Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

July 06, 2005 16:05 ET

Largo to Commence Drilling to Test Geophysical Anomalies on Strike of Massive Sulphide Mineralization at Macuchi, Ecuador

TORONTO, ONTARIO--(CCNMatthews - July 6, 2005) -

3,000 meter program to begin by end of July

Largo Resources Ltd. (TSX VENTURE:LGO) announced today that several strong IP anomalies have been outlined along strike of the known massive sulphide mineralization at the Macuchi property in central Ecuador following the completion of more than 80% of its induced polarization (IP) geophysical survey. It is apparent that the target massive sulphide zones can readily be identified with the dipole-dipole IP technique. The current survey has delineated coincident chargeability and resistivity anomalies in the Minchoa, Patino and Mercedes/Esperanza areas, and the work is still on-going on the San Carlos target (see Figure 1). The data shows strong responses in the areas where sulphide occurrences are known and significantly extend the potential mineralization.

At the Minchoa area, the IP anomaly extends for 600 meters along strike, and is still open to the south and west. At Patino, where previous drilling by Largo indicated 50 to 100 meters of massive sulphide mineralization (see press release January 7, 2005), there appears to be a satellite body of similar dimensions to the southeast and slightly deeper than at the Patino body. The data also indicates that a completely new zone, parallel to the known Au-Cu hosting lithology lies approximately 500 meters to the west. This survey data has provided new targets and a third dimension to the structural interpretation of the target zones.

A 3,000 metre diamond drill program will commence in the latter part of July to test the high priority IP targets in the Minchoa and Patino areas as well as followup on favourable results from previous drilling. As announced in the press release dated May 6, 2005, the Macuchi property hosts an inferred mineral resource which totals 3.9 million tonnes grading 1.94 g Au/t, 7.5 g Ag/t and 0.59% Cu containing 360,000 ounces of gold equivalent (based on US400/oz Au, $6.00/oz Ag and $1.25/lb Cu).

Mr. John Buckle, P.Geo., consulting geophysicist and a Qualified Person as defined under National Instrument 43-101, who supervised the geophysical survey, commented: "Previous geophysical work on the property focused on the use of the electromagnetic geophysical methods which gave inconclusive results. It is likely that the previous electromagnetic techniques used were less successful at identifying the sulphide zones due to extensive clay alteration. The induced polarization technique does not have this limitation and the strong responses obtained in Largo's survey indicate excellent potential to outline additional massive sulphide mineralization along strike from the known zones."


Dr. Robert Hodder, P.Geo., a well known expert on volcanogenic massive sulphide (VMS) deposits, recently spent five (5) days at Macuchi, reviewing all geological data and drill core. Dr. Hodder considers the Macuchi property as "two gold-rich massive, and near-massive, sulfide bodies; Mercedes, and El Patino, and three gold-rich high-sulfidation epithermal occurrences Minchoa 1, 2 and 3 to constitute the Macuchi mining district of central Ecuador." He concluded that the deposit styles range from high sulphidation Au-Cu rich VMS through low sulphidation Au-Zn-Ag (Cu) and high sulphidation epithermal Au-Ag-Pb-Zn formed within an emerging front of an intra-oceanic volcanic island-arc. Dr. Hodder further stated that "Patino has the greatest potential for adding resources by stepping out from a known occurrence. By comparison to other volcanic hosted massive sulfide deposits throughout the world, Patino is an "auriferous polymetallic massive sulfide."

Robert Campbell, P.Geo., Vice President, Exploration, commented, "The results of the IP survey are very encouraging and have identified a number of high priority targets along strike of the known massive sulphide mineralization with excellent potential to outline one or more new massive sulphide bodies. Also, the preliminary work done by Dr. Hodder has advanced our understanding of the time horizon and distribution of sulphide mineralization which will enable us to better target our drilling."

Cotopaxi

In parallel with the work at Macuchi, Largo has initiated a regional exploration program on its 60,000+ hectare Cotopaxi concessions. This work will consist of LANDSAT imagery interpretation, linecutting, prospecting, sampling, geological mapping and limited IP surveys. Targets include the northern extension of the geological time horizon at Macuchi on which a number of old showings are reported and a potential epithermal gold/porphyry Au-Cu environment in the western portion of the claims. Subject to encouraging results, a preliminary 1,500 metre diamond drill program will start in September.

All exploration work at Macuchi and Cotopaxi is being supervised by R.A. Campbell, Vice President, Exploration and a Qualified Person (QP) as defined by National Instrument (NI) 43-101.

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 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.).

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: To view a map of Figure 1, please click on the following link:
http://www2.cdn-news.com/database/fax/2000/lgo0706.pdf

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Largo Resources Ltd.
    Mark Brennan
    President
    (416) 861-5886
    or
    Largo Resources Ltd.
    Ray Kindiac
    Business Development
    (416) 364-2266
    www.largoresources.com