June 24, 2008
Largo Begins New Drill Program at Northern Dancer Tungsten-Molybdenum Project, Yukon
Largo Resources Ltd. (TSX VENTURE: LGO) announced today that three drill rigs have begun a 20,000-metre diamond drill program on the Company's 1,500 hectare Northern Dancer Tungsten-Molybdenum property, which straddles the Yukon-British Columbia border 290 kilometres east of Whitehorse.
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 was 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 26-hole program in 2007.On April 10, 2008, Largo announced an updated NI 43-101 compliant resource consisting of 140.8 million tonnes grading 0.10% WO3 and 0.026% Mo (Indicated) and 253.2 million tonnes grading 0.10% WO3 and 0.022 % Mo (Inferred). 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. More drilling is required to further define additional higher grade tungsten and molybdenum resources.
Andy Campbell, Vice-President, Exploration stated: "The 2007 drill program was very successful in upgrading the resource and confirming the significant higher grade tungsten zone. Drill holes were planned based on preliminary pit modeling to eliminate gaps in previous drill coverage and ensure a sufficient density of drilling in the core of the deposit to outline a substantial indicated resource. We also improved our geological understanding of the overall deposit, especially the controls on the higher grade tungsten zone. Plans are at an advanced stage for the 2008 program and I expect that this work will bring the resource base to a stage where a pre-feasibility study could be supported."
The minimum 55-hole diamond drill program is intended to further define the extent of the higher-grade tungsten and molybdenum zones intersected in the 2006 and 2007 programs. This will be done through a series of angled drill hole fences across the deposit to test the higher-grade zones. Historical drill holes (AMAX) were vertical to subvertical and did not adequately test the typically steeply dipping quartz-scheelite veins with which higher tungsten grades are associated. The program is expected to take four to six months to complete with results from the first holes received in about six to eight weeks. Included in the program shall be some holes drilled for metallurgical purposes.
The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry systems. The mineralization is hosted in fractures, veinlets and veins associated with a northeast-trending sheeted vein structure hosted in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling for 1.2 kilometres 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.
At Northern Dancer, 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 structure.
Assaying for the 2007 drill program was carried out by Acme Analytical Laboratories Ltd. an ISO 9000:2000 certified laboratory 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 degrees C) 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. Mr. Campbell has reviewed the scientific and technical information within this release.
Largo is also pleased to announce that it has granted an aggregate of 4,050,000 options to acquire Largo common shares under its stock option plan to certain officers, directors and consultants. Each option has an exercise price of $1.50, vests immediately and will expire on June 24, 2013. Shares issuable upon exercise of the options will be subject to a statutory four-month hold period, if they are issued prior to October 25, 2008. This grant of options is subject to approval of the TSX Venture Exchange.
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
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 (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization 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, 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.
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Contacts: Largo Resources Ltd. Mark Brennan President & CEO (416) 861-5886 Email: [email protected] Largo Resources Ltd. Tony LaMantia VP, Corporate Development (416) 861-5882 Email: [email protected] Website: www.largoresources.com
SOURCE: Largo Resources Ltd.