Largo Initiates Exploration Program on Potential New Discovery of Chromite and PGMs
November 10, 2014 (Source: CNW) — Largo Resources Ltd. (“Largo” or the “Company“) is pleased to announce that it has begun an exploration program for chromite and PGMs (platinum group metals) at its Capivara Prospect which is located in the Maracas region of Bahia, Brazil, but outside of the current mining area of its Maracas Menchen Mine.
Largo has recently discovered a new chromite showing on its Capivara Prospect (Figure 1). The Capivara Prospect lies 32 km north of the Campbell pit at the Maracas Menchen Mine. The original objective was to evaluate the known magnetite horizon which includes high grade vanadium values. While evaluating this magnetite horizon, the discovery was made of a number of zones containing chromite layers with fine grained sulphides. Samples have been collected and submitted to the lab with results pending.
The chromite layers have been traced over an area of 3km (north-south) by 0.5 km (east-west). There are at least two zones of chromite layers from 20 to 25 metres wide at surface. These zones lay 400 metres west of the Magnetite horizon that contains vanadium and anomalous platinum. The chromite layers are hosted in a thick ultramafic sequence including olivine gabbro, olivine pyroxenite and dunite. In the zones, the chromite layers consist of fine-grained massive chromite (˃ 60% chromite) and disseminated sulphides that could potentially contain PGMs. These massive chromite layers are 0.50 metres to 1.0 metre thick separated by material containing lesser chromite (˂ 10% chromite) and disseminated sulphides.
Robert Campbell, P.Geo., Vice President of Exploration to Largo, commented: “We are very pleased with the discovery of the chromite layers and the possibility of PGM mineralization related to the sulphides. This is similar to other layered intrusions such as Great Dyke, Bushveld and Stillwater. The significance in these layered intrusions is that the ultramafic section hosts the known chromite and PGM deposits. This transition from the mafic section and magnetite horizon to the ultramafic section and chromite layers may represent the ultramafic component to the Rio Jacare Sill or time equivalent.”
At present, a ground magnetic survey of the area is 90% complete, mapping and sampling is 60% complete and a gravity survey is set to begin next week. Once the data has been evaluated, targets will be prioritized and followed up with diamond drilling.
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Largo (TSX-V: LGO) is a growing strategic mineral company with projects in Brazil and Canada. The immediate goal of the Company is to ramp-up production at its Vanadio de Maracás Menchen Mine.
Largo’s Maracás Menchen Mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. With an off-take in place with commodities giant Glencore, Largo is well positioned to become a leading producer of vanadium globally and is expected to generate substantial cash-flows.
Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range of products that are used and encountered every day; including, rebar, automobiles, transport infrastructure etc. With a compound annual growth rate of over 6% for the past several years (Roskill, 2013), vanadium is a bourgeoning commodity which lacks opportunities for investment in the wider market place. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to continue this growth over the medium and long term.
Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos Tungsten Tailings Project in Brazil; a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project in Brazil; and a 100% interest in the Northern Dancer Tungsten-Molybdenum property in the Yukon Territory, Canada.
Largo is listed on the TSX Venture Exchange under the symbol “LGO“.
Mr. Robert Campbell, Vice President, Exploration of Largo and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this press release.
For more information please refer to Largo’s website: www.largoresources.com
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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 Maracás 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. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&As.
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Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>