Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

December 07, 2011 06:00 ET

Lago Dourado Extends Jacare's Field Zone: Intercepts 21 Metres of 1.35 g/t Gold and 15 Metres of 2.30 g/t Gold in Step-Out Holes at Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2011) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM) (the "Company") is pleased to announce that it has extended the recently discovered Jacare's Field Zone 400m to the north and 400m to the west at its Juruena Project in Mato Grosso, Brazil. Results for an additional six holes drilled from three lines 400m apart at the Jacare's Field Zone are summarized in Table 1 below. Highlights include:

  • Hole JRND040 intercepted 21 metres of 1.35 g/t gold (2.43 g/t silver);
  • Hole JRND042 intercepted 23 metres of 1.02g/t gold (0.83 g/t silver);
  • Hole JRND043 intercepted 15 metres of 2.30 g/t gold (2.15 g/t silver), including 1 metre of 26.20 g/t gold (13.17 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 http://media3.marketwire.com/docs/ldm_figA.jpg). Drilling to date confirms the presence of broad low-grade mineralization throughout the entire Jacare's Field Zone (see Figure B http://media3.marketwire.com/docs/ldm_figB.jpg), with the deepest mineralization encountered over 200m vertically below surface. The various mineralized zones remain open in all directions and at depth.

The Company has now completed roughly 90% of its 15,000m Phase I campaign, with an estimated five holes still to be drilled. Drilling recently shifted from the Jacare's Field Zone to the Tomate and Uiliam pits. The Uiliam Pit was recently dewatered, exposing a gossanous outcrop and broad zone (15-20m) of massive sulfide veins. Hole JRND046, drilled underneath the Uiliam Pit, encountered a mafic dyke swarm from 272m to 468m. Veins predominantly containing sulfide mineralization in highly altered and mineralized porphyritic granite were encountered continually throughout this interval. The hole also intercepted a dark mafic rock displaying ocelli or globular textures. These preserved and zoned bubbles are between 5 - 30mm in size and contain sulfide, carbonate and a white feldspar. Ocelli or globules are formed during extreme depressurization during igneous rock crystallization, and are commonly associated with favourable metal precipitation, including gold. Assay results for hole JRND046 are expected to be received in early 2012.

The Company has also recently completed multi-element soil sampling and detailed geological mapping of the core area of the property. The soil sampling identified highly anomalous Cu-Au values to the west of Crentes. This area, known as Chico Carabina, is situated at the edge of a large mafic intrusion and at the intersection of two major mineralized faults, and is currently being drill tested. The soil sampling also identified a Cu-rich zone (2km by 1km) with associated Au to the northwest of the Crentes Zone (known as Arrastro SE). Within this Cu anomaly, there is a circular 500m by 500m core area that is rich in Fe and S. This zoning is consistent with the presence of an Au-Cu bearing porphyritic intrusion (porphyry), and, while further geochemical and geophysical work is required, this zone appears to be a significant new target for drill testing in the Phase 2 program. The Company has also recently commissioned a full mineralogical and petrological study to evaluate the composition of the minerals and rock types and their relationship to the underlying mineralizing system, to aid Phase 2 drill targeting. The Company expects to commence Phase 2 drilling by the end of the first quarter in 2012.

"The Phase I drill program has demonstrated the potential for Juruena to host large lower-grade porphyry-epithermal multi-element targets, with high-grade cores, rather than simply smaller, high-grade structural targets as per the initial geological interpretation. It is also worth noting that gold has been intersected in this preliminary drill program in approximately 70% of the drill holes and already multiple gold zones containing 10s to 100s metre thick intersections of disseminated Au, Au-Ag and Au-Ag-Cu mineralisation, have been identified. Moving forward, the recent geological mapping program and multielement geochemical survey indicated that there are large zones of anomalous Cu-Au-Mo-Fe-S that remain to be tested with the follow up drill program to be focused on both these exciting new Au-Cu targets and on extending the previously drilled targets," commented Forbes Gemmell, CEO.

Table 1 - Jacare's Field Assay Result Summary:
Hole Number From
(m)
To
(m)
Length*
(m)
Au
(g/t)
Ag
(g/t)
JRND035 34 38 4 0.67 0.33
185 189 4 0.73 0.85
203 207 4 0.62 1.36
JRND039 113 133 20 0.40 0.78
223 224 1 6.00 16.56
JRND040 89 110 21 1.35 2.43
including 107 108 1 10.10 17.86
JRND041 256 265 9 1.16 2.42
298 310 12 0.91 1.40
JRND042 62 85 23 1.02 0.83
including 107 108 1 10.10 17.86
174 185 11 0.44 0.11
JRND043 95 110 15 2.30 2.15
including 95 96 1 26.20 13.17
*Intervals do not necessarily indicate true widths.

Noventa Graus Target

Five holes have been drilled at the Noventa Graus target to the south of the Core Area. Noventa Graus is a relatively well-defined major gold-in-soil anomaly that extends for more than 4km long and is 700m wide and lies adjacent to a major intrusion to the south-east. Anomalous gold was intercepted in four of the five holes, including 14m of 0.44g/t in hole JRND017 (see Table 2 for further detail). This hole was closest to the large magnetic intrusion and intercepted intense hydrothermal alteration near surface. Recent multi-element geochemical work has identified anomalous Cu, Pb, Zn, Ag, Fe and S associated with this large magnetic body. Two to three holes are planned to initially test this target in the Phase 2 drill program in 2012.

Table 2 - Noventa Graus Assay Result Summary:
Hole Number From
(m)
To
(m)
Length*
(m)
Au
(g/t)
JRND017 174 188 14 0.44
JRND025 35 38 3 0.65
55 64 9 0.25
105 106 1 1.44
JRND029 73 76 3 0.74
94 96 2 0.69
JRND030 70 72 2 0.80
JRND031 No significant mineralization
*Intervals do not necessarily indicate true widths.

Jauru Project

The Company is also pleased to announce that drilling has commenced at its Jauru Project, also located in Mato Grosso, Brazil. Initial drilling will consist of a 1,200 metre program (approximately 10 - 12 holes) over the next few months. Initial holes will target the J6A Zone, a 2km long gold-in-soil anomaly that corresponds with a magnetic low corridor, as well as the contact zone between the two dominant geological rock units in the area (granite and volcanic rocks). The gold-in-soil anomalies correspond to structural jogs in the district, so are geologically robust. The Jauru Project is located in a proven gold region in the south of Mato Grosso, and has access to excellent infrastructure including a paved highway and electricity. The area is geologically under-explored, and has the potential to host gold-rich volcanic hosted massive sulfide (VMS) deposits and high-grade orogenic gold deposits.

The Company has an option agreement to earn a 70% interest in the Jauru Property by making option payments totaling US$800,000 and undertaking minimum expenditures of US$2.7million over the next two years. The next option payment of US$300,000 is due in August 2012. The total land package at Jauru subject to the option agreement is approximately 85,000 hectares.

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.

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