Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

April 06, 2011 08:30 ET

Lago Dourado Provides Update: Expands Phase I Drill Campaign at Juruena Gold Project, Appoints IR Consultant, Issues Options

TORONTO, ONTARIO--(Marketwire - April 6, 2011) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM) (the "Company") announced that it has expanded its Phase I drill campaign from 12,000 metres to 18,000 metres at its flagship Juruena Gold Project. The Company now has three drill rigs turning on the property following the recent addition of two new drill rigs. To date 13 diamond drill holes have been completed, representing approximately 2,600 metres. The program is expected to continue through the course of 2011 and will drill test a number of priority zones identified at the 70,000 hectare Juruena Gold Project. Drill core is being split and logged on site and shipped to Acme Analytical Laboratories for fire assaying.

Drilling is now complete in the Crentes target area, a mineralized zone that was drilled in the 1990s by previous operators. The primary purpose of these initial holes is to gain a better understanding of the characteristics of the mineralization and the local controls on gold distribution.

All three drill rigs are now testing previously untested targets (see attached drill plan map for additional detail). One rig is evaluating the Noventa Graus zone, a four kilometre-long gold-in-soil anomaly that coincides with the contact zone between the two dominant geological blocks in the area. High potassium anomalies and magnetic lows are also consistent with the gold-in-soil anomalies along this trend.

To see attached Drill Plan Map for additional details, please visit the following link: http://media3.marketwire.com/docs/LDM_drill_plan.pdf.

The other two rigs are targeting the Querosene pit and the Jacare pit, areas of extensive artisanal surface workings. At Querosene, drilling will target the prominent low magnetic structure which relates to a highly silicified and brecciated ridge that runs parallel and proximal to the Querosene pit. At Jacare, drilling will commence directly under the pit, where the objective is to evaluate the intersection of a fault zone and a highly fractured rhyodacite volcanic, positioned at the most north western point of the Noventa Graus trend.

In addition to disclosing the expanded drill program, the Company is pleased to announce that it has engaged the consulting services of Natasha Blackburn to assist with corporate development and investor relations activities. Ms. Blackburn has extensive public and private company experience and is skilled in corporate development and stakeholder relations. She has facilitated numerous financings, including an IPO, negotiated property option agreements, and has implemented numerous branding, marketing and investor relations programs. Since 2006, she has held senior positions with several TSX Venture issuers in the mineral exploration industry. Prior to that Natasha held a variety of manager positions at the Canadian Trading and Quotation System Inc. (CNQ), now CNSX Markets, where she played a key role cultivating investment dealer participation in the exchange from its inception through launch and eventual expansion to Vancouver. Before CNQ, Natasha provided investor relations services to several TSX and TSX Venture companies in a variety of industries while working with Hume, Kieran Inc. She holds a B.A. in Environmental Studies from Carleton University. Ms. Blackburn will be paid a monthly retainer of $5000 per month and has been granted 100,000 options to purchase common shares of the Company with an exercise price of $0.90. The options vest over an eighteen month period with a five year expiry.

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.

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 and at least 0.5 million oz of gold has been mined from surface workings over 10 square kilometres of the property, which remains largely untested. An expanded phase I drill campaign (18,000 metres) is currently underway and is expected to continue throughout 2011. The Company currently has 60.6 million shares outstanding.

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