Lago Dourado Minerals Ltd.

Lago Dourado Minerals Ltd.

January 17, 2013 07:30 ET

Lago Dourado Discovers New High-Grade Zone; Intercepts 9 Metres of 15.4g/t Gold Including 1 Metre of 79.6g/t Gold at Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2013) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce the results from the initial five holes drilled in its Phase 2 diamond drill program at its 100%-owned Juruena Project located in Mato Grosso, Brazil. Four of the five holes were drilled to test the main IP anomaly, which was interpreted to be associated with a porphyry related intrusive (see Figure A: Of these holes, Hole JRND062 identified a new high grade structure within close proximity of the Uiliam Zone that returned an intercept of 9m @ 15.39g/t Au at a depth of 204m including 0.9m @ 79.60g/t Au and 1.3m @ 46.20g/t Au.

Forbes Gemmell, President & CEO, said, "This is a very encouraging result as the close proximity of this new structure to the deeper Uiliam and near-surface Mauro and Tomate mineralization zones increases the underlying resource potential at the Juruena central porphyry target. Drilling in this part of the property has now identified seven distinct mineralized zones with more than 20 intercepts with gram-metres greater than 50. In addition to these zones there is also considerable 'blue sky' potential at the previously untested Arrastro Hills porphyry target, an extensive preserved lithocap with multi-element zonation and an alteration assemblage typical of an underlying porphyry system. Drilling to test the Arrastro Hills porphyry target is expected to commence this week."

The remaining three holes drilled to test the main IP anomaly returned only anomalous gold intercepts. All the drilling completed to date in the central part of the property suggests that the main IP anomaly is associated with a deeply eroded porphyry. Under such a model mineralization is focused predominately along structures at the edges of the porphyry system (i.e. Tomate, Crentes and Mauro Zones) and further mineralization could be expected along these gold bearing structures and/or at depth. This concept is particularly encouraging for the Arrastro Hills target given the propensity for porphyries to occur in clusters and that the preserved lithocap (silica cap) at Arrastro Hills provides an excellent geological setting whereby a gold rich porphyry system can be preserved. This model is consistent with the conclusions drawn by Mr. Simon Meldrum, a consulting geologist with more than 30 years experience focused on porphyry-epithermal systems, following a six-day site visit in December 2012. Mr. Meldrum identified Arrastro Hills as the highest priority target on the property given the existence of an extensive lithocap represented by the extensive distribution and occurrence of clay and silica alteration, as well as the geochemical multi-element zonation emanating from the lithocap and its alteration signature, all of which are typical of porphyry deposits observed in other parts of the world by Mr. Meldrum. See Figures B ( and C ( for an interpreted cross-section and plan map of the Arrastro Hills target.

New Mineralized Structure - JRND062

The new high grade zone in hole JRND062 was intercepted at 204m depth (downhole) and is defined by a sulfide-rich, intensely altered, sheared and brecciated porphyritic granite containing graphite bearing shear plane surfaces along which visible gold occurs. The new high grade intercept is controlled by a low angle south dipping fault zone, which is the dominant dip direction of the major structures at Juruena. This structure represents a new target with excellent resource potential due to its strong and well-defined structural control, the presence of graphite (assists with deposition of high grade gold) and its close proximity to other massive gold-rich structures (Uiliam). The structure is untested along strike and at depth.

Drilling Update

Five drill holes (~2,000 metres) were completed prior to the year-end shutdown. Four holes tested the main IP anomaly as previously discussed while a fifth hole (JRND064) tested the depth continuity of the copper rich zone near-surface at Crentes. This hole did not intercept any meaningful mineralization. Approximately 6,000 metres is still to be drilled as part of the Company's Phase 2 drill program. Drilling for 2013 is expected to recommence this week with an initial five holes planned at Arrastro Hills.

Table 1 - Juruena Assay Result Summary:
Hole Number Zone From
JRND060 Tomate 82 113 31 0.65 0.88
158 159 1 1.45 1.91
JRND061 Uiliam No significant mineralization
JRND062 Uiliam 71 77 6 0.50 1.03
204 213 9 15.39 9.32
including 205 205.9 0.9 79.60 26.96
and 211.7 213 1.3 46.20 34.57
JRND063 Mauro 135 150 15 0.44 1.15
JRND064 Crentes 206 208 2 1.19
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 2013.

For further information about the company, please visit or

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 or 1-855-368-5005

    Lago Dourado Minerals Ltd.
    Martti Kangas
    Investor Relations
    (647) 521-9261