Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

August 16, 2007 14:47 ET

Largo to Expand Drill Program at Northern Dancer Tungsten-Molybdenum Project, Yukon

- Three drill rigs now on property - Minimum 5,000 meter program targeted - Channel sampling completed on higher-grade tungsten zone 300 metres SW of previous drilling

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) announced today that Kluane Drilling Ltd of Whitehorse has mobilized two (2) diamond drill rigs to the Company's 1,500 hectare Northern Dancer Tungsten-Molybdenum property which straddles the Yukon-British Colombia border 290 kilometres east of Whitehorse, Yukon. The project lies 115 kilometres east of Adanac Moly Corp.'s Ruby Creek Porphyry Molybdenum Deposit.

Largo has increased its drilling program to include three drills in order to complete the necessary infill drilling to upgrade the resource in the deposit and to further delineate the higher-grade tungsten and molybdenum zones. Preliminary pit modelling was done in order to help focus and maximize the effectiveness of the drill program. To date 3 holes (totalling 1,500m of drilling) have been completed with assay results pending.

Northern Dancer hosts widespread tungsten-molybdenum porphyry style mineralization, the core of which has been partially delineated by 68 diamond drill holes and 496 metres of underground workings. This work was done by AMAX Minerals Exploration from 1977 to 1980 and by Largo Resources which completed a 17-hole diamond drill program in 2006. On April 2, 2007, Largo announced a NI 43-101 compliant inferred resource of 242.0 million tonnes grading 0.10% WO3 and 0.047% MoS2 containing 508.1 million lbs. tungsten (WO3) and 151.0 million lbs. molybdenum (Mo) confirming Northern Dancer as one of the largest tungsten-molybdenum deposits in the world. This resource includes a higher grade Mo zone of 36.8 million tonnes of 0.085% MoS2; more drilling is required to define a higher grade tungsten resource.

Andy Campbell, Vice President, Exploration commented: "A major focus of the current minimum 25-hole 5,000 meter drill program is to define the full extent of the higher-grade tungsten and molybdenum zones intersected in the 2006 program. This will be done through a series of angled drill hole fences across the deposit to test the higher-grade zones. Historical drill holes were vertical to subvertical and hence did not adequately test the typically steeply dipping quartz-scheelite veins with which higher tungsten grades are associated. Our work indicates that major structures may have controlled the distribution of mineralization, especially tungsten, more than previously thought and these structures will be tested in the current drill program."

Channel sampling using diamond saws has been done along a ridge where the sheeted quartz scheelite veins are exposed. This mineralization, which is located 300 metres southwest of the previously drilled area, appears to be the southern continuation of the deposit. Results from this sampling should be available in about two weeks.

The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry systems. The mineralization is hosted in fractures and veins associated with a northeast-trending sheeted vein system in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling for 750 metres along strike, 500 metres vertically and 600 metres in width, remains open along strike to both the northeast and southwest as well as at depth.

Tungsten and molybdenum mineralization are concentrated in two zones which partially overlap. In the core of the deposit, there is a higher-grade molybdenum zone where molybdenite occurs within and adjacent to the felsic intrusion. Surrounding and partially overlapping the molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending sheeted quartz veins in skarn.

Analytical work is carried out by Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, an ISO 9001-2000 certified laboratory. 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. Largo employs a systematic QA/QC program including standards, duplicates and blanks. Andy Campbell, P. Geo., Largo's Vice President of Exploration, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this press release.

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.

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