Lavras tables new drill results from Brazil gold project
Lavras Gold Corp. [LGC-TSXV, LGCFF-OTCQX] has announced results of 18 new drill holes which tested the Butia Gold deposit located on the western edge of the company’s Lavras do Sol (LDS) project in southern Brazil.
The company said gold mineralization was intersected in all 18 holes. Butia is estimated to host 377,000 ounces of gold in the measured and indicated categories and 115,000 ounces in the inferred category. Several of the 18 new holes returned more than 100 metres of continuous gold mineralization characterized by higher-grade subintervals.
Several holes were designed to increase the confidence in the Butia gold resource (converting the inferred resource into the measured and indicated categories) and others to potentially increase the gold endowment.
Drilling highlights include 123 metres of grade 1.8 g/t gold from 69 metres in hole 24BT034, including 21 metres of grade 4.1 g/t gold from 137 metres, and including 1.0 metre of grade 6.8 g/t gold from 137.0 metres, 1.0 metres grading 8.5 g/t gold from 154 metres, 2.0 metres grading 5.3 g/t gold from 174 metres, including 1.0 metres grading 5.9 g/t gold from 174 metres.
“In addition to making new discoveries in this highly prospective gold district, our short-term goal remains the delineation of an economically feasible gold mine on the LDS project,’’ said Lavras Gold President and CEO Michael Durose. “The results from this new round of drilling are critical to our understanding of the Butia Gold Deposit and the northeast/southwest trending structures that play a significant role in the pattern and nature of mineralization at Butia and, ultimately, the mineability of the deposit.’’
The 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 the historic gold workings have been identified on the property, which spans more than 23,000 hectares.
The drilling results have been released after Lavras recently closed a $15 million public offering, with proceeds earmarked for exploration and development of the LDS project. The company said the offering consisted of 6.8 million common shares priced at $2.20 per share.
On Monday, the shares edged up 0.47% or $0.01 to $2.15. The shares trade in a 52-week range of $2.89 and 75 cents.
The LDS project is centred on the town of Lavras do Sul in Rio Grande do Sul, approximately 320 kilometres from the state capital at Porto Alegre. The most advanced targets are the Butia and Cerrito Gold Deposits. Cerrito has mineral resource estimate of 188,000 ounces of gold (indicated) and 293,500 ounces inferred.
The company’s short-term goal is to define an economically viable gold project at Butia and Fazenda dos Posto, also part of the LDS project.