Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

April 05, 2011 08:00 ET

Largo Provides Update on Production Schedule for Currais Novos Tungsten Project, Brazil

- On track for production in July, 2011

TORONTO, ONTARIO--(Marketwire - April 5, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo") is pleased to announce that it remains on schedule for the production of tungsten concentrate in July 2011 from its Currais Novos project in Rio Grande do Norte, Brazil.

Highlights of development include:

  • Engineering phase is 95% concluded
  • Civil works contract has been awarded, and construction of the power substation building has commenced
  • Long-lead equipment items have been ordered and are beginning to arrive at site
  • Order has been placed for a ball mill which is scheduled to arrive at site shortly
  • Knelson concentrator has arrived at site
  • Consultants have been contracted to assist with equipment imports and minimization of taxes
  • Final permitting documents have been submitted
  • Scheduling of the first concentrate delivery on track for end of July 2011

Development at the Currais Novos project is advancing rapidly in accordance with projected deadlines. Plant and site cleaning has concluded and the second phase of construction has commenced. This second phase is comprised primarily of the reforming of plant floors and existing rooms, the erection of equipment bases and the construction of the power substation building.

Procurement of Equipment

All long-lead equipment items have been ordered and are scheduled to arrive on site in due course and on time.

A consultant has been hired to support the project with the importation of all new equipment. Their regional expertise will be invaluable for the smooth transition of items from Brazilian ports and to reduce taxes on any imported items which may further result in a reduction of the project's capital expenditures.

Final Permitting and Water Rights

Water well expansion and permitting is in progress. The well drilling project includes the drilling of six additional wells and the clean-up of four existing wells, which is expected to be adequate for the needs of the project. A water rights permit was previously granted for twelve wells. 

All the necessary fire and lightning protection projects have concluded and the corresponding documents have been submitted to the Fire Department in Natal.

Exploration and Expansion

Largo believes that the region immediately surrounding its present Currais Novos Project has great potential for significant exploration discoveries and Largo continues to actively seek additional properties in order to extend and expand the life of the project. 

Largo signed a letter of intent for four additional properties (See press release dated January 25, 2011) and is presently in the process of completing its due-diligence on these properties. Upon completion, Largo will negotiate and sign a definitive agreement and move forward with exploration. Largo is confident that these properties have considerable exploration potential and will provide an opportunity to increase Largo's tungsten reserve base as it continues to seek additional properties in the area.

Quality Assurance and Quality Control

The scientific and technical information in this press release has been reviewed and approved by Tim Mann, P. Eng., Chief Operating Officer 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. The Company 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 70% 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 begin production of WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos by July, 2011. Largo has a very skilled management team both in Canada and Brazil with the 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 progress at the Currais Novos project, expected production, planned exploration, expansion and property acquisitions. 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.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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