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Nov 30, 2009
LARGO EXPANDS THE CURRAIS NOVOS TUNGSTEN PROJECT IN RIO GRANDE DO NORTE, BRAZIL
- Records document a historical resource estimate of 4.1 million tonnes (non NI 43-101 compliant) - Push to restore historical tungsten mining camp
07:54 EST Monday, November 30, 2009
TORONTO, ONTARIO--(Marketwire - Nov. 30, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO) announced today that it has expanded the Currais Novos Tungsten Project by optioning additional tungsten-molybdenum tailings located in close proximity to the tailings covered by the previously announced option agreement with Emprogeo Ltda (Emprogeo) (see press release dated November 24, 2009). The additional tailings, which have been optioned from the Galvao family (Galvao) allows Largo to expand the scope of the tailings recovery project that will now comprise the reprocessing and recovery of tungsten and molybdenum from the tailings deposited from two mines (Barra Verde and Boca de Laje) that operated intermittently over an approximately 50-year period.
In addition, Largo is pleased to report that the additional tailings will be included in the advanced discussions with a major end user of tungsten with respect to collaboration on the Currais Novos Tungsten project.
Mark Brennan, President and CEO of Largo, stated: "The addition of the Galvao family holdings positions Largo as the dominant player in the renewed Currais Novos mining camp. Currais Novos has a long history of tungsten production with majors such as Anglo American and Union Carbide."
The Currais Novos property is located 180 kilometres west-southwest of Natal in the State of Rio Grande do Norte, Northeastern Brazil (see attached location map below). The project is in the municipality of Currais Novos, on the Campina Grande-Natal highway, about 6 km. south of the city of Currais Novos.
The combined properties consist of two concessions of 656 hectares on which the tailings 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 Producao Mineral (DNPM), the national mineral agency in Brazil, indicated the piles to contain an approximate total of 4.1 million tonnes of tailings material. The Galvao tailings were estimated to comprise 1.1 million tonnes and the Emprogeo tailings comprise 3.0 million tonnes according to these DNPM records. 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. Largo has taken preliminary samples that have resulted in grade estimates of approximately 0.15% WO3 and 0.05% molybdenum which are within the range estimated by the current owners.
Upon the signing of the respective acquisition agreement, Largo shall have the option to acquire a 100% interest in the tailings, subject to the terms and conditions set forth therein, for a purchase price of US$900,000 payable in instalments over a 18-month period commencing in January 2010, subject to Largo being satisfied with the outcome of the due diligence process.
The due diligence period will be used by Largo to establish a NI 43-101 compliant mineral resource for the tailings and also to carry out testwork to establish its process and metallurgical characteristics. In addition, all necessary title, legal, environmental and marketing aspects will be reviewed. Based on the estimated source and apparent nature of the Currais Novos tailings, Largo believes that there is very good potential for near-term production of tungsten and molybdenum concentrates.
The Currais Novos property is underlain by a portion of the Serido 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 Resources Ltd. is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. 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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