Largo bags more moly at Northern Dancer

Vancouver – Largo Resources’ (LGO-V) hunt for higher grade molybdenum at Northern Dancer appears to be paying off.

Based on drill results from its 2006 and 2007 campaigns Largo Resources outlined an indicated resource of 141 million tonnes grading 0.1% tungsten and 0.026% moly at the Yukon property, 290 km southeast of Whitehorse by road.

But this summer the company’s drills targeted areas where it believed higher grade moly and tungsten might be uncovered. Largo had previously noted higher grades of tungsten in the southwest portion of the mineralized area and higher grades of moly in the northeast.

“The focus at Northern Dancer has been on defining higher grade areas of both tungsten and molybdenum, not on increasing the tonnage of the mineralized area itself,” Largo president and CEO Mark Brennan says.

The first eight holes – most collared in the northeast – from the 38 hole 2008 program look to confirm Largo’s instincts.

Starting at a depth of 37 metres hole 101 returned 50 metres grading 0.13% tungsten and 0.117 % moly. A couple hundred metres to the southeast of that hole, Largo cut 31 near-surface metres in hole 97 grading 0.08% tungsten and 0.048% moly and another 75 metres grading 0.04% tungsten and 0.063% moly.

And about 100 metres to the west of hole 101 Largo intersected 50 metres grading 0.09% tungsten and 0.079% moly starting 98 metres below surface.

So far Largo has outlined a mineralized area about 1,500 metres long, 600 metres wide and to a depth of 500 metres. It is open along strike and at depth.

Brennan says a scoping study for the project will be out in the next couple weeks.

As for Largo’s other project, the Maracas vanadium property in Brazil, Brennan says Largo continues to seek funding for a mine with capital costs estimated at $271 million dollars.

Although he says all options are on the table, “the ultimate objective we’re looking at is debt financing.”

Largo produced a feasibility study on Maracas mid-August which is estimated to hold reserves of 13.1 million tonnes grading 1.34% V₂O₅.

On news of the Northern Dancer drill results, Largo’s share price gained 0.5 to close at 38.5.