Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

July 09, 2007 17:15 ET

Drilling Begins on Largo's Northern Dancer Tungsten-Molybdenum Project, Yukon

Focus is on further defining the limits of the higher-grade tungsten and higher-grade molybdenum zones outlined during the 2006 drill program

TORONTO, ONTARIO--(Marketwire - July 9, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) announces that a 5,000-metre diamond drill program has begun on the Company's 1,500 hectare Northern Dancer Tungsten-Molybdenum property which straddles the Yukon-British Columbia border 290 kilometres east of Whitehorse. The project lies 115 kilometres east of Adnac Moly Corp.'s Ruby Creek Porphyry Molybdenum Deposit.

Northern Dancer 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. This work was done 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 resource of 242.0 million tonnes grading 0.10% WO3 and 0.047% MoS2 containing 508.1 million lbs. tungsten (WO3) and 151.0 million lbs. molybdenum (Mo) (see April 2, 2007 press release). 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.

The minimum 25-hole diamond drill program will further define the extent of the higher-grade tungsten and molybdenum zones intersected in the 2006 program. This will be done through a series of angled drill hole fences across the deposit to test the higher-grade zones. Historical drill holes were vertical to subvertical and did not adequately test the typically steeply dipping quartz-scheelite veins with which higher tungsten grades are associated. The program is expected to take three to four months to complete with results from the first holes expected to be received in about 4 to 6 weeks.

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.

Assaying will be carried out by Acme Analytical Laboratories Ltd. in Vancouver, British Columbia. The samples will be 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 will be performed at SGS Minerals in Lakefield, Ontario on sample rejects. 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. Mr. Campbell has verified the scientific and technical information in this press release.

Update on Macuchi

In connection with Largo's exercise of its option to purchase the remaining 49% interest in the Macuchi property that it does not already own, Largo is to make a US$1 million cash payment and issue common shares valued at US$500,000 in scheduled tranches. Subject to Exchange approval, Largo intends to issue presently 86,170 common shares to satisfy its current share obligations.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Platinum-Vanadium deposit in Brazil. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador; one of which, the 5,000 hectare Macuchi property, is under option to Aur Resources Inc.. The company is listed on the TSX Venture Exchange under the symbol LGO.

Disclaimer

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of applicable securities laws. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements".

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Largo Resources Ltd.
    Mark Brennan
    President & CEO
    (416) 861-5886
    or
    Largo Resources Ltd.
    Tony LaMantia
    Corporate Development
    (416) 861-5882
    Website: www.largoresources.com