Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

January 08, 2008 16:44 ET

Largo Reports Wide Higher-Grade Zones of Tungsten-Molybdenum at Its Northern Dancer Project, Yukon

- All eight holes reported good grades over wide widths of mineralization with higher grade zones intersected in six of the eight holes - Hole LT07-79 cut 68.8 metres grading 0.15% Mo (0.25% MoS2) and 0.10% WO3 - Hole LT07-76 cut 387.1 metres grading 0.13% WO3, and 0.03% Mo (0.05% MoS2) including 56.0 metres grading 0.19% WO3 and 0.03% Mo (0.05 MoS2) - Hole LT07-77 cut 14.6 metres grading 0.31% WO3 and 0.05% Mo (0.08% MoS2)

TORONTO, ONTARIO--(Marketwire - Jan. 8, 2008) - Largo Resources Ltd. (TSX VENTURE:LGO) announced that it has received results for eight (8) additional drill holes that are part of the recently completed drill program of 26 holes totalling 8,494 metres at the Company's Northern Dancer Tungsten-Molybdenum property in the Yukon (see results from initial 3 drill holes in press release dated November 13, 2007). The drill program has focused on upgrading and expanding the mineral resource reported in the April 2, 2007 press release as well as further defining higher grade tungsten and molybdenum zones. Preliminary pit modelling was used in order to help maximize the effectiveness of the drill program.

Highlights include:

- LT07-79 - 68.8 metres grading 0.15% Mo and 0.10% WO3 and 44.0 metres grading 0.22% WO3 and 0.04% Mo

- LT07-80 - 85.4 metres grading 0.07% Mo and 0.11% WO3

- LT07-75 - 437.9 metres grading 0.10% WO3, and 0.03% Mo including 23.8 metres grading 0.29% WO3 and 0.03% Mo

- LT07-76 - 387.1 metres grading 0.13% WO3, and 0.03% Mo including 81.0 metres grading 0.16% WO3 and 0.05% Mo and 56.0 metres grading 0.19% WO3 and 0.03% Mo

- LT07-77 - 57.8 metres grading 0.10% WO3, and 0.02% Mo and 14.6 metres grading 0.31% WO3 and 0.05% Mo

- LT07-72 - 53.0 metres grading 0.12% WO3, and 0.02% Mo including 13.0 metres grading 0.23% WO3 and 0.03% Mo

Numerous quartz veins and veinlets were intersected in the drill core containing varying amounts of scheelite and molybdenite. The true width of the mineralization varies from 44.00 to 437.90 metres. The mineralization in two of the holes has exceptional true widths of 387.10 and 437.90 metres. A total of 4,298 samples have been sent to Acme Labs in Vancouver. Largo has received results now for eleven (11) holes totalling 2,213 samples at this time. Assays are pending on the remaining 2,085 samples. Core logging has been completed on all holes and sampling has just been completed.

Andy Campbell, Vice President, Exploration at Largo Resources commented: "The results continue to be very encouraging with all eight holes reporting good grades over wide widths of mineralization including two holes which have exceptional widths. Higher grade zones were intersected in six of the eight holes. Drilling continues to confirm that the higher-grade tungsten and molybdenum zones are more extensive than previously thought. Our work indicates that major structures control the distribution of mineralization, especially tungsten, and testing of these structures was a major focus of our drill program."

The Northern Dancer property hosts widespread tungsten-molybdenum porphyry style mineralization, the core of which has been partially delineated by 68 diamond drill holes and 496 metres of underground workings. Work to date has been completed by AMAX Minerals Exploration from 1977 to 1980 and by Largo Resources which completed a 17-hole diamond drill program in 2006. On April 2, 2007, Largo announced a NI 43-101 compliant inferred mineral resource of 242.0 million tonnes grading 0.10% WO3 and 0.047% MoS2 (0.028% Mo) containing 508.1 million lbs. tungsten (WO3) and 151.0 million lbs. molybdenum (Mo) confirming Northern Dancer as one of the largest undeveloped tungsten-molybdenum deposits in the world. This resource includes a higher grade Mo zone of 36.8 million tonnes of 0.085% MoS2; more drilling is required to define a higher grade tungsten resource.

Please refer to Table 1 (Summary of Significant Assay Results - Northern Dancer Property, Yukon) which is appended to this news release for a summary of the above-noted drill results. Largo's website has the Northern Dancer 2007 Drilling Plan Map which provides a reference for the location of these holes on the property via the following link:

http://www.largoresources.com/nd_map.htm.

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.

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. 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.

Analytical work is being carried out at Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, an ISO 9001-2000 certified laboratory. The samples are crushed to 70% passing 10 mesh, split to 250 g and pulverized to 95% passing 150 mesh. A 5-gram split is analyzed for Mo and W using a phosphoric acid leach followed by ICP-emission spectrometry. Then a second 5-gram split is analyzed for 36 elements by ICP-mass spectrometry using a hot (95 degrees centigrade) aqua regia leach. Routine check assays are performed at SGS Minerals in Lakefield, Ontario on sample rejects. Largo employs a systematic QA/QC program including standards, duplicates and blanks. Andy Campbell, P. Geo., Largo's Vice President of Exploration, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this press release.

About Largo

Largo Resources 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. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. 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

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations, production levels and costs, estimates regarding mineral resources, projections regarding mineral prices, anticipated revenues and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.



Table 1: Summary of Significant Assay Results - Northern
Dancer Property, Yukon

---------------------------------------------------------
Hole Interval(i)
Number From To WO3% Mo% (metres)
---------------------------------------------------------
LT07-72 192.30 245.00 0.12 0.02 53.00
including 232.00 245.00 0.23 0.03 13.00
---------------------------------------------------------
LT07-75 3.05 440.90 0.10 0.03 437.85
including 11.00 78.60 0.17 0.03 67.60
including 169.20 193.00 0.29 0.03 23.80
---------------------------------------------------------
LT07-76 1.50 388.60 0.13 0.03 387.10
including 99.00 180.10 0.16 0.05 81.10
including 317.00 373.00 0.19 0.03 56.00
---------------------------------------------------------
LT07-77 128.80 187.60 0.10 0.02 57.80
370.00 384.60 0.31 0.05 14.60
---------------------------------------------------------
LT07-78 75.00 139.00 0.12 0.016 64.00
---------------------------------------------------------
LT07-79 327.00 371.00 0.22 0.035 44.00
and 405.00 473.80 0.11 0.147 68.80
---------------------------------------------------------
LT07-80 280.60 366.00 0.11 0.072 85.40
---------------------------------------------------------
LT07-83 8.00 75.70 0.11 0.019 67.70
---------------------------------------------------------
(i) the drill core size is NQ and all intervals reported
are at or very near true thickness



Drill hole Information - Northern Dancer Property, Yukon

-----------------------------------------------------
Hole
Number Northing Easting Elevation Azimuth Dip
-----------------------------------------------------
LT07-72 6,654,789 354,653 1,657 315 -45
-----------------------------------------------------
LT07-75 6,654,912 354,507 1,554 135 -45
-----------------------------------------------------
LT07-76 6,655,136 354,613 1,450 140 -45
-----------------------------------------------------
LT07-77 6,655,513 354,671 1,423 135 -50
-----------------------------------------------------
LT07-78 6,654,740 354,296 1,697 143 -50
-----------------------------------------------------
LT07-79 6,655,379 354,564 1,416 135 -45
-----------------------------------------------------
LT07-80 6,655,226 354,662 1,438 140 -45
-----------------------------------------------------
LT07-83 6,655,239 354,942 1,545 140 -50
-----------------------------------------------------


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