Largo Resources Ltd.

Largo Resources Ltd.

February 01, 2010 16:06 ET

Largo Resources Mandates Banco Itau BBA S.A. as its Financial Advisor for the Development of the Maracas Vanadium Project, Bahia, Brazil

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2010) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo or the "Company") is pleased to announce that it has engaged Banco Itau BBA S.A. ("Itau BBA"), a subsidiary of Itau Unibanco Group and one of Brazil's leading investment banks, to act as its financial advisor to obtain financing for the development of its Maracas Vanadium Project in Bahia State, Brazil.

Itau Unibanco Group ranks among the largest banks in the world in terms of market capitalization* Itau BBA, its wholesale banking arm, is one of the market leaders in Brazil for M&A, project finance and capital markets transactions, putting it in a unique position for a long term partnership with Largo.

Mark Brennan, President & CEO, stated: "We are extremely excited to be working with Itau BBA for the development of our Maracas project. Itau BBA has been the leading investment bank in Brazil for project finance and capital markets. We have seen their historical ability to finance projects creatively and we look forward to bringing that ability to bear at Maracas."

Maracas is the highest grade vanadium deposit in the world. Largo has an estimated NI 43-101 compliant measured and indicated resource of 22.5 million tonnes grading 1.26% V2O5, which is two to three times higher grade than any other producer and/or project (See press release dated August 13, 2008 for details regarding mineral resource estimate).Within the 22.5 million tonne resource is a very significant high-grade zone consisting of 8.7 million tonnes grading 1.94% V2O5;

Largo completed a positive Definitive Feasibility Study (DFS) (see press release dated August 12, 2008) outlining a NI 43-101 proven & probable reserve estimated at 13.1 million tonnes grading 1.34% V2O5 (See press release dated August 12, 2008 for details of reserve estimate) enabling production of 155 million lbs of vanadium contained in FeV over a 23 year project plan.

Largo was granted the Localization License (LL), the most critical environmental license, in May 2009 (see press release May 14, 2009) and water permits are also in place.

Largo's management believes that there is good potential to expand the mineral resource significantly with drilling along strike and at depth. The existing resource occupies a small foot print and Largo has done additional work including drilling outside the resource area on the property and has identified a number of targets that the Company hopes can be upgraded through drilling to identify additional resources. Only 10% of the potential 8 kilometres of strike length has been tested to date and four other targets have been identified that need further drilling to upgrade them to a resource category.

Mr. Andy Campbell, P.Geo, Vice President, Exploration, 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 also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. The company is listed on the TSX Venture Exchange under the symbol LGO.

For more information please refer to Largo's website:


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 engagement on the Company, the likelihood of raising sufficient fund or at all; Largo's development potential and timetable of the Maracas and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of ferrovanadium and vanadium pentoxide; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; 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. 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, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. 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 Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

* Bloomberg, as of December 2009


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