Maracás Menchen Mine

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Ownership 99.84%
Location Bahia State, Brazil
Size 17,690 ha
Commodity Vanadium
Products V2O5 flake, High purity V2O5 flake & powder
Mining type Open pit
Plant throughput 3,900 tpd
2019 production guidance 10,000-11,000 tpa of V2O5
Off-take 100% - Glencore
(Expires May 2020)
Reserve life 10 years *

Refer to Campbell Pit Reserves and Resources section of website for full NI 43-101 disclosures.

Bahia Image

The Maracás Menchen Mine

The Maracás Menchen Mine property totals 17,690 hectares and is located in the eastern Bahia State of Brazil. The mine is roughly 250 km southwest of Salvador (capital of Bahia) and 813 km northeast of Brasilia (capital of Brazil). The Maracás Menchen Mine has excellent access by road from Salvador to the mine via 405 km of paved secondary road from the main costal highway in Bahia and via a direct project access road of about 50 km west of the town of Maracas. The town of Maracás has a population of approximately 30,000.

The Maracás Menchen Mine boasts one of the highest-grade vanadium resources in the world and is one of the lowest-cost producers of the material in the vanadium market. Construction at the Maracás Menchen Mine began in June 2012 and initial production of vanadium flake commenced in Q3 2014. Largo currently has a contracted take-or-pay off-take agreement with Glencore International Plc. for 100% of its vanadium material which expires in Q2 2020. The mine is projected to produce between 10,000 and 11,000 tonnes of vanadium pentoxide in 2019. The Company announced in April 2018 plans to expand production capacity by 25% at the mine with construction which began in June 2018. The enhanced production rate at the Maracás Menchen Mine is expected to result in an additional 200 tonnes of V2O5 being produced per month totaling 1,000 tonnes per month beginning Q3 2019.

Mine Image

Geology, Mining and Processing

Vanadium at the Maracás Menchen Mine is contained within a massive, titaniferous magnetite and possesses very low levels of contaminants, like silica (SiO2). The entire strike length of the Maracás Menchen Mine property is rich in vanadium, hosting many deposits of vanadium-rich titaniferous magnetite mineralization, particularly at the Campbell Pitt and other smaller deposits such as Gulcari B, Nova Amparo and Sao Jose. Ore from the mine will be crushed, milled, and sent through a magnetic separator to create a concentrate. This concentrate is then processed into vanadium pentoxide, high purity vanadium or vanadium powder where it is then bagged or packed into barrels for sale. It is important to note that Largo is utilizing industry proven equipment and processes to produce vanadium. There are no new technologies or processes being utilized at The Ford Facility.

Processing

The Campbell Pit Mineral Reserves Statement - Effective May 2, 2017

Tonnes
(kt)
V2O5
Head Grade
(%)
V2O5%
in Con.
Proven 17,570 1.15 3.21
Probable 1,440 1.26 3.20
Total in
pit reserve
19,010 1.15 3.22
Notes:
  1. Mineral Reserves (Proven and Probable Resources), Mineral Resources, and Inferred Resources for the Maracás Menchen Mine as calculated in: An Updated Mine Plan, Mineral Reserve And Preliminary Economic Assessment Of The Inferred Resources, dated May 2nd, 2017 and filed on SEDAR on May 2nd.
  2. Mineral Resource within a pit shell using US$34.20/t all in operating cost and reported at a 0.45% V2O5 cut-off, reviewed and confirmed by Fabio Valério Xavier (GE21).
  3. The mineral reserves presented above were estimated by Porfírio Cabaleiro Rodriguez of GE21, who is a qualified person under NI 43-101 and a Member of the Australian Institute of Geoscientists. Reserves are reported using a sales price of $6.34/lb of V2O5.

Campbell Pit Resource Statement – Effective May 2, 2017

Category Tonnes(Mt) V2O5 Head Grade (%) V2O5 Contained (kt) V2O5 in Concentrate (%) Magnetics(%)
Measured Resources 18.08 1.19 215.0 3.19 30.55
Indicated Resources 1.70 1.28 21.7 3.12 34.64
Measured and Indicated Resources 19.78 1.20 236.7 3.19 30.90
Inferred Resources 1.65 1.20 19.8 3.10 33.08
Notes:
  1. Resource within a pit shell using US$34.20/t all in operating cost and reported at a 0.45% V2O5 cut-off, reviewed and confirmed by Fabio Valério Xavier (GE21).
  2. The % magnetics number refers to the percent of magnetic minerals contained in the mineralized rock. It is used to help determine what portion of the mineralization in the mineral resources contains magnetite of sufficient vanadium content to be processed through the magnetic separators and concentrated, and, therefore, can be determined to be a mineral reserve.
  3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

2019 Annual production guidance

V205

10,000 - 11,000 tonnes

2018 Annual average cost guidance Excluding Royalties

$US/lb V205

US$3.45 - $3.65

Note: Constitutes forward-looking information. See “Cautionary Note Regarding Forward-Looking Statements” within the disclaimer section of the website.