Largo Resources Ltd. announces that based on the significant results from the first 13 drill holes reported on September 4th and September 24th 2008, management has decided to wait for the results of the remaining 25 drill holes and prepare an updated mineral resource, which will serve as the basis for the preliminary economic assessment for Northern Dancer.
The 2008 drill program was designed to provide improved definition of the higher grade tungsten and molybdenum mineralization as well as fill-in gaps in information especially at the shallower levels of the deposit. Preliminary analysis by Largo technical personnel indicates that the drill results received to date are significant enough that they will contribute materially to an upgraded mineral resource estimate that is expected to positively impact the economics of the project. This will potentially be achieved by improving the projected grade profile of the mine operation during the initial years of production by the inclusion of near-surface and potentially higher-than-average grade material in the mine production plan that is not included in the current mineral resource estimate due to the lack of previous drilling information.
Largo President and CEO Mark Brennan commented: “We believe it is in the best interest of Largo shareholders to base the Scoping Study on an updated resource estimate that incorporates the results of the 2008 drill program-designed as it was to upgrade and expand the existing resource and confirm higher-grade zones of mineralization. Based on the positive results in the first 13 holes, we expect that the updated resource model could significantly improve overall project economics.”
Northern Dancer hosts widespread tungsten-molybdenum porphyry style mineralization; the core of which has been partially delineated by 94 diamond drill holes and 496 metres of underground workings. This work has been done by AMAX Minerals Exploration from 1977 to 1980 (51 holes) and by Largo Resources which completed a 17-hole diamond drill program in 2006 and a 26-hole program in 2007. On April 10, 2008 (see press release April 10, 2008) Largo announced an updated NI 43-101 compliant mineral resource consisting of an Indicated resource of 140.8 million tonnes grading 0.10% WO3 and 0.026% Mo and an Inferred resource of 253.2 million tonnes grading 0.10% WO3 and 0.022% Mo. This mineral resource includes a higher grade tungsten zone containing an Indicated resource of 17.1 million tonnes grading 0.17% WO3 and 0.029% Mo and an Inferred resource of 18.7 million tonnes grading 0.16% WO3 and 0.023% Mo.
Please refer to the recent press releases dated September 4 and September 24, 2008 and the tables therein summarizing significant assay results at the Northern Dancer Property. Also, appended to this press release are typical cross sections through the deposit showing the extent of the mineralization and relative location of eight of these recent 2008 drill holes.
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 1500 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 that 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.
Analytical work is being carried out at Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, an ISO 9001-2000 certified laboratory. The samples are crushed to 70% passing 10 mesh, split to 250 g and pulverized to 95% passing 150 mesh. A 5-gram split is analyzed for Mo and W using a phosphoric acid leach followed by ICP-emission spectrometry. Then a second 5-gram split is analyzed for 36 elements by ICP-mass spectrometry using a hot (95 degrees centigrade) aqua regia leach. Routine check assays are performed at SGS Minerals in Lakefield, Ontario on sample rejects. Largo employs a systematic QA/QC program including standards, duplicates and blanks. Andy Campbell, P. Geo., Largo’s Vice President of Exploration, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this press release.
Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. The company is listed on the TSX Venture Exchange under the symbol LGO.
For more information please refer to Largo’s website: www.largoresources.com.