Largo Resources Ltd. - Operations - Maracás Menchen Mine

Annual total cash cost guidance
for 2021

US$3.50 - 3.50/lb V₂O₅

Annual V₂O₅ production guidance
for 2021

12,000 - 12,500 tonnes

Annual V₂O₅ sales guidance
for 2021

12,250 - 12,750 tonnes

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)*

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

Maracás Menchen Mine

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 11,750 and 12,250 tonnes of vanadium pentoxide in 2020. The Company’s current product offering consists of VPURE™ Flake (standard grade vanadium pentoxide) and VPURE+™ Flake (high purity vanadium pentoxide) and VPURE+™ Powder (high purity vanadium 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.

Ferrovanadium and vanadium
trioxide product additions

The Company is planning to construct a ferrovanadium conversion plant at the Maracás Menchen Mine to expand its product offering. Once completed, the Company’s ferrovanadium conversion plant also creates downstream advantages as it eliminates the need to convert the Company’s VPURE product using third party convertors.

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.

Reserves and Resources

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:

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 2^nd.
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.

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:

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 % 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.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

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

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

Exploration on the Novo Amparo deposit in Q3 2019 consisted of 4,646 metres (45 drill holes). Drilling was also completed at the São José deposit which consisted of 2,813 metres (18 drill holes. Analytical and Davis Tube Test results for Novo Amparo and São José are in process, and the Company will further assess and upgrade the Mineral Resource base for these deposits, as appropriate.

Gulçari a norte, gulçari b and gulçari a south deposits

Diamond drilling continued in 2019 on near mine with a total of 2,761 m metres (18 holes) being drilled on these targets. Drilling on these targets remains ongoing. In Q4 2019 work focused primarily on the Gulçari A South target where 2,313 metres (16 drill holes) were completed.

Quick Links

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 Pit and other deposits such as Novo Amparo Norte, Novo Amparo, Gulcari B and Sao Jose. Ore from the mine is crushed, milled, and sent through a magnetic separator to create a concentrate. This concentrate is then processed downstream through a rigorous chemical procedure into vanadium pentoxide, high-purity vanadium or vanadium powder where it is then bagged or packed barrels for sale. It is important to note that Largo is utilizing industry proven equipment and processes to produce vanadium.



Enter the code shown above.
*