The Currais Novos deposit is said to be the largest tungsten deposit in Latin America and it has a recorded history of scheelite production that began in 1942. It is located 179 km from Natal in the State of Rio Grande do Norte, Brazil. The project produced tungsten concentrate from the processing of tailings material left from the Barra Verde and Boca de Laje mines. The Barra Verde tailings pile is the oldest, southernmost and larger of the two piles. The Boca de Laje tailings pile is the northernmost and smaller tailings pile. The region also holds numerous potential acquisition opportunities in the immediate vicinity offering significant room for expansion.
The Currais Novos Project commenced commercial production in December of 2011.
In late 2012 a severe drought caused the suspension of operations (see press release October 30, 2012).
Presently, the severe drought has persisted and due to a continued lack of rainfall into 2015 the situation has significantly worsened.
Despite drilling 13 additional wells in November of 2012, the ongoing absence of rain in the region further exacerbated the existing water deficit and has prevented Largo from continuing normal operations at the project. The drought has now extended for 2 years and is a very serious situation for the town of Currais Novos, as well as the surrounding area. Largo continues to examine water supply options while also examining methods of increasing the efficiency of the plant once production resumes.
After commissioning additional screens in late 2012, Largo has not successfully achieved targeted recovery levels. In view of the current lack of an adequate and sustainable water supply, Largo has been forced to place Currais Novos on care and maintenance but will continue optimization work on site until the water situation is resolved by a return to a more normal rainfall, at which time, Largo intends to resume operations.
Mr. Robert Campbell, Vice President of Exploration to Largo, and a Qualified Person as defined by NI 43 101 Largo has reviewed and approved this information