Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

November 01, 2011 09:26 ET

Lago Dourado Discovers New Gold Zone; Intercepts 20 Metres of 1.28 g/t Gold and 4 Metres of 6.67 g/t Gold at Jacare's Field, Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2011) - Tuesday, November 1, 2011 – Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce that it has discovered a new gold zone, the Jacare's Field Zone, at its Juruena Project in Mato Grosso, Brazil. Results for the first eight holes drilled from two lines 400m apart at the previously untested Jacare's Field Zone are summarized in Table 1 below. Highlights include:

  • Hole JRND026 intercepted 48 metres of 0.70 g/t gold including 4 metres of 6.67 g/t gold (and 33.69 g/t silver);
  • Hole JRND034 intercepted 1 metre of 21.90 g/t gold (4.83 g/t silver) and 20 metres of 1.28 g/t gold including 1 metre of 12.60 g/t gold (39.54 g/t silver).

The Jacare's Field Zone is a 1km by 1.4km gold-in-soil anomaly (average 180 ppb gold) located 2km to the south of the previously drilled Crentes Zone and 2km south-west of the previously drilled Querosene Zone. All three zones cover an area of approximately 1.5km by 1.5km and are all located within the massive sub-circular gold-in-soil anomaly at Juruena that spans more than 10 sq km (see Figure A). Drilling to date at Jacare's Field has been concentrated across two separate drill lines, 400m apart with 100m between each drill hole (see Figure B), with the deepest mineralization encountered over 200m vertically below surface. The mineralized zone remains open in all directions and at depth.

Mineralization is contained within new host units (microgranite and porphyritic granite) not previously intersected at Crentes or Querosene. The mineralization style consists of broad zones of disseminated sulfides and fracture filling, zones of massive sulfides with high gold and silver grades and narrow zones of intense quartz – sericite – pyrite alteration containing good gold grades. Abundant magnetite was also intersected in numerous holes, indicating that rocks formed from an oxidised magmatic system; such systems are known to host large porphyry bodies elsewhere in the world.

The Company is approximately two-thirds of the way through its planned 15,000m Phase I campaign, with an estimated 20 holes still to be drilled. Both rigs continue to test the Jacare's Field Zone. Once this is complete, the drilling will be concentrated on the Uiliam Pit and the Tomate Zone. The Uiliam Pit was recently dewatered exposing a gossanous outcrop and broad zone (15-20m) of massive sulfide veins. The Tomate Zone is an extensive artisanal pit (250 metres long and up to 50 metres wide at its widest point) in the central part of the mineralized footprint. Two grab samples from Tomate, taken as part of the Company's October 2010 Technical Report, returned assays of >100 g/t Au and 30.4 g/t Au.

"Jacare's Field is an important discovery for the Company. Intercepting another different style of mineralization, this time within a different host environment, indicates that multiple mineralizing pulses have occurred at Juruena producing multiple gold zones over several hundred metres to kilometres in strike. This confirms our understanding of the potential for a major mineralized system to exist at Juruena," commented Forbes Gemmell, CEO.

Table 1 – Jacare' Field Assay Result Summary:

Hole Number From (m) To (m) *Length (m) Au g/t Ag g/t
JRND014 No significant mineralization
JRND021 40 42 2 0.03 >100
JRND024 36 58 22 Not significant 8.56
JRND026 173 221 48 0.70 3.10
including 177 181 4 6.67 33.69
JRND032 143 153 10 1.26 3.07
278 287 9 0.38 0.64
JRND033 54 74 20 0.45 0.59
JRND034 169 170 1 21.90 4.83
287 298 11 0.42 0.19
328 348 20 1.28 3.06
including 329 330 1 12.60 39.54
JRND037 136 166 30 0.40 0.92
220 230 10 0.53 1.28
*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 10 square kilometres of the property, and at least 0.5 million 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 are now being drill tested with a Phase 1 drill campaign expected to continue through to the end of 2011. Large portions of the 70 sq. km property remain largely untested. The Company currently has 71.3 million shares outstanding.

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.

To view the first figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/LDMFigureA.pdf.

To view the second figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/LDMFigureB.pdf.

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 or 1-855-368-5005

    Lago Dourado Minerals Ltd.
    Natasha Blackburn
    Corporate Development
    (416) 368-5005 or 1-855-368-5005
    investor@lagodourado.com
    www.lagodourado.com