Lavras Gold Corp (TSX-V:LGC) has highlighted its early successes including doubling the company's gold endowment and completing a 10:1 share consolidation, as it reported on its second quarter in its first operational update since launching on April 1, 2022.
Another key achievement was appointing an exploration and stakeholder-focused management team, the company added.
"We have achieved a lot in three months," said Michael Durose, Lavras Gold's president and chief executive officer in a statement.
READ: Lavras Gold achieves million ounce milestone for LDS project in Brazil with Cerrito prospect resource
"An early goal was reaching consolidated gold resources of 1 million gold ounces, and we hit that when we announced our mineral resource estimate for Cerrito in June. We hope to build on that base as we continue to explore at our highly prospective LDS (Lavras do Sul) Project. We're also looking forward to receiving assay results for drilling at several key targets," he added.
During the quarter Lavras Gold launched with three key assets:
- the Lavras do Sul Project (LDS Project), its advanced gold exploration project in Rio Grande do Sul state, Brazil
- $10 million in cash minus expenses spent on LDS before closing of the arrangement between Amarillo Gold and Hochschild Mining
- 2% net smelter return royalty over certain of Amarillo's exploration properties outside the Posse resource and mine plan at the Mara Rosa property in Goias State, Brazil (Mara Rosa Royalty).
At launch, LDS was anchored by the Butia Gold Deposit, which has gold resources of approximately 500,000 gold ounces. Two drills have been turning at LDS since mid 2021, targeting a total of 16,000 metres of drilling to the end of 2023. The company has identified at least 23 gold targets, including Butia and Cerrito, centred on historic gold workings on the 22,000-hectare LDS Project, but the current focus for drilling is on our Matilde, Matilde Extension, and Zeca Souza targets. A drone aeromagnetic survey was flown over the 40% of the property that had previously not been flown, covering 3,357-line kilometres, and the results of that survey are being compiled.
At the corporate level, the company completed a 10:1 share consolidation in June, tightening its capital structure to 41,103,869 common shares. Durose, an accomplished economic geologist and financial analyst, was appointed president and CEO. Paulo Serpa also joined Lavras Gold from Amarillo as country manager, bringing his extensive experience in governmental relations and permitting in Brazil.
The company also participated in two conferences during the quarter, launched a temporary website and social media channels.
The company added that COVID-19 has not had a material impact on its finances.
On July 27, 2022, the company said 907,500 stock options were granted to employees and consultants, priced at $0.35, vest over three years, and will expire on July 27, 2027.
Lavras Gold is focused on realizing the potential of the 22,000 hectare Lavras do Sul gold project in Brazil, which is believed to host an alkaline porphyry gold-copper system. More than 23 gold prospects centred on historic gold workings have been identified.
Contact the author at jon.hopkins@proactiveinvestors.com