Jul 30, 2007 17:30 ET
Largo Completes Drilling on Gulcari "A" Vanadium Deposit; Exploration to Focus on PGMs at Maracas Project, Brazil
- Definition drilling completed on Gulcari "A"
- Drilling underway at Nova Amparo deposit for PGMs
- Updated resource model for Vanadium & PGMs underway
- Ground geophysical program to begin early August
TORONTO, ONTARIO--(Marketwire - July 30, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to provide an update on the exploration program in progress on the Company's 2,000 hectare Maracas Vanadium-PGM property located 250 kilometres west of Salvador, Bahia, Brazil.
To date, 45 diamond drill holes totalling 11,300 metres have been completed on the Gulcari "A" deposit in order to further upgrade and evaluate the Vanadium-PGM mineralization and the previously announced inferred mineral resource of 15.0 million tonnes grading 1.37% Vanadium Pentoxide (V2O5) (see press release) November 22, 2006). Results have been released for 16 holes (see press releases May 22, 2007, June 19, 2007 and July 18 2007) and 3 holes were drilled for geotechnical and metallurgical purposes. Analytical results for the remaining holes are pending and will be released as soon as available.
Andy Campbell, P.Geo., Vice President, Exploration commented: "We are very encouraged by the recent drilling completed at Gulcari "A" and the sizeable vanadium deposit that is taking shape with significant PGMs associated with the massive magnetite zone. The PGM results continue to be very significant and with a very high platinum-palladium ratio (average 4:1). It is very possible that the PGM's may have been redistributed from an original sulphide melt by a later stage hydrothermal event. If this is the case, there could be excellent potential for other areas of significant PGM mineralization. We are now beginning to better understand the relationship between the massive magnetite zones and the PGM mineralization in this layered ultramafic complex. Our exploration efforts will now be focused on the PGM mineralization and evaluating it further."
Mark Brennan, President & CEO of Largo Resources commented: "Drilling at Gulcari "A" has been very successful and has exceeded expectations. The updated resource estimate in progress will form the basis for the expanded scoping study including PGMs. Metallurgical tests to determine PGM recovery are in progress at SGS Lakefield and are expected to be completed by the end of August. The expanded scoping study is scheduled to be completed by the end of September.
The Gulcari "A" deposit as outlined from drilling now extends 400 metres along strike, to a vertical depth of over 300 metres with true widths ranging from 11 to 100 metres with an average width of about 40 metres. This deposit, which remains open along strike and at depth, is part of a mineralized system that extends for 8 kilometres across the property. Exploration will now shift focus to test other areas at surface along this system including, from north to south, Nova Amparo, Sao Jose and Gulcari "B".
The results from all the drilling done at Gulcari "A" deposit indicate that the PGM mineralization is significant and consistent. Table 1 summarizes the significant PGM values previously reported in drill holes. The high Pt:Pd ratio is a consistent feature throughout all of the intersections. The exploration program is now moving into a new phase focusing on PGM mineralization. Work in progress includes: geological mapping of the property at a scale of 1:2000, a ground geophysical program of magnetic and induced polarization (IP) surveys and diamond drilling. Eleven (11) shallow holes are initially planned at Nova Amparo located 4 km to the north to test for PGMs associated with a magnetite layer. As target definition is completed, drilling will be carried out to test the Sao Jose and Gucari "B" showings as well as additional targets outlined by the geological/geophysical surveys.
As previously announced (April 24, 2007), Dr. Reid Keays, a well known expert in platinum group element (PGE) geochemistry and genetic modelling of PGEs, has been retained by Largo to carry out a study of the PGM mineralization at Maracas to study the controls and distribution of the mineralization. This work will help to better understand the distribution and controls on PGM mineralization as well as aid target definition.
The Maracas 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. There are a number of striking similarities to the Great Dyke including age, rock types, platinum and palladium ratio and style of intrusion as well as host rock that it intrudes. 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 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.
Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Platinum-Vanadium deposit in Brazil. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador; one of which, the 5,000 hectare Macuchi property, is under option to Aur Resources Inc.. The company is listed on the TSX Venture Exchange under the symbol LGO.
Disclaimer
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of applicable securities laws. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements".
Table 1: Summary of Significant Assay Results - Maracas Property, Brazil
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Hole From To Pt Pd PGM Pt:Pd Interval True
Number (g/t) (g/t) (g/t) Ratio (metres) thickness
(m)
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FGA03 20.00 48.00 0.76 0.21 0.97 3.6 28.00 28.00
FGA07 52.00 86.00 0.70 0.09 0.79 7.8 34.00 34.00
---------------------------------------------------------------------------
FGA14 10.00 52.00 0.79 0.16 0.95 5.0 42.00 42.00
FGA17 24.00 40.00 0.61 0.32 0.93 1.9 16.00 16.00
---------------------------------------------------------------------------
FGA19 6.00 26.00 1.20 0.04 1.24 30.0 20.00 20.00
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FGA20 46.00 59.00 1.75 0.13 1.88 13.5 13.00 13.00
FGA23 46.00 55.00 0.86 0.42 1.28 2.0 9.00 9.00
---------------------------------------------------------------------------
FGA25 46.00 65.00 0.74 0.11 0.85 6.7 19.00 19.00
FGA26 68.00 80.00 0.77 0.08 0.85 9.6 12.00 12.00
FGA43 96.00 105.00 1.08 0.05 1.13 21.6 9.00 9.00
---------------------------------------------------------------------------
FGA57 121.00 138.10 0.36 0.28 0.66 1.3 19.10 17.00
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FGA58 136.00 158.00 0.41 0.20 0.61 2.0 22.00 22.00
FGA59 50.00 122.00 0.52 0.08 0.60 6.5 72.00 72.00
FGA64 238.05 262.40 0.44 0.28 0.72 1.6 24.35 23.00
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FGA67 30.00 76.00 0.44 0.17 0.61 2.6 46.00 46.00
FGA69 44.26 112.73 0.53 0.12 0.65 4.4 68.00 68.00
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Drill hole Information - Maracas Property, Brazil
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Hole Number Northing Easting Elevation Azimuth Dip
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286 -45
FGA03 8,486,142 318,288 310.99 degrees degrees
284 -70
FGA07 8,486,164 318,302 310.58 degrees degrees
297 -50
FGA14 8,486,087 318,259 307.45 degrees degrees
292 -49
FGA17 8,486,111 318,285 308.81 degrees degrees
292 -55
FGA19 8,486,131 318,238 316.29 degrees degrees
107 -82
FGA20 8,486,120 318,231 314.53 degrees degrees
108 -78
FGA23 8,486,160 318,236 314.84 degrees degrees
284 -44
FGA25 8,486,165 318,293 311.13 degrees degrees
284 -59
FGA26 8,486,188 318,313 309.77 degrees degrees
286 -70
FGA43 8,486,108 318,372 295.71 degrees degrees
290 -70
FGA57 8,486,089 318,346 294.04 degrees degrees
290 -70
FGA58 8,486,124 318,353 294.96 degrees degrees
290 -45
FGA59 8,486,151 318,358 294.76 degrees degrees
290 -65
FGA64 8,486,074 318,332 295.09 degrees degrees
290 -45
FGA67 8,486,090 318,296 301.09 degrees degrees
290 -45
FGA69 8,486,133 318,319 302.71 degrees degrees
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