NEWS-----------------------------------------
Largo Resources begins drilling at Macuchi
2007-05-02 18:28 ET - News Release
Mr. Mark Brennan reports
DRILLING BEGINS AT LARGO'S MACUCHI GOLD PROPERTY IN ECUADOR
Largo Resources Ltd. has been informed by Aur Resources Inc. that it has begun drilling at the Macuchi gold property. Aur has planned an eight-hole, 2,000-metre (minimum) drilling program. This drill program is focused on several high-priority targets that were identified in previous work on the property. The program will consist of two holes at Mercedes, one hole at each of Esperanza and Patino, and the remaining four holes along the Minchoa trend.
Aur optioned the Macuchi gold property from Largo in October 2006. The earn-in agreement gives Aur the right to earn a 75-per-cent interest in the property by making cash payments to Largo totalling $1,025,000 (U.S.) and expenditures on the property totalling $3.5-million (U.S.) over a five-year period.
Largo's Macuchi property covers over 5,000 hectares in northeastern Ecuador, hosting a number of significant polymetallic (gold, copper, zinc and silver) volcanogenic massive sulphide (VMS) zones, including the past-producing Mercedes mine (production from 1940 to 1946 of 435,000 tonnes at 11.6 grams per tonne gold and 4.7 per cent copper). These types of deposits are typical of other major known VMS environments, including Selbaie, Que., Eskay Creek, B.C., and Mount Read, Tasmania.