LAVRAS GOLD’S THIRD QUARTER MARKED BY DISCOVERY The news release should be read in conjunction with our unaudited interim consolidated financial statements and management’s discussion and analysis for the period ended
News release 2022-14
NEWS RELEASE: Lavras Gold’s third quarter marked by discovery (November 7, 2022) 1
LAVRAS GOLD’S THIRD QUARTER MARKED BY DISCOVERY
The news release should be read in conjunction with our unaudited interim consolidated financial statements and
management’s discussion and analysis for the period ended September 30, 2022. Both are available under our
profile at www.sedar.com.
All monetary amounts are in Canadian dollars unless stated otherwise.
TORONTO, ONTARIO – November 7, 2022 – Lavras Gold Corp. (TSXV: LGC)
highlighted drill results confirming the discovery of two new mineral systems at
its property in Brazil as it reported on its third quarter today. Matilde and Zeca
Souza, both part of the Company’s LDS Project, have broad zones of moderate
grade gold mineralization that begin at surface and are accentuated by narrower
higher grade intervals. Assay results also included bonanza gold grades
associated with visible gold.
“Each metre of drilling brings us one step closer to understanding the system or
systems underpinning the historic gold workings at LDS,” said Michael Durose,
Lavras Gold’s President and Chief Executive Officer. “We’re building more and
more evidence to support our thesis that we are uncovering a large complex
primarily intrusive-hosted gold system with epithermal and porphyry
characteristics likely of alkaline affinity. There are also gold-copper showings on
exploration concessions to the east associated with overlying volcanic rocks that
we have yet to explore.”
The Company disclosed assay results from its on-going 16,000-metre drill
program during the quarter. There are two drills turning at the LDS Project, where
at least 23 gold targets have been identified centered on historic gold workings.
The current focus is on six targets: Caneleira, Matilde, Matilde Extension, Mato
Feio, Vila Marieta, and Zeca Souza. In addition to the drilling program, the regional
aeromagnetic drone survey was completed and a regional soil sampling program
is underway.
When the Company launched in April, LDS was anchored by the Butiá Gold
Deposit, which has gold resources of approximately 500,000 gold ounces, as
detailed in the NI 43-101 Technical Report Mineral Resource for Butiá Gold
Prospect dated and effective January 25, 2022. It was prepared by VMG
Consultoria e Soluções Ltda. For Lavras Gold Corp. and is available on
www.sedar.com under Lavras Gold’s issuer profile.
Shortly after launch, the total mineral endowment was doubled from 500,000
ounces to 1 million ounces of gold when an NI 43-101 compliant mineral resource
estimate was completed for the Cerrito Gold Deposit, also on LDS. That report, NI
43-101 Technical Report for the Cerrito Gold Prospect, Rio Grande do Sul, Brasil, is
dated and effective May 31, 2022, and authored by Volodymyr Myadzel, MAIG, and
Frank Richard Baker, MIMMM, MAusIMM. It is also available on www.sedar.com
under Lavras Gold’s issuer profile.
News release 2022-14
NEWS RELEASE: Lavras Gold’s third quarter marked by discovery (November 7, 2022) 2
In September, assay results were announced from Zeca Souza, where drilling
returned bonanza gold grades. Assays included 28.2 g/t gold over 3 metres within
a broader zone of 5.8 g/t gold over 15 metres at a vertical depth of about 100
metres. (Full details are available in the news release, Zeca Souza drilling returns
bonanza gold grades, from September 7, 2022.)
All 14 holes drilled at the target 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.
Zeca Souza is an important new gold discovery that supports the thesis that there
are many, possibly connected, gold deposits at LDS. For example, a
reinterpretation of the relationship between Zeca Souza and Caneleira, another
target located about 1 kilometre southwest, suggests they may be connected.
A gold-bearing structure identified in a 2007-2008 drilling program was defined
over 800 metres at Caneleira. It returned near-surface gold grades across very
good widths including 36.1 metres grading 1.42 g/t gold about 60 metres below
surface. A number of holes bottomed in mineralization. Follow up work needs to
be done on a southeast-northwest trending gold bearing structure that’s
associated with a magnetic low at Caneleira that trends toward Zeca Souza. A
detailed soil sampling program is underway. For full results, please see the Zeca
Souza news release referenced above.
After quarter end, results were announced from the Matilde target, where the
discovery of a new gold deposit was confirmed.
Matilde lies along a coincident 3 kilometre east-west gold-in-soil anomaly
centered on an east-west trending magnetic-low anomaly that is interpreted to
be a major gold-hosting structure. The drill program has defined a gold system
with mineralization that:
• begins at surface
• has been traced over a strike length of at least 250 metres
• extends to a minimum vertical depth of 483 metres.
The deposit is open for expansion along strike and at depth.
Like Zeca Souza, drilling from Matilde also returned bonanza gold grades, usually
associated with visible gold. Examples include 30.9 g/t gold over 0.60 metres in
hole 20MT-002 from 261.0 metres and 13.10 g/t gold over 0.66 metres from 419.34
metres in hole 22MT-034. (Full details are available in the November 3, 2022, news
release: Lavras Gold discovers new gold deposit at LDS Project in Brazil.)
Hole 22MT-034 is noteworthy because it was drilled to a vertical distance of 483
metres, where it bottomed in gold mineralization, suggesting that Matilde has
deep roots typical of porphyry style mineral systems.
News release 2022-14
NEWS RELEASE: Lavras Gold’s third quarter marked by discovery (November 7, 2022) 3
In addition to the drill program, Renaud Geological Consulting of London, Ontario,
performed petrographic studies on samples from Matilde. The study concluded,
among other things, that “Matilde is a highly altered intrusive rock with primary
textures dominantly replaced by hydrothermal alteration.”
This adds to the growing evidence that the gold-bearing fluids that formed gold
at Matilde are of a magmatic hydrothermal origin.
Lavras Gold has been fortunate with respect to Covid-19. Although several
employees have tested positive, all have recovered. The Company has full access
to the property, consultants have been able to work without interruption, and the
Toronto-based management team works from home. So far, Covid-19 has not had
a material impact on the Company’s financial condition or performance.
Locally, Lavras Gold is working hard to develop strong relationships with our
stakeholders. Most of the Company’s employees live in the town of Lavras do Sul,
and the Company works with local suppliers wherever possible. The granting of a
construction licence for a local phosphate project is also encouraging, as it
demonstrates significant local goodwill for resource projects that are managed
responsibly.
During the quarter, 907,500 stock options were granted to employees and
consultants. These options are priced at $0.35, vest over three years, and expire on
July 27, 2027.
Qualified person
Michael Durose, our President and CEO, is a qualified person as defined by NI 43-101.
He has reviewed and approved the scientific and technical information contained in
this release.
About Lavras Gold
Lavras Gold (TSXV: LGC) is a Canadian exploration company 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 23 gold prospects
centred on historic gold workings have been identified on the property, which
spans more than 22,000 hectares.
Follow Lavras Gold on www.lavrasgold.com, as well as on LinkedIn, Twitter, and
YouTube.
News release 2022-14
NEWS RELEASE: Lavras Gold’s third quarter marked by discovery (November 7, 2022) 4
Contact information
Michael Durose Annemarie Brissenden
President & CEO Investor Relations
416-844-6284 416-844-6284
[email protected] [email protected]
DISCLAIMER
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.
FORWARD-LOOKING INFORMATION
This news release contains certain “forward-looking information” within the meaning of applicable
securities laws. Forward-looking information is frequently characterized by words such as “plan”, “expect”,
“project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other
similar words, or statements that certain events or conditions “may” or “will” occur. These statements,
including those on planned exploration activities and goals, are only objectives and predictions.
Forward-looking information is based on the opinions and estimates of management at the date the
information is provided, and is subject to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those projected in the forward-looking information,
including the risks and factors that generally affect exploration and the uncertainty of exploration results
and the ability to obtain regulatory approval for the Consolidation. For a description of the risks and
uncertainties facing the Company and its business and affairs, readers should refer to the Company’s
Management’s Discussion and Analysis and Listing Statement recently filed under the Company’s profile on
www.sedar.com. The Company undertakes no obligation to update forward-looking information if
circumstances or management’s estimates or opinions should change, unless required by law. The reader is
cautioned not to place undue reliance on forward-looking information.