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Lavras Gold says it will stay focused on discovery in 2023

Published: 06:45 06 Mar 2023 EST

Drilling
Lavras Gold said a short-term goal is to complete the 16,000-metre drilling program at its Lavras do Sul (LDS) project

Lavras Gold Corp (TSX-V:LGC) told shareholders that its singular vision is realizing the economic potential of its Lavras do Sul (LDS) project, the company’s advanced gold exploration property in southern Brazil.

Setting out short and long-term goals as it reported results for the year ended December 31, 2022, Lavras Gold president and CEO Michael Durose said the company achieved all its 2022 goals. 

“We completed our share consolidation, doubled our consolidated gold resources, and made three new gold discoveries,” Durose noted. “In 2023, we will carry on with our exploration program, and are very excited to continue to learn more about the complex system at LDS.”

READ: Lavras Gold shares to start trading on the OTCQB Venture Market to appeal to US investors

As the company moves into its second year since launching in April 2022, it said its short-term goals are to:

  • Complete the 16,000-metre drilling program at LDS by drill-testing priority targets aimed at making new gold discoveries and expanding its existing gold endowment;
  • Foster relationships with local stakeholders as it begins the permitting process; and
  • Sustain relationships with existing shareholders and attract new shareholders by marketing Lavras Gold to the investing community.

So far, the company said two rigs have completed 7,000 metres of the 16,000-metre drill program at LDS, with results consistently demonstrating that LDS is a unique, large, and complex mineral system. It noted that returned assays are a mix of bulk tonnage and high grade, a combination that yields scale and economics in producing assets. 

Additionally, the company said it made three new gold discoveries at the Matilde, Matilde Extension, and Zeca Souza targets, and reinterpreted historical results from a fourth target, Caneleira.

The Matilde gold discovery lies along a portion of a coincident 3-kilometre gold-in-soil anomaly centred on an east-west trending magnetic-low anomaly that is interpreted to be a major gold-hosting structure. Gold mineralization at Matilde begins at surface, has been traced over a strike length of at least 250 metres (m), and extends to a minimum vertical depth of 483m. It remains open for expansion along strike and at depth.

Lavras said results from Matilde include long intervals of moderate-grade gold that include higher-grade intervals. For example, drill hole 20MT002 returned 144.6m at 0.69 grams per ton (g/t) gold from 117m, including 27m at 1.04 g/t gold from 184m.

Drilling from Matilde also returned bonanza gold grades, usually associated with visible gold. Examples include 30.9 g/t gold over 0.6m in hole 20MT002 from 261m and 13.1 g/t gold over 0.66m from 419.34m in hole 22MT034. Drilled to a vertical distance of 483m, hole 22MT034 bottomed in gold mineralization, suggesting that Matilde has deep roots.

The company said the Matilde Extension gold discovery, announced after year-end, is 675m northeast of the Matilde gold discovery. It is a new blind discovery that was made by drill-testing a coincident gold-in-soil anomaly overlying the intersection of a northeast-southwest trending structure and an east-west trending structure. Multiple intervals of gold mineralization were intersected in all holes drilled at Matilde Extension, and high-grade gold, silver, and copper mineralization was encountered in three holes.

It noted that the best hole, 21MT020, intercepted three intervals of mineralization. The third intercept was the most important, as it was characterized by a thick interval of continuous mineralization featuring very high-grade gold, silver, and copper. It assayed 10m grading 13.21 g/t gold, 22.94 g/t silver, and 0.22% copper from 345m, including:

  • 5m grading 23.15 g/t gold, 42.75 g/t silver, and 0.41% copper from 347m; and
  • A 1m sub-zone that yielded grades as high as 63.7 g/t, more than 100 g/t silver, and 0.63% copper from 347m.

Lavras said the Zeca Souza gold discovery supports its thesis that there are many, possibly connected, gold deposits at LDS. Drilling at this target included bonanza gold grades of more than 10 g/t gold, including 28.2 g/t gold over 3m in drill hole 22MT011 within a broader zone of 5.8 g/t gold over 15m. Equally important was that long intervals of moderate gold grade such as 36.4m grading 0.47 g/t gold in hole 20ZS003 have been found.

All 14 holes drilled at Zeca Souza hit at least one but more typically multiple intercepts of gold, and many holes bottomed in gold mineralization. Other highlights of the results included visible gold, high grades and good widths, long intervals, and holes open at depth.

The company noted that there also may be a genetic relationship between Zeca Souza and Caneleira, which is about 600m to the southeast. A gold-bearing structure discovered in 2007-2008 that’s been defined over 900m, Caneleira’s assay results include near-surface gold grades across widths like 36.1m grading 1.42 g/t gold just 70.4m down the drill hole, several holes that bottomed in mineralization, and high-grade results such as 14.1 g/t gold over 1m.

Fostering and sustaining relationships

“Locally, we are working hard to foster strong relationships with our stakeholders,” Lavras said in its statement. “Most of our employees live in and are from the town of Lavras do Sul or surrounding region, and we work with local suppliers wherever possible. After year end, we launched the Rota do Ouro, or Gold Trail, a route that highlights the historical importance of gold mining to the development of the town of Lavras do Sul.”

At the corporate level, Lavras said it continues to raise its profile in the investment community. In February 2023, it listed on the OTCQB to make it easier for US-based investors to trade its shares and possibly lead to increased liquidity.

“We also participated in selective conferences, continued to meet with existing shareholders, and targeted potential new shareholders,” the company said. “We made progress toward launching our new website and building our social media presence, and hosted webinars as appropriate.”

Lavras Gold is a Canadian exploration company focused on realizing the potential of a multi-million-ounce gold district in southern Brazil.

Its LDS 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 historic gold workings have been identified on the property, which spans more than 22,000 hectares.

Contact the author at stephen.gunnion@proactiveinvestors.com

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