Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

December 06, 2006 07:30 ET

Largo Continues to Intercept Higher-Grade Tungsten-Molybdenum Mineralization at its Northern Dancer Project, Yukon

Summer drill program results exceed expectations; block modeling and resource estimate underway Scoping study to begin in first quarter 2007

TORONTO, ONTARIO--(CCNMatthews - Dec. 6, 2006) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce results from the remaining nine holes of a 4,000 meter diamond drill program on the Company's Northern Dancer Tungsten-Molybdenum property located in the Yukon. Results for the first 8 holes were summarized in the press release of September 7, 2006. All 17 holes intersected broad zones of mineralization. Significant results from the current holes are tabulated in Table 1 (below). Highlights are as follows:

Significant Molybdenum-rich (MoS2) holes include:

- 134.51 metres grading 0.13% MoS2 and 0.04% WO3 in hole LT06-70.

- 52.00 metres of grading 0.14% MoS2 and 0.07% WO3 in hole LT-06-63.

Significant Tungsten-rich (WO3) holes include:

- 114.95 metres grading 0.16% WO3 and 0.08% MoS2 including 12.22 metres grading 0.54% WO3 and 0.19% MoS2 in hole LT-06-66.

- 83.89 metres grading 0.20% WO3 and 0.04% MoS2 in hole LT-06-68.

Mark Brennan, President and CEO of Largo stated: "Currently our technical staff is incorporating the new drill results into the updated resource model with a NI 43-101 compliant resource estimate expected to be completed in January 2007. This resource will form the basis for a scoping study to be completed in Spring 2007 with field work including an expanded drilling program to start soon after that."

Largo's Vice President of Exploration, Andy Campbell P.Geo., commented: "The results continue to enhance the previous work with better than expected molybdenum grades overall, and a significantly higher grade tungsten zone has been confirmed. This higher grade tungsten zone will be an important focus for the next drill program in 2007. Further drilling will also be undertaken to better define the full extent of the widespread higher grade molybdenum mineralization."

The Northern Dancer property straddles the Yukon-British Colombia border 290 kilometres east of Whitehorse and is 115 kilometres east of Adnac Moly Corp.'s Ruby Creek Molybdenum Deposit. The Northern Dancer property hosts widespread molybdenum-tungsten porphyry style mineralization and was originally delineated by 51 diamond drill holes and 496 metres of underground workings completed by AMAX Minerals between 1977 and 1980.

This mineralization, which is open laterally, along strike to the south and to depth, has a published resource of 162 million tonnes grading 0.13% WO3 and 0.052% MoS2 (MoS2 equivalent of 0.108%) (Economic Geology, 1984, vol.79, p.849). This resource is an historic estimate that does not conform to standards prescribed in National Instrument 43-101 and investors are cautioned not to rely on this estimate. The present program has confirmed previous results and provided sufficient new geological and assay data to prepare a mineral resource estimate compliant with NI 43-101 standards.

Higher-grade tungsten mineralization occurs within an extensive sheeted quartz vein system that cross-cuts lower grade stockwork style mineralization in the deposit. As shown in Figure 1, a geological plan map of the property, this zone extends for at least 500 metres along strike, to a depth of at least 500 metres and varies from at least 20 metres to possibly more than 100 metres in width. The zone trends northeast-southwest, dips near vertical and is open in all directions. Previous historical drilling did not adequately test this zone because the holes were all steeply inclined to vertical.

The molybdenite is associated with stockwork porphyry styled mineralization. The higher grade MoS2 values are spatially related to a quartz feldspar porphyry stock. The porphyry system covers an area 500 metres by 500 metres and has been tested to a vertical depth of 500 metres. The system remains open at depth and along strike.

The drill program was managed by Archer, Cathro & Associates (1981) Limited, a well known consulting firm that has over 35 years of experience in mineral exploration in the Yukon.

Assaying was carried out by Acme Analytical Laboratories Ltd. in Vancouver, British Columbia. 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. W.A. Wengzynowski, P.Eng. of Archer, Cathro, is the Qualified Person as defined under National Instrument 43-101 for the program.

Largo Resources Ltd. 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.

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".



Table 1: Drilling Results, Northern Dancer
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Hole Number From To % MoS2 % WO3 Interval
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LT-06-61 2.79 320.04 0.05 0.04 317.25
Inc. 210.00 320.04 0.07 0.04 110.04
Inc. 297.00 320.04 0.14 0.03 23.04
LT-06-63 5.20 321.26 0.07 0.05 316.06
Inc. 127.00 321.26 0.09 0.05 194.26
Inc. 233.00 285.00 0.14 0.07 52.00
LT-06-64
abandoned 0.00 6.10
LT-06-65 4.61 234.00 0.03 0.07 229.39
Inc. 123.25 234.00 0.04 0.09 110.75
Inc. 215.08 234.00 0.06 0.14 18.92
LT-06-66 4.80 242.30 0.06 0.11 237.50
Inc. 19.00 133.95 0.08 0.16 114.95
Inc. 76.00 88.22 0.19 0.54 12.22
LT-06-67 3.00 249.95 0.02 0.07 220.77
Inc. 21.00 159.70 0.05 0.08 138.70
Inc. 121.00 159.70 0.08 0.11 38.70
LT-06-68 10.36 229.82 0.04 0.12 219.46
Inc. 10.36 94.25 0.04 0.20 83.89
LT-06-69 72.50 82.00 0.12 0.10 9.50
Inc. 156.70 166.00 0.07 0.14 9.30
LT-06-70 151.00 207.00 0.07 0.11 56.00
Inc. 151.00 173.00 0.05 0.15 22.00
184.92 319.43 0.13 0.04 134.51
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Hole Number Northing Easting Elevation Azimuth Dip
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LT-06-61 6,655,046 355,012 1598.55 310 -45
LT-06-63 6,655,173 354,867 1513.25 138 -68.5
LT-06-64 6,654,970 354,511 1529.47 133 -69
LT-06-65 6,654,970 354,511 1529.46 133 -69
LT-06-66 6,655,066 354,774 1501.59 0 -90
LT-06-67 6,655,022 354,641 1491.22 0 -90
LT-06-68 6,654,991 354,673 1507.65 135 -62
LT-06-69 6,655,279 354,711 1452.08 292 -45
LT-06-70 6,654,851 355,013 1520.92 292 -55
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A Geological Plan map of the Northern Dancer project is available on the CCNMatthews website. To view the project map, please visit the following link: http://www.ccnmatthews.com/docs/largomap1206.jpg

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