Largo Resources Kursrakete

Work by Largo had outlined two, parallel, at least 6 km long, geological time horizons that host base metal mineralization on the Macuchi property. Debris flows, interpreted to represent the collapse of sulphidic hyrdrothermal mounds, have been observed along one of the horizons. A metre-sized fragment of one of these debris flows returned 75.97 g/t Au, 277 g/t Ag, 1.35% Cu, 49.15% Zn and 2.66% Pb. 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 49% interest in the Macuchi property that it does not currently own. In order to complete this acquisition, Largo is required to fulfil its cash payments to the owners of the property of US$1,000,000 and share issuances equivalent to US$500,000 in value 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 that may host the northern extension of the mineralized Macuchi belt.


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