Largo Resources (CVE:LGO) (OTCMKTS:LGORF) produced 23 tonnes of vanadium pentoxide in a single day at the Maracas Menchen mine in Brazil, reaching a new a new daily production record.
The amount represents 88% of the plant’s Phase 1 design capacity and a 7% increase from the 21 tonne/day record, or 81% capacity, set last March.
The company, which continues to ramp up production at its Maracas Menchen vanadium mine in Brazil, has also seen recoveries at the project increasing significantly, including at the leaching system.
This year, Largo achieved several milestones apart from the production amounts. Last March, the company said that recovery rates at the milling, kiln, and leaching systems have each met and surpassed design targets.
The company has made significant progress during the ramp-up phase, but the month over month performance improvements serve as a solid foundation for continued growth.
The mine started production last August, and encountered some early hiccups during the first few months, leading to a slower than expected start. But Largo is still aiming to develop its mine to phase 1 capacity by the third quarter.
The Toronto-based miner is expecting 2015 production to come in at 17 million pounds of vanadium pentoxide, at a cost of US$4.15 per pound, although costs are expected to drop to US$3.21 per pound by the end of this year.
Looking out to 2016, the company also has the option to complete a $32 million expansion, which would raise capacity by some 50 percent and make Maracas the largest and lowest cost vanadium mine in production.
Earlier in May, Largo secured C$70 million in financing through a private placement, allowing the company to continue development of the Maracas Menchen Mine and for general corporate purposes.
The company has made a series of important moves in 2015, including the appointment of new chief executive officer Mark A. Smith --- who is the former CEO of Molycorp and the current executive chairman of NioCorp --- to lead Largo into a new phase of growth.