With a new inferred resource of 508 million lbs. tungsten and 151 million lbs. molybdenum, Largo Resources (LGO-V) has added its Northern Dancer deposit in the Yukon to the list of world-class moly-tungsten ore bodies.
The news did not go unnoticed on the TSX Venture Exchange Largo shares shot up nearly 55% today to 72 apiece on a trading volume of 3.7 million.
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 using a cut-off grade of 0.05% WO3. Thats an increase from the 1984 historical resource of 464.3 million lbs. tungsten and 114 million lbs. molybdenum.
Currently, Largo is working on a scoping study, which includes metallurgical testing. A second drill program will start this spring to increase and upgrade resources to the indicated category.
Largo has drilled about 750 metres along strike, 500 metres vertically and 6,000 metres in width. It remains open along strike, to the southwest, northeast and at depth. The resource was determined from the data of 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 northesast-trending quartz.
Largo is also doing exploration work at its Maracas vanadium-platinum group elements project in Brazil and the Macucchi gold-copper-zinc-silver project in Ecuador.