Largo Resources Ltd.

Largo Resources Ltd.

April 02, 2007 07:00 ET

Largo Resources Ltd.: NI 43-101 Resource Estimate Confirms Northern Dancer (Yukon) as One of the World's Largest and Most Significant Molybdenum-Tungsten Deposits

TORONTO, ONTARIO--(CCNMatthews - April 2, 2007) -

- Confirms and expands historical resource.

- Inferred mineral resource of 242.0 million tonnes at 0.10% WO3 and 0.047% MoS2 at a 0.05% WO3 cut-off grade.

- Includes higher-grade Molybdenum zone of 36.8 million tonnes of 0.085% MoS2.

- Scoping study underway with Snowden Mining Industry Consultants Inc.

- Phase II drill program to focus on higher grade MoS2 and WO3 zones largely undeveloped in general Phase I program.

Largo Resources Ltd. (TSX VENTURE:LGO) has completed a new block model and updated mineral resource estimate incorporating all recent and historical drilling results for the Northern Dancer deposit located in the south-central region of the Yukon Territory in north-western Canada.

Mineral Resources, presented in Table 1 below, are reported for the overall deposit at different cut-off grades, as well as for the higher grade molybdenum zone included within the overall resource. The Inferred Mineral Resource for the overall deposit at a cut-off grade of 0.05 % WO3 is estimated at 242.0 million tonnes grading 0.10% WO3 and 0.047% MoS2 containing 508.1 million lbs. tungsten (WO3) and 151.0 million lbs. molybdenum (Mo). The cut-off grade was determined based by comparison to similar deposit types that are being mined or planned to be mined by open pit methods, but has not been confirmed by appropriate economic studies. The resource estimate constitutes one of the largest and most significant tungsten and molybdenum accumulations in the world.

Mark Brennan, President & CEO of Largo commented: "The completion of an NI 43-101 compliant resource estimate for Northern Dancer is a key milestone for the project and a major step forward for Largo. Results of our 2006 drilling program were very positive with confirmation and expansion of the historical resources as well as better definition of the higher grade tungsten and molybdenum zones. Work on a scoping study including metallurgical testing is now in progress. Preparations are being made to commence a second drilling program this spring to further confirm and upgrade the inferred resource, and to expand resources, especially in the higher grade zones."

Table 1: Mineral Resources in the Northern Dancer Deposit, as at March 31,

Cut-off Million WO3 Mo
Grade Tonnes %WO3 %MoS2 Million lbs. Million lbs.
Northern Dancer Deposit - Overall
Inferred Mineral Resource
0.05 242.0 0.10 0.047 508.1 151.0
0.06 217.3 0.10 0.047 478.4 135.3
0.07 190.4 0.10 0.047 440.0 119.3
0.08 159.5 0.11 0.048 389.2 100.7
0.09 124.0 0.12 0.048 323.1 78.4
0.10 88.4 0.13 0.048 249.0 56.5
0.15 15.1 0.17 0.048 57.9 9.7

Mineral Resource within Porphyry Mo-rich zone(ii)
Inferred Mineral Resource
0.04% MoS2 36.8 0.06 0.085 48.7 41.3

Notes: (i)The above resource classifications conform to CIM Standards on Mineral Resources and Reserves referred to in National Instrument 43-101. Although 0.05% 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 Mo zone is included within the overall Mineral Resource.

The NI 43-101 compliant Mineral Resource estimate (Table 1) confirms and expands the historical resource of 162 million tonnes at 0.13% WO3 and 0.052% MoS2 containing 464.3 million lbs. tungsten (WO3) and 114 million lbs. molybdenum (Economic Geology, 1984, Vol. 79, p. 849; see press release May 4 2006).

Andy Campbell, Vice-President, Exploration stated: "We expect that the additional work planned will further expand overall resources as well as upgrade resources from Inferred to Indicated especially in the core area of the deposit. There is excellent potential to outline a higher-grade tungsten zone to the southwest as well as expand on the higher-grade molybdenum zones to the northeast. Soil geochemical work indicates that the mineralized system extends for at least 1,600m along strike with less than 50% of this strike length tested by drilling."

The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry systems. The mineralization is hosted in fractures and veins associated with a northeast-trending sheeted vein system in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling for 750 metres along strike, 500 metres vertically and 600 metres in width, remains open along strike to both the northeast and southwest as well as at depth.

Tungsten and molybdenum mineralization are 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.

The Mineral Resource estimate was generated using lithological, mineralogical, MoS2 and WO3 assay data from 70 drill holes totalling 15,503 m of drilling. The deposit was modeled into several estimation domains using the Gemcom mining software. WO3 was capped at 1.00% and MoS2 was capped at 0.38% for all domains. Samples were composited over 5 m intervals. MoS2 and WO3 grades were interpolated into estimation domains using Ordinary Kriging.

The Mineral Resource estimate has been prepared by Largo Resources, and reviewed and validated by Dr. Warwick S. Board, MAusIMM, Pr.Sci.Nat., Senior Consultant with Snowden Mining Industry Consultants Inc. ("Snowden"). Dr. Board, a qualified person as defined under National Instrument 43-101, visited the site from July 05 to 07, 2006. The resource estimation procedures and classification used will be outlined in detail in a Technical Report that will be prepared by Snowden and filed on SEDAR within 45 days of this press release. Dr Board has verified the technical information contained in this news release.

Snowden has completed a QA/QC report on the recent drilling by Largo and the historical drilling done by AMAX. Snowden considers that the historic data are of sufficient quality that they can be used in the generation of a Scoping Study level resource estimate. Results of the twin drill holes completed by Largo indicate that the 2006 campaign drilling confirmed the grades reported in the historic drill holes. Factors considered in this analysis included: the geological variability between holes; different generations of drilling techniques; assay methods and laboratory conditions; and sample support.

The Scoping Study now in progress is being carried out by Snowden. Mr. John Fox of Laurion Consulting Inc. has been retained by Snowden to oversee the metallurgical and process engineering aspects of the Study. Mr. Fox directed metallurgical testwork and flowsheet development for the Tiberon Minerals, Nui Phao Project feasibility study.

Largo has appointed SGS Lakefield (SGS) to carry out a program of metallurgical testwork involving grindability investigations, sulphide flotation, and fluorspar flotation and gravity separation. Mineralogical testwork using XRD and QEMSCAN methods to evaluate the liberation and deportment of the minerals will also be carried out by SGS. A Composite sample has been delivered to SGS for this work to commence. Additional mineralogical work will be carried out by Professor Lee Groat and Ms. Allison Brand of the University of British Columbia (UBC). This work will be carried out on core collected from the site by UBC in collaboration with Largo and SGS representatives in late 2006.

Assaying was carried out by Acme Analytical Laboratories Ltd. in Vancouver, British Columbia. The samples are crushed 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 a phosphoric acid leach followed by ICP-emission spectrometry. A second 5 g split is analyzed for 36 elements by ICP-mass spectrometry using a hot (95 degreesC) aqua regia leach. Routine check assays are performed on sample rejects by SGS. Mr. Andy Campbell, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Vanadium-PGM deposit in Brazil. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador; one of which, the 5,000 hectare Macuchi property, is under option to Aur Resources Inc. The company is listed on the TSX Venture Exchange under the symbol LGO. For more information please refer to Largo's website:


Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".


Contact Information

  • Largo Resources Ltd.
    Mark Brennan
    President & CEO
    (416) 861-5886
    Largo Resources Ltd.
    Tony LaMantia
    Corporate Development
    (416) 861-5882