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.
