Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

October 30, 2006 08:00 ET

Largo Confirms Significant Platinum and Palladium Values at the Maracas Vanadium-PGM Deposit in Bahia, Brazil

- Including 20 metres grading 1.2 grams 'g' platinum per tonne 'Pt/t' with 4 metres grading 2.0 grams Pt/t - 4:1 Platinum to Palladium ratio

TORONTO, ONTARIO--(CCNMatthews - Oct. 30, 2006) - Largo Resources Ltd. (TSX VENTURE:LGO) announces that it has received significant results for platinum and palladium from an initial core re-sampling program as shown in Table 1. Highlights include:

- 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

- FGA26 - 12 metres grading 0.77g Pt/t and 0.08g Pd/t including 4.0 metres grading 0.84g Pt/t and 0.15g Pd/t

- FGA22 - 14 metres grading 0.64g Pt/t and 0.04g Pd/t including 4.0 metres grading 0.88g Pt/t and 0.05g Pd/t

Largo completed systematic re-sampling of 10% of the historical drill core to evaluate the platinum group metals (PGM) content of the deposit in addition to confirming the vanadium content. A total of 123 samples from 8 drill holes were collected and analyzed. Results for V2O5 are still pending but are expected shortly. All drill core from the previous work is stored on site and is in excellent condition.

Six out of the eight holes sampled returned PGM values ranging between 0.52g/t and 1.24g/t over widths of 16 to 20 metres. The average platinum to palladium ratio for the 123 samples analyzed is 4:1. These results confirm the presence of significant PGM values in the Maracas deposit as reported in the historic work (see press release of October 24, 2006). It is important to note that the focus of previous work was almost entirely for vanadium and only a small portion of the drill core was previously analyzed for PGMs.

Mark Brennan, President and CEO of Largo commented: "These results confirm that Maracas, in addition to hosting an attractive vanadium deposit, has excellent potential to host significant PGMs with a high platinum to palladium ratio."

Andy Campbell, P.Geo., Vice President, Exploration stated: "The initial PGM results are very encouraging and the platinum to palladium ratio is comparable to deposits in Africa and in particular the Great Dyke of Zimbabwe and the Bushveld Complex, South Africa. The PGM values correlate very well with the higher grade V2O5 zones. We are planning to expand the sampling program to better evaluate the nature and extent of the PGM mineralization."

The Maracas deposit is hosted within a lower sequence of gabbros and pyroxenites of the 2.64 billion-year-old, 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 ratios and style of intrusion as well as the host rock that it intrudes. The PGMs are associated with disseminated to massive bodies of titano-magnetite in pyroxenites. This massive, titano-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 and employed industry standard QA/QC procedures. 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 Vanadium-PGM 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.

For more information please refer to Largo's website: www.largoresources.com.

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".



Table 1: Initial PGM Results, Maracas

Summary of Assay Results - Maracas Property, Brazil
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Interval
Hole Number From To Pt (g/t) Pd (g/t) (metres)
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FGA02 No Significant assays
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FGA10 72.50 88.50 0.45 0.07 16.00
Including 82.50 88.50 0.54 0.08 6.00
FGA15 36.00 50.00 0.56 0.23 14.00
FGA19 6.00 26.00 1.20 0.04 20.00
Including 14.00 18.00 2.00 0.04 4.00
FGA22 6.00 20.00 0.64 0.04 14.00
Including 16.00 20.00 0.88 0.05 4.00
FGA26 68.00 80.00 0.77 0.08 12.00
Including 70.00 74.00 0.84 0.15 4.00
FGA29 36.00 40.00 0.14 0.11 4.00
FGA41 104.00 118.00 0.33 0.29 14.00
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All drill holes are shallow (less than 100 metres) and intervals reflect
true thickness

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Hole Number Northing Easting Elevation Azimuth Dip
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FGA02 8,486,023 318,243 298.39 286 degrees -45 degrees
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FGA10 8,486,183 318,332 307.01 284 degrees -59 degrees
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FGA15 8,486,123 318,259 313.20 315 degrees -45 degrees
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FGA19 8,486,131 318,238 316.29 292 degrees -55 degrees
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FGA22 8,486,116 318,241 314.40 286 degrees -45 degrees
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FGA26 8,486,188 318,313 309.77 284 degrees -59 degrees
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FGA29 8,486,032 318,213 304.97 286 degrees -43 degrees
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FGA41 8,486,086 318,346 295.30 292 degrees -55 degrees
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Drill hole Information - Maracas Property, Brazil



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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