Tungsten

[johnlw]

Largo drills 134.51 m of 0.13% MoS2 at Northern Dancer

2006-12-06 08:14 ET - News Release

Mr. Mark Brennan reports

LARGO CONTINUES TO INTERCEPT HIGHER-GRADE TUNGSTEN-MOLYBDENUM MINERALIZATION AT ITS NORTHERN DANCER PROJECT, YUKON

Largo Resources Ltd. has provided the results from the remaining nine holes of a 4,000-metre diamond drill program on the company's Northern Dancer tungsten-molybdenum property located in the Yukon. Results for the first eight holes were summarized in Stockwatch on Sept. 7, 2006. All 17 holes intersected broad zones of mineralization. Significant results from the current holes are tabulated in the "Drilling results, Northern Dancer" table. Highlights are as follows.

Significant molybdenum-rich (MoS2) holes include:

* 134.51 metres grading 0.13 per cent MoS2 and 0.04 per cent WO3 in hole LT06-70; and
* 52.00 metres of grading 0.14 per cent MoS2 and 0.07 per cent WO3 in hole LT-06-63.

Significant tungsten-rich (WO3) holes include:

* 114.95 metres grading 0.16 per cent WO3 and 0.08 per cent MoS2 including 12.22 metres grading 0.54 per cent WO3 and 0.19 per cent MoS2 in hole LT-06-66; and
* 83.89 metres grading 0.20 per cent WO3 and 0.04 per cent MoS2 in hole LT-06-68.

Mark Brennan, president and chief executive officer of Largo, stated: "Currently our technical staff is incorporating the new drill results into the updated resource model with a NI 43-101 compliant resource estimate expected to be completed in January, 2007. This resource will form the basis for a scoping study to be completed in spring 2007 with fieldwork including an expanded drilling program to start soon after that."

Largo's vice-president of exploration, Andy Campbell, PGeo, commented: "The results continue to enhance the previous work with better-than-expected molybdenum grades over all, and a significantly higher grade tungsten zone has been confirmed. This higher grade tungsten zone will be an important focus for the next drill program in 2007. Further drilling will also be undertaken to better define the full extent of the widespread higher grade molybdenum mineralization."

The Northern Dancer property straddles the Yukon-British Colombia border 290 kilometres east of Whitehorse and is 115 kilometres east of Adnac Moly Corp.'s Ruby Creek molybdenum deposit. The Northern Dancer property hosts widespread molybdenum-tungsten porphyry-style mineralization and was originally delineated by 51 diamond drill holes and 496 metres of underground workings completed by AMAX Minerals between 1977 and 1980.

This mineralization, which is open laterally, along strike to the south and to depth, has a published resource of 162 million tonnes grading 0.13 per cent WO3 and 0.052 per cent MoS2 (MoS2 equivalent of 0.108 per cent) (Economic Geology, 1984, volume 79, page 849). This resource is a historic estimate that does not conform to standards prescribed in National Instrument 43-101 and investors are cautioned not to rely on this estimate. The present program has confirmed previous results and provided sufficient new geological and assay data to prepare a mineral resource estimate compliant with NI 43-101 standards.

Higher grade tungsten mineralization occurs within an extensive sheeted quartz vein system that crosscuts lower grade stockwork style mineralization in the deposit. As shown in a geological plan map of the property, this zone extends for at least 500 metres along strike, to a depth of at least 500 metres and varies from at least 20 metres to possibly more than 100 metres in width. The zone trends northeast-southwest, dips near vertical and is open in all directions. Previous historical drilling did not adequately test this zone because the holes were all steeply inclined to vertical.

The molybdenite is associated with stockwork porphyry-styled mineralization. The higher grade MoS2 values are spatially related to a quartz feldspar porphyry stock. The porphyry system covers an area 500 metres by 500 metres and has been tested to a vertical depth of 500 metres. The system remains open at depth and along strike.

The drill program was managed by Archer, Cathro & Associates (1981) Ltd., a well-known consulting firm that has over 35 years of experience in mineral exploration in the Yukon.

Assaying was carried out by Acme Analytical Laboratories Ltd. in Vancouver, B.C. The samples are crushed to 70 per cent passing 10 mesh, split to 250 grams and pulverized to 95 per cent passing 150 mesh. A five-gram split is analyzed for Mo and W using a phosphoric acid leach followed by ICP-emission spectrometry. Then a second five-gram split is analyzed for 36 elements by ICP-mass spectrometry using a hot (95 C) aqua regia leach. Routine check assays are performed at SGS Minerals in Lakefield, Ont., on sample rejects. W.A. Wengzynowski, PEng, of Archer, Cathro, is the qualified person as defined under National Instrument 43-101 for the program.....................................................

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