Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

June 07, 2012 09:07 ET

Lago Dourado Intercepts 21 Metres of 1.24 g/t Gold Including 11 Metres of 2.14 g/t Gold at its Jauru Project, Brazil

TORONTO, ONTARIO--(Marketwire - June 7, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce additional assay results from its 1,600-metre Phase 1 drill program at its Jauru Project, located in Mato Grosso, Brazil. Results for the remaining 6 of 14 holes drilled at the J6 area are summarized in Table 1 below. Highlights include:

  • Hole JAUD012 which intercepted 21 metres of 1.24 g/t gold including 11 metres of 2.14 g/t gold;

  • Hole JAUD013 which intercepted 3 metres of 2.20 g/t gold.

The Jauru Project is an orogenic gold system located in a gold-rich granite-greenstone belt in the south of Mato Grosso with access to excellent infrastructure including a paved highway and high voltage electricity in a mining friendly region. The Company has recently completed a 14-hole 1,600-metre Phase I diamond drill program. All the drill holes were relatively shallow (less than 150 vertical metres) and were drilled at a dip of -55 degrees. An airborne magnetics and radiometric survey and extensive soil sampling program were completed prior to drilling.

The Phase I drill program at Jauru was focused on the J6 area, which is made up of two separate mineralized zones as defined by gold-in-soil anomalies (J6A and J6B/C - see Figure A). At the J6A Zone mineralization was intercepted close to surface in shear zones within the granite along a strike length of approximately 1.5km. Hole JAUD012 intercepted mineralization subparallel to hole JAUD010 (43 metres of 1.67g/t gold) confirming the potential for mineralization at J6A to occur across multiple parallel zones. This has been reconfirmed by soil and grab samples to the east of hole JAUD012 returning anomalous results. The orogenic nature of the deposit suggests there is good potential for depth continuity. Gold mineralogy is also relatively simple with mineralization associated with quartz - pyrite - carbonate veins within an altered (sericite - pyrite) schistose host rock.

Future work at the J6 area will likely consist of trenching and RAB drilling with both being cost effective exploration tools that should give a much clearer picture of strike continuity and the width extent of the mineralized shear zones. Regional exploration consisting of soil and grab sampling will continue and be focused on identifying mineralisation within a banded iron formation rich unit that lies along strike of the same gold-rich structure controlling mineralisation at J6B & C. This area was recently identified as the most prospective within the Jauru licenses from a regional geophysical interpretation study.

Table 1 - Jauru Assay Result Summary:

Hole Number From
(m)
To
(m)
Length*
(m)
Au
(g/t)
JAUD004 No significant mineralization
JAUD008 No significant mineralization
JAUD011 83 86 3 0.52
JAUD012 30 51 21 1.24
including 38 49 11 2.14
JAUD013 0 1 1 1.04
16 19 3 2.20
JAUD014 64 70 6 0.39
*Intervals do not necessarily indicate true widths.

Historical artisanal activity resulted in the excavation of two small pits at J6A and J6B. The project was also subject to an 80-hole drill program in 1988 by BP Mineração Ltda that returned intercepts of 12 metres of 14.65 g/t gold and 11 metres of 11.35 g/t gold from the J6A Zone.

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 for the two years ending August 2013. 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 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.

To view a map of the Jauru Property, please visit the following link: http://media3.marketwire.com/docs/jauru_property.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.

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