Lavras Gold Corp (TSX-V:LGC) has highlighted results confirming the discovery of two new mineral systems during drilling at its LDS Project in Brazil in the third quarter.
The new discoveries, Matilde and Zeca Souza, have broad zones of moderate grade gold mineralization that begin at surface and accentuated by narrower higher grade intervals, including ‘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,” Lavras Gold president and CEO Michael Durose said in a statement accompanying the third quarter to September 30, 2022 results.
READ: Lavras Gold discovers new gold deposit at its flagship Lavras do Sul project in Brazil
“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,” he added.
Lavras said two drills are turning at the ongoing 16,000-metre drill program at the LDS property, 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 during the quarter, while a regional soil sampling program is underway.
Zeca Souza
Lavras announced in September that drilling at Zeca Souza returned ‘bonanza’ gold grades, with one hole intersecting 15 metres (m) at a grade of 5.78 grams per ton (g/t) gold from a depth of 103m, including an intercept of 3m at 28.24 g/t gold from 115m.
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.
Lavras said Zeca Souza is an important new gold discovery that supports the thesis that there are many, possibly connected, gold deposits at LDS such as the reinterpretation of the relationship between Zeca Souza and Caneleira, another target located about 1 kilometre southwest, which suggests they may be connected.
Caneleira
A 2007-2008 drilling program defined a gold-bearing structure of over 800 metres at Caneleira. It returned near-surface gold grades across very good widths, including 36.1m grading 1.42 g/t gold about 60m below surface. A number of holes bottomed in mineralization.
Follow-up work needs to be done on a southeast-northwest trending gold-bearing structure associated with a magnetic low at Caneleira that trends toward Zeca Souza. A detailed soil sampling program is underway.
Matilde
At the Matilde target, drilling has discovered a new gold system, with mineralization that begins at surface over a strike length of at least 250m and down to a depth of 483m.
The deposit is open for expansion along strike and at depth.
Like Zeca Souza, drilling at Matilde also returned ‘bonanza’ grades, associated with visible gold. One hole intersected 0.60m grading 30.9 g/t gold from 261.0m and another hit 13.10 g/t gold over 0.66m from 419.34m.
Covid-10 impact and stock options
Lavras said it has been fortunate with respect to Covid-19. Although several employees have tested positive, they have all recovered. The pandemic has not had a material impact on the company’s financial condition or performance either.
During the quarter, the company granted 907,500 stock options priced at C$0.35 to employees and consultants. The options vest over three years, and expire on July 27, 2027.
Contact the author at jon.hopkins@proactiveinvestors.com