News Out.Largo acquires 70% interest in Northern Dancer property
2009-03-26 09:52 ET - News Release
Mr. Mark Brennan reports
LARGO RESOURCES EXERCISES OPTION TO ACQUIRE 70% INTEREST IN NORTHERN DANCER PROPERTY
Largo Resources Ltd. has acquired a 70-per-cent interest in the Northern Dancer property in Yukon Territory pursuant to its previously announced option agreement. Largo has also acquired one-third of the 3-per-cent net smelter royalty on the property. Largo has a right to earn the remaining 30-per-cent interest in the property by making a cash payment of $5-million or issuing the equivalent value in shares of the company within 12 months. The property remains subject to a 2-per-cent NSR, a further 1 per cent of which may be acquired by the company upon acquiring the remaining 30-per-cent interest in the property.
Northern Dancer hosts widespread tungsten-molybdenum porphyry-style mineralization. The updated mineral resource for the deposit at a cut-off grade of 0.06 per cent WO3 is estimated as measured mineral resources of 30.8 million tonnes grading 0.114 per cent WO3 and 0.030 per cent Mo, indicated mineral resources of 192.6 million tonnes grading 0.100 per cent WO3 and 0.029 per cent Mo. The measured and indicated mineral resource estimate contains 500.1 million pounds of WO3 (226.9 k tonnes) and 143.8 million pounds of Mo (65.2 k tonnes). Inferred mineral resources were estimated to be 201.2 million tonnes grading 0.089 per cent WO3 and 0.024 per cent Mo containing 393.1 million pounds of WO3 (178.3 k tonnes) and 107.7 million pounds of Mo (48.9 k tonnes). For details of the resource estimates, see news in Stockwatch March 12, 2009.
Tungsten and molybdenum mineralization is concentrated in two zones which partially overlap. In the core of the deposit, there is a higher-grade molybdenum zone where molybdenite occurs within and adjacent to the felsic intrusion. Surrounding and partially overlapping the molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending sheeted quartz veins in skarn.
Andy Campbell, PGeo, the vice-president exploration of the company and a qualified person as defined under National Instrument 43-101, has reviewed the scientific and technical information in this press release.