Largo Resources drilled 24 holes totalling 4,223 metres during phase two drilling at its Novo Amparo Norte (NAN) vanadium deposit. The deposit lies 6.5 km north of Largo’s Campbell pit at its Maracas Menchen vanadium mine in Bahia State, Brazil. NAN is the northernmost zone of known mineralization at the project.
Highlights from the program’s first 20 holes include: 1.18% vanadium oxide over 13 metres from 26 metres downhole and 1.12% vanadium oxide over 14 metres from 96 metres downhole. The company expects to receive the remaining results by the end of December 2018.
When Largo drilled NAN in 2011 and 2012 it defined a 790 metre zone of mineralization, on average 18 metres wide and grading 0.87% vanadium oxide. Its latest program extended that zone north and south along strike to 1.84 km. The deposit remains open to the south and at depth.. It will drill another 25,000 metres at NAN and other regional targets in 2019.
The company expects to produce as much as 10,150 tonnes vanadium oxide at Maracas Menchen this year. As of May 2017, the Campbell pit contained 19.78 million measured and indicated tonnes grading 1.2% vanadium oxide for 236,700 tonnes vanadium oxide, including 19 million proven and probable tonnes grading 1.15% vanadium oxide. The company says Campbell has 10 years of reserves left.
Shares of Largo Resources are currently trading at $3.08 with a 52-week range of 95¢ to $4.65. The company has a $1.62 billion market capitalization.