Largo Resources Announces PEA for Maracas

 Largo Resources Ltd. (TSXV:LGO) announced results from its National Instrument 43-101 compliant Preliminary Economic Assessment for the Maracás Vanadium Project in Brazil. Largo commissioned the Report to re-scope its advanced stage Maracas Project by incorporating a new production stream of both V2O5 and FeV as opposed to an FeV only scenario. Production increased by approximately 46%, as well as an NPV of $554 million vs $274 million previously calculated.

As quoted in the press release:

Highlights:

• NPV $554 million vs $274 million previously (+102%)
• After tax IRR of 26.3% vs 22.4% previously
• Production increased by approximately 46%
• Production of V2O5 from 2014; FeV from 2016
• Mine life increased to 29 years versus 15

The new production scenario sees production increased by approximately 46% following year 2 and sees a dual revenue stream of V2O5 and FeV following year 3. The mine life is also increased to 29 years from the 15 years previously set out in the Feasibility Study.

These changes result in an increase to $554 million versus $274 million (+102%) in the Net Present Value (“NPV”) and an increase to 26.3% versus 22.4% in the Internal Rate of Return (“IRR”) versus the previous production profile each as compared to the results of the Feasibility Study.

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