Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

November 30, 2009 07:54 ET

Largo Expands the Currais Novos Tungsten Project in Rio Grande Do Norte, Brazil

- Records document a historical resource estimate of 4.1 million tonnes (non NI 43-101 compliant)

- Push to restore historical tungsten mining camp

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO) announced today that it has expanded the Currais Novos Tungsten Project by optioning additional tungsten-molybdenum tailings located in close proximity to the tailings covered by the previously announced option agreement with Emprogeo Ltda (Emprogeo) (see press release dated November 24, 2009). The additional tailings, which have been optioned from the Galvao family (Galvao) allows Largo to expand the scope of the tailings recovery project that will now comprise the reprocessing and recovery of tungsten and molybdenum from the tailings deposited from two mines (Barra Verde and Boca de Laje) that operated intermittently over an approximately 50-year period.

In addition, Largo is pleased to report that the additional tailings will be included in the advanced discussions with a major end user of tungsten with respect to collaboration on the Currais Novos Tungsten project.

Mark Brennan, President and CEO of Largo, stated: "The addition of the Galvao family holdings positions Largo as the dominant player in the renewed Currais Novos mining camp. Currais Novos has a long history of tungsten production with majors such as Anglo American and Union Carbide."

The Currais Novos property is located 180 kilometres west-southwest of Natal in the State of Rio Grande do Norte, Northeastern Brazil (see attached location map below). The project is in the municipality of Currais Novos, on the Campina Grande-Natal highway, about 6 km. south of the city of Currais Novos.

The combined properties consist of two concessions of 656 hectares on which the tailings are situated. Historical tonnage estimates of the piles reported by the previous operators that included Anglo American and its subsidiaries in the late 1970s to the Departamento Nacional de Producao Mineral (DNPM), the national mineral agency in Brazil, indicated the piles to contain an approximate total of 4.1 million tonnes of tailings material. The Galvao tailings were estimated to comprise 1.1 million tonnes and the Emprogeo tailings comprise 3.0 million tonnes according to these DNPM records. This resource estimate should not be relied upon as it is historical in nature and does not conform with the resource categories accepted under NI 43-101. Largo has taken preliminary samples that have resulted in grade estimates of approximately 0.15% WO3 and 0.05% molybdenum which are within the range estimated by the current owners.

Upon the signing of the respective acquisition agreement, Largo shall have the option to acquire a 100% interest in the tailings, subject to the terms and conditions set forth therein, for a purchase price of US$900,000 payable in instalments over a 18-month period commencing in January 2010, subject to Largo being satisfied with the outcome of the due diligence process.

The due diligence period will be used by Largo to establish a NI 43-101 compliant mineral resource for the tailings and also to carry out testwork to establish its process and metallurgical characteristics. In addition, all necessary title, legal, environmental and marketing aspects will be reviewed. Based on the estimated source and apparent nature of the Currais Novos tailings, Largo believes that there is very good potential for near-term production of tungsten and molybdenum concentrates.

The Currais Novos property is underlain by a portion of the Serido Mobile Belt (SMB) which is located in northeastern Brazil and consists of a gneiss basement (Paleo-Proterozoic), a metasedimentary sequence (marble, quartzites, and schists), and the Brasiliano igneous suite (both of Neo-Proterozoic age). In this region, numerous mineralized skarns occur within marble and at the marble–schist contact in the metasedimentary sequence and have been known since at least the 1940s. The main characteristic of the SMB skarns is that they are dominantly oxidized tungsten skarns and several mines currently operate on a small scale in this part of northeastern Brazil producing tungsten concentrate.

Timothy Mann, P. Eng.,Vice President, Engineering of the Company and a Qualified Person under NI 43-101, has reviewed the scientific and technical information in this press release.

About Largo

Largo Resources Ltd. is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. The company is listed on the TSX Venture Exchange under the symbol LGO.

For more information please refer to Largo's website: www.largoresources.com

Disclaimer

This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the effect of the option agreement on the Company, the likelihood that discussions with major end user of tungsten will progress to a definitive agreement, estimates regarding the two tailings piles and material, the accuracy of preliminary samples taken by Largo and resulting grade and quantity estimates that are conceptual in nature, the likelihood of validating the tonnage of the tailing and the completion of an NI 43-101 compliant estimate of the tungsten and molybdenum mineral resource, the likelihood of satisfactory due diligence and reaching a definitive agreement, Largo's development potential and timetable of the Northern Dancer project; the Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of future activities; success of exploration activities; government regulation of mining operations; and environmental risks. Generally, 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". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding mineral resources are based on extensive analysis regarding exploration information obtained for diverse sources, including drill results; such analysis being conducted by company geologists and verified by third party consultants. 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 the Largo to be materially different from those expressed or implied by such forward-looking statements. Although management of the 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. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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