Lavras Gold Corp. Intersects 1.0 g/t Gold Over 56 Metres at the Newly Discovered Olaria Gold Target, LDS Project, Southern Brazil
Lavras Gold Corp. Intersects 1.0 g/t Gold Over
56 Metres at the Newly Discovered Olaria Gold
Target, LDS Project, Southern Brazil
* Drilling intersection includes 4.5 g/t gold over 5 metres
* Located 3 kilometres to the northeast of the Butiá Deposit
Toronto, Ontario--(Newsfile Corp. - December 2, 2024) -
Lavras Gold Corp. (TSXV: LGC)
(OTCQX:LGCFF)
("
Lavras Gold
" or the "
Compan
y") is pleased to release the results from three new
drillholes testing the Olaria Gold Target("Olaria" or "Olaria Gold Target"), located within the central
portion of the Lavras do Sul Intrusive Complex (LDIC) of the LDS Project in southern Brazil. Gold
mineralization was intersected in all three of the new holes reported in this news release at the Olaria
Gold Target. The Olaria target, approximately 3 kilometres to the north of Lavras Gold's Butiá Gold
Deposit, is within the larger Caneleira Mining Concession.
The purpose of these drillholes was two-fold: (1) to test the downdip potential of an historical drillhole
(LDH-105, drilled in 2007 by a predecessor company) that tested the Olaria Gold Target along a
postulated east-west structure; and (2) to test for gold mineralization across a reinterpreted northeast-
southwest trending structure.
Historical drillhole LDH-105 was drilled on an azimuth of 220 degrees and encountered nine discrete
intervals of gold mineralization ranging from 1.00 m to 12.00 m with gold grades ranging from 0.4 g/t
gold to 4.5 g/t gold.
The best intercept was 12.00 m grading 4.5 g/t gold from 26.0 metres.
The new Lavras Gold drill holes, 24CNO-001 and 24CNO-007, were oriented with an azimuth of 200
degrees and successfully tested the down-dip potential and western strike extension of historic hole
LDH-105. These new holes generally intersected multiple-narrow to moderate intervals of low to high
gold grade ranging from 1.00 m to 11.00 m wide with grades ranging from 0.3 g/t gold to 9.0 g/t Au.
These holes confirmed the down-dip extension of mineralization to vertical depths of about 300 metres.
However,
a recent reinterpretation of the Olaria geology by Lavras geologists
suggested that a
possible northeast-southwest structure was a more important 'controlling' feature that required testing to
confirm the hypothesis. Drillhole 24CN-002 was oriented with an azimuth of 290 degrees and designed
to test for potential of gold mineralization across an interpreted northeast-southwest trending structure.
The hole encountered 56.0 metres of continuous gold mineralization grading 1.0 g/t gold from
152.0 metres down the drill core (about 134 metres vertical).
This is followed by an 8.0 metre
interval grading 0.5 g/t gold. There are several higher-grade sub-intervals within the 56.0 metre intercept
including 4.00 m grading 4.5 g/t gold from 180.0 m (and including 1.0 m grading 9.2 g/t gold
from 183.0 m), and 3.00 m grading 2.7 g/t gold from 202.0 m.
The Olaria Gold Target remains open to the northeast, southwest and at depth. These new results
continue to move Lavras Gold toward its medium to longer-term goal of demonstrating the district-scale
exploration potential of the LDS Project. Lavras Gold's shorter-term objective is defining an economically
viable gold project at Butiá and Fazenda do Posto also part of the LDS Project.
HIGHLIGHT
Drilling
Hole 24CNO-002 returned:
56.0 metres grading 1.0 g/t gold from 152.0 metres,
and including:
2.0 metres grading 1.4 g/t gold from 170.0 metres, and including
4.0 metres grading 4.5 g/t gold from 180.0 metres, and including
1.0 metres grading 9.2 g/t gold from 183.0 metres, and including
7.0 metre grading 1.6 g/t gold from 201.0 metres, and including
3.0 metre grading 2.7 g/t gold from 202.0 metres, and
8.0 metre grading 0.5 g/t gold from 241.0 metres.
"While our primary focus remains defining the mineralized footprint in the Butiá/Fazenda do Posto area,
our team is extremely pleased to make an important new gold discovery so quickly after launching our
regional exploration strategy at our Olaria Gold Target. This new discovery supports our thesis that gold
mineralization is on a district scale at the LDS Project with the entire district proving to be highly
prospective. Olaria is located about 3.1 kilometres northeast of Butiá/Fazenda do Posto and
demonstrates a different style of mineralization than the Butiá/Fazenda do Posto area," commented
Lavras CEO Michael Durose.
"Olaria represents a structurally controlled cataclastic-style of mineralization within the Lavras do Sol
Intrusive Complex. This is very different compared to the metasomatic style of disseminated
mineralization found along the western edge of the intrusion at Butiá and Fazenda do Posto.
Nevertheless, a long continuous interval of potentially economic gold mineralization over more than 50
metres at depths relatively close to surface confirms that Olaria has significant exploration potential.
Next
steps will be to try and expand the size of the mineralized footprint along strike to the northeast and
southwest of Olaria, and to test for continuity of gold mineralization up-dip closer to surface. The goal is
to build gold inventory and add to the existing resources on the LDS Project."
Click here
for commentary from CEO Michael Durose on today's drilling results.
[* Footnote: Butiá hosts near-surface mineral resource of 377,000 ozs. of gold in the Measured & Indicated categories and 115,000 ozs. of gold in
the Inferred category, as detailed in the report titled "
NI 43-101 Technical Report Mineral Resource for the Butiá Gold Prospect, Rio Grande do
Sul, Brasil",
prepared for Lavras Gold by authors VMG Consultoria e Soluções Ltda., with an effective date of January 25, 2022 and an amended
report date of November 15, 2024. Cerrito hosts a mineral resource 188,000 ozs. of gold, in the Indicated category and 293,000 ozs. of gold in the
Inferred category as detailed in the report titled "
NI 43-101 Technical Report Mineral Resource for the Cerrito Gold Prospect, Rio Grand do Sul,
Brasil"
, prepared for Lavras Gold by authors VMG Consultoria e Soluções Ltda., with an effective date of May 31, 2022 and an amended report
date of November 15, 2024.These reports are available on the Company's website and
www.sedarplus.ca
under Lavras Gold's issuer profile.]
Discussion of Drill Results - Olaria Gold Target
Figure 1
shows the location of the mineral showings on the LDS Project. Olaria is situated
approximately 3.1 kilometres northeast of Butiá - the most advanced gold deposit on the LDS Project.
Olaria is one of several gold exploration targets located within the Caneleira concession area centered
on historical gold workings, and within a large kilometre-scale gold in soil anomaly defined along the
western portion of the Lavras do Sul Intrusive Complex. The purpose of the current drilling program at
Olaria is to establish a gold resource by testing the gold grade and continuity of mineralization along
structures hosting the gold and to gain insight into the geological controls of gold mineralization.
A total of 986 metres of drilling in three new drillholes tested the Olaria gold discovery. Including
historical drillhole LDH-105, the total drilling in this area is 1,155 metres. The locations of the drillholes
are shown in
Figure 2 and Figure 3
, which illustrate a cross section of gold composites and gold assay
results respectively looking northeast
.
The inset maps show a plan view of the drillhole layout.
Figure 4
shows a cross section of the drillholes looking southeast with gold composites.
Table 1
summarizes
assay results including newly disclosed results in this press release, and historical results disclosed
previously (LDH-105).
Table 2
tabulates drillhole information including collar coordinates and drillhole
depths.
Drillhole 24CNO-002
was collared 150 metres southeast of historical drillhole LDH105 and drilled with
an azimuth of 290 degrees and inclined 60 degrees. The purpose was to test the potential for gold along
a postulated northeast-southwest structure. The hole confirmed a thick continuous zone of disseminated
gold mineralization within a brick-red coloured cataclastic zone of hydrothermally altered monzonite
granites at a vertical depth of 134 metres. Highlights of the hole are shown below.
56.0 metres grading 1.0 g/t gold from 152.0 metres,
and including:
2.0 metres grading 1.4 g/t gold from 170.0 metres, and including
4.0 metres grading 4.5 g/t gold from 180.0 metres, and including
1.0 metres grading 9.2 g/t gold from 183.0 metres, and including
7.0 metre grading 1.6 g/t gold from 201.0 metres, and including
3.0 metre grading 2.7 g/t gold from 202.0 metres, and
8.0 metres grading 0.5 g/t gold from 241.0 metres.
Figure 5
shows a photo of the typical mineralized zone. The cataclastic host rock is typically a dark
scarlet red and consists of fragments of feldspar, 1-2 very finely disseminated sulphides in the matrix to
potassium feldspar phenocrysts and dark green to black phengite mica. The sulphide minerals include
pyrite +- galena+- sphalerite. It is noteworthy that the cataclastic zone extends for about 130 metres of
thickness, and that the gold mineralization occurs continuously for 56 metres enveloped within this
cataclastic zone.
Elevated silver grades are noteworthy (see Table 1 for details).
This mineralized cataclastite contrasts significantly from the fresh monzonite granite that is shown in
Figure 6
. There are local zones of quartz brecciation with sericite and disseminated sulphides hosting
gold (see Figure 7). Several high-grade sub-intervals are noted, including a 1.0 metre interval averaging
9.2 g/t gold (see
Figure 8
) within the cataclastite and including very fine-grained disseminated sulphides
along with cross-cutting centimetre-scale quartz-carbonate veinlets.
The Lavras team noted that if the
1.0 m interval of 9.2 g/t gold high-grade sample was cut to 5.0 g/t gold, then the 56.0 metre
mineralized interval averages 0.9 g/t gold down from 1.0 g/t gold.
This demonstrates the relatively
robust nature of this zone of gold mineralization and the potentially moderate impact of the nugget effect.
More work is required to establish this characteristic.
Drillhole 24CNO-001
was collared 100 metres northwest of historical drillhole LDH-105 in the
northwestern portion of the Olaria Gold Target (see
Figure 3 and Figure 4
). The hole was drilled on an
azimuth of 200 degrees at an inclined angle of 60 degrees and designed to test the lateral continuity and
downdip extension of gold mineralization encountered in historic hole LDH-105 that intercepted multiple
intervals of gold mineralization including 12.0 metres grading 4.5 g/t gold. Multiple zones of gold
mineralization were encountered throughout hole 24CNO-001associated with mineralized cataclastite.
Elevated silver values were also found (see
Table 1
). Highlights of drillhole intercepts are detailed
below.
1.0 metre grading 1.0 g/t gold from 127.0 metres
11.0 metres grading 0.6 g/t gold from 139.0 metres, including
6.0 metres grading 1.0 g/t gold from 139.0 metres,
7.0 metres grading 0.3 g/t gold from 190.0 metres
2.0 metres grading 0.9 g/t gold from 210.0 metres
7.0 metres grading 0.6 g/t gold from 247.0 metres
Drillhole 24CNO-007
was collared 50 metres north of historical drillhole LDH-105 and drilled along an
azimuth of 200 degrees and an inclination of 60 degrees. The hole was designed to test the down-dip
extension of historical drill hole LDH-105 that intercepted multiple intervals of gold mineralization.
Multiple zones of modest grade gold mineralization were encountered throughout hole 24CNO-007
confirming the downdip extension of mineralization to vertical depths of more than
300 metres
.
Highlights are as follows.
11.0 metres grading 0.4 g/t gold from 191.0 metres
1.0 metre grading 9.0 g/t gold from 221.0 metres
3.0 metres grading 1.3 g/t gold from 260 metres
9.0 metres grading 0.7 g/t gold from 342.0 metres
Interpretation and Next Steps
The targets on the Caneleira concession are interpreted to be structurally controlled cataclastic gold
systems associated with important northeast trending structures. Typical alteration minerals include
hematite, sericite and intense silicification. Gold appears to be associated with fine-grained to very fine-
grained disseminated sulphides (typically pyrite+-galena +-sphalerite).
Historical drillhole LDH-105
completed in 2007 by Lavras Gold's predecessor company, Amarillo Gold, tested the Olaria Gold
Target. The drillhole was oriented 220 degrees and inclined 60 degrees.
The hole returned multiple
intervals of gold mineralization across an interpreted east-west trending structure with highlights from
Table 1
as follows:
12.0 metres grading 4.5 g/t gold from 26.0 metres
3.0 metres grading 1.2 g/t gold from 68.0 metres
2.0 metres grading 0.4 g/t gold from 79.5 metres
3.0 metres grading 0.7 g/t gold from 108.0 metres
5.0 metres grading 0.5 g/t gold from 114.0 metres
2.0 metres grading 1.0 g/t gold from 135.0 metres
1.0 metres grading 0.5 g/t gold from 148.0 metres
2.0 metres grading 0.5 g/t gold from 152.0 metres
3.0 metres grading 2.7 g/t gold from 160.0 metres
Lavras Gold's geologists have reviewed this historic drill core that is stored on site and confirm that the
gold intervals referenced above correspond visually to zones of mineralization and alteration
characterized by cataclastic textures.
Although new drillholes 24CNO-001 and 24CNO-007 confirmed the lateral and down-dip extension of
gold mineralization found in historical drillhole LDH-105, these holes were designed to test the thesis
that a predominantly east-west structure was controlling the mineralization at Olaria.
This thesis
appears to be incorrect
since generally multiple moderate grade gold intercepts were encountered
where it was expected that potentially thicker zones of gold mineralization would be found. It is possible
that these intercepts are clipping the western edge of a gold zone that is trending northeast-southwest as
discussed below.
Drillhole 24CNO002,
designed to test a northeast-southwest striking structure
, has returned a very
significant result - 56.0 metres grading 1.0 g/t gold.
This hole appears to have crossed the
mineralizing structure that has a northeast-southwest trend. As mentioned previously, northeast trending
structures are thought to play an important role in localizing and focusing gold mineralization within the
Lavras district. Next steps for the Olaria drilling will include completing a scissor hole that will be drilled in
a southeast direction and at a shallower depth relative to drillhole 24CNO-002, followed by testing for
extensions to this zone of mineralization by stepping out along strike to the northeast and southwest.
Approximately 15,000 metres of a 25,000-metre drilling budget has been completed on the LDS Project
since the beginning of 2024. Most of the drilling has focused on Butiá and Fazenda do Posto. Drilling is
on-going at both targets with two drills.
A third drill has been mobilized to the Caneleira concession where numerous exploration targets have
been defined through surface exploration work including soil geochemistry, favourable structural patterns
identified by a drone magnetic survey and air photo interpretation, and old workings including trenches
and pits that have been sampled. This includes on-going drilling of the new Olaria discovery among other
targets that will be tested.
In addition to drilling activities, the geology team is completing on-going field related activities including
prospecting, geological mapping, and rock sampling with the goal of defining further future drill targets.
Table 1. Summary of Drillhole Composites from the Olaria Gold Target
Drill Hole
From
(metres)
To
(metres)
Interval
(metres)
Gold grade
(grams/tonne)
Silver grade
(grams/tonne)
Comment
24CNO-001
110.00
120.00
10.00
0.32
4.39
Mineralized
cataclastite
127.00
128.00
1.00
0.98
0.71
Mineralized
cataclastite
139.00
150.00
11.00
0.59
1.26
Mineralized
cataclastite
Including
139.00
145.00
6.00
0.96
2.14
Mineralized
cataclastite
190.00
197.00
7.00
0.28
0.11
Mineralized
cataclastite
210.00
212.00
2.00
0.90
0.46
Mineralized
cataclastite
247.00
254.00
7.00
0.64
0.38
Mineralized
cataclastite
24CNO-002
152.00
208.00
56
0.97
1.72
Mineralized
cataclastite
including
170.00
172.00
2
1.38
0.39
Mineralized
cataclastite
Including
180.00
184.00
4
4.53
7.53
Mineralized
cataclastite
Including
183.00
184.00
1
9.16
8.27
Mineralized
cataclastite
Including
201.00
208.00
7
1.60
1.76
Mineralized
cataclastite
and
202.00
205.00
3
2.73
2.34
Mineralized
cataclastite
241.00
249.00
8
0.50
1.053
Mineralized
cataclastite
including
245.00
247.00
2
1.10
2.25
Mineralized
cataclastite
298.00
299.00
1
0.40
0.94
Mineralized
cataclastite
24CNO-007
139
140
1
0.34
0.14
Mineralized
cataclastite
149
157
8
0.29
2.86
Mineralized
cataclastite
160
161
1
0.39
1.03
Mineralized
cataclastite
172
182
10
0.30
2.04
Mineralized
cataclastite
191
202
11
0.39
1.10
Mineralized
cataclastite
216
218
2
0.38
1.23
Mineralized
cataclastite
221
222
1
8.94
9.18
Mineralized
cataclastite
231
235
4
0.55
0.784
Mineralized
cataclastite
260
263
3
1.26
0.64
Mineralized
cataclastite
280
281
1
1.80
0.51
Mineralized
cataclastite
306
307
1
0.75
1.68
Mineralized
cataclastite
342
351
9
0.65
0.45
Mineralized
cataclastite
LDH-105
26
38
12
4.54
Trace
Mineralized
cataclastite
68
71
3
1.20
Trace
Mineralized
cataclastite
79.5
81.5
2
0.40
Trace
Mineralized
cataclastite
108
111
3
0.70
Trace
Mineralized
cataclastite
114
119
5
0.50
Trace
Mineralized
cataclastite
135
137
2
1.00
Trace
Mineralized
cataclastite
148
149
1
0.50
Trace
Mineralized
cataclastite
152
154
2
0.50
Trace
Mineralized
cataclastite
160
163
3
2.70
Trace
Mineralized
cataclastite
Drill Hole
From
(metres)
To
(metres)
Interval
(metres)
Gold grade
(grams/tonne)
Silver grade
(grams/tonne)
Comment
Assumes 0.25 g/t gold cut-off grade, no top cut.
The Company has been targeting larger intersections of greater than 0.25 g/t gold. Intersections lower than this threshold may provide
exploration insight and may therefore be disclosed.
Intervals represent drill core interval; true widths have not been determined at this time.
Table 2. Olaria Drillhole Coordinates
Drill Hole
Easting
Northing
Elevation
(metres)
Azimuth
(Degrees)
Dip
(Degrees)
Start Depth
(metres)
Final Depth
(metres)
24CNO-001
220499
6588835
314.0
200
-60
0
312.9
24CNO-002
220634
6588672
313.0
290
-60
0
309.0
24CNO-007
220558
6588813
319.0
200
-60
0
363.7
LDH-105
220539
6588742
314.5
220
-60
0
169.7
Figure 1. Regional Soil Geochemistry Anomalies versus Geology of the Lavras do Sul Intrusive
Complex and Known Mineral Showings.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10429/232174_c2cc00fb64c74b4e_002full.jpg
Figure 2. Cross Section View Looking Northeast of Olaria Drillholes. (Inset Map is Plan View)
Showing Composites Gold Results.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10429/232174_c2cc00fb64c74b4e_003full.jpg
Figure 3. Cross-Section Looking Northeast of Olaria Drillholes. (Inset map shows plan view)
showing Lithology and Gold Assay Grades.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10429/232174_c2cc00fb64c74b4e_004full.jpg
Figure 4. Cross-Section Looking Southeast of Olaria Drillholes. (Inset map shows plan view)
showing Lithology and Composite Gold Grades.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10429/232174_c2cc00fb64c74b4e_005full.jpg