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Largo Resources Substantially Upgrades Mineral Resources at its Novo Amparo Norte Deposit in Maracás, Brazil

TORONTO , June 11, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce an update on the Novo Amparo Norte deposit ("NAN") in Maracás, Brazil .

Highlights of the updated resource estimate for NAN:

  • Total Measured and Indicated Mineral Resources of 12.23 million tonnes grading 0.88% V2O5 with magnetic concentrate grades of 2.41% V2O5
  • Inferred Mineral Resources of 11.33 million tonnes grading 0.90% V2O5 with magnetic concentrate grades of 2.46% V2O5
  • The resource is defined over a strike length of approximately two kilometers and remains open to the south and at depth


The Company's previously announced exploration program has successfully delivered a significant increase to the overall resource base at NAN with the successful conversion of resources from the Inferred category to the Measured and Indicated categories in addition to increasing the Inferred Resources. The updated resource estimate is based on approximately 12,912 m of diamond drilling over 88 holes (including 5,404 m in 47 drill holes completed in 2019) and 5,549 sample intervals across the deposit. NAN is located approximately 6.5 km north of the Company's current mining operation at the Maracás Menchen Mine, Campbell Pit and has a lower royalty burden than that associated with the Campbell Pit.

Novo Amparo Norte Mineral Resource Estimate as of May 31, 2019

Category

Tonnes

(Mt)

Head Grade

V2O5 %

% Magnetite

Magnetic

Concentrate

 V2O5 %

Contained V2O5 in

Magnetic

Concentrate

(Tonnes)

Measured

6.25

0.91

33.1

2.32

45,274

Indicated

5.98

0.85

28.1

2.50

37,811

Total M & I

12.23

0.88

30.7

2.41

83,086


Inferred

11.33

0.90

31.2

2.46

78,782


1.

Mineral Resources have been classified using the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.

2.

Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.  The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to the Measured and Indicated Mineral Resource.  It is reasonably expected that a portion of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

3.

Magnetite content is determined by Davis Tube Test methodology.  V2O5 content of the magnetite concentrate was determined by XRF79C methodology at the SGS facility in Belo Horizonte, Brazil.

4.

Assuming only mineralized zones grading 0.45% V2O5 or greater.

5.

Numbers may not add up exactly due to rounding.


NAN lies within the Rio Jacaré intrusion, a mafic to ultramafic intrusive complex that hosts several vanadium rich titanomagnetite deposits including the Maracás Menchen Mine, Campbell Pit (Figure 1). Drilling at NAN was completed over a strike length of approximately two kilometers and the current resource estimate extends to approximately 250 meters below surface where mineralization remains open for further exploration. Vanadium rich magnetite units extend south of the current NAN resource area and the Company is evaluating future drilling plans.

Figure 1: Rio Jacaré Sill Showing the Maracás Menchen Mine - Campbell Pit and Satellite Deposits (CNW Group/Largo Resources Ltd.)

Mark Smith , Chief Executive Officer of Largo, stated: "I am very pleased that through our modest drill program completed over the past year, the Company was able to successfully deliver a significant conversion of resources from the Inferred to the Measured and Indicated categories at NAN. In addition, in adding more Inferred mineralization to the total, we have further confirmed our confidence in NAN as a target for further development. We are continuing to advance our work at NAN with geological and engineering studies currently underway to further upgrade our understanding of the deposit and related economics."

Quality Assurance and Quality Control

All drill core samples were delivered to the SGS facility in Belo Horizonte, Brazil for analysis of select elements by XRF79C. Davis Tube test work is carried out on all mineralized samples. Quality control entailed the insertion of company blanks and standards into the drill core sample stream. In addition, SGS routinely inserts blanks, standards and duplicate analysis. 

Qualified Person

Mr. Paul Sarjeant B.Sc. P.Geo., Manager of Geology at Largo Resources is a Qualified Person as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed the technical information in this press release.

About Largo Resources

Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen Mine located in Bahia State, Brazil. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "LGO". For more information on Largo, please visit our website at www.largoresources.com.

Neither the Toronto Stock Exchange (nor its regulatory service provider) accepts responsibility for the adequacy or accuracy of this press release.

Forward-looking Information:

This press release contains forward-looking information under Canadian securities legislation, some of which may be considered "financial outlook" for the purposes of application Canadian securities legislation ("forward-looking statements"). Forwardlooking information in this press release includes, but is not limited to, statements with respect to the estimation of mineral resources; conclusions of economic evaluation; the realization of mineral estimates; conversion of mineral resources into mineral reserves; development and exploration; costs of future activities; success of exploration activities; metallurgy, mining or processing issues; government regulation of mining operations; and environmental risks. 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". All information contained in this news release, other than statements of current and historical fact, is forward looking information. 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. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. 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 which also apply.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources

This press release uses the terms "measured," "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

(CNW Group/Largo Resources Ltd.)

SOURCE Largo Resources Ltd.


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