Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

May 06, 2010 07:00 ET

Largo Engages South African Expert for Development of Maracas Vanadium Project (Brazil)

- Global Expert Involved in the Commissioning and Construction of the Majority of the Major Vanadium Plants Over the Past Thirty Years

TORONTO, ONTARIO--(Marketwire - May 6, 2010) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or the "Company") is pleased to announce that Mr. Les Ford has been retained by Largo, on an exclusive basis, as a specialist vanadium consultant who will be intimately involved with the engineering, procurement, construction and commissioning of Largo's Maracás Vanadium Project, Bahia State, Brazil.

Les Ford has worked in the vanadium industry for over 30 years in South Africa and is considered to be an expert, as the brief summary of his experience provided below indicates:

  • Highveld Steel and Vanadium Corporation from 1970 to 1989 where most recently he was responsible for the profitability of the vanadium operation, ferrosilicon operation and the ferromanganese operation 
  • Xstrata from 1989 to 2005 where he held the positions of Works Director of the Vantech plant (producing V2O5), Works Director of the Rhovan plant (producing V2O5 and ferrovanadium) and Technical Director of Xstrata Vanadium
  • Consultant to Windimura in Australia from 2005 to 2008 where he was responsible for the technical design of the vanadium plant.

Les Ford commented, "Maracás has a significant advantage over existing and other potential primary vanadium producers because of its extremely high quality mineral body that is expected to result in the production of a concentrate containing around 3% V2O5".

Mr. Ford's first task, which has already commenced, will be to lead the process engineering elements of the basic engineering phase of the project. Largo completed a feasibility study for Maracás in September 2008 that reflected the milling of ore at a grade of 1.94% V2O5 to produce 4,500 tpa of vanadium contained in ferrovanadium for the first 8 years of production (see press release dated August 12, 2008). 

Since publication of the feasibility study, Largo has undertaken an optimization process whereby projected annual production has been increased to further enhance the viability of the project. This process has resulted in targeted production rates being increased to 5,100 tpa of vanadium, which results in improvements to an already robust project. 

Mr Ford has been engaged to work with Largo's existing technical team based in Brazil under the direction of Rodrigo Costa, who is Largo's Project Manager for Maracás (see press release dated August 21, 2008). Mr. Costa is a mine engineer with credentials from the Bahia State University in Brazil and a M.Sc. in engineering from Queens's University in Canada. He most recently held the position of metallurgical manager for a major gold producing mining company. He gained construction experience at the Jacobina Mine with previous operators, Desert Sun Mining Corp. and subsequently Yamana Gold Inc. Prior experience includes assignments involving a magnesia sinter plant.

Mark Brennan stated "I am very pleased that Largo has been able to recruit Mr. Ford, who is recognised as a seasoned vanadium expert, for the implementation phase of the Maracás Vanadium Project." He added, "We continue to be very excited by the prospects for Maracas and see very few mining opportunities with the same potential economics that Maracás is expected to provide."

Timothy Mann, P.Eng., Vice President, Engineering of the Company and a Qualified Person under NI 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 Maracás Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. 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. 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. 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. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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