Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

February 20, 2007 16:05 ET

Largo Begins Scoping Study at Northern Dancer Project, Yukon

Study will evaluate various grade and tonnage scenarios to optimize project capital costs and overall project economics

TORONTO, ONTARIO--(CCNMatthews - Feb. 20, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) (Largo) is pleased to announce that it has appointed Snowden Mining Industry Consultants Inc. (Snowden), a well known international mining and geological consulting group, to conduct a Scoping Study on its Northern Dancer tungsten-molybdenum deposit in Yukon Territory. The work emanating from this project will culminate in a technical report that is compliant with National Instrument 43-101.

Largo is also pleased to announce that SGS Minerals Services (SGS) as the world's preeminent global supplier of metallurgical services has been retained to conduct the metallurgical investigations required for completion of the Scoping Study. The project work will be done in Lakefield, Ontario. SGS has a comprehensive team of professionals in Lakefield that has significant expertise with tungsten, molybdenum and fluorspar deposits, having recently completed several similar large projects. The testwork will be phased, with the initial work focusing on the feasibility of recovering multiple products from this complex deposit. A second phase of testwork will follow to optimize the proposed flowsheet and predict metal recoveries.

The breadth of the Northern Dancer study will cover resource review, mineral processing (including metallurgical evaluation) and strategic mine planning for the production of both tungsten and molybdenum, based on all existing data. The study will identify and evaluate options for the development of the Project and provide guidelines for future geological and engineering work that will be required to bring the Project to the feasibility stage.

Work will commence immediately and is targeted for completion during the 4th quarter of 2007. The timing of the completion of the Scoping Study is primarily a function of the comprehensive metallurgical testwork program and flowsheet development work that will be undertaken.

Largo President and CEO, Mark Brennan, remarked "The beginning of a major scoping study at Northern Dancer marks another key milestone for the company. With Snowden and SGS engaged in the Yukon, and Micon already working with us at our Maracas Vanadium-PGM property in Brazil, Largo's two advanced-stage projects are on track to have scoping studies completed this year."

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 Vanadium-PGM 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.

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

Disclaimer

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

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