Largo Resources Ltd. (CVE:LGO) shares rose 3.5% on Thursday after the company said it had increased by 40% the mineral reserves for the Campbell pit at its Maracas Menchen vanadium mine in Bahia, Brazil, and released a new mine plan for the Maracas project.
The update, prepared by Whittle Consulting, Micon International Ltd. and RungePincockMinarco (Canada) Ltd., has increased the proven and probable mineral reserves for the Maracas project to 18.4mln tonnes from the 13.1mln tonnes established previously in the 2008 definitive feasibility study for the project (updated in 2009) by Aker Metals, a division of Aker Solutions Canada Inc.
The new mine plan, based on the production of vanadium pentoxide (V2O5) and larger mineral reserves, results in an operating life of the Maracas project and process plant of 15 years at a production rate of 9,600 tonnes V2O5 per annum.
Mark A. Smith, president and chief executive officer of Largo, stated: "We are very pleased with the updated reserve as it continues to demonstrate the robust nature of the project. The reserve supports the high performance of our operation." He further stated, "The reserve is the result of our greater understanding and knowledge of the orebody, and the next phase of our work will be to systematically upgrade the resources in the satellite deposits in order that they may contribute to the expansion of the project."
Largo shares ended up 3.57% at C$0.58 on Thursday.