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Largo Resources Ltd (2)
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Close 2019-06-10 C$ 1.66
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Largo increases NI 43-101 M+I resources at NAN deposit

2019-06-11 07:39 ET - News Release

Mr. Mark Smith reports


Largo Resources Ltd. has provided an update on the Novo Amparo Norte deposit (NAN) in Maracas, Brazil.

Highlights of the updated resource estimate for NAN:

  • Total measured and indicated mineral resources of 12.23 million tonnes grading 0.88 per cent vanadium pentoxide (V2O5) with magnetic concentrate grades of 2.41 per cent V2O5;
  • Inferred mineral resources of 11.33 million tonnes grading 0.90 per cent V2O5 with magnetic concentrate grades of 2.46 per cent V2O5;
  • The resource is defined over a strike length of approximately two kilometres and remains open to the south and at depth.

The company's previously announced exploration program has successfully delivered a significant increase to the overall resource base at NAN with the successful conversion of resources from the inferred category to the measured and indicated categories in addition to increasing the inferred resources. The updated resource estimate is based on approximately 12,912 m of diamond drilling over 88 holes (including 5,404 m in 47 drill holes completed in 2019) and 5,549 sample intervals across the deposit. NAN is located approximately 6.5 km north of the company's current mining operation at the Maracas Menchen mine, Campbell pit and has a lower royalty burden than that associated with the Campbell pit.

                                                   Magnetic     Contained V2O5 in
Category       Tonnes  Head grade    Magnetite  concentrate  magnetic concentrate
                 (Mt)      V2O5 %            %       V2O5 %              (tonnes)

Measured         6.25        0.91         33.1         2.32                45,274
Indicated        5.98        0.85         28.1         2.50                37,811
Total M+I       12.23        0.88         30.7         2.41                83,086
Inferred        11.33        0.90         31.2         2.46                78,782
(1) Mineral resources have been classified using the Canadian Institute of 
Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and 
Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on 
Reserve Definitions and adopted by the CIM council.
(2) Mineral resources which are not mineral reserves do not have demonstrated 
economic viability. The inferred mineral resource in this estimate has a lower 
level of confidence than that applied to the measured and indicated mineral 
resource. It is reasonably expected that a portion of the inferred mineral 
resource could be upgraded to an indicated mineral resource with continued 
(3) Magnetite content is determined by Davis Tube Test methodology. V2O5 content 
of the magnetite concentrate was determined by XRF79C methodology at the SGS 
facility in Belo Horizonte, Brazil.
(4) Assuming only mineralized zones grading 0.45 per cent V2O5 or greater.
(5) Numbers may not add up exactly due to rounding.

NAN lies within the Rio Jacare intrusion, a mafic to ultramafic intrusive complex that hosts several vanadium-rich titanomagnetite deposits including the Maracas Menchen mine, Campbell pit. Drilling at NAN was completed over a strike length of approximately two kilometres and the current resource estimate extends to approximately 250 metres below surface where mineralization remains open for further exploration. Vanadium-rich magnetite units extend south of the current NAN resource area and the company is evaluating future drilling plans.

Mark Smith, chief executive officer of Largo, stated: "I am very pleased that through our modest drill program completed over the past year, the company was able to successfully deliver a significant conversion of resources from the inferred to the measured and indicated categories at NAN. In addition, in adding more inferred mineralization to the total, we have further confirmed our confidence in NAN as a target for further development. We are continuing to advance our work at NAN with geological and engineering studies currently under way to further upgrade our understanding of the deposit and related economics."

Quality assurance and quality control

All drill core samples were delivered to the SGS facility in Belo Horizonte, Brazil, for analysis of select elements by XRF79C. Davis Tube testwork is carried out on all mineralized samples. Quality control entailed the insertion of company blanks and standards into the drill core sample stream. In addition, SGS routinely inserts blanks, standards and duplicate analysis.

Qualified person

Paul Sarjeant, BSc, PGeo, manager of geology at Largo Resources, is a qualified person as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed the technical information in this press release.

About Largo Resources Ltd.

Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high-purity vanadium flake and high-purity vanadium powder at the Maracas Menchen mine located in Bahia state, Brazil.

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