• Extensive 25,000 metre exploration program planned for 2019 on several targets near Campbell Pit including additional drilling at Novo Amparo Norte

TORONTO, Dec. 19, 2018 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce that it has completed the second phase of drilling at the Novo Amparo Norte ("NAN") deposit. NAN lies approximately 6.5 km north of Largo´s current mining operation at the Campbell Pit at its Maracás Menchen Mine and is the most northern zone of mineralisation identified at the Maracás Project.

Key Highlights Include:

• 1.18% V₂O₅ over 18.76 metres (true thickness of 13.10 metres*) in hole FNAN-26
• 1.12% V₂O₅ over 19.53 metres (true thickness of 14.46 metres*) in hole FNAN-31
• Extends NAN mineralisation to approximately 1,840 metres and remains open, being
  an increase of approximately 130%

At NAN 24 NQ diamond drill holes were completed in 2018 totalling 4,223 metres. In total, 1,556 samples were collected and sent out for analysis for grades of V₂O₅ (%) and other selected elements at the SGS Laboratory in Belo Horizonte, Brazil. This press release summarizes the results from the first 20 holes (1,221 samples) of the current drill program that have been received to date. The results for the remaining 4 holes are expected by the end of December. Table 1 below outlines significant drill intercepts from the 2018 drill program at NAN. 

Table 1:  Significant Intercepts from NAN Second Phase Drill Program

Mark Smith, Chief Executive Officer for Largo, stated: "Largo is committed to increasing its mineral resources and reserves in support of developing new feed sources in the short-term for current mining operations at the Campbell Pit and for potential future expansion of operations at the mine. The drill results at Novo Amparo Norte have exceeded our initial expectations and reinforce our view that Maracás continues to have tremendous potential.  We are pleased to have completed this phase of the drilling and are eager to begin the next phase of exploration to reveal the true potential of Maracás."

Previous drilling at NAN completed by Largo (2011-2012) outlined a consistent zone of mineralisation over 790 metres with an average width of 18 metres and an average grade of 0.87% V₂O₅. The current program has been successful in extending mineralisation both to the north and south along strike to approximately 1,840 metres and remains open to the south and to depth.  Figure 2 shows the collar locations from the historic drilling and the most recent drill program.

Largo also carried out Davis Tube analysis on selected samples from the prior drill campaign at NAN.

Preliminary 3D geological interpretation (Figure 3) indicates mineralisation has been intersected over a strike length of 1,840 metres.  The zone is open along strike and remains open to the south and at depth.  Largo plans to complete an initial resource estimate at NAN in the first quarter of 2019 once all assay results have been received.

2019 Drill Program

Largo is forecasting an extensive exploration drill program that will be completed over the next two years targeting NAN and the majority of the other known mineralised targets in the vicinity of the Campbell Pit.  It is anticipated that the 2019 exploration drill program will consist of approximately 25,000 metres of diamond drilling and supporting work.

Table 2: 2018 Drill Hole Information

Vanadium Outlook

It is Largo's view that the recent dip in vanadium prices to US$23.50-24.00/lb¹ do not reflect what we believe to be the overall fundamentals of the market which have remained largely unchanged and, in Largo's view, continue to show a structural supply deficit for the foreseeable future. Vanadium prices are up approximately 156% compared to the same period last year. Largo continues to expect an elevated pricing environment for vanadium that will continue to remain in place until new supply is brought online.

Quality Assurance and Quality Control

All drill core samples were delivered to the SGS facility in Belo Horizonte, Brazil for analysis of select elements by XRF79C. Davis Tube test work is carried out on all mineralised samples. Quality control entailed the insertion of company blanks and standards into the drill core sample stream. In addition, SGS routinely inserts blanks, standards and duplicate analysis. 

Qualified Person

The scientific and technical information in this press release has been reviewed and approved by Paul Sarjeant P.Geo., a Qualified Person as defined by National Instrument 43-101.

About Largo Resources

Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen Mine located in Bahia State, Brazil. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "LGO". For more information on Largo, please visit our website at www.largoresources.com.

Forward-looking Statements

This press release contains forward-looking information under Canadian securities legislation.  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". All information contained in this news release, other than statements of current and historical fact, is forward looking information. 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. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. 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. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As.

Neither the Toronto Stock Exchange (nor its regulatory service provider) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Largo Resources Ltd.

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