Symbol: LGO (TSX.V)
Gulçari "A" resource update: Measured & Indicated Resource of 24.6 MT
containing 272,900 tonnes V2O5 and additional Inferred resource of 2.6 MT containing 19,800 tonnes V2O5
Five new satellite deposits delineated with total Inferred resources of
27.8 MT containing 232,100 tonnes V2O5
Increased resource enables Largo to investigate expanded production
TORONTO, Sept. 17, 2012 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce a new NI 43-101 compliant mineral resource at
its Maracas Vanadium property located 250 kilometres west of Salvador,
The Company has completed a revised block model and updated mineral
resource estimate for the existing Gulçari "A" deposit and five new
satellite deposits incorporating the drilling from the 2011 program,
including 72 holes totalling 13,401 metres. The five satellite deposits
which extend north from Gulçari "A" for eight kilometres include from
south to north; Gulçari "A" Norte, Gulçari "B", São Jose, Novo Amparo
and Novo Amparo Norte are all hosted in the Jacare River Intrusion (see
At a cut-off grade of 0.45% V2O5 and reported from a Whittle-optimized pit shell, the Measured and Indicated mineral resource for the Gulçari "A" deposit is
estimated to be 24,640 million tonnes grading 1.11% vanadium pentoxide
(V2O5) containing 272,900 tonnes V2O5 and the Inferred resource is estimated to be 2.6 million tonnes grading
0.76% V2O5 containing 19,800 tonnes V2O5 . This is a modest increase from the previous estimate in November 2007.
The most significant change to Largo's mineral resource has been the new
Inferred resource estimate for the five satellite deposits. This Inferred resource is estimated to be 27.8 million tonnes grading
0.83% V2O5 containing 232,100 tonnes of V2O5 at a cut-off grade of 0.45% V2O5.
Details for the deposits are found in table 1 below:
Gulçari A and Satellite Deposits Mineral Resources
Contained V2O5 (tonnes)
Gulçari A Norte**
Novo Amparo Norte**
Satellite Deposits (5)**
* Resource within an open pit model using US$34.20/t all in operating
costs and reported at a 0.45% V2O5 cutoff, reviewed and confirmed by B.
Terrence Hennessey (Micon International Limited)
** Resource within a pit shell using US$34.20/t all in operating cost
and reported at a 0.45% V2O5 cutoff, reviewed and confirmed by Hebert
Oliveira (Coffey Mining)
The updated mineral resource estimate is based on the assumptions
reported in the September 2008 Definitive Feasibility Study as amended
in May 2009 (see www.sedar.com) prepared by Aker Solutions Canada Inc., The resources would be mined
by open pit methods at 581,000 tonnes/year of ore, milled at an onsite
facility and 71% of the contained V2O5 metal value is projected to be payable after processing charges. The
long term price of vanadium pentoxide used in this study is US$6.75 per
pound or $US$12.54 per kilogram.
Cautionary Statement: Mineral resources that are not mineral reserves do
not have demonstrated economic viability. This preliminary Mineral
Resource Estimate is preliminary in nature; it includes inferred
mineral resources that are considered too speculative geologically to
have the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty that
the results of the preliminary Mineral Resource Estimate will be
Andy Campbell, P.Geo., Largo's Vice President of Exploration stated,
"We have been very successful in our recent objective at Maracas to
define additional Inferred resources through drilling highly
prospective areas on the Maracas property in close proximity to the
existing resources at the Gulçari "A" deposit. The satellite deposits
which extend north for eight kilometres remain open along strike and
at depth so there is excellent potential for further expansion of the
resource." He further commented that "Largo controls 40 kilometres of
the highly prospective belt and has only tested by drilling for eight
kilometres. Recent exploration including ground magnetic survey,
geological mapping and prospecting south of the Gulçari "A" deposit has
identified at least 10 additional showings of massive magnetite which
Mark Brennan, President and Chief Executive to Largo commented: "We are
extremely pleased with the results of the updated Resource Estimate and
believe that it will provide significant upside potential to the
economics at Maracas. The results of a Technical Report released last
week (see press release dated Sept 13, 2012) explore a base case
production scenario which does not include the production of additional
He continued, "With this substantial increase in the resource, Largo
intends to investigate the near term potential to increase production
capacity which we believe will further improve the economics of the
project. It is important to note that in anticipation of the potential
for additional resources at Maracas, Largo has ordered key production
equipment with expanded capacities to minimize future capex
expenditures for an increased production scenario."
The mineral resource estimate for Gulçari "A" deposit has been reviewed
and confirmed by B. Terrence Hennessey, P.Geo. of Micon International
Limited. Mr. Hennessey, who is an independent qualified person as
defined under National Instrument 43-101, visited the site from June 26
to 29, 2006, April 15 to 16, 2007 and September 26th through 30th, 2011. The mineral resource at Gulçari "A" is considered to be modest
and not a material change.
The mineral resource estimate for the satellite deposits have been
reviewed and confirmed by Hebert Oliveira, P.Geo. of Coffey Mining. Mr.
Oliveira, who is an independent qualified person as defined under
National Instrument 43-101, visited the site from September 12 to 23,
2012. The resource estimation procedures and classification used will
be outlined in a technical report by Mr. Oliveira that will be filed on
SEDAR within 45 days.
Parameters used in estimating the mineral resource are as follow:
Database consists of 209 diamond drill holes and 21 trenches. Drill hole
workspace in Gemcom database includes different tables for drill holes
The resource estimation used a new set of cross- sections constructed in
Gemcom every 25m, as appropriate for the drill hole density. These
cross-sections are perpendicular to strike of the deposit and parallel
with rotated local resource grid to avoid any rotation of the block
model. New sets of plan views were also constructed every 10m between
100m elevation and 300m elevation.
Five major geological domains have been identified for the Gulçari A
deposit. Geological domains for magnetite, magnetite-pyroxenite and
pegmatite were entirely constructed within the mineralized portion of
the sections. Surrounding gabbro and pyroxenite were partly modeled.
Magnetite and magnetite-pyroxenite comprise more than 98% of the
deposit. Pegmatite and gabbro are internal waste materials.
All the solids (geological domains) extended 50m beyond the existing
drill holes down dip. In some sections when there were not adequate
drill holes, the boundary extents were found to be geologically
compatible with previous and next sections.
An average of specific gravity was calculated and used for different
rock types in massive and banded magnetite (SG= 4.33),
magnetitepyroxenite (SG=3.57) and gabbros (SG=3.09) and pyroxenites
An assay top cut of 3.8 % V2O5 was chosen based on probability plot analysis for the magnetite domain.
A top cut of 2.0 % V2O5 was chosen based on the probability plots for the magnetite-pyroxenite
All assay data was composited starting at the collar using cut data from
grade capping. All drill hole and trench assay data was composited in
5m intervals then updated domain intersections.
The resource estimates for the magnetite and magnetite-pyroxenite
domains were prepared by a block model technique using an Ordinary
Kriging grade interpolation method. The lower cut-off grade estimated
at 0.45% V2O5 is based on the feasibility study for the production of Vanadium
Analytical work for the 2011 drill program was carried out by SGS
Minerals Laboratory and ALSCHEMEX Laboratory both in Belo Horizonte,
and Intertek Laboratory in Sao Paulo, Brazil, all ISO 9001 certified
laboratories. Largo employs a systematic industry standard QA/QC
program including standards, duplicates and blanks. The samples were
analysed for FeO, Fe2O3, SiO2, TiO2 and V2O5 by the XRF method.
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. Security is maintained at the core logging
and sampling facility in a locked warehouse onsite located nearby the
town of Maracas.
Largo is a Canadian-based mineral resource exploration and development
company focused on creating a world leading strategic metals company.
Largo currently holds a 90% interest in the Maracás Vanadium Project, a
100% interest in the Currais Novos Tungsten Tailing Project, a 100%
interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in
Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum
property located in the Yukon Territory, Canada. The immediate goal of
the Company is to develop the Maracás Vanadium Project by Q4 2013 and
produce WO3 concentrate from the reprocessing of tungsten tailings from Currais
Novos. Largo's skilled management team both in Canada and Brazil, are
confident in their ability to advance these projects.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
This press release contains forward-looking information under Canadian
securities legislation. forward-looking information includes, but is
not limited to, statements with respect to completion of the private
placement, Largo's development potential and timetable of the Maracas
and Northern Dancer projects; Largo's ability to raise additional funds
necessary; the future price of tungsten and molybdenum; the estimation
of mineral reserves and mineral resources; conclusions of economic
evaluation; the realization of mineral reserve estimates; the timing
and amount of estimated future production, development and exploration;
costs of future activities; capital and operating expenditures; success
of exploration activities; mining or processing issues; currency
exchange rates; government regulation of mining operations; and
environmental risks. Generally, forward-looking statements can be
identified 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 not
anticipate", or "believes", or variations of such words and phrases or
statements 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 of
management as of the date such statements are made. Forward-looking
statements 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 Largo to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to those risks described in the annual
information form of Largo and in its public documents filed on SEDAR
from time to time. Although management of Largo has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no 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. Largo does not undertake to update any forward-looking
statements, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Image with caption: " Figure 1: Maracas Property Map - Gulçari "A" and Satellite Deposits (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120917_C7083_PHOTO_EN_17957.jpg
Image with caption: "Figure 2: Cross Section SC-NAN2420: Nova Amparo Norte Target (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120917_C7083_PHOTO_EN_17959.jpg
Image with caption: "Figure 3: Cross Section SC-GB6990: Gulçari "B" Target (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120917_C7083_PHOTO_EN_17958.jpg
SOURCE: Largo Resources Ltd.
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Manager Business Development