Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 27, 2006 09:40 ET

Largo Announces Completion Of Earn-In Of 51% Interest In Macuchi Au-Cu-Zn-Ag Project, Ecuador

TORONTO, ONTARIO--(CCNMatthews - March 27, 2006) - Largo Resources Ltd. (TSX VENTURE:LGO) announces completion of the US$1.5 million earn-in for a 51% interest in the Macuchi project in west central Ecuador. The Macuchi property which covers 5,000 hectares, hosts a number of significant polymetallic (Au, Cu, Zn & Ag) volcanogenic massive sulphide (VMS) deposits including the past producing Mercedes mine (production 1940-1946 - 435,000 tonnes at 11.7g Au/t and 5% Cu). These types of deposits are typical of other major known VMS environments including Selbaie, Quebec, Eskay Creek, B.C. and Mount Read, Tasmania. In addition, Largo owns a 100% interest in the 60,000+ Cotopaxi property which covers a 60km strike length of the likely extension of the mineralized belt.

Work by Largo including diamond drilling, induced polarization geophysical surveys and geological mapping on the Macuchi property has outlined two extensive parallel massive sulphide trends which occur along a major geological time horizon that extends for at least 6km along strike on the property. As previously reported (see press release May 9, 2005), drilling by Largo has outlined an inferred mineral resource of 360,000 ounces of gold equivalent based on US $400 Au/oz, $6.00 Ag/oz and $1.25 Cu/lb (3.9 million tonnes at 1.94 g Au/t, 0.59% Cu, and 7.5g Ag/t) in the Mercedes-Patino area. This resource, which was reviewed and confirmed by T. Hennessy, P.Geo, of Micon International, is open along strike as well as at depth and can be significantly increased by further drilling.

Robert Campbell, P.Geo., Vice President, Exploration, stated: "Our work to date has confirmed the extensive nature of this VMS system. With continued rising metal prices, the polymetallic nature of the mineralization makes this a very attractive project for further exploration."

Mark Brennan, President and CEO, commented "We believe that the Macuchi-Cotpaxi properties warrant considerable further exploration. Currently we are reviewing potential financing options as well as looking at the possibility of bringing in a joint venture partner."

About Largo

Largo Resources Ltd. is a Canadian 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 mineral resource which totals 3.9 million tonnes grading 1.94 g Au/t, 7.5 g Ag/t, 0.59% Cu, containing 360,000 ounces of gold equivalent (based on US$400 Au/oz, $6.00 Ag/oz and $1.25 Cu/lb.)

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".

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