Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

September 14, 2011 07:00 ET

Largo Continues to Report High Grade Drill Results from Its Maracas Vanadium Project in Bahia, Brazil

- Intersected 35 metres grading 1.68% V2O5 including 7 metres grading 2.09% V2O5

- Intersected multiple zones to the east of Gulcari "A" including 37 metres grading 1.00% V2O5 and 5 metres grading 1.28% V2O5

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or the "Company") is pleased to announce assay results from five additional drill holes from the ongoing 11,000-metre diamond drill program (reported May 17, 2011) at its Maracas Vanadium-PGM Project in Bahia, Brazil.

Significant results include (all widths true thickness):

  • Hole FGA108 – 5.00 metres grading 1.00% V2O5, and 35.00 metres grading 1.68% V2O5, including 7.00 metres grading 2.09% V2O5 (200 metres east of the Gulcari "A" deposit)
  • Hole FGA109 – 37.00 metres grading 1.00% V2O5, and 6.00 metres grading 1.01% V2O5, and 5.00 metres grading 1.28% V2O5 (100 metres west of the Gulcari "A" deposit)
  • Hole FGA110 – 15.00 metres grading 1.00% V2O5 (100 metres west of the Gulcari "A" deposit)

The current drill holes are step out holes from the Gulcari "A" deposit. The step outs vary from 100 to 200 metres (see map below).

For a full description of all the drill holes please see tables below.

Andy Campbell, P.Geo., Vice President, Exploration of the Company commented: "We are very pleased with the positive results from the current drill program which continues to confirm the consistency of vanadium values both at depth as well as in new zones to the east and west in the immediate vicinity of the Gulcari "A" deposit."

He continued, "FGA109 and FGA110 are 100-metre step out holes that have intersected several new zones to the west of the Gulcari "A" deposit. There are also additional drill holes that have tested zones two kilometres to the north along the Gulcari A and B trends, for which assay results are pending."

Largo continues to drill additional step out holes to further define the limits of the mineralization. The drill program has now moved away from Gulcari "A" in order to test other zones such as the Gulcari "B" zone which lies 500 metres east and 1.5 kilometres north of Gulcari "A". Largo is also testing new zones approximately 6.0 kilometres north and along the same trend as Gulcari "A".

Largo presently has two diamond drill rigs operating on the property with the objective to significantly increase the 13.1 million tonne mineral resource at an average grade of 1.34% on the property. As a result of work done by Largo over the past few years, they have identified several high priority targets along the Gulcari "A" trend and the Gulcari "B" trend. A third objective is to continue evaluating the PGM content. Further drill results will be released as assays are received.

Quality Assurance and Quality Control

Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil. The scientific and technical information in this press release has been conducted, reviewed and approved by Andy Campbell, P.Geo., Vice President of Exploration to Largo and a Qualified Person as defined by National Instrument 43-101.

About Largo

Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo currently holds a 90% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracás Vanadium Project by Q1 2013 and produce WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos. Largo's skilled management team both in Canada and Brazil, are confident in their ability to advance these projects.

Largo 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 information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to statements with respect to the effect of these results on the Company's understanding of the project, the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; costs of future activities; capital and operating expenditures; and success of exploration activities. 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 those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time. Although management of 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. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Table 1: Summary of Significant Assay Results – Maracas Property, Brazil
Hole Number From To
V2O5
%
Pt
(g/t)
Pd
(g/t)
PGM
(g/t)
Interval
(metres)
True
thickness
(m)
FGA107 29.00 34.20 1.00 0.10 0.10 0.20 5.20 5.00
FGA108 154.00 159.40 1.00 pending pending 5.40 5.00
and 287.00 318.00 1.68 pending pending 41.00 35.00
including 294.00 305.00 1.87 pending pending 11.00 8.00
including 307.00 317.00 2.09 pending pending 10.00 7.00
FGA109 0.00 37.00 1.00 pending pending 37.00 37.00
including 0.00 3.00 1.87 pending pending 3.00 3.00
and 93.00 99.00 1.01 pending pending 6.00 5.00
and 136.00 141.00 1.28 pending pending 5.00 4.50
FGA110 14.00 35.00 1.00 0.12 0.14 0.26 21.00 15.00
FGA111 240.00 243.00 1.00 0.31 0.18 0.49 3.00 3.00
Drill hole Information - Maracas Property, Brazil
Hole Number Northing Easting Elevation Azimuth Dip Depth (m)
FGA107 8,486,169 318,089 306 290 -60 154.07
FGA108 8,486,074 318,602 303 290 -75 415.40
FGA109 8,486,103 318,119 338 290 -60 194.00
FGA110 8,486,125 318,194 339 290 -60 104.00
FGA111 8,485,902 318,442 295 290 -60 300.05

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/GulcariDeposit.pdf.

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