Lavras Gold Corp. (TSXV: LGC), a newly launched exploration company
based in Canada, will focus on creating value through targeted gold
exploration in southern Brazil. Lavras Gold was spun out of
Amarillo Gold Corporation, which was bought by Hochchild Mining PLC
earlier this year.
Lavras Gold’s long-term objective is to unlock the
gold mineral endowment of its Lavras do Sul property (LDS Project)
through a sustained systematic and technically-based exploration
effort. The immediate goals for 2022 are to grow property-wide gold
resources to at least one million ounces, drill-test five priority
exploration targets, and consolidate its total number of shares
outstanding.
“This is a fresh start for the company and the
property,” said Michael Durose, the Company’s President and Chief
Executive Officer. “We have launched Lavras Gold with a tight
capital structure, nearly $10 million in cash, and a 2% NSR royalty
on the Mara Rosa exploration ground that we acquired from the
Amarillo Gold spinout. We are well-positioned to execute on our
strategy to create value for all of our stakeholders by focusing on
realizing the multi-million ounce potential of the LDS
Project.”
Lavras do Sul: a highly prospective
property
Lavras Gold Corp. is named for the town of Lavras
do Sul—a historical gold mining centre in Southern Brazil. Located
in the state of Rio Grande do Sul, the LDS Project is 4.5 hours by
road southwest of the major city of Porto Alegre. It is near
excellent infrastructure, including tarmac roads, water, and power.
The closest town is Lavras do Sul.
Exploration efforts to date indicate that the LDS
Project hosts an alkaline gold-copper system with components of
porphyry and epithermal styles of mineralization—a unique
geological setting in Brazil. These systems are known to host
potentially large gold deposits.
There are currently 23 known gold prospects and
historical diggings scattered throughout the 22,000-hectare
property. It has a pipeline of targets at different stages of
exploration; the most advanced are Butiá, Cerrito, Zeca Souza,
Caneleira, and Matilde.
Detailed review of geologic
data
A large historical geological database consisting
of geological mapping, airborne magnetics, regional soil
geochemistry, rock geochemistry, ground geophysics, and trenching
provides a solid foundation for planning future exploration.
Approximately 54,000 metres of drilling over 227 holes have been
completed on the property so far.
A technically based systematic exploration strategy
to cost-effectively drill-test targets at LDS is being implemented.
The starting point is compiling and reinterpreting much of the
geological data that is already on hand. The results of this
reinterpretation will help advance the exploration program and
guide the selection of new drilling targets in areas that have
never been evaluated.
12,000-metre drilling program is
underway
Two diamond drills have been onsite since January,
and a 12,000-metre drill program is underway testing priority
targets.
At Matilde, the goal of the drill program is to
test for extensions to gold mineralization along strike and
down-dip from previously discovered zones of mineralization. These
include holes:
- 20MT_001 that returned 62.5 metres
grading 0.62 g/t gold including:
- 14.0 metres grading 1.13 g/t gold from
184.0 metres
- 12.8 metres grading 0.89 g/t gold from
191.5 metres
- 20MT_002 that returned 144.6 metres
grading 0.69 g/t gold including:
- 91.6 metres grading 0.87 g/t gold
including 9.0 metres grading 1.02 g/t gold from 172.0 metres and
1.04 g/t gold from 184.0 metres
- 0.6 metres grading
30.90 g/t gold from 261.0
metres.
At Matilde Extension, the drilling is targeting
deeper portions of an interpreted gold-bearing structure.
The drill program at Zeca Souza is following up on
encouraging historical results and old surface diggings. The goal
is to test for parallel gold structures along the east-west strike
length of the target.
At Caneleira the focus will be to evaluate the
strike extension and depth potential of known mineralization.
Building from half a million ounces
at Butiá
The most advanced prospect at LDS is Butiá, where
mineralization generally extends from surface to a depth of 300
metres, with widths of 15 to 20 metres.
Structurally controlled and hosted within
hydrothermally altered micro-brecciated sericite granite, it is
disseminated occurring over large thicknesses and associated with
fluids of alkaline affinity.
Mineralogical associations include sericite,
albite, chlorite, jarosite, calcite, pyrite, galena, and
sphalerite.
An independent technical report according to
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (NI 43-101) on the Butiá Gold Prospect was completed
earlier this year. The report, called NI 43-101 Technical Report
Mineral Resource for Butiá Gold Prospect, is dated and effective
January 25, 2022. It was prepared by VMG Consultoria e Soluções
Ltda. for Lavras Gold Corp. and is available on SEDAR
(www.sedar.com) under Amarillo Gold’s issuer profile.
NI 43-101 MINERAL RESOURCE ESTIMATE FOR BUTIA GOLD
PROSPECT
Class |
Type |
Tonnes |
Gold (grams per tonne) |
Gold ounces |
Measured |
Saprolite |
138,210 |
0.65 |
2,906 |
|
Hard rock |
4,504,865 |
0.89 |
128,623 |
Indicated |
Saprolite |
248,219 |
0.95 |
7,568 |
|
Hard rock |
8,025,529 |
0.92 |
238,207 |
Inferred |
Saprolite |
59,663 |
1.32 |
2,526 |
|
Hard rock |
3,616,339 |
0.96 |
112,115 |
- Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the
mineral resources estimated will be converted into mineral
reserves
- Assumes a gold cut-off
grade of 0.3 g/t
Maiden resource at
Cerrito
A NI 43-101 resource for the Cerrito target is
nearly finished.
Approximately 10,430 metres over 48 drill holes
have been completed at Cerrito, where gold occurs along structures
within hydrothermally altered monzogranites.
Holes have been drilled to a vertical distance of
425 metres with gold grades improving at depth, demonstrating the
need to focus on gold-bearing structures vertically as well as
laterally.
Proposed 10:1 share
consolidation
Lavras Gold intends to consolidate its issued and
outstanding common shares based on 10 pre-consolidation common
shares for one post-consolidation common share (the
“Consolidation”). The proposed Consolidation remains subject to
certain conditions including, but not limited to, the receipt of
all necessary regulatory approvals, including the approval of the
TSX Venture Exchange.
Following the Consolidation—which should take
approximately four to six weeks to complete—the Company will have
approximately 41,103,800 common shares outstanding. No fractional
common shares will be issued pursuant to the Consolidation and any
fractional shares that would have otherwise been issued will be
rounded down to the nearest whole common share.
The change in the number of issued and outstanding
common shares resulting from the Consolidation will not materially
affect any shareholder’s percentage ownership in the Company,
although such ownership will be represented by a smaller number of
common shares.
Registered shareholders will receive Letters of
Transmittal for the Consolidation by mail. All registered
shareholders will be required to send their share certificates,
along with a properly executed letter of transmittal, to the
Company’s registrar and transfer agent, Computershare Trust Company
of Canada, in accordance with the instructions provided in the
letter of transmittal.
Shareholders who hold their common shares through a
broker, investment dealer, bank, or trust company should contact
that nominee or intermediary for assistance in depositing their
common shares in connection with the Consolidation. A copy of the
letter of transmittal will be posted under the Company’s issuer
profile on SEDAR at www.sedar.com.
Qualified
Person
Michael Durose, P.Geo., President and CEO of Lavras
Gold Corp. and a qualified person (QP) as defined by Canadian
National Instrument 43-101, has reviewed and approved the
scientific and technical information contained in this release.
Lavras Gold: Exploring to realize the
potential of a multi-million ounce district in southern
Brazil
Lavras Gold (TSXV: LGC) is a Canadian exploration
company focused on realizing the potential of the Lavras do Sul
gold project (LDS project) in Brazil. Located in the state of Rio
Grande do Sul, the LDS project is believed to host an alkaline
porphyry gold copper system. More than 23 gold prospects centred on
historic gold workings have been identified on the property, which
spans more 22,000 hectares.
The Company’s vision is to maximize shareholder
value by applying a sustained systematic and technically-based
exploration program to the LDS project and any other opportunities
that may arise.
Follow Lavras Gold on www.lavrasgold.com, as well
as on LinkedIn, Twitter, and YouTube.
Contact information
Michael Durose |
|
Annemarie Brissenden |
President & CEO |
|
Investor Relations |
416-844-6284 |
|
416-844-6248 |
info@lavrasgold.com |
|
info@lavrasgold.com |
DISCLAIMERNeither the TSX Venture Exchange nor its
Regulation Services Provider (as defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the content of this news release.
FORWARD-LOOKING INFORMATIONThis news release
contains certain “forward-looking information” within the meaning
of applicable securities laws. Forward looking information is
frequently characterized by words such as “plan”, “expect”,
“project”, “intend”, “believe”, “anticipate”, “estimate”, “may”,
“will”, “would”, “potential”, “proposed” and other similar words,
or statements that certain events or conditions “may” or “will”
occur. These statements, including statements with respect to
planned exploration activities and goals, the proposed
Consolidation and the timing thereof, are only objectives and
predictions. Forward-looking information is based on the opinions
and estimates of management at the date the information is
provided, and is subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to
differ materially from those projected in the forward-looking
information, including the risks and factors that generally affect
exploration and the uncertainty of exploration results and the
ability to obtain regulatory approval for the Consolidation. For a
description of the risks and uncertainties facing the Company and
its business and affairs, readers should refer to the Company’s
Management’s Discussion and Analysis and Listing Statement recently
filed under the Company’s profile on www.sedar.com. The Company
undertakes no obligation to update forward-looking information if
circumstances or management’s estimates or opinions should change,
unless required by law. The reader is cautioned not to place undue
reliance on forward-looking information.
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