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Lavras Gold Corp. Intersects 1.0 g/t Gold over 173 metres from 69 metres at Fazenda do Posto Gold Discovery, LDS Project, Southern Brazil
Lavras Gold Corp. (TSX-V:LGC) (OTCQX:LGCFF) is pleased to release the results from six new drill holes testing the Fazenda do Posto gold discovery, located at the western edge of the LDS project in southern Brazil. Gold mineralization was intersected in five of the six holes at the Fazenda do Posto gold discovery. These new holes were designed to test the nature and extent of gold mineralization and hydrothermal alteration associated with this new gold discovery as explained below. These new results continue to move Lavras Gold toward its short-term corporate goal of defining an economically feasible gold resource on the LDS Project, focused on Fazenda do Posto and adjacent Butiá gold deposit.
HIGHLIGHTS
Hole 23FP011:
- 173.0 metres grading 1.0 g/t gold from 69.0 metres and including:
- 2.0 metres grading 2.1 g/t gold from 99.0 metres
- 94.8 metres grading 1.4 g/t gold from 126.0 metres (about 109.0 metres vertical),
- including 2.0 metres grading 3.6 g/t gold from 126.0 metres, and
- 3.0 metres grading 2.5g/t gold from 135.0 metres, and
- 6.0 metres grading 2.0 g/t gold from 209.0 metres
Hole 23FP008:
- 123.0 metres grading 1.1 g/t gold from 228.0 metres including:
- 78.0 metres grading 1.4 g/t gold from 228.0 metres and
- 35.0 metres grading 2.5 g/t gold from 231.0 metres and
- 4.0 metres grading 2.7 g/t gold from 331.0 metres and
- 3.0 metres grading 3.5 g/t gold from 332.0 metres and
- 1.0 metre grading 8.8 g/t gold from 334.0 metres
“These new drilling results are consistent with previous drill results and demonstrate the excellent near-surface gold grade and continuity of Fazenda do Posto. The large lateral and vertical extent of the hydrothermal alteration points to a sizable gold mineral system for which the full potential remains to be tested,” commented Lavras Gold President & CEO Michael Durose. “Results like these have the potential to materially enhance the economics of a combined Butiá-Fazenda do Posto near-surface bulk tonnage open-pit type of gold project. Fazenda do Posto is not only demonstrating very good continuity and gold grade at depth, but also laterally, where it remains open in several directions. Two drills are actively working in the area, drilling off the Fazenda do Posto area in a grid with vertical holes on 50 metre centres.” (Click here for comments on today’s news from CEO Michael Durose.)
[* Footnote: Butiá hosts an NI 43-101 compliant near-surface gold resource of about 500,000 ounces, as detailed in the NI 43-101 Technical Report Mineral Resource for Butiá Gold Prospect dated and effective January 25, 2022. The report was prepared by VMG Consultoria e Soluções Ltda. for Lavras Gold Corp. and is available on the Company’s website and www.sedar.com under Lavras Gold’s issuer profile.]
Discussion of Drill Results – Fazenda do Posto
Since announcing the Fazenda do Posto gold discovery in late August 2023, a total of 12 drill holes totalling 3,309 metres have been disclosed. This press release discloses results for six new holes – 23FP007 through 23FP012. Results for the first six of the 12 holes have been disclosed previously. All assay results are tabulated in Table 1, and drill-collar coordinates are summarized in Table 2. Figure 1 shows a plan view of all drill holes at Fazenda do Posto, and Figure 2 illustrates a cross section of all drill holes looking west.
So far, drilling has defined a large gold mineral system consisting of a near-surface bulk-tonnage disseminated style of mineral deposit hosted in a hydrothermally altered granitoid host rock and strategically located 150 metres west of the adjacent half million-ounce Butiá gold deposit. Fazenda do Posto and Butiá are both open to possible expansion in several directions.
Generally, very long continuous intervals of gold mineralization containing higher-grade subintervals were encountered. The host rocks are extensively hydrothermally altered, and gold is typically hosted in disseminated sulphide minerals (pyrite +- arsenian pyrite) within episyenite host rock or mineralized perthitic granite. Occasional visible gold has been observed associated with sulphide minerals (galena, pyrite). The mineralization is bulk tonnage in its nature and has been detected to depths of more than 400 metres, and a lateral extent of at least 200 metres northeast-southwest, and 200 metres northwest-southeast.
- Drill hole 23FP011 was collared in the northeastern portion of Fazenda do Posto (see Figure 1). The hole was drilled at an inclined angle of 60 degrees on an azimuth of 200 degrees. The purpose was to test the lateral continuity of mineralization and gold grade continuity at depth towards the southwest. A long continuous interval of bulk-tonnage disseminated gold mineralization was encountered starting at 69.0 metres (60.0 metres vertical depth) to 242.0 metres down the drill core (vertical depth of 210 metres) within mineralized episyenite as detailed below. Generally, this long interval of continuous mineralization has multiple higher-grade intervals. Highlights are as follows:173.0 metres grading 1.0 g/t gold from 69.0 metres including:
- 4.0 metres grading 1.2 g/t gold from 75.0 metres
- 6.0 metres grading 1.1 g/t gold from 97.0 metres
- 2.0 metres grading 2.1 g/t gold from 99.0 metres
- 94.8 metres grading 1.4 g/t gold from 126.0 metres
- 2.0 metres grading 3.6 g/t gold from 126.0 metres
- 3.0 metres grading 2.5 g/t gold from 135.0 metres, and
- 8.0 metres grading 1.6 g/t gold from 153.0 metres
- 14.9 metres grading 1.7 g/t gold from 166.1 metres
- 13.0 metres grading 1.5 g/t gold from 191.0 metres
- 6.0 metres grading 2.0 g/t gold from 209.0 metres, and
- 2.0 metres grading 2.0 g/t gold from 239.1 metres
Drillhole 22FP008 was collared in the northeast portion of Fazenda do Posto and drilled on an azimuth of 200 degrees at an inclined angle of 80 degrees (see Figure 1). The purpose was to better understand the nature and continuity of gold mineralization at depth. Continuous gold mineralization was encountered over long intervals in episyenite and mineralized perthitic granite. Higher-grade intervals have been found at depth. A summary of assay composites is as follows:
- 123.0 metres grading 1.1 g/t gold from 228.0 metres including:
- 78.0 metres grading 1.4 g/t gold from 228.0 metres
- 35.0 metres grading 2.5 g/t gold from 231.0 metres
- 20.0 metres grading 0.6 g/t gold from 325.0 metres
- 4.0 metres grading 2.7 g/t gold from 331.0 metres
- 3.0 metres grading 3.5 g/t gold from 332.0 metres
Drillhole 23FP010 was positioned in the central portion of Fazenda do Posto, above the trace of drillhole 23FP002 (see Figure 1 & Figure 2). The hole was drilled on an azimuth of 110 degrees and inclined at 60 degrees. The purpose was to better understand the nature of the geology and the extent of alteration and possible mineralization along a southeast direction perpendicular to the azimuth of drill hole 23FP002. Figure 3 shows an example of near-surface mineralized episyenite from 23FP010. A continuous zone of intense albite alteration interspersed with zones of bulk-tonnage and disseminated style of gold mineralization consisting mainly of disseminated pyrite +- arsenian pyrite within episyenite and perthitic granite was encountered from 3.0 metres to 147.0 metres – a drillhole length of 144.0 metres. Further highlights are as follows:
- 144.0 metres grading 0.6 g/t gold from 3.0 metres including:
- 41.0 metres grading 1.0 g/t gold from 3.0 metres and including
- 21.0 metres grading 1.3 g/t gold from 23.0 metres and
- 9.0 metres grading 2.2 g/t gold from 31.0 metres and including
- 4.0 metres grading 3.5 g/t gold from 31.0 metres
- 2.0 metres grading 1.6 g/t gold from 78.0 metres
- 4.4 metres grading 1.2 g/t gold from 107.0 metres
Drillhole 23FP012 was collared along the northwest edge of the Fazenda do Posto mineralized footprint and drilled on an azimuth of 110 degrees and inclined 60 degrees (see Figure 1). The purpose was to test the central western extension of hydrothermal alteration and mineralization. The hole encountered very intense albite alteration with moderate intervals of gold starting at 4.0 metres depth. Significant long intervals of higher gold grades were found at 58.0 metres along the drill core after intersecting a lamprophyre dyke. Several long intervals of disseminated gold mineralization were encountered and including multiple higher-grade subintervals as follows:
- 115.0 metres grading 0.6 g/t gold from 58.0 metres including:
- 53.0 metres grading 0.9 g/t gold from 118.0 metres and
- 26.0 metres grading 1.1 g/t gold from 130.0 metres, and including
- 15.0 metres grading 1.2 g/t gold from 130.0 metres, and
- 6.0 metres grading 1.1 g/t gold from 162.0 metres
Exploration Program – Summary and Next Steps at Fazenda do Posto & Relationship to Butiá Gold Deposit
The purpose of this phase of exploration drilling has been to define the geometry and distribution of alteration and gold mineralization at Fazenda do Posto. And, although still relatively early in the exploration program, the results of drilling are very encouraging highlighting the discovery of a large, disseminated, bulk-tonnage intrusive-hosted gold system. The lateral extent and intensity of the hydrothermal alteration footprint has now been traced over 200 metres in a northeast-southwest direction, 200 metres in a northwest-southeast direction and to vertical depths of more than 400 metres. Gold mineralization is being defined over large continuous intervals for hundreds of metres. At Fazenda do Posto, a higher-grade core of gold mineralization is developing at depth, surrounded by a lower grade halo of gold. The gold mineralization is typically associated with disseminated sulphides (pyrite, arsenian pyrite) typically hosted within the vuggy spaces of pervasively altered granitoids. The mineral system is open in several directions and requires significantly more drilling.
Importantly, gold mineralization being defined at Fazenda do Posto is 150 metres west of the adjacent Butiá gold deposit that hosts an existing 43-101 compliant measured, indicated, and inferred gold resource of 0.5 Moz that is open to expansion. It is possible that these two deposits may be developed together as one mining project in the future, and so it is important to understand the relationship between these deposits. Figure 4 illustrates a plan view showing the Butiá gold resource relative to the Fazenda do Posto gold discovery. Figure 5 shows an oblique view facing northeast. The next step of the drilling program will systematically drill Fazenda do Posto on 50 metre drill centres with vertical holes. In this way, the size, geometry, and grade distribution of the discovery will be better understood. This drill strategy will also be applied selectively to the adjacent Butiá gold deposit. Further ideas will be tested as the drill program evolves.
Lavras Gold’s short-term corporate objective is to define an economic gold resource on the LDS Project with a focus on Fazenda do Posto and the adjacent Butiá gold deposit.
The current drilling program consists of two diamond drill rigs that are now on site and designed to test exploration targets continuously from now until the end of the first half of 2025. Approximately 10,000 metres of drilling have been budgeted to test Fazenda do Posto and Butiá. Further drilling of these targets may occur as results warrant. Drilling of other exploration targets is anticipated in the second half of 2024 with the objective of discovering new economic gold deposits on the LDS property.
Table 1. Summary of Drill Hole Composites from Fazenda do Posto Gold Discovery
| Drill Hole | From | To | Interval | Gold grade | Comment | |
| (metres) | (metres) | (metres) | (grams/tonne) | |||
| 23FP001 | 77.00 | 153.00 | 76.00 | 0.17 | Drilled peripheral to main target | |
| 85.00 | 86.00 | 1.00 | 0.32 | Along southeast edge of FP | ||
| 90.00 | 93.00 | 3.00 | 0.33 | |||
| 96.00 | 97.00 | 1.00 | 0.57 | |||
| 102.00 | 104.00 | 2.00 | 0.34 | |||
| 109.00 | 110.00 | 1.00 | 0.42 | |||
| 113.00 | 118.00 | 5.00 | 0.23 | |||
| 135.00 | 137.00 | 2.00 | 0.47 | |||
| 143.00 | 144.00 | 1.00 | 0.26 | |||
| 23FP002 | 58.00 | 59.00 | 1.00 | 0.18 | Extensive albite alteration | |
| 117.00 | 457.00 | 340.00 | 1.09 | Mineralized episyenite | ||
| Including | 199.00 | 359.00 | 160.00 | 1.79 | Brick red colouration (Ba, Fe) | |
| Including | 208.00 | 235.00 | 27.00 | 2.07 | ||
| Including | 293.00 | 361.00 | 68.00 | 2.09 | ||
| 23FP003 | 24.00 | 27.00 | 3.00 | 0.71 | Extensive albite alteration | |
| 87.00 | 294.00 | 207.00 | 0.49 | Mineralized episyenite | ||
| including | 87.00 | 227.00 | 140.00 | 0.67 | Extensive albite alteration | |
| Including | 87.00 | 195.00 | 108.00 | 0.80 | Mineralized episyenite | |
| Including | 87.00 | 151.00 | 64.00 | 0.91 | Brick red colouration (Ba, Fe) | |
| Including | 106.00 | 145.00 | 39.00 | 1.17 | ||
| 23FP004 | No Significant Values | Fresh granodiorite, perthitic granite, drilled SW | ||||
| 23FP005 | 118.00 | 119.00 | 1.00 | 0.26 | Extensive albite alteration | |
| 131.55 | 135.00 | 3.45 | 1.01 | Mineralized perthitic granite | ||
| 139.00 | 140.00 | 1.00 | 0.99 | Mineralized perthitic granite | ||
| 143.00 | 146.00 | 3.00 | 1.21 | Mineralized perthitic granite | ||
| 159.00 | 161.00 | 2.00 | 0.26 | Mineralized perthitic granite | ||
| 171.00 | 172.00 | 1.00 | 0.33 | Mineralized perthitic granite | ||
| 176.00 | 177.00 | 1.00 | 0.30 | Mineralized perthitic granite | ||
| 181.00 | 182.00 | 1.00 | 0.33 | Mineralized perthitic granite | ||
| 23BT006 | 31.06 | 261.00 | 229.94 | 0.86 | Drilled southwest into target | |
| including | 31.06 | 235.00 | 203.94 | 0.95 | Mineralized episyenite | |
| including | 31.06 | 222.00 | 190.94 | 1.00 | Mineralized episyenite | |
| including | 149.00 | 214.00 | 65.00 | 1.94 | Mineralized episyenite | |
| including | 149.00 | 187.00 | 38.00 | 2.03 | Mineralized episyenite | |
| including | 154.00 | 164.00 | 10.00 | 2.96 | Mineralized episyenite | |
| including | 190.00 | 205.00 | 15.00 | 2.05 | Mineralized episyenite | |
| 23FP007 | No Significant Values | Fresh granodiorite, perthitic granite, drilled NE | ||||
| 23FP008 | 104.00 | 105.00 | 1.00 | 0.27 | Mineralized episyenite | |
| 114.00 | 115.00 | 1.00 | 0.42 | Mineralized episyenite | ||
| 106.00 | 229.00 | 123.00 | 1.12 | Mineralized episyenite | ||
| including | 228.00 | 306.00 | 78.00 | 1.36 | Mineralized episyenite | |
| including | 231.00 | 266.00 | 35.00 | 2.46 | Mineralized episyenite | |
| 325.00 | 345.00 | 20.00 | 0.60 | Mineralized perthitic granite | ||
| including | 331.00 | 335.00 | 4.00 | 2.67 | Mineralized perthitic granite | |
| including | 332.00 | 335.00 | 3.00 | 3.49 | Mineralized perthitic granite | |
| 23FP009 | 1.00 | 3.00 | 2.00 | 0.49 | Pervasive albite alteration | |
| 15.00 | 16.00 | 1.00 | 0.40 | Pervasive albite alteration | ||
| 23.01 | 37.00 | 13.99 | 0.79 | Pervasive albite alteration | ||
| Including | 29.00 | 38.00 | 9.00 | 0.91 | Pervasive albite alteration | |
| 40.00 | 40.94 | 0.94 | 0.25 | Pervasive albite alteration | ||
| 75.00 | 77.00 | 2.00 | 0.72 | Pervasive albite alteration | ||
| 93.00 | 96.00 | 3.00 | 0.44 | Pervasive albite alteration | ||
| 131.00 | 132.00 | 1.00 | 0.41 | Pervasive albite alteration | ||
| 149.00 | 152.00 | 3.00 | 0.44 | Pervasive albite alteration | ||
| 157.00 | 160.00 | 3.00 | 0.43 | Pervasive albite alteration | ||
| 162.00 | 163.00 | 1.00 | 0.25 | Pervasive albite alteration | ||
| 164.00 | 168.00 | 4.00 | 0.30 | Pervasive albite alteration | ||
| 23FP010 | 3.00 | 147.00 | 144.00 | 0.58 | Pervasive albite alteration, episyenite, Perthitic granite | |
| Including | 3.00 | 44.00 | 41.00 | 1.00 | Mineralized episyenite | |
| Including | 3.00 | 4.00 | 1.00 | 1.06 | Mineralized episyenite | |
| Including | 23.00 | 44.00 | 21.00 | 1.29 | Mineralized episyenite | |
| Including | 23.00 | 26.00 | 3.00 | 1.07 | Mineralized episyenite | |
| Including | 31.00 | 40.00 | 9.00 | 2.17 | Mineralized episyenite | |
| Including | 31.00 | 35.00 | 4.00 | 3.46 | Mineralized episyenite | |
| Including | 50.00 | 51.00 | 1.00 | 1.14 | Mineralized episyenite | |
| Including | 64.00 | 65.00 | 1.00 | 1.28 | Mineralized episyenite | |
| Including | 72.00 | 79.00 | 7.00 | 0.89 | Mineralized episyenite | |
| Including | 78.00 | 80.00 | 2.00 | 1.55 | Mineralized episyenite | |
| Including | 83.00 | 90.00 | 7.00 | 1.02 | Mineralized episyenite | |
| Including | 107.00 | 111.41 | 4.41 | 1.21 | Perthitic granite | |
| Including | 139.00 | 142.00 | 3.00 | 0.97 | Mineralized episyenite | |
| 23FP011 | 32.00 | 33.00 | 1.00 | 0.29 | Mineralized episyenite | |
| 69.00 | 242.00 | 173.00 | 0.95 | Mineralized episyenite | ||
| Including | 75.00 | 79.00 | 4.00 | 1.16 | Mineralized episyenite | |
| Including | 97.00 | 103.00 | 6.00 | 1.07 | Mineralized episyenite | |
| Including | 99.00 | 101.00 | 2.00 | 2.08 | Mineralized episyenite | |
| Including | 126.00 | 220.83 | 94.83 | 1.37 | Mineralized episyenite | |
| Including | 126.00 | 128.00 | 2.00 | 3.56 | Mineralized episyenite | |
| Including | 135.00 | 138.00 | 3.00 | 2.47 | Mineralized episyenite | |
| Including | 153.00 | 161.00 | 8.00 | 1.64 | Mineralized episyenite | |
| Including | 166.10 | 181.00 | 14.90 | 1.66 | Mineralized episyenite | |
| Including | 191.00 | 204.00 | 13.00 | 1.46 | Mineralized episyenite | |
| Including | 209.00 | 215.00 | 6.00 | 2.01 | Mineralized episyenite | |
| Including | 239.13 | 241.13 | 2.00 | 1.97 | Mineralized episyenite | |
| 23FP012 | 4.00 | 5.27 | 1.27 | 0.29 | Mineralized episyenite | |
| 12.00 | 14.00 | 2.00 | 0.32 | episyenite | ||
| 58.00 | 60.00 | 2.00 | 0.27 | episyenite | ||
| 63.00 | 64.00 | 1.00 | 3.19 | Mineralized episyenite | ||
| 58.00 | 173.00 | 115.00 | 0.59 | Mineralized episyenite, albite alteration | ||
| Including | 83.00 | 84.00 | 1.00 | 2.26 | Mineralized episyenite | |
| Including | 87.77 | 89.92 | 2.15 | 0.95 | Mineralized episyenite | |
| Including | 102.16 | 104.00 | 1.84 | 1.06 | Mineralized episyenite | |
| Including | 107.00 | 108.00 | 1.00 | 0.95 | Mineralized episyenite | |
| Including | 110.00 | 111.00 | 1.00 | 1.10 | Mineralized episyenite | |
| Including | 118.00 | 171.00 | 53.00 | 0.86 | Mineralized episyenite, intermittent perthitic granite | |
| Including | 118.00 | 119.00 | 1.00 | 1.09 | Mineralized episyenite | |
| Including | 121.00 | 169.00 | 48.00 | 0.91 | Mineralized episyenite, intermittent perthitic granite | |
| Including | 130.00 | 156.00 | 26.00 | 1.08 | Mineralized episyenite, intermittent perthitic granite | |
| Including | 130.00 | 145.00 | 15.00 | 1.24 | Mineralized episyenite | |
| Including | 162.00 | 168.00 | 6.00 | 1.09 | Mineralized episyenite |
- Assumes 0.25 g/t gold cut-off grade, no top cut.
- The Company has been targeting larger intersections of greater than 0.25 g/t gold. Intersections lower than this threshold may provide exploration insight and may therefore be disclosed.
- Intervals represent drill core interval; true widths have not been determined at this time.
Table 2. Fazenda do Posto Drill Hole Coordinates
| Drill | Elevation | Azimuth | Dip | Start Depth | Final Depth | ||
| Hole | Easting | Northing | (metres) | (Degrees) | (Degrees) | (metres) | (metres) |
| 23FP001 | 217907 | 6586453 | 378 | 20 | -60 | 0 | 214.1 |
| 23FP002 | 217858 | 6586480 | 385 | 20 | -60 | 0 | 464.6 |
| 23FP003 | 217892 | 6586568 | 379 | 0 | -90 | 0 | 332.2 |
| 23FP004 | 217826 | 6586607 | 387 | 200 | -60 | 0 | 201.3 |
| 23FP005 | 217935 | 6586309 | 397 | 20 | -60 | 0 | 248.2 |
| 23FP006 | 217932 | 6586677 | 377 | 200 | -60 | 0 | 308.3 |
| 23FP007 | 217928 | 6586677 | 377 | 20 | -60 | 0 | 161.4 |
| 23FP008 | 217931 | 6586675 | 382 | 200 | -80 | 0 | 401.4 |
| 23FP009 | 217910 | 6586591 | 383 | 290 | -60 | 0 | 232.9 |
| 23FP010 | 217910 | 6586581 | 384 | 110 | -60 | 0 | 288.0 |
| 23FP011 | 217926 | 6586674 | 380 | 220 | -60 | 0 | 280.0 |
| 23FP012 | 217845 | 6586647 | 386 | 110 | -60 | 0 | 177.0 |
Figure 1. Plan View of 2023 Fazenda do Posto Drill Holes Showing Lithology & Gold Assay Results
Figure 2. Cross Section of 2023 Fazenda do Posto Drill Holes (Looking West) Showing Lithology and Assay Results
Figure 3. Example of Mineralized Episyenite Host Rock at Fazenda do Posto Gold Discovery. Sulphide mineralization is extremely fine grained but detectable with a magnifying glass. The episyenite displays an aphanitic texture but is hydrothermally fractured. This sample from drillhole 23FP010 is from interval 25.0 m to 26.0 m and grades 4.6 g/t gold.
Figure 4. Plan View of Fazenda do Posto Gold Discovery Relative to Butiá Gold Deposit
Figure 5. Oblique View Facing Northeast of Fazenda do Posto Gold Discovery Relative to Butiá Gold Deposit
About the LDS Project
The LDS Project is centred on the town of Lavras do Sul in Rio Grande do Sul, Brazil. It is approximately 320 kilometres, or a 4.5-hour drive, from the state capital of Porto Alegre. The Company, through its subsidiary, holds directly or indirectly, contractual interests over 29 mineral rights covering 22,000 hectares.
The LDS intrusive complex is a multiphase intrusive centre that is surrounded by coeval volcanic rocks to the east. Geologically, LDS is in the far south of the Neoproterozoic Mantiqueira Province, a 2,700-kilometre-long belt of tectonically and magmatically accreted terrains that stretch as far south as the coastline of central Uruguay and north into southern Bahia State in Brazil. The most advanced targets are the Butiá and Cerrito gold deposits, which have consolidated NI 43-101 resources of approximately 1 million ounces.
About Lavras Gold Corp.
Lavras Gold Corp. 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 24 gold prospects centred on historic gold workings have been identified on the property, which spans more than 22,000 hectares.
Michael Durose, President & CEO for Lavras Gold Corp., is the qualified person (“QP”) as defined by Canadian National Instrument 43-101 and has reviewed and approved the technical information contained in this release.
Posted February 29, 2024
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