Lavras Gold drills 1.09 g/t gold over 340 metres at LDS, Brazil
Lavras Gold Corp. [LGC-TSXV; LGCFF-OTCQB] reported field exploration has yielded a potentially game-changing discovery for the company. 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 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 and 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 an NI 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 020 degree azimuth and a dip of 060 degrees.
“This new discovery on our Fazenda do Posto claim block is a potential game changer for Lavras Gold,” said Michael Durose, president and CEO. “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.”
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.
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 January 25, 2022.
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.
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.
The medium-term goal is to de-risk 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.
Lavras Gold’s Lavras do Sul Project is located in Rio Grande do Sul State. More than 23 gold prospects centred on historic gold workings have been identified on the property, which spans more than 22,000 hectares.