Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

October 26, 2005 16:05 ET

Largo Intersects Wide Zones of Sulphide Mineralization at its Macuchi Project, Ecuador

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2005) - Largo Resources Ltd. (TSX VENTURE:LGO) has completed a 20-hole drill program totalling 3,212 metres at the company's 5,000 hectare Macuchi property, Ecuador. Results are given in Table 1 below and drill locations are shown in Figure 1. The drill program tested a number of targets along strike of the known massive sulphide zones that have coincident Induced Polarization (IP) anomalies encountered during the recently completed IP survey. These targets are in addition to the areas where the recently reported inferred mineral resource of 360,000 ounces gold equivalent is located (see press release May 6, 2005). In addition, several target areas outside of the known mineralized zones outlined by the IP survey completed this summer were also drill tested.

The drill program continued to confirm extensive broad areas of sulphide mineralization with polymetallic (Au, Cu, Zn & Ag) values in a major volcanogenic massive sulphide-epithermal environment. Significant results include:

Minchoa 1

- MOD-13 - 3.5 g Au/t, 15.8 g Ag/t and 3.8% Zn over 3.9 metres including 4.5 g Au/t, 15.4 g Ag/t and 6.6% Zn over 1.9 metres

- MOD-13 - 3.2 g Au/t and 3.7% Zn over 1.0 metres

- MOD-14 - 2.6 g Au/t and 40.0 g Ag/t over 6.0 metres including 3.5 g Au/t and 50.4 g Ag/t over 3.0 metres

- MOD-14 - 3.1 g Au/t and 1.9% Zn over 2.0 metres

Patino

- PD-10 - 2.0 g Au/t over 3.0 metres including 3.9 g Au/t over 1.0 metre

- PD-10 - 1.5 g Au/t, 17.4 g Ag/t and 3.0% Cu over 1.0 metre

Mercedes West (new zone)

- MER-62 - 2.6 g Au/t over 5.0 metres including 7.9 g Au/t over 1.0 metre

- MER-67 - 0.8 g Au/t, 16.1 g Ag/t, 1.75% Cu over 2.0 metres

- MER-67 - 2.5% Cu over 2.0 metres

- MER-63 - 2.0% Cu over 1.0 metre

Robert Campbell, P.Geo., Vice President, Exploration, commented, "The drilling results continue to indicate wide zones of sulphide mineralization in the areas where we have delineated coincident IP anomalies that extend over 6 kilometres of strike length. We are now focused on better understanding the nature of the metal zoning in this extensive polymetallic sulphide system. Further work will concentrate on outlining potential economic deposits within this major volcanogenic massive sulphide-epithermal environment."

Largo is presently compiling all the results from the drill program in combination with geophysical and geochemical information. The focus is on better defining the metal zones in order to outline areas for further follow-up drilling for the best potential to outline significant polymetallic sulphide deposits. In addition, Largo has initiated a soil/rock geochemical and geological program to evaluate the northern extension of the mineralized belt on the Cotopaxi property. Twenty-three (23) lines of IP have been completed earlier this past summer on the Cotopaxi property and a number of IP anomalies were delineated which is the focus of the soil/rock geochemical survey.

The Minchoa 1 to Patino area has been drill tested by only six (6) holes at this point in time and has the potential to add significantly to the inferred resource. The strike extent of this zone is at least 1 kilometre. Significant assays were returned from MOD-13, MOD-14 and PD-10 listed above. Previously reported holes by Largo Resources in this area include: (see press release August 16, 2004)

- PD-02 - 2.0 g Au/t, 1.2% Cu over 6.3 metres

- PD-02 - 12.6% Zn over 2.0 metres

- PD-03 - 4.4 g Au/t, 2.2% Cu over 8.1 metres

- PD-06 - 2.8 g Au/t and 13.9 g Ag/t over 5.3 metres

- PD-08 - 2.0 g Au/t, 0.4% Cu over 6.0 metres

The Mercedes West is a new zone that is located 300 metres west of the Mercedes deposit discovered during this drill campaign. This zone is 600 metres long and was tested to a depth of 70 metres with six (6) holes along its strike length. It remains open in all directions. All holes intersected broad zones of sulphide mineralization from 20 to 136 metres wide with significant gold and copper mineralization. Significant results as noted above include 2.6 g Au/t over 5.0 metres including 7.9 g Au/t over 1.0 metre in MER-62 and 1.75% Cu and 0.8 g Au/t over 2.0 metres in MER-67 and 2.5% Cu over 2.0 metres and 2.0% Cu over 1.0 metre in MER-67 and 63, respectively.

The Macuchi property is underlain by two extensive parallel massive sulphide trends. These volcanogenic massive sulphide zones occur along a time horizon or break which has been traced for over six (6) kilometres from San Carlos to Minchoa 3 on the western trend and from Esperanza in the north to Patino to the south on the eastern trend. Along this time horizon, there are a number of centres including Patino and Mercedes. These centres are Au-Cu massive sulphides and stringer zones. The zones grade out into Zn-Ag-Pb-(Au) which is typical of other known VMS environments (Kuroko, Pueblo Viejo and Eskay Creek).

Largo owns the 5000-hectare Macuchi property and controls large parts (+50,000 hectares) of the 60 km long Macuchi - La Plata volcanogenic massive sulphide (VMS) belt in Ecuador that contains several styles of mineralization including polymetallic VMS, epithermal Au-Ag and porphyry Cu-Au systems. The belt was explored by Cotopaxi Mining Company (1930's & 40's), Duncan Derry (1950's & 60's), Outokumpu (1970's & 80's), BRGM (late 1980'S) and RTZ (early 1990'S). Numerous prospects, showings and occurrences were identified by the others over the 60-km belt.

Assaying was carried out by ALS Chemex of North Vancouver, using fire assay on 50 gram pulps. Routine check assays are carried out by Acme Analytical Laboratories of Vancouver on sample pulps and sample rejects. R. A. Campbell, P. Geol., Largo's Vice President of Exploration, is the Qualified Person for the program as defined under National Instrument 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 that actual developments or results may vary materially from those in these "forward-looking statements".

Please click on the following link to view Table 1: Significant Drilling Results, Macuchi;

http://www.ccnmatthews.com/docs/lgotab26.pdf

Please click on the following link to view the Average IP Chargeability Plan Map;

http://www.ccnmatthews.com/docs/lgomap.pdf


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