Largo Provides Update on the Ongoing Exploration Program Surrounding its Maracás Menchen Mine in Brazil
Largo Provides Update on the Ongoing
Exploration Program Surrounding its
Maracás Menchen Mine in Brazil
The Company is working to establish a correlation between the known
mineralization intercepted from Novo Amparo North (“NAN”) to the Campbell Pit
with the goal of opening a potential mineralized trend measuring more than 7
kilometres (“km”) along strike
The Company is also reviewing exploration work south of the Campbell Pit to assess
the potential of continued mineralization
TORONTO--(BUSINESS WIRE)--December 18, 2023--Largo Inc. ("Largo" or the
"Company") (TSX: LGO) (NASDAQ: LGO) is pleased to provide an update on the ongoing
exploration program surrounding its Maracás Menchen Mine, including an initial phase of
drilling conducted in 2023 and the further analysis of past exploration work completed at the
Company’s Campbell Pit and exploration targets located both north and south of the Campbell
Pit.
Daniel Tellechea, Director and Interim CEO of Largo, stated: “As a part of its ongoing
operations, Largo continues to undertake exploration work in the areas surrounding the
Campbell Pit to both optimize current operations and plan for future development and expansion
through the identification and conversion of resources. This exploration program aims to expand
our understanding of the mineralization surrounding the Campbell Pit so that we may gauge the
possibility of continued mineralization north and south of the Campbell Pit. With analysis of
recent drilling and historical exploration work underway, we anticipate providing the market
with updates as our program progresses."
Exploration Program Overview
Largo is working to expand its knowledge and establish a correlation with the known
mineralization intercepted to the north of the Campbell Pit where, in 2021, mineral reserves and
resources were reported in the Company’s current technical report at the Campbell Pit, Gulçari A
Norte (“GAN”) and Novo Amparo Notre (“NAN”). Currently, the Company is exploring the
potential for a 7 km trend of mineralization between the Campbell Pit and the satellite deposits
(from south to north); GAN, São José (“SJO”), Novo Amparo, and NAN (collectively, the
“Northern District”).
Additionally, the Company is also working to understand and establish a correlation with the
known mineralization intercepted south of the Campbell Pit, which includes further analysis of
exploration work performed on satellite deposits (from north to south): Gulçari A Sul, Agua
Branca, Jacaré, Braga, Ilha Grande, and Rio de Contas (collectively, the “Southern District”).
2023 Drill Program
In 2022 and 2023, the Company conducted a drill program in the Northern District consisting of
19 drill holes and 245 surface samples, 148 infill holes in the Campbell Pit and 33 holes in the
Southern District (the “2023 Campaign”). The Company is also performing a comprehensive
review of its existing exploration data in the Northern District, including, without limitation, 161
historical drill holes and 5,869 samples collected between 1981 and 2020.
The Company’s 2023 Campaign in the Northern District includes 19 new diamond drill holes
aimed at improving the Company’s geological knowledge of the Campbell Pit and GAN and SJO
deposits. Of those holes, six step-out holes were drilled between the Campbell Pit and GAN
deposit with the aim of confirming the potential for continued mineralization. The Company
believes the initial results for the six step-out holes provide greater confidence in the continuity
of mineralization between the Campbell and GAN mineralized zones. Assay results from the six
step-out drill holes are provided in Table 1, along with a plan view and cross-section of the drill
holes in Figure 2 and 3.
The Company is in the process of analyzing its historical drill data and the remaining holes from
its 2023 Campaign with results expected in Q1 2024.
Table 1: 2023 Drill Program - GAN Step-out Drill Result Highlights
Hole ID From
(m)
To
(m)
Length
(m)
True
Width
(m)
V2O5
(%) TiO2 (%) Magnetic Mass
Recovery (%)* Target
GAN-DD-001
48.00 55.00 7.00 5.25 0.43 8.32 19.61 GAN
56.00 58.86 2.86 2.15 0.32 6.57 11.62 GAN
61.00 71.00 10.00 7.58 0.36 6.86 13.69 GAN
74.00 87.00 13.00 9.97 0.40 6.91 15.35 GAN
249.00 255.00 6.00 4.84 0.60 14.10 37.82 GAN
390.00 394.75 4.75 3.93 0.56 7.70 18.87 GAN
414.00 418.19 4.19 3.48 0.58 5.13 15.01 GAN
GAN-DD-004
83.60 102.32 18.72 14.48 0.65 13.94 38.98 GAN
293.00 295.97 2.97 2.46 0.67 9.96 25.96 GAN
339.00 348.00 9.00 7.59 0.43 3.59 3.99 GAN
GAN-DD-005
68.50 71.90 3.40 3.00 0.44 9.31 18.36 GAN
77.00 80.64 3.64 3.22 0.49 9.12 19.19 GAN
GAN-DD-006 322.00 328.00 6.00 4.80 0.48 3.42 2.93 GAN
GAN-DD-007 235.73 240.13 4.40 3.47 0.87 11.43 32.50 GAN
GUA-DD-001 281.00 284.00 3.00 2.87 0.35 2.69 0.82 GAN
* Davis Tube concentrate
Table 2: 2023 Drill Program - GAN Step-out Drill Hole Information
Hole ID X UTM
(m)
Y UTM
(m)
RL
(m)
Az
(°)
Dip
(°)
Depth
(m) Target
GAN-DD-001
318878 8486173 275.3 290 60 268.3 GAN
318876 8486172 268.5 290 60 265.64 GAN
318870 8486172 264.3 290 60 254.3 GAN
318861 8486172 253.4 290 60 240.4 GAN
318763 8486172 110.6 290 60 104.6 GAN
318678 8486175 -0.95 290 60 -5.7 GAN
318664 8486176 -19.7 290 60 -23.89 GAN
GAN-DD-004
318800 8486580 237.1 270 60 218.38 GAN
318689 8486592 65.41 270 60 62.44 GAN
318658 8486597 29.1 270 60 20.1 GAN
GAN-DD-005
318803 8486579 260.6 270 45 257.2 GAN
318797 8486579 254.6 270 45 250.96 GAN
GAN-DD-006 318619 8486303 39.5 270 60 33.5 GAN
GAN-DD-007 318644 8486386 109 270 60 104.6 GAN
GUA-DD-001 318556 8486228 112.5 270 45 109.5 GAN
Sampling, QA/QC, and Analytical Procedures
Drill core is logged, photographed and split in half using a diamond core saw at the secure core
logging and storage facilities of Largo Vanádio Maracás S.A. (“LVMSA”). Half of the drill core
is retained on site and the other half core is used for analysis, with samples collected on one
meter sample intervals unless an interval crosses a geological contact.
The sample preparation and analytical work was carried out at the SGS facility in Belo Horizonte
and the LVMSA secure on-site laboratory, which are both ISO 9001 certified laboratories. All
sample results during the period have been monitored through a QA/QC program that includes
the insertion of certified standards, blanks, and pulp and reject duplicate samples. Davis Tube
test work was carried out on all mineralized samples.
Review of Technical Information
Mr. Emerson Ricardo Re., MSc, MBA, MAusIMM (CP) (No. 305892), Registered Member (No.
0138) (Chilean Mining Commission) is the geology advisor and responsible for the geological
management of the Maracás Menchen Mine. Mr. Re is a Qualified Person as defined under
National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and
approved the scientific and technical information in this press release.
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE TM and
VPURE+TM products, sourced from its Maracás Menchen Mine in Brazil. The Company is
currently focused on implementing an ilmenite concentrate plant and is undertaking a strategic
evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium
battery technology to maximize the value of the organization. Largo's strategic business plan
centers on maintaining its position as a leading vanadium supplier with a growth strategy to
support a low-carbon future.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange
under the symbol "LGO". For more information on the Company, please visit
www.largoinc.com.
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements"
within the meaning of applicable Canadian and United States securities legislation. Forward‐
looking information in this press release includes, but is not limited to, statements with respect to
work to establish correlations between known mineralization intercepted from NAN and the
Campbell Pit; exploration results at the Maracás Menchen Mine; future development and
expansion at the Campbell Pit; providing future updates on the Company’s program; the timing
and delivery of the Company’s analysis on historical drill holes its 2023 Campaign and surface
sampling; and the timing and delivery of the Company’s analysis on the Southern District and
Northern District exploration work.
The following are some of the assumptions upon which forward-looking information is based:
that general business and economic conditions will not change in a material adverse manner;
demand for, and stable or improving price of V2O5, other vanadium products, ilmenite and
titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and
renewals in a timely manner; that the Company will not experience any material accident,
labour dispute or failure of plant or equipment or other material disruption in the Company's
operations at the Maracás Menchen Mine or relating to Largo Clean Energy; the availability of
financing for operations and development; the availability of funding for future capital
expenditures; the ability to replace current funding on terms satisfactory to the Company; the
ability to mitigate the impact of heavy rainfall; the reliability of production, including, without
limitation, access to massive ore, the Company's ability to procure equipment, services and
operating supplies in sufficient quantities and on a timely basis; that the estimates of the
resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy
(including with respect to size, grade and recovery and the operational and price assumptions on
which such estimates are based); the accuracy of the Company's mine plan at the Maracás
Menchen Mine, the competitiveness of the Company's vanadium redox flow battery ("VRFB")
technology; the ability to obtain funding through government grants and awards for the green
energy sector, the accuracy of cost estimates and assumptions on future variations of VCHARGE
battery system design, that the Company's current plans for ilmenite and VRFBs can be
achieved; the Company's "two-pillar" business strategy will be successful; the Company's sales
and trading arrangements will not be affected by the evolving sanctions against Russia; and the
Company's ability to attract and retain skilled personnel and directors; the ability of
management to execute strategic goals.
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 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 www.sedarplus.ca and available on www.sec.gov 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&A which also apply.
Trademarks are owned by Largo Inc.
Contacts
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778