Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

November 29, 2012 08:00 ET

Lago Dourado Completes Successful Reconnaissance-Style RC Drill Program at Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce the remaining assay results for the recently completed reconnaissance-style RC drill program completed on its flagship 100%-owned Juruena Project located in Mato Grosso, Brazil. The 6,000 metre program was successful in identifying two new near-surface highly mineralized zones that returned gram-metre intercepts greater than 50 (Tomate and Mauro) and also resulted in numerous encouraging intercepts with gram-metres greater than 20 at an additional three zones (Donna Maria, Chico and Noventa Graus). Follow up diamond drilling at these zones, as well as the central IP anomaly, is currently underway through an 8,000 metre diamond drill program. Initial assay results from this program are expected to be received in early 2013 (see Figure A for a plan map of the project with highlight intercepts).

To view Figure A, please visit the following link: http://media3.marketwire.com/docs/837859FIGA.jpg.

"We have been very pleased with the RC drill campaign. RC drilling has proven to be a very cost-effective tool in exploring the giant gold-in-soil anomaly and near-surface expressions of geophysical targets at Juruena. It was very successful in identifying new mineralized zones and furthering our geological understanding of the area. We now look forward to drilling deep diamond holes to test the central IP anomaly as well as testing known existing zones at depth as we look to demonstrate the overall system potential at Juruena," commented Forbes Gemmell, CEO.

Highlights from the last set of assay results from the RC drill campaign include:

  • JRNRC089 drilled at the Tomate Zone intercepted 46 metres of 0.77g/t gold from surface and ended in mineralization. This hole was drilled 240 metres to the north of hole JRNRC032 (see September 6, 2012 press release) which returned 59 metres of 2.22g/t gold. Drilling at Tomate has demonstrated a potential strike length of this zone of approximately 800 metres.

  • JRNRC081 intercepted 26 metres of 1.00g/t gold from surface at the Chico Zone. This hole was drilled to follow up an intercept of 9.7 metres of 2.43g/t gold from auger drilling and the associated Au-Cu silica breccia zone intersected in Phase 1 diamond drilling. The Chico target lies directly along strike of Crentes on the Juruena Fault and is associated with a circular and prominent magnetic low feature. The Au-Cu mineralization at Chico is potentially related to the same Au-Cu mineralized body at the eastern end of Crentes, 700 metres along strike.

  • JRNRC077 intercepted 25 metres of 1.01g/t gold at the northern end of the Noventa Graus soil anomaly. This intercept provides the company with significant upside to expand the mineral resource potential at Juruena as it successfully proves the existence of potentially economic zones of mineralization within the volcanic rocks in the south of the property (Noventa Graus and South Mag). The source of the mineralization and its relation to the known mineralized zones hosted in the granites to the north is not yet known.

Tomate Zone

Step out holes from JRNRC032 (59 metres of 2.22g/t gold) all intercepted short to broad zones of near-surface lower-grade mineralization. Highlight intercepts from these holes include 46 metres of 0.77g/t gold and 31 metres of 0.66g/t gold. The strike length of the Tomate Zone is approximately 800m and intersects Crentes to the north while possibly terminating in the south at the Gleba Fault. The Tomate Zone remains open at depth, with five of the 14 RC drill holes ending in mineralization. Mineralization at Tomate is associated with a porphyry intrusive unit (disseminated sulfides) and zones of intense hydrothermal activity (fracture fill). The Tomate Zone is located on the eastern margins of the central IP anomaly and was only previously intersected by hole JRND050 which intersected narrower, but higher grade, mineralization (7.5 metres of 6.30g/t gold).

Central IP Anomaly

Seven shallow holes (average depth of 70 metres) were drilled above the central IP anomaly. None of these holes reached the depth of the IP anomaly and none returned economic zones of mineralization however, highly anomalous zones of Au-Cu-Mo mineralisation were intercepted. Deep diamond drilling to test whether this mineralization is related to a porphyry intrusive body at depth, coincident with the IP anomaly, is currently underway.

Noventa Graus

Four short holes were drilled at Noventa Graus as part of the RC drilling program, with three of these drilled above or adjacent to South Mag, an ovoid magnetic high that corresponds with multi-element geochemical anomalies. Two of the three holes intersected a fine grain mafic intrusive unit while the third intersected the breccia zone within the felsic volcanic rocks at the southern margin of the South Mag anomaly. The fourth hole, JRNRC077, intersected a highly mineralized zone of 25m @ 1.01g/t gold within the felsic volcanic rocks at the northern end of the Noventa Graus gold-in-soil anomaly. The discovery of this mineralization within a new host environment is particularly encouraging as it provides further evidence there is potential for additional mineral resources within the volcanic sequence in the southern part of the property (Noventa Graus and South Mag).

Arrastro Hills

Nine RC holes were drilled to test the gold-in-soil, multi-element (Bi-Ag-As-Hg-Mo-Pb-Sb-Zn) and IP anomalies at Arrastro Hills within a 3.5 x 1.5km ovoid-shaped target area. Drilling encountered multiple rock types, consistent with a volcanic edifice that had been intruded by various intrusive bodies causing the massive alteration footprint defined by the radiometric survey and multi-element geochemistry. Whilst no significant mineralization was encountered, drill chips confirm that the holes were drilled high in a large hydrothermal system capable of hosting porphyry-epithermal related mineralization. Diamond holes will be required to fully evaluate the deeper porphyry-related mineralization potential at Arrastro Hills (see Figure B for an interpreted geological model of Arrastro Hills).

To view Figure B, please visit the following link: http://media3.marketwire.com/docs/837859FIGB.jpg.

Table 1 - RC Assay Result Summary

Hole Number

Zone

From

To
Length
(m)
Au
(g/t)
Ag
(g/t)
JRNRC069 Tomate 42 73 31 0.66 0.81
JRNRC071 Tomate 54 67 13 0.74 0.61
JRNRC072 Tomate 16 20 4 2.27 0.29
51 66 15 0.27 0.36
JRNRC073 Tomate 0 13 13 0.45 0.05
43 68 25 0.53 0.63
77 94 17 0.39 0.44
JRNRC074 Tomate 0 16 16 0.29 0.21
JRNRC075 Tomate 0 23 23 0.42 0.05
40 52 12 0.26 0.26
JRNRC084 Tomate 57 77 20 0.20 0.29
88 89 1 2.54 10.02
JRNRC085 Tomate 41 81 40 0.44 1.22
JRNRC086 Tomate 0 5 5 0.39 nsm
40 42 2 1.21 0.26
JRNRC087 Tomate No significant mineralization
JRNRC088 Tomate 0 20 20 0.39 0.10
JRNRC089 Tomate 0 46 46 0.77 0.41
33 43 10 1.52 0.96
JRNRC059 Mauro 34 37 3 0.54 0.25
59 69 10 0.25 0.12
JRNRC060 Mauro 0 27 27 0.52 1.82
59 63 4 1.19 4.12
JRNRC090 Mauro 29 41 12 1.24 2.68
JRNRC056 Chico No significant mineralization
JRNRC067 Chico No significant mineralization
JRNRC081 Chico 0 26 26 1.00 0.88
including 17 18 1 12.90 1.45
57 59 2 2.04 tba
78 79 1 1.15 tba
JRNRC058 Uiliam 39 40 1 1.59 0.91
72 75 3 0.92 1.75
JRNRC061 Uiliam 19 21 2 1.32 0.31
JRNRC062 Uiliam 22 24 2 3.16 0.46
34 35 1 2.57 1.87
JRNRC077 Noventa Graus 0 5 5 0.45 tba
20 45 25 1.01 tba
JRNRC078 Noventa Graus No significant mineralization
JRNRC079 Noventa Graus No significant mineralization
JRNRC080 Noventa Graus No significant mineralization
Note - Intervals are based on a bottom cut-off of 0.15g/t gold and 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.

For further information about the company, please visit www.lagodourado.com or www.sedar.com.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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