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March 4, 2024
Lavras Gold (TSXV:LGC) Uncovers Bulk-Tonnage Gold Potential at Fazenda do Posto

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Figure 1. Plan View of 2023 Fazenda do Posto Drill Holes Showing Lithology & Gold Assay Results. Source: Lavras Gold

Lavras Gold (TSXV:LGC) has announced positive results from six new drill holes testing the Fazenda do Posto gold discovery, located on its LDS project in southern Brazil. These latest findings contribute to Lavras Gold’s ongoing exploration program aimed at defining an economically viable gold resource on the project.

Lavras Gold President & CEO Michael Durose commented in a press release: “These new drilling results are consistent with previous drill results and demonstrate the excellent near-surface gold grade and continuity of Fazenda do Posto. The large lateral and vertical extent of the hydrothermal alteration points to a sizable gold mineral system for which the full potential remains to be tested. Results like these have the potential to materially enhance the economics of a combined Butiá-Fazenda do Posto near-surface bulk tonnage open-pit type of gold project. Fazenda do Posto is not only demonstrating very good continuity and gold grade at depth, but also laterally, where it remains open in several directions. Two drills are actively working in the area, drilling off the Fazenda do Posto area in a grid with vertical holes on 50 metre centres.”

Drilling Confirms Extensive Gold Mineralization at Fazenda do Posto

The six new drill holes, numbered 23FP007 through 23FP012, were designed to investigate the characteristics and scope of gold mineralization and hydrothermal alteration associated with the Fazenda do Posto discovery. This recent drilling program adds to the six holes previously disclosed, bringing the total to 12 holes drilled for a cumulative length of 3,309 meters.

All assay results are presented in Table 1 of the company’s press release, while drill-collar coordinates are summarized in Table 2. Figures 1 and 2 included in the press release illustrate the drill hole locations and a cross-section, respectively.

Initial findings indicate a substantial gold mineral system featuring near-surface, bulk-tonnage disseminated gold mineralization. This gold is hosted within hydrothermally altered granitic rock and lies strategically positioned 150 meters west of the adjacent Butiá gold deposit, which boasts a measured, indicated, and inferred gold resource of approximately 0.5 million ounces and is also open for potential expansion.

Drilling Highlights Favorable Characteristics for Future Development

The latest drilling campaign yielded encouraging results, encountering extended intervals of gold mineralization with zones of higher grades. The host rocks exhibit extensive hydrothermal alteration, and the gold itself is typically found within disseminated sulfide minerals like pyrite and arsenian pyrite, hosted within episyenite or mineralized perthitic granite. Notably, instances of visible gold have been observed in association with these sulfide minerals.

The current exploration program suggests the mineralization is bulk-tonnage in nature, extending to depths exceeding 400 meters with a lateral extent of at least 200 meters in two directions: northeast-southwest and northwest-southeast.

Exploration Program Moving Forward with Defined Objectives

Figure 2. Cross Section of 2023 Fazenda do Posto Drill Holes (Looking West) Showing Lithology and Assay Results. Source; Lavras Gold

The primary objective of this drilling phase was to delineate the geometry and distribution of alteration and gold mineralization at Fazenda do Posto. Although the program is still in its early stages, the initial findings are highly promising, showcasing the discovery of a large, disseminated, bulk-tonnage, intrusive-hosted gold system.

The lateral extent and intensity of the hydrothermal alteration zone have now been traced over significant distances, exceeding 200 meters in two directions and reaching depths surpassing 400 meters. Additionally, gold mineralization has been identified across extensive, continuous intervals spanning hundreds of meters.

At Fazenda do Posto, a core zone of higher-grade gold mineralization appears to be developing at depth, surrounded by a halo of lower-grade gold. The mineralization is typically associated with disseminated sulfides (pyrite and arsenian pyrite) commonly hosted within the vuggy spaces of pervasively altered granitoids. The mineral system remains open in several directions, warranting further exploration through extensive drilling.

Significance of Fazenda do Posto in Relation to Butiá Gold Deposit

A crucial aspect of the exploration program is understanding the potential connection between the Fazenda do Posto discovery and the neighboring Butiá gold deposit. The newly defined gold mineralization at Fazenda do Posto lies 150 meters west of the Butiá deposit, which currently holds a NI 43-101 compliant measured, indicated, and inferred gold resource of 0.5 million ounces. Both deposits hold the potential for future expansion, and it is conceivable that they could be developed as a unified mining project in the future. Figures 4 and 5 in the press release depict the relative positions of the Butiá gold resource and the Fazenda do Posto discovery.

Next Steps and Future Exploration Plans

The next phase of the drilling program will involve systematically drilling Fazenda do Posto on a 50-meter grid using vertical holes. This approach aims to gain a clearer understanding of the size, geometry, and grade distribution of the discovery. This drilling strategy will also be selectively applied to the Butiá gold deposit as the program progresses, with further refinements potentially incorporated based on ongoing results.

Lavras Gold’s primary short-term objective is to define an economically viable gold resource on the LDS project, with a particular focus on Fazenda do Posto and the adjacent Butiá gold deposit.

The ongoing drilling program utilizes two diamond drill rigs currently operating on-site and is anticipated to continue uninterruptedly until the first half of 2025. Lavras Gold has budgeted for approximately 10,000 meters of drilling to explore Fazenda do Posto. Additional drilling on these targets may be conducted based on promising results. The second half of 2024 is slated for exploration drilling of other targets on the LDS property, with the ultimate goal of uncovering new commercially viable gold deposits.

Highlights from the results are as follows:

Hole 23FP011:

173.0 metres grading 1.0 g/t gold from 69.0 metres and including:

2.0 metres grading 2.1 g/t gold from 99.0 metres
94.8 metres grading 1.4 g/t gold from 126.0 metres (about 109.0 metres vertical),
including 2.0 metres grading 3.6 g/t gold from 126.0 metres, and
3.0 metres grading 2.5g/t gold from 135.0 metres, and
6.0 metres grading 2.0 g/t gold from 209.0 metres

Hole 23FP008:

123.0 metres grading 1.1 g/t gold from 228.0 metres including:

78.0 metres grading 1.4 g/t gold from 228.0 metres and
35.0 metres grading 2.5 g/t gold from 231.0 metres and
4.0 metres grading 2.7 g/t gold from 331.0 metres and
3.0 metres grading 3.5 g/t gold from 332.0 metres and
1.0 metre grading 8.8 g/t gold from 334.0 metres

Drill hole 23FP011 was collared in the northeastern portion of Fazenda do Posto (see Figure 1). The hole was drilled at an inclined angle of 60 degrees on an azimuth of 200 degrees. The purpose was to test the lateral continuity of mineralization and gold grade continuity at depth towards the southwest. A long continuous interval of bulk-tonnage disseminated gold mineralization was encountered starting at 69.0 metres (60.0 metres vertical depth) to 242.0 metres down the drill core (vertical depth of 210 metres) within mineralized episyenite as detailed below. Generally, this long interval of continuous mineralization has multiple higher-grade intervals. Highlights are as follows:173.0 metres grading 1.0 g/t gold from 69.0 metres including:

4.0 metres grading 1.2 g/t gold from 75.0 metres
6.0 metres grading 1.1 g/t gold from 97.0 metres
2.0 metres grading 2.1 g/t gold from 99.0 metres
94.8 metres grading 1.4 g/t gold from 126.0 metres
2.0 metres grading 3.6 g/t gold from 126.0 metres
3.0 metres grading 2.5 g/t gold from 135.0 metres, and
8.0 metres grading 1.6 g/t gold from 153.0 metres
14.9 metres grading 1.7 g/t gold from 166.1 metres
13.0 metres grading 1.5 g/t gold from 191.0 metres
6.0 metres grading 2.0 g/t gold from 209.0 metres, and
2.0 metres grading 2.0 g/t gold from 239.1 metres

Drillhole 22FP008 was collared in the northeast portion of Fazenda do Posto and drilled on an azimuth of 200 degrees at an inclined angle of 80 degrees (see Figure 1). The purpose was to better understand the nature and continuity of gold mineralization at depth. Continuous gold mineralization was encountered over long intervals in episyenite and mineralized perthitic granite. Higher-grade intervals have been found at depth. A summary of assay composites is as follows:

123.0 metres grading 1.1 g/t gold from 228.0 metres including:

78.0 metres grading 1.4 g/t gold from 228.0 metres
35.0 metres grading 2.5 g/t gold from 231.0 metres
20.0 metres grading 0.6 g/t gold from 325.0 metres
4.0 metres grading 2.7 g/t gold from 331.0 metres
3.0 metres grading 3.5 g/t gold from 332.0 metres

Drillhole 23FP010 was positioned in the central portion of Fazenda do Posto, above the trace of drillhole 23FP002 (see Figure 1 & Figure 2). The hole was drilled on an azimuth of 110 degrees and inclined at 60 degrees. The purpose was to better understand the nature of the geology and the extent of alteration and possible mineralization along a southeast direction perpendicular to the azimuth of drill hole 23FP002. Figure 3 shows an example of near-surface mineralized episyenite from 23FP010. A continuous zone of intense albite alteration interspersed with zones of bulk-tonnage and disseminated style of gold mineralization consisting mainly of disseminated pyrite +- arsenian pyrite within episyenite and perthitic granite was encountered from 3.0 metres to 147.0 metres – a drillhole length of 144.0 metres. Further highlights are as follows:

144.0 metres grading 0.6 g/t gold from 3.0 metres including:

41.0 metres grading 1.0 g/t gold from 3.0 metres and including
21.0 metres grading 1.3 g/t gold from 23.0 metres and
9.0 metres grading 2.2 g/t gold from 31.0 metres and including
4.0 metres grading 3.5 g/t gold from 31.0 metres
2.0 metres grading 1.6 g/t gold from 78.0 metres
4.4 metres grading 1.2 g/t gold from 107.0 metres

Drillhole 23FP012 was collared along the northwest edge of the Fazenda do Posto mineralized footprint and drilled on an azimuth of 110 degrees and inclined 60 degrees (see Figure 1). The purpose was to test the central western extension of hydrothermal alteration and mineralization. The hole encountered very intense albite alteration with moderate intervals of gold starting at 4.0 metres depth. Significant long intervals of higher gold grades were found at 58.0 metres along the drill core after intersecting a lamprophyre dyke. Several long intervals of disseminated gold mineralization were encountered and including multiple higher-grade subintervals as follows:

115.0 metres grading 0.6 g/t gold from 58.0 metres including:

53.0 metres grading 0.9 g/t gold from 118.0 metres and
26.0 metres grading 1.1 g/t gold from 130.0 metres, and including
15.0 metres grading 1.2 g/t gold from 130.0 metres, and
6.0 metres grading 1.1 g/t gold from 162.0 metres

Table 1. Summary of Drill Hole Composites from Fazenda do Posto Gold Discovery

Drill Hole
From
To
Interval
Gold grade
Comment

(metres)
(metres)
(metres)
(grams/tonne)

23FP001

77.00
153.00
76.00
0.17
Drilled peripheral to main target

85.00
86.00
1.00
0.32
Along southeast edge of FP

90.00
93.00
3.00
0.33

96.00
97.00
1.00
0.57

102.00
104.00
2.00
0.34

109.00
110.00
1.00
0.42

113.00
118.00
5.00
0.23

135.00
137.00
2.00
0.47

143.00
144.00
1.00
0.26

23FP002

58.00
59.00
1.00
0.18
Extensive albite alteration

117.00
457.00
340.00
1.09
Mineralized episyenite

Including
199.00
359.00
160.00
1.79
Brick red colouration (Ba, Fe)

Including
208.00
235.00
27.00
2.07

Including
293.00
361.00
68.00
2.09

23FP003

24.00
27.00
3.00
0.71
Extensive albite alteration

87.00
294.00
207.00
0.49
Mineralized episyenite

including
87.00
227.00
140.00
0.67
Extensive albite alteration

Including
87.00
195.00
108.00
0.80
Mineralized episyenite

Including
87.00
151.00
64.00
0.91
Brick red colouration (Ba, Fe)

Including
106.00
145.00
39.00
1.17

23FP004

No Significant Values

Fresh granodiorite, perthitic granite, drilled SW

23FP005

118.00
119.00
1.00
0.26
Extensive albite alteration

131.55
135.00
3.45
1.01
Mineralized perthitic granite

139.00
140.00
1.00
0.99
Mineralized perthitic granite

143.00
146.00
3.00
1.21
Mineralized perthitic granite

159.00
161.00
2.00
0.26
Mineralized perthitic granite

171.00
172.00
1.00
0.33
Mineralized perthitic granite

176.00
177.00
1.00
0.30
Mineralized perthitic granite

181.00
182.00
1.00
0.33
Mineralized perthitic granite

23BT006

31.06
261.00
229.94
0.86
Drilled southwest into target

including
31.06
235.00
203.94
0.95
Mineralized episyenite

including
31.06
222.00
190.94
1.00
Mineralized episyenite

including
149.00
214.00
65.00
1.94
Mineralized episyenite

including
149.00
187.00
38.00
2.03
Mineralized episyenite

including
154.00
164.00
10.00
2.96
Mineralized episyenite

including
190.00
205.00
15.00
2.05
Mineralized episyenite

23FP007

No Significant Values

Fresh granodiorite, perthitic granite, drilled NE

23FP008

104.00
105.00
1.00
0.27
Mineralized episyenite

114.00
115.00
1.00
0.42
Mineralized episyenite

106.00
229.00
123.00
1.12
Mineralized episyenite

including
228.00
306.00
78.00
1.36
Mineralized episyenite

including
231.00
266.00
35.00
2.46
Mineralized episyenite

325.00
345.00
20.00
0.60
Mineralized perthitic granite

including
331.00
335.00
4.00
2.67
Mineralized perthitic granite

including
332.00
335.00
3.00
3.49
Mineralized perthitic granite

23FP009

1.00
3.00
2.00
0.49
Pervasive albite alteration

15.00
16.00
1.00
0.40
Pervasive albite alteration

23.01
37.00
13.99
0.79
Pervasive albite alteration

Including
29.00
38.00
9.00
0.91
Pervasive albite alteration

40.00
40.94
0.94
0.25
Pervasive albite alteration

75.00
77.00
2.00
0.72
Pervasive albite alteration

93.00
96.00
3.00
0.44
Pervasive albite alteration

131.00
132.00
1.00
0.41
Pervasive albite alteration

149.00
152.00
3.00
0.44
Pervasive albite alteration

157.00
160.00
3.00
0.43
Pervasive albite alteration

162.00
163.00
1.00
0.25
Pervasive albite alteration

164.00
168.00
4.00
0.30
Pervasive albite alteration

23FP010

3.00
147.00
144.00
0.58
Pervasive albite alteration, episyenite, Perthitic granite

Including
3.00
44.00
41.00
1.00
Mineralized episyenite

Including
3.00
4.00
1.00
1.06
Mineralized episyenite

Including
23.00
44.00
21.00
1.29
Mineralized episyenite

Including
23.00
26.00
3.00
1.07
Mineralized episyenite

Including
31.00
40.00
9.00
2.17
Mineralized episyenite

Including
31.00
35.00
4.00
3.46
Mineralized episyenite

Including
50.00
51.00
1.00
1.14
Mineralized episyenite

Including
64.00
65.00
1.00
1.28
Mineralized episyenite

Including
72.00
79.00
7.00
0.89
Mineralized episyenite

Including
78.00
80.00
2.00
1.55
Mineralized episyenite

Including
83.00
90.00
7.00
1.02
Mineralized episyenite

Including
107.00
111.41
4.41
1.21
Perthitic granite

Including
139.00
142.00
3.00
0.97
Mineralized episyenite

23FP011

32.00
33.00
1.00
0.29
Mineralized episyenite

69.00
242.00
173.00
0.95
Mineralized episyenite

Including
75.00
79.00
4.00
1.16
Mineralized episyenite

Including
97.00
103.00
6.00
1.07
Mineralized episyenite

Including
99.00
101.00
2.00
2.08
Mineralized episyenite

Including
126.00
220.83
94.83
1.37
Mineralized episyenite

Including
126.00
128.00
2.00
3.56
Mineralized episyenite

Including
135.00
138.00
3.00
2.47
Mineralized episyenite

Including
153.00
161.00
8.00
1.64
Mineralized episyenite

Including
166.10
181.00
14.90
1.66
Mineralized episyenite

Including
191.00
204.00
13.00
1.46
Mineralized episyenite

Including
209.00
215.00
6.00
2.01
Mineralized episyenite

Including
239.13
241.13
2.00
1.97
Mineralized episyenite

23FP012

4.00
5.27
1.27
0.29
Mineralized episyenite

12.00
14.00
2.00
0.32
episyenite

58.00
60.00
2.00
0.27
episyenite

63.00
64.00
1.00
3.19
Mineralized episyenite

58.00
173.00
115.00
0.59
Mineralized episyenite, albite alteration

Including
83.00
84.00
1.00
2.26
Mineralized episyenite

Including
87.77
89.92
2.15
0.95
Mineralized episyenite

Including
102.16
104.00
1.84
1.06
Mineralized episyenite

Including
107.00
108.00
1.00
0.95
Mineralized episyenite

Including
110.00
111.00
1.00
1.10
Mineralized episyenite

Including
118.00
171.00
53.00
0.86
Mineralized episyenite, intermittent perthitic granite

Including
118.00
119.00
1.00
1.09
Mineralized episyenite

Including
121.00
169.00
48.00
0.91
Mineralized episyenite, intermittent perthitic granite

Including
130.00
156.00
26.00
1.08
Mineralized episyenite, intermittent perthitic granite

Including
130.00
145.00
15.00
1.24
Mineralized episyenite

Including
162.00
168.00
6.00
1.09
Mineralized episyenite

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. Fazenda do Posto Drill Hole Coordinates

Drill
Elevation
Azimuth
Dip
Start Depth
Final Depth

Hole
Easting
Northing
(metres)
(Degrees)
(Degrees)
(metres)
(metres)

23FP001
217907
6586453
378
20
-60
0
214.1

23FP002
217858
6586480
385
20
-60
0
464.6

23FP003
217892
6586568
379
0
-90
0
332.2

23FP004
217826
6586607
387
200
-60
0
201.3

23FP005
217935
6586309
397
20
-60
0
248.2

23FP006
217932
6586677
377
200
-60
0
308.3

23FP007
217928
6586677
377
20
-60
0
161.4

23FP008
217931
6586675
382
200
-80
0
401.4

23FP009
217910
6586591
383
290
-60
0
232.9

23FP010
217910
6586581
384
110
-60
0
288.0

23FP011
217926
6586674
380
220
-60
0
280.0

23FP012
217845
6586647
386
110
-60
0
177.0

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Lavras Gold (TSXV:LGC) Uncovers Bulk-Tonnage Gold Potential at Fazenda do Posto appeared first on MiningFeeds.

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