Lago Dourado identifies major new porphyry gold-copper target from recently completed IP survey

Marketwire - Mining and Metals | July 25, 2012 | 12:16 am Base Metals Precious Metals Latin America Copper Gold 

TORONTO, ONTARIO–(Marketwire – July 25, 2012) – Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the “Company”) recently completed an IP survey at its flagship, 100%-owned Juruena Project located in Mato Grosso, Brazil. The 80 line-kilometre gradient IP survey was completed by FUGRO Brasil and covered the extensive artisanal workings as well as adjacent intrusion-related targets to the north and south. The survey was commissioned following the Phase 1 drill campaign which identified an association between sulfide content and gold mineralization at Juruena, indicating that significant mineralized zones should be conductors. Highlights from the IP survey include:

  • New porphyry target identified – the largest and strongest near-surface chargeability anomaly (> 1km x 1.5km) was identified within a triangular area bounded by the Crentes, Uiliam & Chico mineralized zones. This major IP anomaly is located directly underneath some of the highest gold-in-soil anomalies (>200ppb) at the project and corresponds with the strongest coincident ‘porphyry’ and ‘epithermal’ elements identified from recent multi-element soil sampling (see Figure A). It is south of drill holes at Crentes that had significant disseminated Cu sulfides over long drill intervals that also had significant gold grades. The conductive zone is located between two mineralized faults and also bears a similar magnetic signature (mag high/mag low contact zone) to other known mineralized zones on the project. The size and ovoid shape of the chargeability anomaly, its location adjacent to the high-sulfidation Au-Cu Crentes zone, and the multi-element soil anomalies are all strong indicators of the Au-Cu porphyry potential of this target area. The strongest chargeability anomalies within this footprint have not yet been drill tested.
  • Arrastro SE porphyry potential confirmed – an extensive elongated and deep (>200m) chargeability anomaly was identified at the Arrastro SE target, situated under the centre and south eastern flank of the anomalous and highly-altered felsic Arrastro Hills intrusive and volcanic complex. This IP anomaly also corresponds with strong coincident ‘porphyry’ and ‘epithermal’ elements identified by soil sampling. This target has not been drill tested.
  • The interpretation of results over South Mag/Noventa Graus is still ongoing.
  • The collected IP & Resistivity data has been independently verified as being of exceptionally high quality, enabling drill hole targeting to proceed with confidence. The survey line spacing was approximately 400 metres, but, within the central Crentes-Uiliam area and at Arrastro SE, the line spacing was reduced to 200m for increased definition and confidence.

Phase 2 drill program update

The Company initiated a 12,000 metre Phase 2 drill program in April consisting of 4,000 metres of RC drilling and 8,000 metres of diamond drilling. To ensure the project is advancing in a cost-effective manner, the diamond rig has been temporarily halted with drilling expected to recommence in September. This stoppage of the diamond drilling will allow for the full integration of results from the recently completed IP survey, 3D magnetic inversion study, and the ongoing RC drill campaign, as well as current petrology and alteration mapping work. This ensures that the diamond drill hole targeting will be based on a much more comprehensive and complete data set. Two follow-up drill holes at the Uiliam Zone (Phase 1 drilling intercepted 216 metres at 0.55g/t Au) were completed prior to the shutdown (assay results are still pending).

Shallow reconnaissance-style RC drilling is ongoing. Although the depth attainable by the RC rig is limited to 50-100 metres, the drilling is still able to identify near-surface mineralized zones as well as provide valuable geological information. The RC rig will be moved to test the new porphyry target identified by the IP survey in the coming weeks. Initial drill results from the RC drilling will be released once QA/QC checks have been finalized.

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 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.

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 the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/LDMMAP725.jpg.

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

 

Lago Dourado Minerals Ltd.
Forbes Gemmell
President and Chief Executive Officer
(416) 368-5005  or  1-855-368-5005
[email protected]
www.lagodourado.com

 

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