Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

May 12, 2005 08:00 ET

Largo Resources Begins Phase III Exploration At Its Macuchi Property, Ecuador

TORONTO, ONTARIO--(CCNMatthews - May 12, 2005) -

- Company hopes to expand on its recently announced inferred resource of 360,000 gold equivalent ounces on its 5,000 hectare property; Phase I exploration to begin on 60,000+ hectare Cotopaxi property

Largo Resources Ltd. (TSX VENTURE:LGO) announced that Phase III exploration has begun at its Macuchi property in central Ecuador. The Company has nearly completed 60 line-kilometres of linecutting and will begin an Induced Polarization (IP) survey shortly. This will be followed by a diamond drill program in July to further test the massive sulphide horizon along strike of the known mineralization and our recently announced (May 6th) mineral resource. The focus will be to expand upon this inferred resource estimate of 360,000 gold equivalent ounces.

The recommended exploration program consists of a 60 line-kilometre IP survey to be followed by 3000 metres of diamond drilling in 12-15 holes. The IP survey will focus on the two known mineralized trends; from the Esperanza district to Patino and from the San Carlos district to Minchoa III. Line spacing will be at 200 metres with a number of detailed lines at 100 metres in and around the known showings. The IP survey will take 4-5 weeks to complete depending on weather and should begin by the end of May. The IP survey will help to better target the sulphide horizon and provide valuable information on the depth to the target zones.

The 3000-metre diamond drill program, to begin in July, will follow up on the encouraging near surface drill results from the 2004 programs as well as from IP anomalies generated from the current geophysical survey. The recommended exploration program will focus on expanding the mineralized zone at Patino, and test the potential of Patino to Minchoa 1 and Esperanza to Mercedes. Limited follow-up is also planned for drilling between Minchoa 3 to Minchoa 2 and San Carlos.

The estimated budget for the Phase III exploration program at the Macuchi property is US$ 550,000. The program will take four months to complete.

Largo shall also begin its Phase I exploration program on the company's 60,000+ hectare Cotopaxi concessions. The work will consist of LANDSAT imagery, sampling, geological mapping and limited IP surveying in and along strike of the known showings. Subject to encouraging results, a preliminary 1500 metre diamond drill program will start in August.

About Largo

Largo Resources is a TSX Venture Exchange listed mineral resource exploration and development company. The Company is focused upon creating shareholder value through developing exploration properties and acquiring undervalued mining assets throughout the America's. Largo has an option to acquire and is aggressively exploring the 65,000 hectare Macuchi Gold Belt exploration project which has had historic production and currently has an inferred resource of 360,000 gold equivalent ounces.

Disclaimer

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements".

NOTE: There is a map available on CCNMatthews' website at:
http://www2.cdn-news.com/database/fax/2000/lgo0512.pdf


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