TORONTO, ONTARIO--(Marketwire - Nov 7, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce the results from two follow up drill holes at the Uiliam zone at its flagship, 100%-owned Juruena Project located in Mato Grosso, Brazil. These additional drill holes, drilled prior to the temporary break in the Company''s Phase 2 diamond drill campaign which recommenced last month, confirm the presence of a broad and persistently mineralized zone at Uiliam. It is also interpreted that Uiliam is related to near-surface zones identified in recent RC drilling which would suggest the down dip continuity of this large mineralized body is greater than 700m. Key points of note are outlined below and relevant figures can be found at the following link: http://media3.marketwire.com/docs/LDMFigs1107.pdf.
- JRND059 intercepted 158m @ 0.59g/t Au from a vertical depth of 250m. JRND059 was drilled as a scissor hole to test the thickness and orientation of the mineralization intercepted in hole JRND046 (216m @ 0.55g/t Au).
- It is interpreted that near-surface mineralization at the Mauro and Mauro West zones is related to the mineralized body at depth at Uiliam. This would suggest that the vertical extent of this mineralized body is approximately 300m and the down dip continuity is greater than 700m. Whilst further drill testing is required to confirm this, this is an important step in defining a sizeable mineral resource associated with this mineralized zone.
- Lamprophyre dykes have now been observed in all three drill holes at the Uiliam Zone implying gold mineralization at Juruena is associated with exceptionally deep-seated magmatism.
- The mineralized body has metal associations consistent with those reported elsewhere within the project with strong Au-Ag-Te correlations and lesser Mo, Bi & Cu present. This is consistent with the porphyry model of mineralization driving the system.
Current drilling in the 8,000m Phase 2 diamond drill program is focused on the new porphyry target, a large, round chargeability anomaly with coincident porphyry and epithermal multi-element soil anomalies. Phase 2 drilling will also test the Arrastro Hills porphyry/epithermal target as well as the Crentes/Donna Maria Zone at depth. The Crentes/Donna Maria Zone has already returned 13 intercepts with gram-metres greater than 50 and has been the only zone tested to date that has returned meaningful copper intercepts (57m @ 0.35% Cu & 1.39g/t Au). This zone has not been previously drill tested at depth (>250m). The 6,000m reconnaissance-style RC drill campaign is now complete. Drill results will be released once final assay results have been received.
Two diamond holes (JRND058 and JRND059) were drilled at Uiliam targeting the mineralized body intercepted in JRND046 (216m @ 0.55g/t Au). The interpretation from these drill results, along with RC drill results at surface, is that mineralization at Uiliam is comprised of three different zones as outlined below:
- The breccia contact zone between the two main rock units, the porphyritic granite and the microgranite. This contact zone was intercepted in all three diamond holes at depth and returned the following intercepts: 13m @ 2.58g/t Au in JRND046, 24m @ 0.65g/t Au in JRND058 and 16m @ 1.73g/t Au in JRND059. This mineralized contact zone projected to surface corresponds with the Mauro West zone where RC drilling returned 13m @ 4.00g/t Au and 14m @ 1.07g/t Au in hole JRNRC010 and 13m @ 1.17g/t Au in hole JRNRC090. This interpretation would suggest that the down dip continuity of this zone is greater than 700m (from hole JRNRC010 to hole JRND059).
- Porphyry dykes - holes JRND058 and JRND059 both intercepted mineralization around the edges of vertical porphyry dykes. The vertical nature of these dykes suggest this mineralized zone is associated with the near-surface mineralization at the Mauro Zone where RC hole JRNRC014 returned 57m @ 1.52g/t Au. This would suggest vertical continuity of this zone of approximately 300m.
- Mafic/lamprophyric dykes - the Uiliam to Maca Zone is defined by an intense zone of sulfidation associated with intermediate, mafic to lamprophyric dykes. Holes JRND046 and JRND059 both encountered a broad zone of dyke related mineralization that returned 180m @ 0.45g/t Au and 123m @ 0.51g/t Au, respectively.
|Table 1 - Uiliam Result Summary:|
|Hole Number||Hole Type||From |
|Note - Intervals are based on a bottom cut-off of 0.15g/t gold and do not necessarily indicate true widths.|
Lago Dourado has engaged Proconsul Capital to provide investor relations services that include outreach to the investment community and strategic communications counsel. The principals of Proconsul Capital are Andreas Curkovic and Martti Kangas. Proconsul, headquartered in Toronto, provides investor relations counsel for a variety of small and mid-cap clients in the resource sector. Lago Dourado will pay a monthly fee of $5,000 for these services.
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 2012.
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.