Lavras Gold Zeca Souza expansion drilling hits visible gold of 43.6 g/t gold over 4 metres starting near surface

TORONTO, Aug. 02, 2023 - Lavras Gold Corp. (TSXV: LGC, OTCQB: LGCFF) continues with exploration success at the Zeca Souza Discovery on its LDS Project in southern Brazil.

Assay results have been received from follow up drilling at Zeca Souza, where an additional 7 drill holes totalling 2,497 metres were completed. This brings the total number of drill holes at the target to 21 and total drilling meterage to 5,291 metres.

"We are very pleased with these follow-up drill results from Zeca Souza, where we are seeing more bonanza gold grade near the surface of this recent discovery and at depth in various parts of the target," said Michael Durose, Lavras Gold's President and CEO. "The exceptional gold grades associated with visible gold in silicified stockwork style veinlets, together with long intervals of elevated gold values relatively close to surface, suggest a robust gold system at Zeca Souza.

"Our next steps will be to follow up on these results to better understand the lateral and vertical continuity of the gold-hosting structures."

Key highlights include:

• Visible gold, near surface: Hole 23BT004 returned 4.00 metres grading 43.59 g/t gold from 31.00 metres including:
  • 1.00 metre grading 52.30 g/t gold from 31.00 metres
  • 1.00 metre grading 9.28 g/t gold from 32.00 metres
  • 1.00 metre grading 110.50 g/t gold from 33.00 metres
  • 1.00 metre grading 2.28 g/t gold from 34.0 metres.
    
    The mineralization consists of visible gold within silicified veinlets in perthitic granite. The estimated vertical depth of this intercept is 26.8 metres.

• Visible gold, at depth: Hole 23ZS018 intersected 5.00 metres grading 2.62 g/t gold from 264.00 metres including 1.00 metre of visible gold grading 9.07 g/t gold from 267.00 metres.
  
  The high-grade interval is associated with visible gold within a larger interval hosting 2-3% disseminated sulphides (pyrite, trace sphalerite, and galena) occurring within cross-cutting silicified veinlets in altered perthitic granite. The estimated vertical depth of this intercept is 230.00 metres.

• Long interval, visible gold: Hole BT003 returned a long intercept of 32.00 metres grading 1.92 g/t gold from 126.00 metres and included higher grade intervals including:
  • 9.00 metres grading 6.35 g/t gold from 145.00 metres
  • 1.24 metres grading 43.20 g/t gold from 147.60 metres where visible gold was observed. The estimated vertical depth of this intercept is 124.7 metres.
• Long interval and open along strike: Hole 23ZS016 yielded multiple intercepts of elevated gold values throughout the hole, including a long interval of 28.00 metres grading 0.78 g/t gold from 241.00 metres that included:
  • 16.00 metres at 1.22 g/t gold from 253.00 metres
  • 3.00 metres at 1.80 g/t gold from 261.00 metres
  • 2.00 metres grading 5.22 g/t gold from 267.00 metres.
    
    Mineralization is associated with hydrothermal alteration-typically albite, silica, sericite, chlorite, and disseminated sulphides (pyrite, and trace amounts of sphalerite and galena).

• Visible gold encountered over vertical extent of 204.00 metres: Visible gold has been found in five of 21 drill holes completed at Zeca Souza (24% of holes drilled) and over a vertical distance of 204.40 metres. The shallowest drillhole intercept was Hole 23BT004. The deepest drillhole intercept with visible gold occurred in Hole 23ZS018.

Overall, gold hosting structures at Zeca Souza have been extended to an area measuring 420 metres by 523 metres, an increase from the previous area of 375 metres by 375 metres.

Gold is typically associated with silicified zones with albite, sericite, chlorite and disseminated sulphides (pyrite, and trace amounts of sphalerite and galena) within hydrothermally altered fractured and brecciated perthitic granite. Five holes intersected bonanza-style gold grades associated with visible gold in silicified stockwork style veinlets and associated disseminated sulphides including pyrite, and occasionally sphalerite and galena.

The discovery remains open in all directions and at depth.

Zeca Souza is one of 23 known gold targets at the LDS Project. It is located 2.1 kilometres north of the Butiá Gold Deposit (see Figure 1).

Butiá hosts an NI 43-101 compliant near-surface gold resource of about 500,000 ounces, as detailed in the NI 43-101 Technical Report Mineral Resource for Butiá Gold Prospect dated and effective January 25, 2022. The report was prepared by VMG Consultoria e Soluções Ltda. for Lavras Gold Corp. and is available on www.sedar.com under Lavras Gold's issuer profile.

Discussion of drilling results

A total of 21 drill holes totalling 5,291 metres of drilling have tested the Zeca Souza target centred on historical workings spanning an area of 523 metres in a north south direction, and 420 metres in an east west direction.

The latest seven holes, consisting of 2,497 metres of drilling, tested:

• for the expansion of mineralization to the east, west, and south of previous drilling
• for continuity of mineralization between previous drill holes.

Figure 2 shows a plan view of all drill hole locations testing the Zeca Souza Discovery. Figure 3 shows a long section looking north of all drill holes, and Figure 4 illustrates a cross section of drill holes looking east.

Table 1 tabulates all 21 drill holes completed at the Zeca Souza Discovery including the most recent holes discussed in this news release.

All seven drill holes in the most recent drilling program intercepted gold mineralization as follows:

NORTHERN FENCE - FOUR ADDITIONAL HOLES

Four additional holes were drilled into the northern fence bringing the total holes drilled here to 11. All holes returned elevated gold values in at least one but more typically multiple intercepts.

The western most hole 23ZS017 returned multiple nominal narrow gold grades from surface. The highlight was 8.00 metres grading 0.87 g/t gold from 234.00 metres including:

• 3.00 metres grading 1.73 g/t gold from 234.00 metres
• 1.00 metres grading 1.33 g/t gold from 240.00 metres.

Other highlights include:

• Hole 23ZS016 returned a broad intercept of elevated gold consisting of 28.00 metres grading 0.78 g/t gold from 241.00 metres. There are three higher grade subintervals including:
  • 16.00 metres grading 1.22 g/t gold from 253.00 metres
  • 3.00 metres grading 1.80 g/t gold from 261.00 metres
  • 2.00 metres grading 5.22 g/t gold from 267.00 metres.
    
    The gold is typically associated with hydrothermally altered perthitic granite consisting of albite, sericite, quartz, and 2-3% disseminated sulphides (pyrite and trace galena and sphalerite). There is good continuity between 23ZS016 and 22ZS010 collared 40 metres to the west.

• Hole 23ZS018 returned multiple intervals of elevated gold values. The best intercept included 5.00 metres grading 2.62 g/t gold from 264.00 metres including:
  • 2.00 metres grading 6.06 g/t gold from 267.00 metres
  • 1.00 metre grading 9.07 g/t gold that included visible gold at a vertical depth of 231.20 metres.
    
    Importantly, a 0.76 metre interval of visible gold grading 43.50 g/t gold from 170.24 metres was encountered in hole 22ZS014 approximately 110 metres to the northwest of hole 23ZS018.
    
    Additionally, there are a series of surface trenches and old workings about 50.00 metres to the southwest of the trace of drillhole 23ZS018. The surface trenches and workings have been documented over a strike length of about 150 to 200 metres.

• Hole 23ZS019 returned multiple narrow intervals of elevated gold values. Highlights include:
  • 1.00 metre grading 1.03 g/t gold from 97.00 metres
  • 1.00 metre grading 1.40 g/t gold from 108.00 metres.

SOUTHERN FENCE - ONE ADDITIONAL HOLE

Previously, the Southern Fence of drill holes consisted of five holes testing an east west strike length of about 350 metres. One additional hole, 23ZS015, was drilled to test the eastern extension of the Southern Fence of holes.

Multiple narrow zones of gold mineralization were encountered including 0.80 metres grading 2.50 g/t gold from 278.57 metres. The trace of this drill hole is located about 66.00 metres southeast of old trenches and diggings.

The current interpretation is that this hole did not reach the targeted structure, which occurs further south. Drone magnetic data and soil geochemistry suggest the target remains open along strike to the northeast.

OTHER AREAS - SOUTH STRUCTURE - TWO ADDITIONAL HOLES

Previously, two holes-22ZS001 and 22ZS002-tested a southeast-northwest trending structure south of the Southern Fence of drill holes.

These holes were collared north of the structural target, and the azimuth of the drill holes were oriented south. The interpretation is that these two holes missed the main structure that was being targeted, although several narrow-elevated gold values were intercepted in both holes.

Two follow up holes 23BT003 and 23BT004 were designed to follow up on this structural target but were collared south of the structure, and the azimuth of the drill holes were oriented to north. Highlights of results of this drilling are as follows:

• Hole 23BT003 returned multiple intercepts of elevated gold values. The highlight was an interval of 32.00 metres grading 1.92 g/t gold from 126.00 metres (about 109.00 metres vertical) including:
  • 9.00 metres grading 6.35 g/t gold from 145.00 metres including
    • 1.24 metres grading 43.20 g/t gold from 147.76 metres (approximately 128.00 metres vertical). This higher grade interval is associated with visible gold.
      
      Strong hydrothermal alteration of perthitic granite includes albite, hematite, chlorite, sericite, and disseminated sulphides (pyrite, trace sphalerite, and galena).

• Hole 23BT004 returned 43.59 g/t gold over 4.00 metres from 31.00 metres, or approximately 26.80 metres vertical distance. This intercept is associated with visible gold hosted within an aphanitic glassy vitreous host. Hydrothermal alteration consisting of albite, hematite, chlorite and sericite, and sulphides (pyrite, trace galena, and sphalerite). Elevated trace elements include barium, tellurium, lead, and zinc.

Importance of visible gold intercepts

Five of the 21 holes drilled into the Zeca Souza Discovery have returned visible gold typically with bonanza gold grades associated with silicified stockwork.

This is important as there are many different styles of gold mineralization on the LDS Project, including low-grade bulk tonnage targets (e.g., Butiá Gold Deposit). The discovery of a higher grade, potentially lower tonnage zone of mineralization at Zeca Souza could enhance the overall future project economics for the LDS project.

The key takeaways from the visible gold results at Zeca Souza are as follows:

• Visible gold was found in five of 21 drill holes representing 24% of the holes drilled into the Zeca Souza Discovery so far.
  
  Importantly, visible gold was found in two holes in the Northern Fence, one occurrence of visible gold was found in the Southern Fence of holes, and two occurrences of visible gold were found in the southern most structure.
  
  Therefore, visible gold has been found in a north-south corridor of up to 375 metres, and an east-west extent of 237 metres with the limits of visible gold intercepts yet to be been defined.

• Visible gold has been encountered in drilling over a vertical distance of about 204.40 metres as follows:
  • The shallowest visible gold intercept was found in 23BT004 (Figure 5) that intercepted 4.00 metres grading 43.59 g/t gold at a vertical depth of 26.80 metres. This included a 1.00 metre interval of 110.50 g/t gold from 33.00 metres. This occurred in the South Structure.
  • The deepest drillhole intercept of visible gold was found in drillhole 23ZS018, which returned 1.00 metre grading 9.07 g/t gold at a vertical depth of 231.20 metres. This occurred in the Northern Fence of drill holes.
  • Drill holes 22ZS011 returned 3.00 metres grading 28.24 g/t gold at a vertical depth of 99.60 metres; hole 23BT003 yielded 1.24 metre grading 43.20 g/t gold at a vertical depth of 128.00 metres, and hole 22ZS014 returned 0.76 metres grading 43.50 g/t gold. This occurred in the North Fence of drill holes at a vertical depth of 147.40 metres.

Further work is required to better understand the continuity of visible gold within the Zeca Souza Discovery. Nevertheless, the fact that visible gold is being found over significant lateral and vertical extents is a testament to the robust nature of the gold system.

Summary of petrographic analysis from hole 22ZS011

A piece of drill core from drill hole 22ZS011 was submitted for petrographic examination (Figure 6 and 7). Results from petrographic work completed on drill hole 22ZS011 indicates that the visible gold is electrum. The electrum consists of approximately 90% gold and 10% silver.

This piece of drill core is interpreted to be an altered and brecciated possible granodiorite composed mainly of quartz (30%), sodic K-feldspar (35%) in a sealing groundmass dominated by albite, Fe-chlorite, Fe-muscovite (phengitic and paragonitic mica), Nb-rutile, Mn-ilmenite, zircon, and F-apatite. Visible gold (electrum) was noted in core and is shown in Figure 6.

Big coarse grains of sodic K-feldspar and coarse-grained quartz are interpreted to represent relict phenocrysts. The rock appears to have been subjected to at least two hydrothermal breccia events. The first would be the original granodiorite comprised of coarse-grained pink sodic K-feldspar and quartz grains brecciated and sealed by chlorite, albite, and phengitic muscovite. In another area of the core, the rock appears to have been subsequently brecciated and sealed by dog-tooth quartz grains. This coarser-grained quartz seals and wraps around fragments of the earlier hydrothermal alteration hosting phengitic muscovite, chlorite, and albite.

The sulphide suite is dominated by complex intergrowths of pyrite-chalcopyrite-galena. Also noted are coarse clusters of blackjack sphalerite (Fe-sphalerite) hosting minute inclusions of galena. There are also anastomosing micro-veinlets of galena. Interestingly, the rock contains veinlets of complex sulphide assemblages of pyrite intergrown with galena and electrum. The galena does not appear to carry an Ag-component.

The electrum in the veinlets is quite coarse (up to 1 mm) and appears to be intimately associated with the galena but occasionally found with pyrite. The electrum in these veinlets have between 8.2-16% Ag. There appears to be a second generation of electrum associated with a more retrogressive event. This is evident by the presence of electrum hosted within chlorite as inclusions and on the chlorite margin. The composition of this electrum contains approximately 8-10% Ag. The presence of the zircons (with inclusions of galena) in the groundmass phases may present a datable mineral for timing of the pyrite-galena-electrum veining event.

Next steps at Zeca Souza

The geological team is compiling and analyzing these drilling results generated from Zeca Souza to better understand the nature of the gold-bearing structures hosting the gold.

This follow-up drilling program tested targets to moderate vertical depths of up to 300 metres (see Figure 3 and Figure 4 long section and cross section respectively). The deposit remains open to possible expansion to the north, southeast and west.

Furthermore, five of the 21 holes encountered bonanza gold grades associated with visible gold in cross-cutting silicified stockwork-style veinlets. These five bonanza gold grade intercepts were found in different parts of the Zeca Souza gold system-two in the northern fence of holes and one in the southern fence of holes, and two in the south structure.

The high-grade interval of drill hole ZS22011 was surrounded by a halo of lower-grade mineralization typically associated with 1-2 percent disseminated sulphides (pyrite +/- sphalerite and galena). Better understanding the relationship between the bonanza gold grades and lower tenor gold is our focus.

However, it is clear from petrographic studies, that there are at least two and possibly more hydrothermal and mineralizing events at Zeca Souza.

Qualified person

Michael Durose, Lavras Gold's President and CEO, is a qualified person as defined by NI 43-101. He has reviewed and approved the scientific and technical information contained in this release.

Quality assurance and quality control

For the Zeca Souza Discovery, sample handling, preparation, and analysis are monitored through the implementation of formal chain-of-custody procedures and quality assurance/quality control programs designed to follow industry best practices.

All drill hole samples in this drilling program consist of split NQ diamond drill core.

Drill core is logged and sampled in a secure facility located in Lavras do Sul, Rio Grande do Sul State, Brazil. Drill core samples for gold assay are cut in half using a diamond saw and submitted to ALS Laboratories Inc. in Goiania, Goiás State, Brazil for preparation by crushing to 70% passing 2.0 mm, riffle splitting to obtain 500 g aliquots, and pulverizing to 85% passing 75 microns.

Pulps are shipped to ALS Laboratories in Lima, Peru and analyzed by a 30 g fire assay and AAS finish. For assays above 10 ppm gold, a cut of the original pulp was re-assayed with a gravimetric finish.

Certified standards, non-certified blanks and field duplicates are inserted into the sample stream at regular intervals, so that QA/QC accounted for about 10% of the total samples. Results are routinely evaluated for accuracy, precision, and contamination.

The Company has been targeting larger intersections of greater than 0.25 g/t gold. Intersections that are lower than this threshold may provide exploration insight and may therefore be disclosed.

About Lavras Gold

Lavras Gold (TSXV: LGC, OTCQB: LGCFF) is a Canadian exploration company focused on realizing the potential of a multi-million-ounce gold district in southern Brazil. Its Lavras do Sul Project is located in Rio Grande do Sul State, and is primarily an intrusive hosted gold system of possible alkaline affinity. More than 23 gold prospects centred on historic gold workings have been identified on the property, which spans more than 22,000 hectares.

Follow Lavras Gold on www.lavrasgold.com, as well as on LinkedIn, Twitter, and YouTube.

Contact information

Michael Durose, President & CEO, or Annemarie Brissenden, Investor Relations
+1-416-844-6284 | investor@lavrasgold.com
www.lavrasgold.com

DISCLAIMER AND FORWARD-LOOKING INFORMATION

^{Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.}

^{This news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements, including those on planned exploration activities and goals, are only objectives and predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information, including the risks and factors that generally affect exploration and the uncertainty of exploration results. For a description of the risks and uncertainties facing the Company and its business, refer to the Company's Management's Discussion and Analysis recently filed under the Company's profile on www.sedar.com. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.}

FIGURE 1
Location of Zeca Souza Discovery relative to Butiá Gold Deposit, Caneleira Discovery, as well as the advanced gold discoveries at the LDS Project.

The Butiá Gold Deposit hosts an NI 43-101 compliant near-surface gold resource of about 500,000 ounces, as detailed in the NI 43-101 Technical Report Mineral Resource for Butiá Gold Prospect dated and effective January 25, 2022. The report was prepared by VMG Consultoria e Soluções Ltda. for Lavras Gold Corp. and is available on www.sedar.com under Lavras Gold's issuer profile.

The Cerrito Gold Deposit hosts an NI 43-101 compliant near-surface gold resource of about 500,000 ounces, as detailed in the NI 43-101 Technical Report for the Cerrito Gold Prospect, Rio Grande do Sul, Brasil dated and effective May 31, 2022. It is authored by Volodymyr Myadzel, MAIG, and Frank Richard Baker, MIMMM, MAusIMM, and is available on www.sedar.com under Lavras Gold's issuer profile.

FIGURE 2
Location of drill holes for Zeca Souza Discovery in plan view highlighting five intercepts of visible gold in drill holes.

FIGURE 3
Long section of drill holes and assay results for Zeca Souza Discovery looking north.

FIGURE 4
Cross section of Zeca Souza Discovery drill holes and assay results looking east.

FIGURE 5
Photomicrograph of visible gold hosted in silica from drillhole 23BT004 at the Zeca Souza Discovery. The field of view is estimated to be 5 mm.

FIGURE 6
Sample of drill core submitted for petrographic analysis from 22ZS0111 showing visible gold in altered and brecciated possible granodiorite. Visible gold (electrum) is noted in
the right hand image.

FIGURE 7
Reflected light image from drill hole 22SZ011 showing multiple grains of visible gold (electrum) associated with iron chlorite. The field of view is 2 mm.

TABLE 1: SUMMARY TABLE OF DRILLING ASSAY RESULTS FROM ZECA SOUZA TARGET

Notes

• Assumes 0.25 g/t Au cut-off grade, no top cut
• The Company has been targeting larger intersections of greater than 0.25 g/t gold. Intersections that are lower than this threshold may provide exploration insight and may therefore be disclosed
• Intervals represent drill core interval; true widths have not been determined at this time
  

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