New Surface Gold At The LDS Project In Brazil

TORONTO - Assay results from maiden drilling on the Vila Marieta claim block suggest that Lavras Gold Corp. identified the southwest surface extension of its Cerrito Gold Deposit. Vila Marieta and Cerrito are among the 23 known gold targets on the company’s LDS Project in southern Brazil. At 1.30 g/t gold, the average gold grade from the surface mineralization is 85% higher than the average grade of Cerrito, which has NI 43-101 resources of approximately 500,000 ounces at an average grade of 0.7 g/t gold. So, these results demonstrate the potential for optimizing and enhancing the future mine plan for the deposit.

“This is a significant discovery of new gold mineralization at LDS,” said Michael Durose, President and CEO. “We have always believed that we could improve the overall quality of Cerrito, and these results potentially show that.”

These two holes confirm gold mineralization starts at surface and is interpreted to dip to the northwest. Gold mineralization is associated with 1 to 2 per cent very fine grain disseminated pyrite hosted within pervasively altered granodiorite. Alteration includes sericite, chlorite and silica cross-cut by mm-scale quartz-carbonate veinlets. Pinkish-orange potassic alteration is observed to develop at depth. It is significant that the gold grade returned from 22VM001, averaging 1.30 g/t gold and beginning at surface to 28.00 meters, is 85% higher than the average grade of the Cerrito Gold Deposit. This has important positive implications for optimizing future potential open pit mining scenarios since higher-grade surface mineralized material would ideally be mined first. Equally important is that gold mineralization found at Vila Marieta remains open to the south and southeast as defined by surface gold in soil anomalism.

Exploration continues at the LDS Project. Historical information is being reinterpreted, a regional soil sampling program is on-going, and a 16,000-meter drilling program with two drills on site continues to probe priority targets. Future exploration results will be released after being reviewed and interpreted by the geological team.