Lavras Gold drills 1.0 g/t gold over 371 metres at Butiá Gold Deposit, LDS Project, Brazil

Lavras Gold Corp. [SXV: LGC; OTCQX: LGCFF] reported the results from seven new drill holes totaling 1,825 metres, testing the Butiá Gold Deposit, located at the western edge of the LDS Project in southern Brazil.

Gold mineralization was intersected in all seven holes reported in this news release at Butiá, which hosts a Mineral Resource Estimate of 377,000 ounces of gold in the Measured and Indicated categories and 115,000 ounces of gold in the Inferred category.

Several of these new holes returned long intervals of continuous gold mineralization characterized by higher-grade subintervals with striking similarities to previously disclosed results. These holes were designed to increase the confidence in the Butiá gold resource (converting the Inferred Resource into the Measured & Indicated categories) and to potentially increase the gold endowment and footprint of known mineralization of the Butiá Gold Deposit.

Lavras Gold recently renewed a 25,000-metre drilling contract, seamlessly continuing the ongoing drilling program. The Butiá metallurgical test program continues to advance using the SGS Laboratory in Belo Horizonte, Brazil. Also, three 150-km composite samples from the Fazenda do Posto gold target have been sent to the lab for investigation following up on a comprehensive metallurgical test program for Butiá mineralization.

These new drill results and initiatives continue to move Lavras Gold toward its short-term corporate goal of defining an economically feasible gold resource on the LDS Project, focused on the Butiá Gold Deposit and the adjacent Fazenda do Posto gold target.

Highlights: Hole 25BT047 returned 371.0 metres grading 1.0 g/t gold from surface, and including 23.0 metres grading 1.3 g/t gold from 92.0 metres; 19.0 metres grading 2.0 g/t gold from 222.0 metres, and including 1.0 metres grading 25.8 g/t gold from 222.0 metres; 50.0 metres grading 3.4 g/t gold from 317.0 metres and including 1.0 metres grading 15.5 g/t gold from 317.0 metres; 1.0 metres grading 78.1 g/t gold from 318.0 metres; 1.0 metres grading 7.4 g/t gold from 319.0 metres; 1.0 metres grading 5.5 g/t gold from 321.0 metres; 1.0 metres grading 5.7 g/t gold from 325.0 metres; 1.0 metres grading 3.7 g/t gold from 343.0 metres; 1.0 metres grading 10.2 g/t gold from 346.0 metres and 1.0 metres grading 15.8 g/t gold from 347.0 metres.

Hole 25BT045 intersected multiple intervals of gold mineralization. Highlights include: 50.0 metres grading 0.5 g/t gold from 167.0 metres and including: 15.0 metres grading 1.2 g/t gold from 167.0 metres and including 1.0 metre grading 2.1 g/t gold from 168.0 metres, and 2.0 metre grading 1.6 g/t gold from 170.0 metres, and 2.0 metres grading 2.2 g/t gold from 174.0 metres, and 1.0 metre grading 1.1 g/t gold from 180.0 metres; 10.0 metres grading 3.7 g/t gold from 245.0 metres, including 1.0 metre grading 34.8 g/t gold from 247.0 metres.

“We are pleased with the drilling progress we are making at Butiá and are achieving our goal of increasing the confidence of the gold resource estimate by converting inferred gold resources into measured and indicated gold resources and expanding the footprint of gold mineralization,” commented CEO Michael Durose. “Drill hole 25BT047 is noteworthy for its length of 371.0 metres grading 1.0 g/t gold. The lower portion of this hole shows a 50.0-metre interval grading 3.4 g/t gold from 317.0 metres to approximately 367.0 metres.

“This not only extends the previously known zone of mineralization, but it also demonstrates that this extension has a significantly higher grade than the mineralization above it. Adjusted for the angle of the drillhole, this 50-metre extension of gold mineralization begins at a vertical depth of approximately 275.0 and extends to 318.0 metres. The mineralized footprint has also increased in size to the south of Butiá as defined by drillhole 25BT045, and to the southeast via drillhole 24BT042.”

Drillholes 25BT044 and 25BT046 were drilled approximately 500 metres southeast of Butiá along an interpreted northeast-southwest structural zone. Both holes encountered hydrothermally altered rocks, very similar to those seen at Butiá and Fazenda do Posto. Narrow 1.0 metre low-grade intervals of gold were encountered in each hole. The current interpretation is that these holes were collared too far southeast. Nevertheless, the significance here is the continuation of the alteration footprint to the south of Butiá for at least 500 metres thereby generating the potential for defining new exploration drill targets which the exploration team are following up on.

To date, 198 drill holes totalling nearly 53,000 metres have been completed at Butiá and the adjacent Fazenda do Posto target claim block. This compares with 78 drill holes and 20,000 metres of historical drilling by our predecessor company at the Butiá target prior to our current drilling program that started in early 2023. We will disclose results from our ongoing drilling program for these areas and our recently discovered Olaria area when final assay results are received, and the geological interpretation is completed.

Discussion of Drill Results – Butiá Deposit: Butiá is the most advanced gold deposit on the LDS Project consisting of the mineral resource located immediately east of the Fazenda do Posto gold discovery. The purpose of the current drilling program at Butiá is to increase the geological confidence of the existing gold resource by converting a significant portion of inferred geological resources into the measured and indicated categories and to increase the gold endowment of the existing gold resource.

A primary purpose of the recent drilling was to continue testing the lateral continuity of gold mineralization at Butiá across a postulated northeast trending structural corridor and fill in gaps interpreted from northwest-southeast cross-sections of previous drilling. All of the holes were drilled with an azimuth oriented 110 degrees and/or 290 degrees. These holes confirm continuous gold mineralization across a northeast trending structure. Continuous, moderate grade gold was extended in the south and southeast in areas of Butiá typically associated with mineralized perthitic granite. Significantly, higher grade gold mineralization was found at depth below the central portion of Butiá associated with mineralized episyenite materially increasing the mineralized footprint as defined by drill hole 25BT047.

Two holes, 25BT044 and 25BT046, were collared about 500 metres southwest of Butiá testing a drilling target called Casa Velha. Both holes encountered rocks that had intervals of hydrothermally altered rocks including perthitic granite and episyenite with some local clusters of disseminated pyrite. While these drill holes encountered only minor gold mineralization of narrow widths, the drilling proves that the hydrothermal alteration footprint extends to the southwest at least 500 metres from Butiá/Fazenda do Posto. The geology team is currently interpreting these results with the goal of defining further targets for drill-testing.

Highlights of the recent drilling results from the Butiá area are as follows:

Drill hole 24BT042 was collared southeast of 24BT038 in the southeast portion of Butiá and designed to test the southeast continuity of gold mineralization. The hole confirms the lateral extension and continuity of gold mineralization in the southeast portion of Butiá and extends mineralization east of mineralization found in drill hole 24BT038. Highlights include 15.0 metres grading 0.3 g/t gold from 41.0 metres, 4.0 metres grading 1.8 g/t gold from 62.0 metres, 25.0 metres grading 0.9 g/t gold from 92.0 metres, including 3.0 metres grading 4.6 g/t gold from 114.0.

Drill hole 25BT045 was collared in the southeast portion of Butiá and drilled on an azimuth 290 degrees. The hole successfully encountered multiple long intervals of gold mineralization successfully extending gold mineralization to the south. Highlights include 31.0 metres grading 0.2 g/t gold from 41.0 metres, 23.0 metres grading 0.3 g/t gold from 84.0 metres and including 1.0 metres grading 1.4 g/t gold from 104.0 metres; 50.0 metres grading 0.5 g/t gold including, 15.0 metres grading 1.2 g/t gold from 167.0 metres; 10.0 metres grading 3.7 g/t gold from 245.0 metres including 1.0 metres grading 34.8 g/t gold from 247.0 metres.

Drill hole 25BT047 was collared along the east-central portion of Butiá on an azimuth of 290 degrees at an inclined angle of 60 degrees and designed to infill a gap in the Butiá resource, and test for the down-dip extension of gold mineralization. The hole was successful on both fronts returning continuous gold grade from surface 371.0 metres grading 1.0 g/t gold from surface metres, and including 23.0 metres grading 1.3 g/t gold from 92.0 metres, 19.0 metres grading 2.0 g/t gold from 222.0 metres, and including 1.0 metres grading 25.8 g/t gold from 222.0 metres; 50.0 metres grading 3.4 g/t gold from 317.0 metres and including 1.0 metres grading 15.5 g/t gold from 317.0 metres; 1.0 metre grading 78.1 g/t gold from 318.0 metres; 1.0 metre grading 7.4 g/t gold from 319.0 metres; 1.0 metre grading 5.5 g/t gold from 321.0 metres; 1.0 metre grading 5.7 g/t gold from 325.0 metres; 1.0 metre grading 3.7 g/t gold from 343.0 metres; 1.0 metre grading 10.2 g/t gold from 346.0 metres; and 1.0 metre grading 15.8 g/t gold from 347.0 metres.

The bottom high-grade intercept extends previously known gold mineralization from a vertical depth of 275 metres to 318 metres. The higher-grade interval is characterized by disseminated pyrite in strongly hydrothermally altered dark green episyenite.

Drill hole 25BT049 was collared along the south-central portion of Butiá and drilled on an azimuth 290 degrees at an inclined angle of 60 degrees. The hole was designed to infill a gap in the existing gold resource model of Butiá and to test the down-dip extension of mineralization. Highlights of drilling include 25.0 metres grading 0.4 g/t gold from 83.0 metres, including 5.0 metres grading 1.1 g/t gold from 83.0 metres and including 2.0 metres grading 2.4 g/t gold from 84.0 metres; 56.0 metres grading 0.3 g/t gold from 115.0 metres and including 1.0 metre grading 1.1 g/t gold from 165.0 metres; 55.0 metres grading 1.0 g/t gold from 171.0 metres and including 24.0 metres grading 1.2 g/t gold from 171.0 metres, and 8.0 metres grading 1.0 g/t gold from 218.0 metres. True widths have not been determined at this time.

The LDS Project is centred on the town of Lavras do Sul in Rio Grande do Sul, Brazil. It is approximately 320 km, 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 34 mineral rights covering approximately 23,000 hectares.

Lavras Gold Corp. is focused on realizing the potential of a highly prospective 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 approximately 23,000 hectares.