Fazenda do Posto Discovery

Long 340-metre interval of continuous gold mineralization grading 1.09 g/t gold

Highlights

• Long, continuous bulk tonnage style of gold mineralization in intrusive-hosted gold system
• Hole drilled at new Fazenda do Posto target, located 150 metres west of Butiá Gold Deposit
• Blind gold discovery with no surface expression of mineralization opens up new exploration potential

Hole 23FP002 was collared on the Fazendo do Posto claim area, about 150 metres west of the Butiá Gold Deposit. The discovery of continuous bulk-tonnage disseminated style of gold mineralization in this intrusive-hosted gold system is remarkable.

While the entire 340 metre interval is gold mineralized, it is also very significant that there are long intervals of bulk-tonnage style higher-grade gold above 2 g/t. When some of the lower grade intervals are removed from this intercept, this hole returned 269 metres grading 1.35 g/t gold of mineralized material.

These higher-grade intervals suggest the hole may be tracking toward a feeder structure. Continued exploration will be required to confirm this.

This area was chosen as a drilling target after the Lavras geological team, when reviewing the data from Butiá, noticed there was a fault on its west side in an area of recessive topography. They hypothesized that there might be some alteration causing this topography, so—even though there was no surface expression of the gold mineralization — it was decided to drill there.

This latest discovery, open in all directions, is a potential game-changer for Lavras Gold.

The Butiá–Fazenda do Posto area is clearly developing as a priority focus for Lavras Gold. It also opens a whole new area for exploration under cover rock, which serves to mask the mineralization below, leaving it with no surface expression.

The two shorter term goals for Fazenda and the adjacent Butiá are:

• one: define the geometry and gold grade distribution of the Fazenda discovery and look for more blind discoveries
• two: test for extensions of the mineralized footprint of Butiá, which is open at depth and along strike.

Depending on the outcome of this work, we hope to move towards a preliminary economic assessment in the medium term.

Explore the following resources to learn more about this discovery