Fourth New Gold Discovery At The LDS Project

TORONTO - Lavras Gold Corp. has made another new gold discovery at its LDS Project in southern Brazil. The gold mineralization discovered at the Galvao target is significant because it has long intervals with bonanza grade subintervals in some cases. This is the first time that Galvao has been drill-tested, and the results show that this important new gold system has an intermittent north-south strike extent of at least 450 meters. The mineralization, which has been found to a vertical depth of 461 meters, is hosted by perthitic granite in zones of hydrothermal breccia.

The Galvao discovery is the fourth new discovery made by the Company since launching a little over a year ago. There are now seven advanced mineral deposits/exploration discoveries at LDS: Butia, Caneleira, Cerrito/Vila Marieta, Galvao, Matilde, Matilde Extension, and Zeca Souza. All of these remain open at depth and along strike. Some, like Cerrito/Vila Marieta, may even be connected.

“The mineralization discovered at Galvao appears to be the southern extension of the Zeca Souza discovery,” said Michael Durose, President and Chief Executive Officer. “Importantly, mineralization has been found at a vertical depth as deep as 461 meters, which shows that the depth potential of the gold system at LDS is quite significant. Galvao remains open along strike and at depth.”

One of 23 known gold targets at LDS, Galvao is located immediately south of the Zeca Souza target. Assay results from Zeca Souza featured visible gold, bonanza gold grades near surface like 28.2 g/t over 3 meters, and long intervals like 36.40 meters at 0.47 g/t gold.

Similarly, the Galvao assay results are typical of the style of mineralization found at LDS. The results are characterized by large intervals of moderate gold grade accentuated by higher grade intervals.

The highlight of the drilling was a long, higher-grade interval from 22BT002 that had returned sub-intervals of bonanza grade gold: 10 meters at 4.63 g/t gold from 532.00 meters (vertical depth of 461.00 meters), including 3.00 meters at 11.70 g/t gold from 532.00 meters including 1.00 meter at 22.40 g/t gold from 534.00 meters.

Galvao is a new gold discovery based on a target generated by following up on old surface workings, trenches, and a gold-in-soil anomaly. It is located immediately south of the Zeca Souza discovery, and approximately 1.4 kilometers north of the Butiá Gold Deposit. The Galvao target was tested by two drill holes that were drilled from north to south. Long intervals of gold mineralization have been traced intermittently over 450 meters of strike length in a north-south direction. Figure 4 illustrates an east-facing cross-section highlighting the gold mineralized zones at Galvao.

Gold is usually associated with fine grain disseminated pyrite and sulphide minerals associated with dark green to black chlorite-silica veinlets that occur in the matrix to altered perthitic granite hydrothermal breccia. Sphalerite and galena are locally observed. Visible gold has also been identified in cross-cutting silicified zones in drill hold 22BT001. An important result from drillhole 22BT-002 is a high-grade interval of 10 meters grading 4.63 g/t gold at 532.00 meters down the drill core and at a vertical distance of 461.00 meters where mineralization remains open. This hole highlights the high-grade nature and vertical potential of the mineral system at depth.