Located in south central Yukon along the B.C./Yukon border with direct access from and to the Alaskan Highway, the Northern Dancer project consist of one of the world’s largest undeveloped tungsten-molybdenum deposits. As outlined in a Preliminary Economic Assessment*, Its low strip ratio at 0.4:1 is expected to provide for low mining costs once underway and its forecasted 49 year mine life, compared to its average annual production of 18.3 million pounds of tungsten over the first 23 years, suggest that the Northern Dancer Project is expected to be a strategic asset for the long term supply of tungsten. Average annual production of molybdenum is about 5.9 million pounds over the initial 23 years.
At the Northern Dancer Project, tungsten 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. The surrounding and partially overlapping second molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending sheeted quartz veins structures.
In 2011 Largo Resources completed a preliminary economic assessment that indicated a positive pre-tax NPV of $918 million at the price of $275 MTU APT. In addition to the preliminary economic assessment, environmental permitting and initial discussions are underway with potential off-take partners and JV partners.
*The Preliminary Economic Assessment (the “PEA”) on the Northern Dancer Project, Yukon, Canada Largo Resources Limited dated March 28, 2011 and filed on SEDAR April 7, 2011. The PEA is preliminary in nature, and includes inferred resources that are too speculative geologically to have economic considerations applied to them. There is no certainty that the PEA will be realized.
Mr. Andy Campbell, Vice President of Exploration at Largo, is a Qualified Person as defined by NI 43-101 have reviewed and approved the technical information.