Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

January 31, 2007 16:05 ET

Largo Resources Begins Platinum and Palladium Sampling Program at the Maracas Project in Bahia, Brazil

New sampling program to assess the potential for a 43-101 compliant platinum/ palladium resource

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) has begun a systematic sampling program for platinum and palladium on the existing core at the Maracas project in Bahia, Brazil. This sampling program is a result of the encouraging values in platinum and palladium determined during the due diligence process. The significant values were reported in a Largo press release of October 25, 2006 and included FGA19, 20 metres grading 1.20 g Pt/t and 0.04g Pd/t including 4.0 metres grading 2.0g Pt/t and 0.03g Pd/t. Six out of the eight holes sampled returned PGM values ranging between 0.52g/t and 1.24g/t. The average platinum to palladium ratio is 4:1.

This sampling program will take one month to complete and will analyse split core and pulps from holes that have not been systematically sampled. Largo has completed systematic sampling of 8 holes totalling 123 samples during the due diligence process. There are a total of 53 holes to be sampled at Maracas. All drill core from the previous work is stored on site and is in excellent condition. Results are expected by middle to late February.

Andy Campbell, P.Geo., Vice President, Exploration commented: "We are very pleased with the initial platinum and palladium results from the due diligence sampling program. The PGM's could contribute to the existing deposit and be a significant by-product to the known vanadium and enhance the overall economics of this robust deposit."

The Maracas deposit is hosted within gabbros and pyroxenites of the Jacare River mafic-ultramafic intrusion. This sheetlike linear intrusion extends for 70 kilometres along a north-south strike averaging about 1.2 kilometres in width. There are a number of striking similarities to the Great Dyke including age, rock types, platinum and palladium ratio and style of intrusion as well as the host rock that it intrudes. The PGMs are associated with vanadium-rich titaniferous magnetite both as disseminated and massive layers. This massive, titaniferous magnetite mineralization at Maracas ranges from 2.0 to 90 metres in thickness with an average true width of 25 metres.

Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil. Platinum and palladium values were determined by fire assay technique using a 50 gram-sample. 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.

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 Platinum-Vanadium 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.

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 that actual developments or results may vary materially from those in these "forward-looking statements".

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Largo Resources Ltd.
    Mark Brennan
    President & CEO
    (416) 861-5886
    or
    Largo Resources Ltd.
    Tony LaMantia
    Corporate Development
    (416) 861-5882
    Website: www.largoresources.com