Backup file size

I have a ovz container of about 3gig and after running a snapshot backup I see the backup file size having 62gig. Wondering why the backup file is so large of a file? I would imagine it would be even much smaller than the 3gig vm space with the compression of the backup.
The backup was run on proxmox 3.0... below is the ouput:


root@vs:/home# vzdump --compress lzo --dumpdir /home/backup 110

INFO: starting new backup job: vzdump 110 --dumpdir /home/backup --compress lzo
INFO: Starting Backup of VM 110 (openvz)
INFO: CTID 110 exist mounted running
INFO: status = running
WARNING: UNLOCKED /var/lib/vz/lock/103.lck (stale lock by PID 601451)
INFO: backup mode: snapshot
INFO: ionice priority: 7
INFO: creating lvm snapshot of /dev/mapper/pve-data ('/dev/pve/vzsnap-hn-0')
INFO: Logical volume "vzsnap-hn-0" created
INFO: creating archive '/home/backup/vzdump-openvz-110-2013_07_06-17_34_04.tar.lzo'
INFO: Total bytes written: 71044812800 (67GiB, 43MiB/s)
INFO: archive file size:62.60GB
INFO: Finished Backup of VM 110 (00:27:27)
INFO: Backup job finished successfully
root@vs:/home

BTW, I resorted to taking the above backup from command line as doing it via Proxmox GUI didn't work for me. Choosing local storage option field didn't show anything. I could not select a local storage? Thanks in advance for any feedback!

--Joe