Really exciting drill results from Lavras in Brazil.
Hit a very nice hole. Blind discovery just adjacent to known gold resource.
Lavras Gold Corp (2)
Symbol LGC
Shares Issued 41,103,869
Close 2023-08-29 C$ 0.83
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Lavras Gold drills 340m of 1.09 g/t Au at LDS in Brazil
2023-08-29 08:47 ET - News Release
Mr. Michael Durose reports
LAVRAS GOLD DRILLS 340 METRES GRADING 1.09 G/T GOLD AT FAZENDA DO POSTO DISCOVERY
Good, old-fashioned boots-on-the-ground field exploration has yielded a potentially game-changing discovery for Lavras Gold Corp. Drilling at the new Fazenda do Posto discovery on the company's LDS project in southern Brazil has returned assay results with remarkably continuous mineralization of 340 metres grading 1.09 grams per tonne gold from 117 metres, including:
160 metres grading 1.79 g/t gold from 199 metres, including:
27 metres grading 2.07 g/t gold from 208 metres;
68 metres grading 2.09 g/t gold from 293 metres.
Drill hole 23FP002 was collared roughly 150 metres west of the Butia gold deposit, which has a National Instrument 43-101 gold resource of approximately 500,000 ounces.
The hole tested a blind target with no obvious signs of surface mineralization in an area of recessive topography across an interpreted northeast-trending fault. The hole was drilled north on a 20-degree azimuth and a dip of 60 degrees.
"This new discovery on our Fazenda do Posto claim block is a potential game-changer for Lavras Gold," said Michael Durose, Lavras Gold's president and chief executive officer. "It is remarkable that we have discovered a long, continuous, bulk-tonnage, disseminated style of gold mineralization in this intrusive-hosted gold system only 150 metres from the western edge of the Butia gold deposit.
"This is a blind gold discovery associated with an interpreted down-dropped block of rock across a northeast-trending fault. The discovery was made by good, old-fashioned field geology with boots on the ground.
"Congratulations to our entire team in Brazil for this excellent outcome. We have two drill rigs in this target area and will vigorously follow up, with the goal of fast-tracking the process of defining the geometry and grade distribution of this important new discovery."
Join Mr. Durose for an exploration webinar on Aug. 30, 2023, at 11 a.m. ET.
Discussion of drilling results
The Fazenda do Posto discovery is located along the western edge of the Lavras do Sul intrusive complex approximately 4.7 kilometres southwest of the town of Lavras do Sul. Drill hole 23FP002 was collared about 150 metres west of the Butia gold deposit in an area of recessive topography.
A blind discovery
There is no obvious surface expression of this gold discovery. A surface gold-in-soil anomaly occurs immediately to the east of Fazenda do Posto and is associated with the Butia gold deposit.
Butia 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 Butia gold prospect dated and effective Jan. 25, 2022. The report was prepared by VMG Consultoria e Solucoes Ltda. for Lavras Gold and is available on the company's website and on SEDAR+ under Lavras Gold's issuer profile.
The area where drill hole 23FP002 was collared was previously interpreted to be outside of the favourable rocks hosting the Lavras do Sul gold deposits in the Fazenda do Posto granodiorites.
However, a reinterpretation of the previous drill hole information from the Butia gold deposit, combined with field observations that the area west of Butia was associated with recessive topography, and possibly related to a zone of hydrothermal alteration that was causing this recessive feature, was the reason to test this target.
Further interpretation suggested that there was a northeast-trending fault, and that it was possibly related to major crustal-scale structures known in the district. This interpretation was reaffirmed by a drone aeromagnetic survey that Lavras Gold completed in the area.
Drill hole 23FP002 was collared with an azimuth of north 20 and an inclined angle of 60 degrees. The hole encountered 114 metres of overlying cover rock interpreted to be the Fazenda do Posto granodiorite. The bottom of this granodiorite appears to be silicified or albitized. This alteration has almost completely replaced the original quartz and feldspar minerals in the granodiorite. There is virtually no gold detected in this rock, which may be acting as a cap and thereby masking any gold anomalism at surface. The hole then enters a long, continuous interval of gold-mineralized, brick-red-coloured episyenite from 114 metres to 431 metres, with smaller intervals of moderately mineralized perthitic granite. This is followed by mineralized perthitic granite from 431 metres to 453 metres, and then unmineralized perthitic granite to the bottom of the hole at 465 metres.
The highlights of drill hole 23FP002 gold assay results are 340 metres grading 1.09 g/t gold from 117 metres, including:
160 metres grading 1.79 g/t gold from 199 metres, including:
27 metres grading 2.07 g/t gold from 208 metres;
68 metres grading 2.09 g/t gold from 293 metres.
The gold mineralization is hosted in a brick-red-coloured, hydrothermally altered intrusive rock called episyenite, which consists of approximately 95 per cent potassium feldspar, 1 per cent to 3 per cent black, iron-rich chlorite, 1 per cent to 2 per cent millimetre-scale, grey-white carbonate vesicles, and 1 per cent to 3 per cent very-fine-grained-to-fine-grained disseminated and framboidal pyrite and arsenian pyrite.
These disseminated sulphides are intimately associated with black clots of iron-rich chlorite that occur in the matrix to the feldspar minerals.
Significantly, there is no visible quartz in the episyenite, as the rocks are silica undersaturated and the alteration is interpreted to be of alkaline affinity.
Locally, larger cubic pyrite creates a framboidal texture. Occasional crosscutting millimetre-to-centimetre-scale sulphide veinlets result in higher-grade gold values, typically in the four g/t to six g/t range.
While the entire 340-metre interval is gold mineralized, it is very significant that there are long intervals of bulk-tonnage-style, higher-grade gold above two g/t. These higher-grade intervals suggest the hole may be tracking toward a feeder structure, although further drilling is required to confirm this. This new gold discovery is open in all directions.
There are several zones of typically eight to 10 metres of less than 0.20 g/t material usually associated with intervals of perthitic granite. When these low-grade zones are removed from the analysis, the company estimates that the mineralized rock has an average gold grade of 1.35 g/t over 269 metres.
An attached table tabulates the assay results for the mineralized interval of drill hole 23FP002. Sampling was completed on one-metre intervals for the entire length of the drill hole. Three 50-gram aliquots were assayed for each one-metre sample, and the average grade of the three aliquots was used to derive the final gold grade.
Next steps at Fazenda do Posto and Butia
Indications are that a significant gold mineral system is developing at the Fazenda do Posto gold discovery and the adjacent Butia gold deposit.
Two drill rigs are on site testing these areas.
The near-term objective is to define the geometry and gold grade distribution of the Fazenda do Posto discovery and possibly look for more blind discoveries. The second objective is to test for extensions to the mineralized footprint of the Butia gold deposit.
It is noteworthy that the alteration system and gold-in-soil anomaly at Butia extends for more than three kilometres in a southeast-northwest direction, and for greater than two kilometres to the north toward the Galvao and Zeca Souza discoveries. It is also noteworthy that Fazenda do Posto has a higher-grade core of mineralization that could materially enhance the overall economics of a potential mining project.
The medium-term goal is to derisk the Fazenda do Posto discovery and Butia gold deposit, such that a preliminary economic study defining the general scope of a gold-mining project can be prepared.
LDS exploration program marked by exceptional success
In addition to these positive developments, Lavras Gold has had exceptional exploration success since going public in April, 2022. The Caneleira gold discovery has been reinterpreted, and new gold mineral systems have been found at Zeca Souza, Galvao, Matilde, Matilde Extension and Vila Marieta. Although Butia and Fazendo do Posto are developing into the centre of gravity at LDS, the exploration upside on the property is very significant.
Qualified person
Michael Durose, Lavras Gold's president and chief executive officer, is a qualified person as defined by NI 43-101. He has reviewed and approved the scientific and technical information contained in this release.
Quality assurance/quality control
For the Fazenda do Posto discovery, sample handling, preparation and analysis are monitored through the implementation of formal chain-of-custody procedures and quality assurance/quality control programs designed to follow industry best practices.
All drill hole samples in this drilling program consist of split NQ diamond drill core.
Drill core is logged and sampled in a secure facility located in Lavras do Sul, Rio Grande do Sul state, Brazil. Drill core samples for gold assay are cut in half, using a diamond saw, and submitted to ALS Laboratories Inc. in Goiania, Goias state, Brazil, for preparation by crushing to 85 per cent passing one millimetre, riffle splitting to obtain 500 g aliquots and pulverizing to 85 per cent passing 75 micrometres.
Pulps are shipped to ALS Laboratories in Lima, Peru, and analyzed by a 50 g fire assay and AAS finish. Three 50 g aliquots are taken for samples in the mineralized zone, and one aliquot is taken in fresh rocks. The average grade of the three aliquots is used to determine the final grade of the mineralized sample.
Certified standards, non-certified blanks and field duplicates are inserted into the sample stream at regular intervals, so that quality assurance/quality control accounted for about 10 per cent of the total samples. Results are routinely evaluated for accuracy, precision and contamination.
Lavras Gold has been targeting larger intersections of greater than 0.25 g/t gold. Intersections that are lower than this threshold may provide exploration insight and may, therefore, be disclosed.
About Lavras Gold Corp.
Lavras Gold is a Canadian exploration company focused on realizing the potential of a multimillion-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 historical gold workings have been identified on the property, which spans more than 22,000 hectares.
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