Largo Resources Ltd
Yukon Territory - Brazil - Ecuador: Gold-Copper, Vanadium PGE , tungsten/molybdenum
Message: Update on the Status of the Maracas Project, Brazil and Northern Dancer Project,
| February 11, 2009 | |
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Largo Provides an Update on the Status of the Maracas Project, Brazil and Northern Dancer Project, Yukon
- Largo advances the environmental licensing for the Maracas Project |
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TORONTO, ONTARIO--(Marketwire - Feb. 11, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to provide its shareholders with the following update on its projects: Maracas Project At the Maracas Project in Bahia, Brazil, the Company has completed its feasibility study (see press release dated August 13, 2008) and continues to work on the environmental licensing process with the Instituto do Meio Ambiente (IMA) and the Conselho Estadual de Meio Ambiente (CEPRAM) that control the award of environmental licenses in the State of Bahia. Public hearings have been arranged by IMA in two locations near the proposed project site on February 12 and 13. Following this, the application for the Licenca de Localizacao (LL) will be formally addressed by CEPRAM in their monthly meeting in March when it is anticipated the LL will be approved and subsequently issued. Continued work by Largo's operating team and the recent weakening in the Brazilian Reais have resulted in improved projected economics for the Maracas project. Estimated capital expenditures have been reduced to approximately US$220 million, as compared to the estimate of US$272 million in the feasibility study. Estimated cash operating costs for the first eight years of the operation have also been reduced to US$12.75 per kilogram, as compared to the estimate of US$15.49 per kilogram in the feasibility study (see press release dated December 5, 2008). Largo's operating team based in Brazil continues to develop specific aspects of the project as a prelude to more detailed engineering. These items include: - Completion of the commercial aspects and contract with the state electrical utility to upgrade the existing power line to supply power during construction and for the construction of an 85 km long 138 kV power line to service the operating facility - Detailed analysis of software and hardware options for process plant automation - Trade-off studies in the plant design to reduce capital expenditures and optimize plant performance, particularly in the area of reagent recovery and tailings disposal - Maximizing Brazilian input in the production of specialized process equipment not currently manufactured in Brazil Largo also announces that it has received the results for ten (10) of the early stage exploration holes drilled in 2008. These holes were drilled to test coincidental IP and magnetic targets along the three main trends north of Gulcari "A" where the Maracas Vanadium deposit lies. These holes returned good values in V2O5 and PGMs over significant widths. The most significant is FGA 101 which intersected 0.96% V2O5 and 1.53 g/t PGMs over 12 metres and FGAN 02 which intersected 1.12 V2O5 and 0.93 g/t PGMs over 10 metres. The results of all holes are summarized in Table 1 below. Andy Campbell, Vice President, Exploration at Largo Resources commented: "With the limited program that we began in 2008, we continued to intersect vanadium and PGM values over significant widths along the Gulcari "A" and Nova Amparo trends. We expect to continue a more complete program designed to locate higher grade PGM's and Vanadium when economic conditions improve." The Maracas Vanadium deposits are hosted within a sequence of gabbros and pyroxenites of the 2.64 billion-year-old, Jacare River layered mafic-ultramafic intrusion. This sheetlike linear intrusion extends for 70 kilometres along a north-south strike averaging about 1.2 kilometre in width. The PGMs found thus far are associated with disseminated to massive bodies of titano-magnetite in pyroxenites. This massive, titano-magnetite mineralization at Maracas ranges from 11.0 to 100 metres in thickness with an average true width of 40 metres. Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil, an ISO 9001-2000 certified laboratory. 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. Northern Dancer Project Largo has received all of the analytical results from its 2008 drill program of 38 holes totalling 11,500 metres. These down-dip and in-fill holes continue to confirm and expand the limits of the higher-grade tungsten and molybdenum zones outlined during the 2007 drill program and are expected to result in an upgrade to the Inferred and Indicated resource reported on April 10, 2008 (see April 10, 2008 press release) to a Measured and Indicated category needed to support a Pre-feasibility Study. The geological modeling of the deposit incorporating these results with the previous results is complete. A new updated resource is expected to be completed by the end of February. Although Largo is very satisfied with the progress made in defining the technical aspects of the project, completion of the preliminary economic assessment has been deferred until tungsten prices and market conditions improve. Andy Campbell, Vice President, Exploration at Largo Resources commented: "We have now received all the results from the 2008 drill program and overall the results are better than expected and continue to confirm the higher-grade tungsten and molybdenum zones. We continue to intersect and report some very wide widths of mineralization which characterizes this very large mineralizing system. We have now completed modeling the deposit and expect to release an updated resource by the end of February." The Northern Dancer project is one of the world's largest known tungsten-molybdenum deposits. On April 10, 2008 (see press release April 10, 2008) Largo announced an updated NI 43-101 compliant resource consisting of Indicated of 140.8 million tonnes grading 0.10% WO3 and 0.026% Mo and Inferred resources totalled 253.2 million tonnes grading 0.10% WO3 and 0.022 % Mo. This 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 Inferred resources of 18.7 million tonnes grading 0.16% WO3 and 0.023 % Mo. 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. 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. About Largo 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. 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. Disclaimer Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations, estimates regarding mineral resources, exploration plans and budgets, timing of receipt of assay results, projections regarding mineral prices, anticipated revenues and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates and ability to economically mine such deposits, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Table 1: Summary of Significant Analytical Results - Maracas, Brazil
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Hole V2O5 Pt Pd Pt +Pd Interval(i)
Number From To % g/t g/t g/t (metres)
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FSJ 03 75.00 90.00 0.55 15.00
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FSJ 04 22.00 35.00 .56 13.00
and 128.00 138.00 .50 10.00
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FSJ 05 2.00 21.00 0.55 0.32 0.12 0.44 19.00
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FSJ 06 68.00 88.00 0.52 0.34 0.14 0.48 20.00
including 83.00 88.00 0.63 0.37 0.25 0.63 5.00
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FSJ 07 20.00 30.00 0.74 0.40 0.12 0.52 10.00
and 113.00 129.00 0.65 0.40 0.22 0.62 16.00
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FSJ 08 no significant results
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FGA 101 67.00 72.00 1.03 5.00
and 98.00 110.80 0.96 0.72 0.81 1.53 12.00
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FNA 19 no significant results
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FGAN01 no significant results
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FGAN 02 104.00 114.00 1.12 0.55 0.38 0.93 10.00
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(i) The drill core size is NQ and all intervals reported are at or very
near true thickness
Drill hole Information - Maracas Property, Brazil
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Hole Number Northing Easting Elevation Azimuth Dip
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FSJ 03 8,488,300.00 319,200.00 330 290 -50
FSJ 04 8,488,200.00 319,200.00 328 290 -50
FSJ 05 8,488,350.00 319,250.00 327 290 -50
FSJ 06 8,488,100.00 319,225.00 325 290 -45
FSJ 07 8,488,000.00 319,243.00 325 290 -45
FSJ 08 8,487,303.00 318,806.00 328 290 -45
FNA 19 8,489,599.00 319,679.00 342 270 -45
FGA 101 8,486,386.00 318,630.00 298 270 -45
FGAN 01 8,487,100.00 318,775.00 304 270 -45
FGAN 02 8,487,000.00 318,785.00 310 270 -45
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