great newsnews from maracas should be the next one...
0.20 cad soon, and much higher in two years.
just my opinion
Largo's Updated Mineral Resource Estimate Defines Higher-Grade Zone at Northern Dancer Project, Yukon
3/12/2009 9:38:41 AM - Market Wire
- Tonnage of new Measured and Indicated mineral resource estimate has increased by 58%
-Contained pounds of Tungsten (WO3) and Molybdenum (Mo) in the newMeasured and Indicated mineral resource estimate have increased by56.5% and 76% respectively
- The grade of Tungsten (WO3) andMolybdenum (Mo) in the higher-grade zone has increased by 35% and 70%respectively over the total deposit grade
- Combined improvementin grade and understanding of factors affecting recovery and mineralogyencourages Largo regarding future economic viability of the project
TORONTO, ONTARIO, Mar 12, 2009 (Marketwire via COMTEX News Network) --
LargoResources Ltd. (TSX VENTURE:LGO) has completed a new block model andupdated mineral resource estimate incorporating the results from its2008 drill program consisting of 38 holes totalling 11,509 metres, theresults from the 2007 and 2006 drill programs completed by Largo andhistorical drilling results for the Northern Dancer deposit, which islocated in the south-central region of the Yukon Territory innorth-western Canada.
The updated mineral resource for thedeposit at a cut-off grade of 0.06 % WO3 is estimated as Measuredmineral resources of 30.8 million tonnes grading 0.114% WO3 and 0.030%Mo, Indicated mineral resources of 192.6 million tonnes grading 0.100%WO3 and 0.029% Mo. The Measured and Indicated mineral resource estimatecontains 500.1 million pounds of WO3 (226.9 k tonnes) and 143.8 millionpounds of Mo (65.2 k tonnes). Inferred mineral resources were estimatedto be 201.2 million tonnes grading 0.089% WO3 and 0.024% Mo containing393.1 million pounds of WO3 (178.3 k tonnes) and 107.7 million poundsof Mo (48.9 k tonnes).
The grade of WO3 and Molybdenum hasincreased by 14% and 15% respectively in the new Measured mineralresource estimate compared to the previous Indicated mineral resourceestimate (see press release April 9, 2008). The tonnage of the newMeasured and Indicated category has increased by 58% compared to theprevious Indicated mineral resource estimate (see press release April9, 2008). While the contained pounds of WO3 and Molybdenum haveincreased by 56.5% and 76% respectively.
Most importantly, the2008 drilling program provided much better definition of thehigher-grade zone which is estimated to contain a Measured andIndicated resource of 60.3 million tonnes grading 0.137% WO3 and 0.045%Mo (WO3 equiv 0.215%) and Inferred mineral resource of 5.4 milliontonnes grading 0.134% WO3 and 0.047 % Mo (WO3 equiv 0.214%) at a 0.17%WO3 equivalent cut-off grade. These estimates represent grade increasesof 35% and 70% over the overall deposit grade for both WO3 andMolybdenum respectively.
The drilling indicates that the highergrade zone averages 50 metres in width, extends along strike forapproximately 1,200 metres and extends from surface to an average depthof 350 vertical metres. This higher grade zone is consistentlymineralized over the full extent drilled to date and is open alongstrike to the southwest and at depth. Soil geochemical work indicatesthat the mineralized system likely extends for at least a further 400metres along strike.
Andy Campbell, Vice-President, Explorationof Largo, stated: "Significant changes have resulted from the 2008drill program which was very successful at upgrading the resource andconfirming the significant high grade zone from the previous estimatereported on April 9, 2008. One of the most obvious changes is thesubstantial increase in the grade of molybdenum throughout the depositfrom a modest 15% increase to as much as a 70% increase depending onthe category and higher-grade zone. Northern Dancer is primarily atungsten deposit, however, molybdenum is a significant contributor tothe deposit and needs to be included and Largo believes that it ispreferable to refer to the grade as a tungsten equivalent. The othersignificant area of change was the 59% increase in the Measured andIndicated tonnage from that previously reported in April 8, 2009. Thedeposit now has a substantial Measured and Indicated resource thatincludes the higher-grade zone which could support a pre-feasibilitystudy."
Mineral Resources are presented in Table 1 below forthe overall deposit for each resource category, as well as for thehigher grade tungsten and molybdenum zone, which are included withinthe overall resource. The cut-off grade was determined based oncomparison to similar deposit types that are being mined or planned tobe mined by open pit methods, but has not been confirmed by appropriateeconomic studies.
Table 1: Mineral Resources in the Northern Dancer Deposit,
as at March 1, 2009(i), based on 0.06 % WO3 cut off grade.
WO3 Mo WO3 Mo
Million % % Tonnes Tonnes Million Million
Category Tonnes WO3 Mo ((i)000) ((i)000) lbs. lbs.
Measured 30.8 0.114 0.030 35.1 9.1 77.3 20.1
Indicated 192.6 0.100 0.029 191.8 56.1 422.8 123.7
Measured
& Indicated 223.4 0.107 0.029 226.8 65.3 500.1 143.9
Inferred 201.2 0.089 0.024 178.3 48.9 393.1 107.7
Table 2: Mineral Resources in the Northern Dancer Deposit (Higher grade
shell(ii)) as at March 1, 2009(i), based on 0.17% WO3 equiv
cut-off grade(iii).
% WO3 Mo WO3 Mo
Million % % WO3 Tonnes Tonnes Million Million
Category Tonnes WO3 Mo Equiv ((i)000) ((i)000) lbs. lbs.
Measured
&
Indicated 60.3 0.137 0.045 0.215 82.8 45.1 182.6 59.6
Inferred 5.4 0.134 0.047 0.214 7.2 4.2 15.8 5.5
Notes: (i) The above resource classifications conform to CIM Standards on
Mineral Resources and Reserves referred to in National
Instrument 43-101. Although 0.06% WO3 is considered a likely
cut-off grade for this deposit, based on comparisons with
other similar deposit types, it has not been confirmed by the
appropriate economic studies. Totals may not add up exactly due
to rounding.
(ii) Higher grade shell includes high grade Mo and WO3 zone and is
seated within the overall Mineral Resource.
(iii) The WO3equiv cut-off grade calculated was based on Mo Price at
12 $ /LB; WO3 price at 9.07 $ /LB; 80 % Mo recovery and 65%
WO3 recovery with this formula: WO3equiv equals WO3 % + 1.736
x Mo %.
TheNorthern Dancer deposit is one of the world's largest knowntungsten-molybdenum porphyry systems. The mineralization is hosted infractures, veinlets and veins associated with a northeast-trendingsheeted vein structure hosted in calc-silicate (skarn) rocks andspatially related to a felsic intrusion (quartz-feldspar porphyry). Thedeposit, which has been tested by drilling for 1.2 kilometres alongstrike, 500 metres vertically and 600 metres in width, remains openalong strike to both the northeast and southwest as well as at depth.
AtNorthern Dancer, tungsten and molybdenum mineralization areconcentrated in two zones which partially overlap. In the core of thedeposit, there is a higher grade molybdenum zone where molybdeniteoccurs within and adjacent to the felsic intrusion. Surrounding andpartially overlapping the molybdenum zone is a much more extensivetungsten zone where scheelite occurs in northeast-trending sheetedquartz veins structures.
The Mineral Resource estimate wasgenerated using lithological, mineralogical, Mo and WO3 assay data from121 drill holes totalling 33,700 m of drilling. The deposit was modeledinto several estimation domains using the Gemcom mining software. Capcut only applied for Mo at 0.7 % for the skarn domain and WO3 at 0.106in monzonite based on a statistical analysis. Samples were compositedover 5 m intervals. Mo and WO3 grades were interpolated into estimationdomains using Ordinary Kriging.
The Mineral Resource estimatehas been prepared by Largo Resources, and reviewed and validated by Dr.Warwick S. Board, MAusIMM, Pr.Sci.Nat., Senior Consultant with SnowdenMining Industry Consultants Inc. ("Snowden"). Dr. Board, a qualifiedperson as defined under National Instrument 43-101, visited the sitefrom July 5 to 7, 2008 and prepared the previous resource estimate. DrBoard has verified the scientific and technical information containedin this news release.
Assaying for the 2008 drill program wascarried out by Acme Analytical Laboratories Ltd., an ISO 9000:2000certified laboratory in Vancouver, British Columbia. The samples arecrushed to 70% passing 10 mesh, split to 250 g and pulverized to 95%passing 150 mesh. A 5 g split is analyzed for Mo and W using aphosphoric acid leach followed by ICP-emission spectrometry. A second 5g split is analyzed for 36 elements by ICP-mass spectrometry using ahot (95 degrees C) aqua regia leach. Routine check assays are performedon sample rejects by SGS. Mr. Andy Campbell, P.Geo. is the QualifiedPerson as defined under National Instrument 43-101 responsible for thescientific and technical work on the program.
As a result ofthe encouraging results of the mineral resource update, Largo iscurrently defining a further programme of engineering investigationwith the objective of designing an economically viable project. Themajor steps in this process are expected to include :
- Undertaking pit optimization and initial mine planning based on the new mineral resource with the associated higher grades
-Identifying higher grade zones that will form the "key" material to bemilled in the first few years of the mine operation so as to enhancethe project economics
- Conducting metallurgical testwork oncomposite samples representing this "key" material with a view tooptimising recovery as a function of grind size, mineralogy and otherfactors
- Build on the metallurgical testwork carried out todate to define the recovery and grade of the tungsten and molybdenumconcentrates to be produced.
Currently, Largo anticipates thatthe tungsten concentrates will be produced through a combination ofgravity and flotation techniques, and the molybdenum concentrate byflotation. This will be done after an initial stage ofpre-concentration using optical sorting employing fluorescent lightand/or ultra violet light.
Overall, the testwork will betargeted to develop a practical process flowsheet to the standardsdemanded by a preliminary feasibility study. Testwork will furtherproduce metallurgical and other data that will be required forengineering design and financial analyses.
Mark Brennan,President of Largo, stated, "The combination of improved grades and theenhancement of our existing understanding of the factors affectingrecovery and mineralogy of the deposit encourages Largo managementregarding the future economic viability of the project."
About Largo
LargoResources is a Canadian natural resource development and explorationcompany with two advanced stage projects: the Maracas Vanadium-PGMdeposit in Brazil and the Northern Dancer Tungsten-Molybdenum depositin the Yukon. The company is listed on the TSX Venture Exchange underthe symbol LGO.
For more information please refer to Largo's website: www.largoresources.com.
Disclaimer
Thispress release contains forward-looking statements under Canadiansecurities legislation. Forward-looking statements include, but are notlimited to, statements with respect to the Largo's developmentpotential and timetable of the Northern Dancer project; the Largo'sability to raise additional funds necessary; the future price oftungsten and molybdenum ; the estimation of mineral reserves andmineral resources; the timing and amount of estimated futureexploration; costs of future activities; success of explorationactivities; government regulation of mining operations; andenvironmental risks. Generally, forward-looking statements can beidentified by the use of forward-looking terminology such as "plans","expects" or "does not expect", "is expected", "budget", "scheduled","estimates", "forecasts", "intends", "anticipates" or "does notanticipate", or "believes", or variations of such words and phrases orstatements that certain actions, events or results "may", "could","would", "might" or "will be taken", "occur" or "be achieved".Forward-looking statements are based on the opinions and estimates ofmanagement as of the date such statements are made. Estimates regardingmineral resources are based on extensive analysis regarding explorationinformation obtained for diverse sources, including drill results; suchanalysis being conducted by company geologists and verified by thirdparty consultants. Forward-looking statements are subject to known andunknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of theLargo to be materially different from those expressed or implied bysuch forward-looking statements. Although management of the Largo hasattempted to identify important factors that could cause actual resultsto differ materially from those contained in forward-lookingstatements, there may be other factors that cause results not to be asanticipated, estimated or intended. There can be no assurance that suchstatements will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking statements. The Company does not undertake to updateany forward-looking statements, except in accordance with applicablesecurities laws.
SOURCE: Largo Resources Ltd.
LargoResources Ltd. Mark Brennan President & CEO (416) 861-5886 Email:mbrennan@largoresources.com Website: www.largoresources.com
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