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Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
Largo Resources Corporate Presentation - August 2012
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Largo Resources Corporate Presentation - August 2012

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  • 1. An Emerging Market Leaderfor VANADIUM and TUNGSTEN Production CORPORATE PRESENTATION August 2012 www.largoresources.com
  • 2. Forward Looking StatementsThe information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and“forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company.Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineralresources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand formaterials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; governmentregulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements and forward-looking information can be identifiedby the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,”“anticipates” or “does not anticipate,” or “believes,”, “projects” or variations of such words and phrases or state that certain actions, events or results “may,” “could,”“would,” “might” or “will be taken,” “occur” or “be achieved.” Forward-looking statements and forward-looking information are based on the opinions and estimates ofmanagement as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actualresults, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements orforward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay orfailure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of explorationactivities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchangerates. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained inforward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can beno assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update anyforward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resourcesbe reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred ResourcesThe information presented uses the terms “measured,” “indicated” and “inferred” mineral resources. United States investors are advised that while such terms arerecognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineralresources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of aninferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibilityor other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be convertedinto mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legallymineable. 2
  • 3. Company OverviewEstimated Production Profile – 5 Year Target Target Production Date Estimated Approx. Cash Flow August 2011: Currais Novos $8+ million per annum (Funded) 4th Quarter 2013: Maracas $75+ million per annum (Funded) March 2017: Northern Dancer $200+ million per annum $280+ million per annum The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 3
  • 4. Capital Structure Stock symbol: LGO – TSX-V Share price (July 31, 2012): $0.24 Shares issued (Basic): 824 million Market Cap C$197 million 52-week High/Low: $0.40 / $0.22 Management & Institutions: 75% Warrants & Options (Basic): 222 million 4
  • 5. Shareholders and Partners Institutional Shareholders Arias Resource Capital-16.8% Mackenzie Investments-15.9% Eton Park Capital Management-13.3% Ashmore Investment Management13.3% Project Partners Glencore International 100% Take-or-pay off-take agreement for Maracas vanadium project Major Tungsten End User 100% off-take agreement for Currais Novos tungsten project 5
  • 6. Experienced Management Team Mark Brennan, President & CEO Founding member of Desert Sun Mining with over 20 years financing experience in North America and Europe. Founder and Principal of Linear Capital, Brasoil Corporation, Castle Resources, James Bay Resources, Morumbi Oil & Gas and former President, CEO and Chairman of Admiral Bay Resources. Tim Mann, P.Eng., Chief Operating Officer Mining Engineer with extensive international operations and management experience in mine engineering, development and operations with SNC Lavalin, Placer Dome and Goldcorp. Andy Campbell, M.Sc., P.Geo., Vice President Exploration Over 33 years experience in mining and exploration, including LAC Minerals and Noranda. Kurt Menchen, General Manager, Brazil Former Jacobina Mine Manager, Brazil. Mining Engineer with over 30 years experience including Anglo Gold and Desert Sun Mining. Les Ford, Technical Director of Brazilian Operations With over 40 years of experience in constructing, developing and producing vanadium projects, Mr. Ford is arguably one of the world’s foremost experts in vanadium. Previously Assistant General Manager of Highveld Steel and a member of the Highveld Executive Committee, and Managing Director of Rand Mines Vansa. Douglas Herbst, Maracas Project Manager Kevin Brewer, P.Geo., General Manager – Northern Dancer Project Geologist with over 20 years of mining and exploration experience, combined with extensive knowledge of regulatory and environmental assessment processes. John Laurie, C.G.A., Chief Financial Officer Over 20 years of accounting and financial management experience. 6
  • 7. Management Breakdown Tim Mann, P.Eng. Mark Brennan John Laurie Chief Operating Officer President & CEO Chief Financial Officer Kurt Menchen Darcie Ladd Robert Campbell, P.Geo. General Manager, Brazil Manager Business Development VP Exploration Kevin Brewer Paulo Vianna Luciano Chaves General Manager, Yukon Chief of Administration, Brazil Chief of Finance, Brazil Douglas Herbst Les Ford Israel Nonato Project Manager Technical Director of Operations Senior Exploration Geologist Mauricio Coletti Donald Clarke Eldes Bittencourt Mining Engineer Mining Engineer Geologist Mauro Silva Carlos Lorenzo Mike Henderson Electrical Engineer Environmental Geologist Geologist Toronto Main Office Location Brazil Yukon
  • 8. Strong Board of Directors Mark Brennan, President/CEO and Director Founding member of Desert Sun Mining with over 20 years financing experience in North America and Europe. Founder and Principal of Linear Capital, Brasoil Corporation, James Bay Resources, and Morumbi Oil & Gas and former President, CEO and Chairman of Admiral Bay Resources. Dirk Donath, Director Senior Managing Director and Partner at Eton Park Capital Management, responsible for Eton Park’s private equity and direct investment activities in emerging markets. Eton Park is a global, multi-disciplinary investment fund with a capital base of over US$14 billion. Dan Ioschpe, Director Mr. Ioschpe is currently Chief Executive Officer of Lopche-Maxion, an international company operating in the automotive and railroad sectors.. Alberto Arias, Director Founder and President of Arias Resource Capital Management. He worked for Goldman Sachs & Co and was ranked for five consecutive years as the #1 Equity Research Analyst for the metals and mining industry in Latin America. Prior to Goldman Sachs, he worked at UBS as Executive Director and Analyst covering the Latin American mining sector. David Brace, Director Mr. Brace is currently Chief Executive Officer and a director of Karmin Exploration and a director of Viking Gold Exploration Inc. Mr. Brace previously served as President of Lambton Capital Inc., a private investment firm focused on evaluating mining investments. He has also served as the Chief Executive Officer and as a director of Globe Star Mining as well as Executive Vice-President of Business Development with Aur Resources Inc. until August, 2007. Wayne Egan, Director Mr. Egan is a partner at the law firm of WeirFoulds LLP and acts for several public companies on the TSX and TSX Venture Exchange. Dr. Alan Alper, Director Dr. Alper is an accomplished senior executive, with 30 years of experience at Osram Sylvania, Inc., formerly GTE Sylvania. 8
  • 9. Vanadium 9
  • 10. Vanadium Uses:Steel Drives Demand *Roskill Information Services Ltd ** Byron Capital Markets. 10
  • 11. Vanadium Uses:Growth in Green Technologies Vanadium Advantages Storage Applications Vanadium has shown to increase the Wind turbines effectiveness of energy storage in traditional Solar panels batteries Backup electrical systems Mass amounts of energy can be stored longer and batteries can be re-charged faster Hybrid/electric cars Low-cost, low-volatility, high-performance batteries Vanadium Redox Storage Batteries Vanadium redox storage batteries are the potential solution to green energy’s storage issues. Source: USGS, Byron Capital Markets 11
  • 12. Vanadium Uses:Growth in Green Technologies Voltage with Different Cathodes (v) Vanadium phosphate cathode material can support 20% more energy storage than 4.8 Advantages cobalt oxide, 26% more than iron phosphate 4.1 4.0 Vanadium 3.7 3.6 and 56% more than manganese oxide, 3.3 solving the issue of quick discharge in electric cars Highest voltages measured, generating a more powerful battery Li3V2(PO4)3 LiVPO4F LiMn2O4 LiCoO2 Li2FePO4F LiFePO4 Lithium Vanadium Electric Car Photo Courtesy of Tesla Motors The potential demand for electric cars can substantially increase the demand for lithium-ion batteries with cathodes compounded by vanadium. Source: USGS, Byron Capital Markets 12
  • 13. Tungsten 13
  • 14. Tungsten Uses:Supply Constraints Drive Pricing Strategic metal with highest melting point of all metals * 14
  • 15. Near-Term Cash FlowTwo Advanced-Stage Projects with Potential to Expand Vanadium [V] Maracas: Highest grade/quality vanadium deposit 90% ownership Production Q4 2013: 5,000 TPA FeV (cost <$14) Approximate cash flow: $75+ million per annum Tungsten [W] Currais Novos: Near-term, low-cost production 100% ownership 1.5 million pounds per annum Commercial Production announced in December 2011 (cost <$100 MTU) Approximate targeted cash flow: $700,000 per month ($400 MTU APT) 15
  • 16. Maracás Vanadium Project Maracás Resource Estimate Mineral Reserve: 13.1 million tonnes grading 1.34% vanadium pentoxide (V2O5) Includes 8.7 million tonnes grading 1.94% vanadium pentoxide (V2O5) Mineral Resource: 23.2 million tonnes grading 1.27% vanadium pentoxide (V2O5) (M&I) Near-Term Production – FALL 2013 5,000 tonnes Fe-V annual production Lowest cost producer (Approx. $14 kg Fe-V) 23-year production plan 1.94% V2O5 mill feed during first eight years Open pit: low strip ratio of 2.23:1 Mill throughput 1,600 tpd Proven mining technology and processes Six-year off-take with Glencore (take or pay) 208,000 ounces 0.75g/t platinum/palladium 16
  • 17. Maracas: Concentrate Quality Highest Grade/Quality Vanadium Deposit in the World Deposit CharacteristicsVanadium is contained in magnetite with a higher iron content than others =Better recoveries, less power required, less chemicals =concentrate with much higher V2O5, higherFe, and lower SiO2 (contaminant) than any other deposit = LOWEST COST PRODUCTION 17 *Average grade comparisons compiled by Les Ford, presentation March 8, 2011
  • 18. Largo – Comparative Landscape Ore Quality* ORE QUALITY IS AS IMPORTANT AS GRADE Highest Quality Ore = Lowest Cost Production Ore V2O5% Concentrate Concentrate SiO2% V2O5% * Average grade comparisons compiled by Les Ford, presentation March 8, 2011 18
  • 19. Maracás:Current Operating Parameters Recent ferrovanadium price US$28.00 per kg (FeV) Average cash operating costs US$14 per kg (FeV) Average pre-tax cash flow US$75.6 million per year Initial Capex US$240 million Payback 3.2 years(5,000 Tonne Per Annum Scenario) + 200,000 tonnes of lowgrade iron bi-product The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 19
  • 20. Status of Project Implementation Promon Engineering awarded EPCM contract in April, 2012 Optimization of basic engineering completed Detailed engineering in progress Procurement orders 40% complete with orders placed for all long-lead items: • Kiln (F.L. Smidth) • Sodium sulphate crystalliser (PPT) • V2O5 reactor (Drytech) Site construction underway 20
  • 21. Site Activity Earthworks Underway and on Schedule Earthworks commenced in June after initial phase of vegetable suppression and flora and fauna rescue Cutting and filling of plateaus for plant site underway Water supply pipeline construction making good progress Accommodations for Largo staff in Maracás are complete Accommodations for contractors in progress Second phase of vegetable suppression and flora and fauna rescue continues 21
  • 22. Maracás Resource andProperty Maps Gulcari “A” Deposit Detail Maracás concessions and strike length 22
  • 23. Gulcari “A” Potential to Expand Present NI 43-101 Resource was defined solely on Gulcari “A” deposit 11,000 Meter Drill ProgramLocation of Gulcari “A”and proposed open pit Completed Q1 2012 (400 m x 450 m) 8km Target to double existing mineral resource – new resource expected for Q3 2012 Extend Glucari “A” deposit along strike and at depth Multiple high priority targets have returned positive high- grade drill results 23
  • 24. Maracas Cash Flow Projections projection Maracas: Catalysts for Growth  Year 1 = Current production parameters  Year 2 = Sale of tailings material (pig-iron)  Years 4+ = 50% increase in production capacity •Projections assumes FeV pricing of $28.00 per Kg The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 24
  • 25. Currais Novos: Summary Highlights Short-Term Target of 1.5 Million Pounds of WO3 per Year Commercial Production Commenced December 2011 Target $8 million per annum cash flow Reprocessing and recovery of tungsten from two tailings piles To produce1.5 million pounds per year: 65,000 MTUs Low cost producer (<$100 per MTU) 4.3 million tonne NI 43-101 Resource Off-take agreement for 100% of production for four years 25
  • 26. Currais Novos: Potential to ExpandExploration has Commenced at Four Additional & Highly Prospective Properties Historical production district Significant production from 1940s to 1970s Numerous potential acquisitions in immediate vicinity – both underground and tailings Provides significant expansion potential Exploration underway with goal of defining additional resources 26
  • 27. Currais Novos Cash FlowProjections Currais Novos: Catalysts for Growth projection  Year 2 = Current production parameters  Year 4+ = following 3 year exploration ramp-up on recently acquired additional underground properties* Projections assumes exploration success on aditional properties ramp up The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 27
  • 28. Long-Term GrowthTwo Early-Stage Projects with Tremendous Potential to Add Value Tungsten [W] Northern Dancer: Largest undeveloped Tungsten deposit 100% owned 2011 PEA: 27.8% IRR & $1.8 billion NPV @ 8% ($365 MTU APT – Current APT price: $400 MTU) Vanadium/Titanium Dioxide [V] Campo Alegre: Titanium, iron, vanadium deposit/high grade 100% owned 133 million tonnes (Non NI 43-101 compliant) @ 0.75% V2O5, 50% Fe, 21% Ti Potential 1.5 billion tonnes 28
  • 29. Northern Dancer ProjectNorthern Dancer Resource Estimate 223.4 MT grading 0.102% WO3 and 0.029% Mo (M&I) Higher-grade tungsten and molybdenum zone: 60.3 MT of 0.14% WO3 and 0.045% Mo (M&I) 201.2 MT grading 0.09% WO3 and 0.024% Mo (I)Development Milestones PEA complete Feasibility study underway Environmental permitting under way Discussions with off-take partners and JV partner 29
  • 30. Northern Dancer: PEA Highlights Highlights* Positive NPV of US$918 million at $275 MTU APT and an 8% discount rate Current trading price of US$430 MTU Low cash cost producer: US$116 per MTU Cumulative cash flow US$4.8 billion Average annual production of 833,000 MTU tungsten (18.3 million pounds) Average annual production of 5,959,000 pounds molybdenum over initial 23 years Pre-production capital costs: $645 million Tungsten Molybdenum NPV @ 8% IRR (%) (US$ per MTU) (US$ per lb) (US$ millions) $275 $17.50 20.0 918 $300 $17.50 22.2 1,110 $325 $17.50 24.4 1,302 $350 $17.50 26.5 1,494 $365 $17.50 27.8 1,769 * The PEA is preliminary in nature, and includes inferred resources that are too speculative geologically to have economic considerations applied to them. There is no certainty that the PEA will be realized. 30
  • 31. Northern Dancer: Highlights IRR and NPV’s at Higher Tungsten Price Points* Tungsten Molybdenum NPV @ 8% IRR (%) (US$ per MTU) (US$ per lb) (US$ millions) $400 $17.50 31.0 2,074 $450 $17.50 35.0 2,500 ** * Derived from PEA sensitivity analysis * ** Roskill: Tungsten Market Outlook, 2012 31
  • 32. Campo Alegre Project Non NI 43-101 Compliant Resource: 133 Million Tonnes Grading 50% Fe, 21% TiO2, 0.75% V2O5* 100% owned iron, titanium, and vanadium deposit 650 kilometres northwest of Salvador Seven concessions covering 9,274.66 hectares 24 kilometres by 5.5 kilometresLocation Highlights Located in mining-friendly and politically stable Brazil Two railway lines in development within 140 kilometres with direct access to major ports Several major iron-ore projects in vicinity * Historical resource provided by CBPM (Bahia State Mining Development Agency) 32
  • 33. Campo Alegre: Potential to Expand 14 km x 2.5 km trend Multiple mag-targets Mag-survey indicates fold structure Historical drill program only tested to 60 m Potential expansion at depth 33
  • 34. Summary of Portfolio Vanadium [V] Maracas: Highest grade/quality vanadium deposit Production Q4 2013: 5,000 TPA FeV (cost <$14) Approximate cash flow: $75+ million per annum Campo Alegre: Titanium, iron, vanadium deposit/high grade 133 million tonnes (non NI 43-101 compliant) @ 0.75% V2O5, 50% Fe, 21% Ti Potential 1.5 billion tonnes Tungsten [W] Currais Novos: Near-term, low-cost production 1.5 million pounds per annum (cost <$100 MTU) Approximate targeted cash flow: $700,000 per month ($400 MTU APT) Northern Dancer: Largest undeveloped tungsten deposit 223 MT @ 0.102% WO3 (M&I), 201 MT @0.09% WO3 (Inferred) 2011 PEA: 27.8% IRR & $1.8 billion NPV @ 8% ($365 MTU APT) 34
  • 35. Company OverviewEstimated Production Profile – 5 Year Target Target Production Date Estimated Approx. Cash Flow August 2011: Currais Novos $8+ million per annum (Funded) 4th Quarter 2013: Maracas $75+ million per annum (Funded) March 2017: Northern Dancer $200+ million per annum $280+ million per annum The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 35
  • 36. Investor Connect Darcie Ladd Business Development Manager dladd@largoresources.com 416-861-9406 Mark Brennan President and CEO mbrennan@largoresources.com 416-861-9797 Largo Resources www.LARGORESOURCES.com @LargoResources1 55 University Ave. Suite 1101 Toronto, ON – M5J 2H7 Largo Resources 36

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