Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

July 06, 2011 08:28 ET

Largo Begins Drill Program for Current Prefeasibility Study at Northern Dancer Tungsten-Molybdenum Project, Yukon

- Drilling 6 holes totalling 1,400 metres for representative sample sufficient for metallurgical test work to support current prefeasibility study (PFS)

- Drilling 7 holes totalling 3,600 metres to upgrade a significant portion of the existing resource from Inferred to the Indicated category to support the PFS

- A number of other engineering and environmental studies related to the PFS are underway including water sampling, bird survey and energy study

TORONTO, ONTARIO--(Marketwire - July 6, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO) announced today that it has begun a 13-hole, 5,000-metre diamond drill program 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 13-hole diamond drill program is part of the work needed to be completed for the Prefeasibility Study that is currently under way. The drill program will collect a representative sample sufficient for metallurgical test work to support the PFS (approx. 11 tonnes). The program will also further test the tungsten and molybdenum zones intersected in the 2006, 2007 and 2008 drill programs in order to upgrade a significant portion of the existing Inferred Resources to the Indicated category to support the PFS. This will be done through a series of angled drill holes across the deposit to test the zones.

The present NI 43-101 resource at the Northern Dancer Project consists of: Measured resources of 30.8 million tonnes grading 0.114% WO3 and 0.030% Mo, and Indicated resources of 192.6 million tonnes grading 0.100% WO3 and 0.029% Mo. The Measured and Indicated mineral resource estimate contains 500.1 million pounds of WO3 (226.9 k tonnes) and 143.8 million pounds of Mo (65.2 k tonnes).

Inferred resources are estimated to be 201.2 million tonnes grading 0.089% WO3 and 0.024% Mo containing 393.1 million pounds of WO3 (178.3 k tonnes) and 107.7 million pounds of Mo (48.9 k tonnes) (see press release March 12, 2009).

The completion of the PFS is anticipated by the first quarter of 2012 and will assess various engineering studies and environmental surveys.

The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry style systems, the core of which has been partially delineated by 134 diamond drill holes and 496 metres of underground workings. This work was done by AMAX Minerals Exploration from 1977 to 1980 including 51 holes and by Largo which completed 17 holes in 2006, 26 holes in 2007 and 38 holes in 2008. On March 12, 2009 (see press release March 12, 2009) Largo announced an updated NI 43-101 compliant resource.

At Northern Dancer, tungsten and molybdenum mineralization are concentrated in two zones which partially overlap. The mineralization is hosted in fractures, veinlets and veins associated with a northeast-trending sheeted vein structure hosted in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling for 1.2 kilometres 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. 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 the northeast-trending sheeted quartz veins structure.

Quality Control

Mr. Andy Campbell, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

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: 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 proposed use of proceeds, receipt of regulatory approval; completion of the financing on the terms proposed; 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.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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