Lago Dourado Minerals Ltd.

Lago Dourado Minerals Ltd.

April 26, 2012 09:14 ET

Lago Dourado Commences 12,000 Metre Phase 2 Drill Program to Test Highly Prospective Targets Identified in Successful 2011 Exploration Program at Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - April 26, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to provide an exploration update at its flagship, 100%-owned Juruena Project located in Mato Grosso, Brazil. Highlights include:

  • 15,000 metre Phase 1 drill program completed in March 2012 resulted in the discovery of four new mineralized zones all with resource potential and the extension of two known mineralized zones that had been drilled historically. Final assay results from the program are outlined below.

  • More significantly, the Phase 1 drill program, along with recent detailed geological mapping and multi-element soil sampling, suggests Juruena belongs to a class of gold-rich porphyry systems, a shift from the original intrusion-related geological model. The implications of this are very positive for the size potential of the mineralized system.

  • 12,000 metre Phase 2 drill program has now commenced; high priority targets are the two main porphyry targets, Arrastro Hills and South Mag, both of which have not been previously drill tested, and the Uiliam Zone (216 metres of 0.55g/t Au intercepted in Phase 1 drilling).

  • Gradient IP survey has commenced and will focus on the two main porphyry targets (Arrastro Hills and South Mag), the main high-sulfidation target (Crentes area) as well as the central area of the main gold-in-soil anomaly (Uiliam).

Porphyry-epithermal geological model

A critical, new and important development resulting from exploration work over the last 12 months has been the recognition that Juruena potentially belongs to a class of gold-rich porphyry systems, a shift from the original intrusion-related gold system model. Based on global comparisons between these two deposit styles, this has very positive implications for the size potential of the Juruena deposit. The critical components that support this porphyry-epithermal geological model at Juruena are:

  • Giant (+15 sq km), ovoid mineralized footprint as defined by artisanal bedrock workings, Phase 1 drill results and gold-in-soil anomalies.

  • Zoned multi-element (Au, Cu, Mo, Bi Ag, Te, Hg) geochemical anomalies.

  • Pervasive, widespread and variable alteration types.

  • Epithermal and porphyry styles of mineralization and metal associations (high-grade quartz veins, stockworks, breccias and disseminated sulfides).

Two major intrusions have recently been identified at Juruena that both have classic porphyry signatures: Arrastro Hills, a mineralized felsic intrusion situated adjacent to the high-sulfidation epithermal Crentes Zone, and South Mag, a major magnetic body anomalous in Cu, Zn, Pb, Ag and Fe. Neither of these targets has been tested in previous drilling campaigns by Lago Dourado or previous companies. The Company has recently commenced an IP survey, a critical exploration tool for porphyry deposits, which will initially target Arrastro Hills before focusing on the central part of the gold-in-soil anomaly (including Crentes and Uiliam) and the South Mag Zone.

Phase 2 drill program

The Company has recently initiated a 12,000 metre Phase 2 drill program consisting of 4,000 metres of RC drilling and 8,000 metres of diamond drilling. There is currently an RC rig and diamond rig turning on the property. The three high priority targets to be tested in the Phase 2 drill program are:

  1. Arrastro Hills porphyry target - the main area of focus is Arrastro SE, a 1.5km by 0.5km anomaly containing Au, Bi, Mo and Cu that is coincident in part with a large circular sulfur in soil anomaly. RC drilling is underway at this target and diamond drilling will commence upon the completion of the IP survey (most likely at the start of the third quarter of 2012).

  2. Uiliam Zone - Phase 1 drilling intercepted 216 metres at 0.55g/t Au. The zone had an estimated true width of 165 metres and was mineralized throughout. Follow up drilling in 2012 will focus on determining the orientation of this zone as well as testing the prominent structural jog that extends north-east to the Crentes Zone. Diamond drilling is underway at this target.

  3. South Mag porphyry target - Phase 1 diamond drilling adjacent to the South Mag zone encountered potentially strong hydrothermal argillic alteration in the top 80 metres of the hole. Recent multi-element soil geochemical sampling has identified anomalous Cu, Zn, Pb, Ag, Fe and S that corresponds with an underlying large and well defined magnetic body within the Noventa Graus volcanic rocks. Diamond drilling will commence after the IP survey is complete (Q3 2012).

Phase 1 drill results

The Company's 15,000 metre Phase 1 drill program was recently completed. Highlights of the drill campaign were as follows:

  • Discovery of the high-grade Querosene zone, a 400 metre long mineralized structure that remains open at depth and along strike (the southernmost hole intercepted 4 metres of 32.50g/t Au and 3 metres of 20.30g/t Au) and that has an average width of 1-2 metres at an average grade of between 16 and 21g/t. All mineralization to date has been intercepted close to surface (less than 150 metres vertical depth).

  • Confirmation of resource potential at the Crentes Zone. Drilling at Crentes returned several intercepts that were typical of high-sulfidation epithermal zones, including 57 metres of 1.39g/t Au, 1.77g/t Ag and 0.35% Cu and 46 metres of 1.10g/t Au, 3.15g/t Ag and 0.33% Cu. This zone is not closed off and is limited by drilling only.

  • Discovery of the Uiliam zone: the first hole at Uiliam returned 216 metres of 0.55g/t Au. The metal associations, the mafic-associated intrusions and the style and intensity of sulfide mineralization indicate that the mineralized body belongs to a deep-seated magmatic source whose shape and size will require further drilling to define.

  • Discovery of the Jacare's field mineralization and the Gleba trend fault-zone: 17 holes were drilled in two 400 metre spaced lines over the broad 1 x 1 km circular high grade soil anomaly known as Jacare's field. Over 90% of holes intersected mineralization of varying gold grades and thickness. Best results included 4 metres at 6.67g/t Au and 33.70g/t Ag, 21 metres at 1.35g/t Au and 15 metres at 2.03g/t. All mineralized zones are open along strike and down dip.

Final assay results have now been received for the remainder of the holes drilled in the Phase 1 drill campaign and are summarized in the table below and in Figure A. Highlights include:

  • Discovery of the Tomate zone: hole JRND050, which targeted mineralization below significant garimpeiro workings, intersected 7.5 metres at 6.30g/t Au and 8.04g/t Ag. Importantly, mineralization occurs along a clearly defined structure that, due to its proximity to Uiliam and Crentes, provides an additional new zone of resource potential.

  • Extension of mineralized footprint to Capixaba South zone: hole JRND048 intercepted 7 metres at 2.15g/t Au and 5.78g/t Ag. Mineralization at Capixaba may be associated with the far south-eastern extension of the Gleba Fault, a mineralized fault that extends more than 2km to the Uiliam zone.

Table 1 - Juruena Assay Result Summary:

Hole Number Zone From
JRND036 Jacare's Field 108 116 8 2.00 5.54
132 133 1 1.90 5.57
261 276 15 0.95 0.75
JRND038 Jacare's Field 78 85 7 0.38 0.57
135 138 3 2.03 4.28
246 255 9 0.51 1.30
291 292 1 1.54 3.04
JRND044 Jacare's Field 6 30 24 0.39 0.21
JRND045 Jacare's Field 2 43 41 0.39 0.14
57 58 1 1.23 1.90
94 97 3 1.14 1.97
128 129 1 2.03 4.81
JRND047 Jacare's Field 0 6 6 0.44 0.15
JRND048 Capixaba 183 190 7 2.15 5.78
204 207 3 0.78 6.69
JRND049 Capixaba North 127.5 129 1.5 1.64 3.34
JRND050 Tomate 128.2 135.7 7.5 6.30 8.04
including 128.2 129.9 1.7 20.40 20.14
JRND051 Crentes East 8 14 6 1.41 0.20
JRND053 Crentes East No significant mineralization
JRND052 Chico No significant mineralization
JRND054 Crentes West 86.8 126 39.2 0.28 0.77 0.11
JRND055 Crentes West No significant mineralization
JRND056 Uiliam Step-out 62 68 6 0.71 1.39
466 472 6 0.97 1.73
JRND057 Uiliam Step-out No significant mineralization
*Intervals do not necessarily indicate true widths.

Qualified Person

Murray Paterson, P.Geo, Vice President Exploration and Development for Lago Dourado Minerals Ltd, is the Qualified Person, within the meaning of NI 43-101,who reviewed the technical data in this news release. Samples were fire assayed by Acme Analytical Laboratories S.A. in Santiago, Chile.

About the Company:

Lago Dourado Minerals Ltd. is a Canadian mineral exploration company focused on advancing its 100%-owned Juruena gold project in the state of Mato Grosso, Brazil. Extensive gold mineralization has been identified over 15 square kilometres of the property, and at least 450,000 oz of gold has been mined from surface workings. The Company has conducted systematic exploration programs over portions of the property and priority target areas will be drill tested with a Phase 2 drill campaign that is expected to be ongoing through 2012.

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Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although Lago Dourado believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Lago Dourado's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Lago Dourado does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

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