With a new inferred resource of 508 million lbs. tungsten and 151 million lbs. molybdenum, Largo Resources (LGO-V, LGORF-O) has added its Northern Dancer deposit, in the Yukon, to the list of world-class moly-tungsten orebodies.
The April 2 news did not go unnoticed on the TSX Venture Exchange — Largo shares shot up about 55% to 72 apiece from 46.5 on trading volume of 3.7 million, but slipped to the 60-range in the days that followed.
Included in the resource is a higher-grade molybdenum zone of 36.8 million tonnes grading 0.085% MoS2.
The overall deposit is estimated at 242 million tonnes grading 0.1% WO3 and 0.046% MoS2, or 508.1 million lbs. tungsten and 151 million lbs. molybdenum, using a cutoff grade of 0.05% WO3. That’s an increase from the 1984 historical resource of 464.3 million lbs. tungsten and 114 million lbs. molybdenum.
Largo has also announced a private placement for just over $5 million with Pacific International Securities, Fraser Mackenzie Limited and PowerOne Capital Markets. The offering is for up to 9.1 million units at 55 per unit, with the option of an additional 9.1 million units. Each unit includes one Largo share and half a warrant. Warrants can be exercised at 80 for a period of 18 months after the closing date.
The money will be used to further explore the Northern Dancer deposit as well as the Maracas vanadium-platinum group metals project in Brazil.
Currently, Largo is working on a scoping study at Northern Dancer, which includes metallurgical testing. A second drill program will start this spring to increase and upgrade resources to the indicated category.
Largo has drilled the deposit about 750 metres along strike, 500 metres vertically and 6,000 metres in width. The deposit remains open along strike to the southwest and northeast, and at depth. The resource was calculated using data from 70 drill holes totalling 15,500 metres.
The mineralization is hosted in fractures and veins associated with a northeast-trending sheeted vein system in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz feldspar porphyry).
The tungsten and molybdenum are concentrated in two zones. The higher-grade molybdenum is found in the core of the deposit adjacent to a felsic intrusion. Surrounding and partially overlapping the molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending quartz.
Largo is also doing exploration work at its Macucchi gold-copper-zinc-silver project in Ecuador.
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