Cash Cost

US$3.30 - 3.50/lb V2O5

Annual total cash cost guidance for 2021
Mining

12,000 - 12,500 tonnes

Annual V2O5 production guidance for 2021
Security

12,250 - 12,750 tonnes

Annual V2O5 sales guidance for 2021

The Maracás Menchen Mine

Ownership
99.94%
Location
Bahia State, Brazil
Commodity
Vanadium
Mining type
Open pit
Products
VPURE™ Flake, VPURE+™ Flake, VPURE+™ Powder
Number of employees
379
2021 V2O5 production guidance
12,000 – 12,500 tonnes
2021 cash operating cost guidance (excluding royalties)
US$3.10 – 3.30/lb V2O5
2021 V2O5 sales guidance
12,250 – 12,750 tonnes
2021 total cash cost guidance
US$3.50 – 3.70/lb V2O5
Reserve Life
8 years (Campbell Pit)*
*Maracas Menchen Project, Bahia, Brazil, Independent Technical Report - An updated Mine Plan, Mineral Reserve and Preliminary Economic Assessment of Inferred Resources. October 26th, 2017 (effective date May 2nd, 2017)

Technical Report

Map Pin Maracas Map

About the Operation

The Maracás Menchen Mine boasts one of the highest-grade vanadium resources in the world and Largo Resources is one of the lowest-cost primary producers of vanadium in the world. 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 mine is projected to produce between 12,000 and 12,500 tonnes of V2O5 in 2021. The Company’s current product offering consists of VPURETM Flake (standard grade V2O5) and VPURE+TM Flake (high purity V2O5) and VPURE+TM Powder (high purity V2O5 powder). The Company internally handles the sales and trading of its material with a focus on the high purity vanadium market which offers price premiums.

About the Operation

Vanadium AdditionsVanadium Trioxide Product Addition

The Company is also planning the construction of a vanadium trioxide (V2O3) processing plant at the Maracás Menchen Mine, which is expected to increase sales in the high purity aerospace market, chemical industry and vanadium electrolyte used for vanadium redox flow batteries. The Company expects the construction of the V2O3 plant to begin in Q1 2021 and subsequent ramp up and commissioning of the plant to conclude in Q3 2021.

Campbell Pit Reserves and Resources


Tonnes (kt) V2O5 Head Grade (%) V2O5 in Concentrate (%)
Proven 17,570 1.14 3.21
Probable 1,440 1.26 3.20
Total in pit reserve 19,010 1.15 3.21
Notes

Mineral Reserves have been classified using the Canadian Institute of Mining, Metallurgy and Petroleum Standards (“CIM”). All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation differences between tonnes, grade, and contained metal content.

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.

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).

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.

The reference point at which Mineral Reserves are defined is the point where the ore is delivered from the open pit to the crushing plant.

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

Mineral Resources have been classified using the CIM Standards. Mineral Resources are reported inclusive of those Mineral Resources that have been modified to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation differences between tonnes, grade, and contained metal content.

Exploration

The Company’s land package in Brazil totals approximately 17,000 ha and offers extensive regional growth opportunity. The Company has developed an Exploration Master Plan for 2019 to 2021 to advance known deposits, increase resources and reserves, further evaluate the potential for along strike continuation of the vanadium rich magnetite mineralization and to maintain the Company’s mineral concessions to the north and south of the Campbell deposit.

Novo Amparo Norte (Nan) Deposit

Novo Amparo Norte (Nan) Deposit

The Company substantially upgraded mineral resources at NAN in June 2019. The updated resource estimate is based on approximately 12,912 m of diamond drilling over 88 and 5,549 sample intervals. Total Measured and Indicated Mineral Resources of 12.23 million tonnes grading 0.88% V2O5 with magnetic concentrate grades of 2.41% V2O5. Inferred Mineral Resources of 11.33 million tonnes grading 0.90% V2O5 with magnetic concentrate grades of 2.46% V2O5.

Novo Amparo And São José Deposits

2020 Drilling Update

During 2020 the Company completed 24,771 metres in 125 holes, including 8,188 metres (32 holes) at Novo Amparo Norte, 6,898 metres (45 holes) at Gulçari A Norte, 2,475 metres (15 holes) at São José, 2,261 metres (14 holes) at Novo Amparo, 4,761 metres (19 holes) at the Campbell Pit and one condemnation hole (188 metres). 2020 drilling was completed on December 17th, 2020.

Gulçari A Norte, Gulçari B And Gulçari A South Deposits

2021 Drilling Plan

The Company has planned for 10,000 metres of drilling in 2021, focusing on the Campbell Pit and areas requiring work to maintain the concessions in good standing in accordance with the applicable rules and regulations in Brazil.

*Maracas Menchen Project, Bahia, Brazil, Independent Technical Report - An updated Mine Plan, Mineral Reserve and Preliminary Economic Assessment of Inferred Resources. October 26th, 2017 (effective date May 2nd, 2017).