.28%|
|Contained V2O5 (tonnes)||2,889||2,747||2,893|
|V2O5 flake produced (tonnes)||2,458||2,214||2,183|
|V2O5 produced (equivalent pounds)1||5,418,956||4,881,029||4,812,685|
|1. Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.|
Mark Smith, President and CEO of Largo, stated, “The Maracás Menchen Mine continued to provide solid production results for the second quarter of 2018 representing a sound improvement over Q1 2018. Although production during the month of May was slightly impacted as a result of Brazil’s country-wide truckers’ strike, our team was able to take advantage of the downtime to complete maintenance across the plant.”
Smith continued, “V2O5 prices continued to edge higher with the latest European Metal Bulletin price range posted during the week of July 6 being US $18.50-$19.00/lb, which puts us in a good starting position for the third quarter. Management continues to remain very optimistic for the year ahead as the Company begins the construction phase of the Maracás Menchen Mine expansion plan which will see capacity increase at the mine from a total of 800 tonnes produced per month of V2O5 to 1,000. We look forward to providing the market with updates as the expansion plan construction commences.”