TORONTO (miningweekly.com) – TSX-listed Largo Resources has received a formal operating licence for its flagship Maracas Menchen vanadium mine, in Brazil.
The company said on Tuesday that it had been operating on a preliminary operating licence, which it received in May, that allowed it to start the production ramp-up and to tweak the system as necessary. Largo now had the definitive operating licence for the operation.
The company explained that the operating licence, valid for two years, indicated that the plant was built and was operating according to its design specifications and environmental guidelines. Largo could renew the licence for extension within six months of its expiry date for an additional two to five years.
PRECIOUS DISCOVERY
Largo on Monday announced that it had started with an exploration campaign for chromite and platinum-group metals (PGMs) at its Capivara prospect, which was close to the Maracas Menchen mine, but outside of the current mining area.
Largo said it had recently discovered a new chromite showing on its Capivara prospect, 32 km north of the Campbell pit at the Maracas Menchen mine.
The original objective was to evaluate the known magnetite horizon, which included high-grade vanadium values. While evaluating this magnetite horizon, Largo discovered a number of zones containing chromite layers with fine-grained sulphides. Samples had been collected and submitted to the lab with results pending.
The chromite layers had been traced over an area of 3 km running north to south, by 500 m in breadth. There were at least two zones of chromite layers from 20 m to 25 m wide at surface, the company reported.
These zones were 400 m west of the magnetite horizon that contained vanadium and anomalous platinum. The chromite layers were hosted in a thick ultramafic sequence, including olivine gabbro, olivine pyroxenite and dunite. In the zones, the chromite layers consisted of fine-grained massive chromite, greater than 60% chromite, and disseminated sulphides that could potentially contain PGMs.
These massive chromite layers were 0.5 m to 1 m thick, separated by material containing lesser chromite, less than 10% chromite, and disseminated sulphides.
“We are very pleased with the discovery of the chromite layers and the possibility of PGM mineralisation related to the sulphides. This is similar to other layered intrusions such as Great Dyke, Bushveld and Stillwater. The significance in these layered intrusions is that the ultramafic section hosts the known chromite and PGM deposits.
“This transition from the mafic section and magnetite horizon to the ultramafic section and chromite layers may represent the ultramafic component to the Rio Jacare Sill or time equivalent,” Largo VP for exploration Robert Campbell commented.
At present, a ground magnetic survey of the area was 90% complete, mapping and sampling was 60% complete and a gravity survey was set to start next week. Once the data had been evaluated, Largo would prioritise targets to be followed up with diamond drilling.