Largo Resources Ltd.

Largo Resources Ltd.

October 06, 2010 07:30 ET

Largo Receives Installation Permit and Appoints Site Manager at Its Currais Novos Tungsten Project, Rio Grande Do Norte, Brazil

- Site Manager Responsible for Construction and Day to Day Operations

- IDEMA Grants Installation Licence (LI) for the Project

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2010) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that it has hired Mr. Alcides Antônio Lima Palma as site manager for the Currais Novos Tailings Tungsten Project in Rio Grande do Norte, Brazil. Mr. Palma is a chemical engineer with extensive experience in ore treatment including crushing and grinding operations, gravity circuits, hydrometallurgy and tailing disposal. He has worked for a number of notable senior mining companies including CVRD (Vale) and Yamana Gold Inc. Mr. Palma will be responsible for construction and the subsequent day to day operations of the Currais Novos Project.

In addition, Largo has also been granted the Installation Licence (LI) for the project by IDEMA, the state environmental agency for Rio Grande do Norte where the project is located. This licence will enable Largo to commence site work immediately. Engineering activities and the ordering of long-lead items for the project have already commenced. 

Mark Brennan, President and CEO of Largo, stated: "We are very excited to have Alcides join the Largo team in developing the Currais Novos Project. He is a great addition to the already very experienced team that Largo has assembled in Brazil."

The Currais Novos Project envisions the reprocessing and recovery of tungsten from two tailings piles identified as the Barra Verde and Boca de Laje tailings piles. They were deposited during the processing of ore from the Barra Verde and Boca de Laje tungsten mines that have operated intermittently since the early 1940's, with the Barra Verde mine continuing to operate on a small-scale to date.

The Currais Novos property is located 160 kilometres west-southwest of Natal in the State of Rio Grande do Norte, Northeastern Brazil. The project is in the municipality of Currais Novos, on the Campina Grande-Natal highway, about 12 km. south of the city of Currais Novos.

The 604 hectare property consists of three (3) concessions on which the two tailings piles are situated. Historical tonnage estimates of the piles reported by the previous operators that included Anglo American and its subsidiaries in the late 1970s to the Departamento Nacional de Produção Mineral ("DNPM"), the national mineral agency in Brazil, estimated the piles to contain approximately 4.1 million tonnes of tailings material. This resource estimate should not be relied upon as it is historical in nature and does not conform with the resource categories accepted under NI 43-101. Preliminary samples taken by Largo resulted in grade estimates of approximately 0.12% WO3 which is within the range estimated by the current owners.

The due diligence period has been completed and Largo will be reporting shortly a NI 43-101 compliant mineral resource for the tailings and a Preliminary Economic Assessment (PEA) technical report. Also, Largo has carried out testwork to establish its process and metallurgical characteristics. In addition, all necessary titles, legal, environmental and marketing aspects will be reviewed and acquired.

The Currais Novos property is underlain by a portion of the Seridó Mobile Belt (SMB) which is located in northeastern Brazil and consists of a gneiss basement (Paleo-Proterozoic), a metasedimentary sequence (marble, quartzites, and schists), and the Brasiliano igneous suite (both of Neo-Proterozoic age). In this region, numerous mineralized skarns occur within marble and at the marble–schist contact in the metasedimentary sequence and have been known since at least the 1940s. The main characteristic of the SMB skarns is that they are dominantly oxidized tungsten skarns and several mines currently operate on a small scale in this part of northeastern Brazil producing tungsten concentrate.

Timothy Mann, P. Eng.,Vice President, Engineering of the Company and a Qualified Person under NI 43-101, has reviewed the scientific and technical information in this press release.

About Largo

Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals Company. The Company holds 80% interest in the Maracas Vanadium project, 100% interest in the Currais Novos Tungsten Tailing Project, both in Brazil and 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 Maracas Vanadium project by 2012 and begin production from the reprocessing of tungsten tailings from Currais Novos by April, 2011. Largo has a very skilled management team both in Canada and Brazil with the ability to advance these projects. Largo is a publicly listed company on the TSX Venture Exchange under the symbol LGO.

For more information please refer to Largo's website:


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 effect of the option agreement on the Company, the likelihood that discussions with major end user of tungsten will progress to a definitive agreement, estimates regarding the two tailings piles and material, the accuracy of preliminary samples taken by Largo and resulting grade estimates, the likelihood of validating the tonnage of the tailing and the completion of an NI 43-101 compliant estimate of the tungsten and molybdenum mineral resource, the likelihood of satisfactory due diligence and reaching a definitive agreement, the Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum ; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of future activities; success of exploration activities; 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. Estimates regarding mineral resources are based on extensive analysis regarding exploration information obtained for diverse sources, including drill results; such analysis being conducted by company geologists and verified by third party consultants. 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. 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 Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.


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