Lago Dourado Minerals Ltd.

Lago Dourado Minerals Ltd.

April 18, 2012 09:07 ET

Lago Dourado Intercepts 43 Metres of 1.67 g/t Gold and 10 Metres of 9.82 g/t Gold in Initial Drill Holes at Its Jauru Project, Brazil

TORONTO, ONTARIO--(Marketwire - April 18, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce initial assay results from its 1,600-metre Phase 1 drill program at its Jauru Project, located in Mato Grosso, Brazil. Results for the first 8 of 14 holes drilled at the J6 area are summarized in Table 1 below. Highlights include:

  • Hole JAUD010 which intercepted 43 metres of 1.67 g/t gold, including 15 metres of 2.28 g/t gold;

  • Hole JAUD007 which intercepted 1 metre of 92.60 g/t gold within a broader mineralized zone of 10m of 9.82 g/t gold;

  • Hole JAUD002 which intercepted 11 metres of 2.35 g/t gold including 2 metres of 11.19 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. The Company has recently completed a 14-hole 1,600-metre Phase I diamond drill program: assays are still pending for 6 holes. 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.

Drilling to date at Jauru has been 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). The mineralized zones occur proximal to geological and magnetic contact zones between granitic and volcanic rock units and are orientated subparallel to the dominant regional structural direction (NNW) in subtle structural jogs. Drilling was primarily focused on the J6A Zone, the stronger and more continuous gold-in-soil anomaly. Mineralization was intercepted close to surface along a strike length of approximately 2km. 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.

Higher grade and/or broader zones of mineralization within orogenic deposits are typically associated with geological contacts, localized dilational jogs or cross-cutting fault structures. Follow up surface trenching and geophysical techniques such as IP surveys will be valuable tools in providing a much clearer structural interpretation and helping to identify where these richer and broader zones of mineralization occur.

"We are very encouraged by the initial drill results at Jauru especially given the early stage nature of the project, the limited amount of data available and the modest size of the Phase I drill program. The results reinforced our geological model and we are optimistic that a better understanding of the structural controls will lead us to the more mineralized zones in the system," commented Forbes Gemmell, President & CEO.

Table 1 - Jauru Assay Result Summary:

Hole Number From
JAUD001 85 89 4 1.25
JAUD002 12 23 11 2.35
including 19 21 2 11.19
JAUD003 No significant mineralization
JAUD005 0 6 6 1.44
JAUD006 90 94 4 1.03
JAUD007 83 93 10 9.82
including 88 89 1 92.60
JAUD009 54 62 8 1.40
109 128 19 0.49
JAUD010 7 50 43 1.67
including 14 25 11 2.87
including 35 50 15 2.28
*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.

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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.

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