Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

July 21, 2011 08:00 ET

Lago Dourado Discovers High-Grade Gold Zone at Juruena Project, Brazil; Intercepts 4m of 32.5 g/t and 2m of 47.1 g/t Gold

TORONTO, ONTARIO--(Marketwire - July 21, 2011) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce the discovery of a high-grade gold zone at its 100%-owned Juruena Gold Project in Mato Grasso, Brazil. Results for the first 6 of 9 holes drilled at the previously untested Querosene Zone are summarized in Table 1 below. Highlights include:

  • Hole JRND018 which intercepted 4 metres of 32.46 g/t gold, including 1 metre of 120.80 g/t gold and 3 metres of 20.32 g/t gold including 1 metre of 58.20 g/t gold;
  • Hole JRND020 which intercepted 1 metre of 62.20 g/t gold;
  • Hole JRND022 which intercepted 2 metres of 47.10 g/t gold including 1 metre of 80.70 g/t gold.

The Querosene Zone lies 1500 metres east along trend of a magnetic low corridor from the Crentes Zone, where broad zones of mineralization were intercepted earlier in the drill program (see news releases May 11 and June 2, 2011). Mineralization intercepted at Querosene consists of narrow, discrete intervals of massive sulphide veins associated with shear zones and fractures. The controls and deposition at Querosene are different to what is found at the Crentes Zone (sulphide-rich stockwork quartz veins, hydrothermal breccias, shear zone-hosted and disseminated sulphides), which could suggest there have been multiple episodes of mineralization at Juruena.

The most impressive intercepts reported to date at Querosene were located on the southernmost (JRND018) and westernmost (JRND022) holes (see Figure A: http://media3.marketwire.com/docs/figalago.pdf). The gold-in-soil anomaly continues 2km south of hole JRND018 to the Capixaba Zone, a zone that was drilled historically and returned similar narrow, high-grade intercepts (including 3.7 m of 131.3g/t gold) to what has been encountered at Querosene (see Figure B: http://media3.marketwire.com/docs/figblago.jpg). Assay results for two holes drilled further west of hole JRND022 along the magnetic low corridor are pending.

Table 1 – Assay Result Summary
Hole # From To Length (m) Au g/t
JRND015 No significant mineralization
JRND016 No significant mineralization
JRND018 65.0 69.0 4.0 32.46
Including 65.0 66.0 1.0 120.80
136.0 139.0 3.0 20.32
Including 137.0 138.0 1.0 58.20
JRND019 No significant mineralization
JRND020 122.0 123.0 1.0 62.20
JRND022 69.0 71.0 2.0 47.10
Including 69.0 70.0 1.0 80.70
*Intervals do not necessarily indicate true widths

"We are very encouraged with the discovery of a high-grade gold zone at depth at the Querosene target. The discovery demonstrates the variety and extent of the gold mineralization that is present across wide spread areas and in different geological settings at the Juruena project," said Forbes Gemmell, President and CEO.

Assays are pending for three additional drill holes from Querosene. The Company is now drill-testing the Jacare Field and the Noventa Graus target areas. Two diamond drills are in operation; 4 holes have been completed to date at the Jacare Field target and 4 holes at the Noventa Graus target.

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. (TSX VENTURE:LDM) is a Canadian mineral exploration company focused on advancing its 100%-owned Juruena gold project in the state of Mato Grosso, Brazil. The largely untested property hosts extensive gold mineralization identified over 10 square kilometres, and at least 0.5 million oz of gold has been mined from surface workings. An expanded phase I drill campaign is currently underway and is expected to continue throughout 2011. The Company currently has 71.3 million shares outstanding.

For further information 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.

Contact Information

  • Lago Dourado Minerals Ltd.
    Forbes Gemmell
    President and Chief Executive Officer
    (416) 368-5005

    Lago Dourado Minerals Ltd.
    Natasha Blackburn
    Corporate Development
    (416) 368-5005
    investor@lagodourado.com