Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 14, 2007 13:56 ET

Largo Resources Updates Progress at the Macuchi Gold-Copper Property Joint Venture With Aur Resources

TORONTO, ONTARIO--(CCNMatthews - March 14, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to update shareholders on progress made at the Macuchi (Ecuador) Gold-Copper joint-venture with Aur Resources Inc.

Aur initiated exploration at Macuchi in November 2006. Exploration activities included line cutting, soil sampling and systematic litho-geochemical sampling of drill core. In addition, Induced polarization (IP) geophysical data was acquired for inversion analysis. This work, in conjunction with previous exploration by Largo, has defined several high priority areas. The focus of the second quarter will be data analysis, target definition and initiation of a drill program. Aur plans a minimum 2,000 metre drill program on the property beginning in May 2007.

Aur optioned the Macuchi gold property from Largo in October 2006 (see press release October 16, 2006). The earn-in agreement gives Aur the right to earn a 75% interest in the property by making cash payments to Largo totaling US$1.025 million and expenditures on the property totaling US$3.5 million dollars over a five year period.

Largo's Macuchi property covers over 5,000 hectares in northeastern Ecuador, hosting a number of significant gold and 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.

Work by Largo 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 Macuchi 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.

The agreement with Aur follows the completion of Largo's exercise of its option to acquire the remaining 49% interest in the Macuchi property that it does not currently own. To complete this acquisition, Largo is required to make cash payments totaling US$1,000,000 and share issuances equivalent to US$500,000 over a four year period.

Largo continues to hold a 100% interest in the 60,000 hectare Cotopaxi property (Ecuador) which covers a 60km strike length of the likely extension of the mineralized belt north of Macuchi.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon . 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".

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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