Largo Resources Ltd
Yukon Territory - Brazil - Ecuador: Gold-Copper, Vanadium PGE , tungsten/molybdenum
Message: Options the Campo Alegre De Lourdes Iron-Titanium-Vanadi... Project in Brazil
| May 20, 2009 |
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Largo Options the Campo Alegre De Lourdes Iron-Titanium-Vanadium Project in Bahia, Brazil
- One of the world's largest and richest known vanadium deposits outside of China, which is located in the same state as Company's Maracas project. |
| TORONTO, ONTARIO--(Marketwire - May 20, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO)("Largo or the "Company") is pleased to announce that it has signed an agreement with Companhia Baiana de Pesquisa Mineral ("CBPM") a Bahia state owned exploration company to acquire 100% working interest in the Campo Alegre de Lourdes Fe-Ti-V property owned by CBPM. CBPM put the property out for tender in June 2008. The property located in the municipality of Campo Alegre de Lourdes, State of Bahia, consists of seven (7) concessions totaling 9,275 hectares. The seven concessions are shown on the attached property map. The 9,275-hectare property is located 650 kilometres northwest of Salvador, the capital of Bahia State. The Fe-Ti-V deposits are hosted within the Campo Alegre de Lourdes mafic-ultramafic intrusion which consists of a sequence of pyroxenite, gabbro and gabbro-anorthosite intrusive rocks. The widespread Fe-Ti-V mineralization on the property occurs as wide zones of massive titanomagnetite and ilmenite that has been traced for eleven kilometres along strike and two kilometres wide and are characterized by 11 deposits aligned roughly north-south as 11 elongated hills. The property has had a significant amount of work done in the past in particular between the late 1970's to early 1980's by the CBPM. Work has consisted of geochemical soil sampling, geological mapping, prospecting, preliminary metallurgical testwork, petrographic studies and 60 holes totalling 5,300 metres of diamond drilling. This work resulted in a reported historical mineral resource, estimated by CBPM to be 133 million tonnes of 50% Fe, 21% TiO2, and 0.75% V2O5 to a vertical depth of less than 60 metres. The resource was estimated by CBPM in the 1980s using a block model and ordinary kriging; this estimate is not NI 43-101 compliant. Largo has not completed the work necessary to verify the mineral resource and cautions that the historical resource should not be relied upon. Based on management's review of vanadium deposits throughout the word, the Company believes that the property is one of the world's largest and richest known vanadium deposits outside of China. Upon the signing of the respective acquisition agreement, Largo shall acquire a 100% interest in the Property, subject to the terms and conditions set forth therein, for a purchase price of payable as follows: 1) Initial payment of R$500,000 payable in 5 installments over 10 months is due to CBPM. To this date R$200,000 has already been paid. The Company has agreed to make additional payments of R$250,000 upon any exploration title being converted into a mining concession. 2) If the property is put into production, a 3.8% royalty applied to gross sales of Fe, Ti and V will be due to CBPM. The royalty will be paid on a monthly basis. 3) All exploration work must be accomplished within 24 months and can be renewed for an additional 24 months if necessary. 4) The production lease period is 20 years and can be renewed for additional 20 year periods up to the full depletion of the ore reserves. Andy Campbell, P.Geo., Vice President, Exploration commented: "Based on our initial examination of the property, we believe that it is to be a very interesting Fe-Ti-V deposit. The intersections consist of wide zones of massive titaniferous magnetite and ilmenite mineralization with high V2O5 grades. The deposits are open along strike and at depth. This property fits well with Largo's other assets." All drill cores from the previous work are stored in a CBPM facility and are in excellent condition. Largo's plans are to move the cores to Largo's facility near Maracas to complete systematic sampling and logging of the drill cores to confirm the Fe, TiO2 and V2O5 values of the deposits. Results will be used to do geological modelling and a new resources estimate. An independent consulting firm will be retained to review our modeling and resource estimate as well as review the historical resource estimate, complete independent sampling to verify previous results, and to prepare an independent NI 43-101 technical report. The goal would be to have a NI 43-101 compliant resource estimate complete so we could move the property forward in the future. Andy Campbell, who is the Vice President, Exploration of the Company and a Qualified Person under NI 43-101, has reviewed the scientific and technical information in this press release. About Largo Largo Resources Ltd. 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 |
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