Lavras Gold Corp.’s [TSXV-LVS; OTCQB-LGCCF] follow-up drilling at the Fazenda do Posto discovery on the company’s LDS Project in southern Brazil has validated the discovery reported in August 2023. The discovery has been confirmed in terms of gold grades, widths and continuity and remains open in several directions to resource expansion.
The highlight in this press release is scissor hole 23FP006 which returned assay results with continuous mineralization of 230 metres grading 0.9 g/t gold starting at 31 metres and including 204 metres grading 1.0 g/t gold from 31 metres, including 65 metres grading 1.9 g/t gold from 149 metres; and including 10 metres grading 3.0 g/t gold from 154 metres.
The Fazenda do Posto discovery is located roughly 150 metres west of the Lavras Gold Butia Gold Deposit, which has an NI 43-101 gold resource of approximately 500,000 ounces and is open to expansion.
Drill hole 23FP006, reported in this press release, tested the northeastern extension of Fazenda do Posto and was drilled southwest on a 200-degree azimuth and a dip of 060 degrees.
“We are very pleased to validate the Fazenda do Posto gold discovery with this scissor hole, which cross cuts the earlier hole that returned 340 m at 1.1 g/t gold,” commented Lavras Gold President & CEO Michael Durose. “While it is still early in the drilling program, we are delighted to have intercepted another very long and continuous zone of gold mineralization starting at a shallow depth and running for over 200 metres. This is a unique bulk tonnage near-surface gold system characterized by remarkably continuous gold mineralization within an episyenite host rock. A higher-grade core of gold mineralization is beginning to develop based on the limited drilling we have completed so far. Drilling is ongoing and we look forward to additional drill results as we begin to unravel this new gold discovery.”
This discovery at Fazenda do Posto is ideally located adjacent to the 500,000 ounce Butia gold deposit that outcrops at surface, pointing to the development of a critical mass of gold mineralization in this area. These new results continue to move Lavras Gold closer to its objective of developing an economically feasible bulk tonnage open pit gold mine.
Despite record rainfalls in the region that have hampered access to drilling sites and caused delays in the drilling program, the Lavras team is fast-tracking the process of defining the geometry and grade distribution of this important new discovery. Two drill rigs are working in this target area and have completed over 3,000 metres of drilling in 14 holes since making the discovery at Fazenda do Posto. Assay results will be released in meaningful batches following interpretation.
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.
One near-term objective is to define the geometry and gold grade distribution of the Fazenda do Posto discovery and look for more blind discoveries. A second near-term 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.
Regional exploration is on-going, with the goal of defining new exploration targets on the very prospective 22,000-hectare LDS Project.
In addition to these positive developments, Lavras Gold has had exceptional exploration success since going public in April 2022. A regional drone magnetic survey has been completed, and regional soil geochemistry programs are on-going. 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 and on-going strategies are in place to continue exploring for and testing new targets.
Lavras Gold Corp. is 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.