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The Northern Dancer project straddles the British Columbia and Yukon border and hosts a porphyry-style tungsten-molybdenum deposit with a recently completed NI 43-101 compliant Inferred Mineral Resource of 242 million tonnes at 0.10% WO3 and 0.047% MoS2 at a 0.05% WO3 cut-off grade. (see Largo Resources Ltd. news release dated April 2, 2007).
Largo Resources Ltd. is currently earning an interest in the Northern Dancer project. Under terms of the agreement, Strategic has granted Largo the right to earn a 70% interest in the property for: (1) a 1% net smelter return royalty; (2) 4,000,000 Largo shares of the public company; and (3) $5,000,000 in work expenditures over a three year period. Upon earning a 70% interest in the project, Largo will have the right to purchase the remaining 30% in the property for an additional $5,000,000 or an equivalent value in stock (at Strategic's election). Whether or not the remaining 30% is sold, Strategic will retain its 1% net smelter return royalty.
Highlights and Development Advantages of the Northern Dancer Project
- The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry systems.
- The deposit remains open along strike to both the northeast and southwest as well as at depth.
- The Inferred Mineral Resource includes a higher-grade zone containing 36.8 million tonnes of 0.085% MoS2
- A scoping study is underway with Snowden Mining Industry Consultants Inc.
- The phase II drill program planned for spring 2007 will focus on confirming and upgrading the inferred resource, and to expand resources, especially in the higher grade zones.
- Excellent access provided by a 12 km gravel road from the Alaska Highway
Northern Dancer looking East
Mineral Resources presented in Table 1 below are from Large Resources' news release dated April 2, 2007 and report the overall deposit at different cut-off grades, as well as for the higher grade molybdenum zone included within the overall resource. The Inferred Mineral Resource for the overall deposit at a cut-off grade of 0.05 % WO3 is estimated at 242.0 million tonnes grading 0.10% WO3 and 0.047% MoS2 containing 508.1 million lbs. tungsten (WO3) and 151.0 million lbs. molybdenum (Mo). The cut-off grade was determined based by comparison to similar deposit types that are being mined or planned to be mined by open pit methods, but has not been confirmed by appropriate economic studies. The resource estimate constitutes one of the largest and most significant tungsten and molybdenum accumulations in the world.
| Table 1: Mineral Resources in the Northern Dancer Deposit, as at March 31, 2007(i). |
|
Cut-off
Grade
%WO3 |
Million
Tonnes |
%WO3 |
%MoS2 |
WO3
Million lbs. |
Mo
Million lbs. |
|
| Northern Dancer Deposit - Overall Inferred Mineral Resource |
|
| 0.05 |
242.0 |
0.10 |
0.047 |
508.1 |
151.0 |
| 0.06 |
217.3 |
0.10 |
0.047 |
478.4 |
135.3 |
| 0.07 |
190.4 |
0.10 |
0.047 |
440.0 |
119.3 |
| 0.08 |
159.5 |
0.11 |
0.048 |
389.2 |
100.7 |
| 0.09 |
124.0 |
0.12 |
0.048 |
323.1 |
78.4 |
| 0.10 |
88.4 |
0.13 |
0.048 |
249.0 |
56.5 |
| 0.15 |
15.1 |
0.17 |
0.048 |
57.9 |
9.7 |
|
| Mineral Resource within Porphyry Mo-rich zone (ii) Inferred Mineral Resource |
|
| 0.04% MoS2 |
36.8 |
0.06 |
0.085 |
48.7 |
41.3 |
Notes:- The above resource classifications conform to CIM Standards on Mineral Resources and Reserves referred to in National Instrument 43-101. Although 0.05% WO3 is considered a likely cut-off grade for this deposit, based on comparisons with other similar deposit types, it has not been confirmed by the appropriate economic studies. Totals may not add up exactly due to rounding.
- Higher grade Mo zone is included within the overall Mineral Resource.
The NI 43-101 compliant Mineral Resource estimate (Table 1) confirms and expands the historical resource of 162 million tonnes at 0.13% WO3 and 0.052% MoS2 containing 464.3 million lbs. tungsten (WO3) and 114 million lbs. molybdenum (Economic Geology, 1984, Vol. 79, p. 849; see press release May 4 2006).
The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry systems. 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 deposit, which has been tested by drilling for 750 metres along strike, 500 metres vertically and 600 metres in width, remains open along strike to both the northeast and southwest as well as at depth.
| 
Deposit open to the northeast and southwestTungsten and molybdenum mineralization are concentrated in two zones which partially overlap. In the core of the deposit, there is a higher-grade molybdenum zone where molybdenite occurs within and adjacent to the felsic intrusion. Surrounding and partially overlapping the molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending sheeted quartz veins in skarn. |
The Mineral Resource estimate was generated using lithological, mineralogical, MoS2 and WO3 assay data from 70 drill holes totalling 15,503 m of drilling. The deposit was modeled into several estimation domains using the Gemcom mining software. WO3 was capped at 1.00% and MoS2 was capped at 0.38% for all domains. Samples were composited over 5 m intervals. MoS2 and WO3 grades were interpolated into estimation domains using Ordinary Kriging.
The Mineral Resource estimate has been prepared by Largo Resources, and reviewed and validated by Dr. Warwick S. Board, MAusIMM, Pr.Sci.Nat., Senior Consultant with Snowden Mining Industry Consultants Inc. ("Snowden"). Dr. Board, a qualified person as defined under National Instrument 43-101, visited the site from July 05 to 07, 2006. The resource estimation procedures and classification used will be outlined in detail in a Technical Report that will be prepared by Snowden and filed on SEDAR within 45 days of this press release. Dr. Board has verified the technical information contained in this news release.
Snowden has completed a QA/QC report on the recent drilling by Largo and the historical drilling done by AMAX. Snowden considers that the historic data are of sufficient quality that they can be used in the generation of a Scoping Study level resource estimate. Results of the twin drill holes completed by Largo indicate that the 2006 campaign drilling confirmed the grades reported in the historic drill holes. Factors considered in this analysis included: the geological variability between holes; different generations of drilling techniques; assay methods and laboratory conditions; and sample support.
The Scoping Study now in progress is being carried out by Snowden. Mr. John Fox of Laurion Consulting Inc. has been retained by Snowden to oversee the metallurgical and process engineering aspects of the Study. Mr. Fox directed metallurgical testwork and flowsheet development for the Tiberon Minerals, Nui Phao Project feasibility study.
Largo has appointed SGS Lakefield (SGS) to carry out a program of metallurgical testwork involving grindability investigations, sulphide flotation, and fluorspar flotation and gravity separation. Mineralogical testwork using XRD and QEMSCAN methods to evaluate the liberation and deportment of the minerals will also be carried out by SGS. A Composite sample has been delivered to SGS for this work to commence. Additional mineralogical work will be carried out by Professor Lee Groat and Ms. Allison Brand of the University of British Columbia (UBC). This work will be carried out on core collected from the site by UBC in collaboration with Largo and SGS representatives in late 2006.
Assaying was carried out by Acme Analytical Laboratories Ltd. in Vancouver, British Columbia. The samples are crushed to 70% passing 10 mesh, split to 250 g and pulverized to 95% passing 150 mesh. A 5 g split is analyzed for Mo and W using a phosphoric acid leach followed by ICP-emission spectrometry. A second 5 g split is analyzed for 36 elements by ICP-mass spectrometry using a hot (95 degreesC) aqua regia leach. Routine check assays are performed on sample rejects by SGS. Mr. Andy Campbell, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.
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