Lavras Gold Corp. (TSXV: LGC) highlighted drill results confirming
the discovery of two new mineral systems at its property in Brazil
as it reported on its third quarter today. Matilde and Zeca Souza,
both part of the Company’s LDS Project, have broad zones of
moderate grade gold mineralization that begin at surface and are
accentuated by narrower higher grade intervals. Assay results also
included bonanza gold grades associated with visible gold.
“Each metre of drilling brings us one step closer
to understanding the system or systems underpinning the historic
gold workings at LDS,” said Michael Durose, Lavras Gold’s President
and Chief Executive Officer. “We’re building more and more evidence
to support our thesis that we are uncovering a large complex
primarily intrusive-hosted gold system with epithermal and porphyry
characteristics likely of alkaline affinity. There are also
gold-copper showings on exploration concessions to the east
associated with overlying volcanic rocks that we have yet to
explore.”
The Company disclosed assay results from its
on-going 16,000-metre drill program during the quarter. There are
two drills turning at the LDS Project, where at least 23 gold
targets have been identified centered on historic gold workings.
The current focus is on six targets: Caneleira, Matilde, Matilde
Extension, Mato Feio, Vila Marieta, and Zeca Souza. In addition to
the drilling program, the regional aeromagnetic drone survey was
completed and a regional soil sampling program is underway.
When the Company launched in April, LDS was
anchored by the Butiá Gold Deposit, which has gold resources of
approximately 500,000 gold ounces, as detailed in the NI 43-101
Technical Report Mineral Resource for Butiá Gold Prospect dated and
effective January 25, 2022. It was prepared by VMG Consultoria e
Soluções Ltda. For Lavras Gold Corp. and is available on
www.sedar.com under Lavras Gold’s issuer profile.
Shortly after launch, the total mineral endowment
was doubled from 500,000 ounces to 1 million ounces of gold when an
NI 43-101 compliant mineral resource estimate was completed for the
Cerrito Gold Deposit, also on LDS. That report, NI 43-101 Technical
Report for the Cerrito Gold Prospect, Rio Grande do Sul, Brasil, is
dated and effective May 31, 2022, and authored by Volodymyr
Myadzel, MAIG, and Frank Richard Baker, MIMMM, MAusIMM. It is also
available on www.sedar.com under Lavras Gold’s issuer profile.
In September, assay results were announced from
Zeca Souza, where drilling returned bonanza gold grades. Assays
included 28.2 g/t gold over 3 metres within a broader zone of 5.8
g/t gold over 15 metres at a vertical depth of about 100 metres.
(Full details are available in the news release, Zeca Souza
drilling returns bonanza gold grades, from September 7, 2022.)
All 14 holes drilled at the target hit at least one
but more typically multiple intercepts of gold, and many holes
bottomed in gold mineralization. Other highlights of the results
included visible gold, high grades and good widths, long intervals,
and holes open at depth.
Zeca Souza is an important new gold discovery that
supports the thesis that there are many, possibly connected, gold
deposits at LDS. For example, a reinterpretation of the
relationship between Zeca Souza and Caneleira, another target
located about 1 kilometre southwest, suggests they may be
connected.
A gold-bearing structure identified in a 2007-2008
drilling program was defined over 800 metres at Caneleira. It
returned near-surface gold grades across very good widths including
36.1 metres grading 1.42 g/t gold about 60 metres below surface. A
number of holes bottomed in mineralization. Follow up work needs to
be done on a southeast-northwest trending gold bearing structure
that’s associated with a magnetic low at Caneleira that trends
toward Zeca Souza. A detailed soil sampling program is underway.
For full results, please see the Zeca Souza news release referenced
above.
After quarter end, results were announced from the
Matilde target, where the discovery of a new gold deposit was
confirmed.
Matilde lies along a coincident 3 kilometre
east-west gold-in-soil anomaly centered on an east-west trending
magnetic-low anomaly that is interpreted to be a major gold-hosting
structure. The drill program has defined a gold system with
mineralization that:
- begins at surface
- has been traced over a
strike length of at least 250 metres
- extends to a minimum
vertical depth of 483 metres.
The deposit is open for expansion along strike and
at depth.
Like Zeca Souza, drilling from Matilde also
returned bonanza gold grades, usually associated with visible gold.
Examples include 30.9 g/t gold over 0.60 metres in hole 20MT-002
from 261.0 metres and 13.10 g/t gold over 0.66 metres from 419.34
metres in hole 22MT-034. (Full details are available in the
November 3, 2022, news release: Lavras Gold discovers new gold
deposit at LDS Project in Brazil.)
Hole 22MT-034 is noteworthy because it was drilled
to a vertical distance of 483 metres, where it bottomed in gold
mineralization, suggesting that Matilde has deep roots typical of
porphyry style mineral systems.
In addition to the drill program, Renaud Geological
Consulting of London, Ontario, performed petrographic studies on
samples from Matilde. The study concluded, among other things, that
“Matilde is a highly altered intrusive rock with primary textures
dominantly replaced by hydrothermal alteration.”
This adds to the growing evidence that the
gold-bearing fluids that formed gold at Matilde are of a magmatic
hydrothermal origin.
Lavras Gold has been fortunate with respect to
Covid-19. Although several employees have tested positive, all have
recovered. The Company has full access to the property, consultants
have been able to work without interruption, and the Toronto-based
management team works from home. So far, Covid-19 has not had a
material impact on the Company’s financial condition or
performance.
Locally, Lavras Gold is working hard to develop
strong relationships with our stakeholders. Most of the Company’s
employees live in the town of Lavras do Sul, and the Company works
with local suppliers wherever possible. The granting of a
construction licence for a local phosphate project is also
encouraging, as it demonstrates significant local goodwill for
resource projects that are managed responsibly.
During the quarter, 907,500 stock options were
granted to employees and consultants. These options are priced at
$0.35, vest over three years, and expire on July 27, 2027.
Qualified person
Michael Durose, our President and CEO, is a
qualified person as defined by NI 43-101. He has reviewed and
approved the scientific and technical information contained in this
release.
About Lavras Gold
Lavras Gold (TSXV: LGC) is a Canadian exploration
company focused on realizing the potential of a multi-million-ounce
gold district in southern Brazil. Its Lavras do Sul Project is
located in Rio Grande do Sul State, and is primarily an intrusive
hosted gold system of possible alkaline affinity. More than 23 gold
prospects centred on historic gold workings have been identified on
the property, which spans more than 22,000 hectares.
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 |
416-844-6284 |
investor@lavrasgold.com |
investor@lavrasgold.com |
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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 those on planned exploration
activities and goals, 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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