Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

July 26, 2005 09:28 ET

Largo Begins 3,000 Meter Drilling Program At Its Macuchi Property, Ecuador

TORONTO, ONTARIO--(CCNMatthews - July 26, 2005) -

Phase II program to drill numerous strong targets identified by its recent induced polarization (IP) survey

Largo Resources Ltd. (TSX VENTURE:LGO) announced today that drilling has begun at its Macuchi property, in central Ecuador. The 3,000 meter drill program will focus on the favourable results from the recent induced polarization (IP) survey which has identified numerous strong IP anomalies coincident with and along strike of the known massive sulphide mineralization at Macuchi. The current survey has delineated coincident chargeability and resistivity anomalies in the Minchoa 1, 2 & 3, Patino, Mercedes/Esperanza, and San Carlos target areas (see Figure 1 below and color image at www.largoresources.com ). The data shows strong responses in the areas where sulphide occurrences are known and significantly extend the potential mineralization. It has also identified other strong anomalies in areas previously untested. The induced polarization coverage is currently being extended to cover strong anomalies that are open to the east, west and south.

In the Minchoa 1, 2, and 3 areas the IP anomalies will be tested with 6 holes. At Patino where previous drilling by Largo indicated 50 to 100 meters of massive sulphide mineralization (see press release January 7, 2005), initially 2 holes will be drilled. The data also indicates that a completely new zone, parallel to the known Au-Cu hosting lithology lies approximately 500 meters to the west and will be tested with 4 holes. At San Carlos, 2 holes will be drilled to test the zinc-rich mineralization.

About Largo

Largo Resources Ltd. is a Canadian listed mineral resource exploration and development company. The Company is focused on 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 resources 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.)

NOTE: There is a map available on CCNMatthews' website at:

http://www2.ccnmatthews.com/database/fax/2000/lgo0726.pdf

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".


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