Lavras Gold Corp. (TSXV: LGC) highlighted early successes as it
reported on its second quarter today, the first operational quarter
since it launched on April 1, 2022. Key achievements included
doubling the Company’s gold endowment, completing a 10:1 share
consolidation, and appointing an exploration and stakeholder
focused management team.
“We have achieved a lot in three months,” said
Michael Durose, Lavras Gold’s President and Chief Executive
Officer. “An early goal was reaching consolidated gold resources of
1 million gold ounces, and we hit that when we announced our
mineral resource estimate for Cerrito in June. We hope to build on
that base as we continue to explore at our highly prospective LDS
Project. We’re also looking forward to receiving assay results for
drilling at several key targets.”
Lavras Gold launched with three key assets:
- the Lavras do Sul
Project (LDS Project), our advanced gold exploration project in Rio
Grande do Sul state, Brazil
- $10 million in cash
minus expenses spent on LDS before closing of the arrangement
between Amarillo Gold and Hochschild Mining
- 2% net smelter return
royalty over certain of Amarillo’s exploration properties outside
the Posse resource and mine plan at the Mara Rosa property in Goiás
State, Brazil (Mara Rosa Royalty).
At launch, LDS was anchored by the Butiá Gold
Deposit, which has gold resources of approximately 500,000 gold
ounces, as detailed in the NI 43-101 Technical Report Mineral
Resource for Butiá Gold Prospect dated and effective January 25,
2022. It 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.
Shortly after launch, the total mineral endowment
was doubled from 500,000 ounces to 1 million ounces of gold when an
NI 43-101 compliant mineral resource estimate was completed for the
Cerrito Gold Deposit, also on LDS. That report, NI 43-101 Technical
Report for the Cerrito Gold Prospect, Rio Grande do Sul, Brasil, is
dated and effective May 31, 2022, and authored by Volodymyr
Myadzel, MAIG, and Frank Richard Baker, MIMMM, MAusIMM. It is also
available on www.sedar.com under Lavras Gold’s issuer profile.
Two drills have been turning at LDS since mid 2021.
We are targeting a total of 16,000 metres of drilling to the end of
2023. We’ve identified at least 23 gold targets, including Butiá
and Cerrito, centred on historic gold workings on the
22,000-hectare LDS Project, but our current focus for drilling is
on our Matilde, Matilde Extension, and Zeca Souza targets.
A drone aeromagnetic survey was flown over the 40%
of the property that had previously not been flown, covering
3,357-line kilometres, and the results of that survey are being
At the corporate level, we completed a 10:1 share
consolidation in June, tightening the Company’s capital structure
to 41,103,869 common shares outstanding. Michael Durose, an
accomplished economic geologist and highly-ranked financial
analyst, was also appointed President and Chief Executive Officer.
Mike Mutchler, Mr. Durose’s predecessor, remains active with the
Company, serving as a director and consultant. Antenor Silva, a
director when we launched, also stepped down to pursue new
opportunities, as did a second director, David Laing, after quarter
In addition, Paulo Serpa also joined Lavras Gold
from Amarillo as country manager, bringing his extensive experience
in governmental relations and permitting. He is building strong
governmental and local relationships in Brazil, where the goal is
to develop a project that benefits all our stakeholders.
The Company also participated in two conferences
during the quarter, launched a temporary website and social media
channels, and has been meeting with our existing shareholders from
Amarillo and targeting new potential new shareholders.
Lavras Gold, like Amarillo, has been fortunate with
respect to Covid-19. Although several of our employees have tested
positive, all have recovered. The Company has full access to the
property, consultants have been able to work without interruption,
and the Toronto-based management team works from home. So far,
Covid-19 has not had a material impact on the Company’s financial
condition or performance.
On July 27, 2022, 907,500 stock options were
granted to employees and consultants. These options are priced at
$0.35, vest over three years, and expire on July 27, 2027.
Michael Durose, our 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
About Lavras Gold
Lavras Gold (TSXV: LGC) 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.
|President & CEO
DISCLAIMERNeither 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.
FORWARD-LOOKING INFORMATIONThis 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 and the ability to obtain
regulatory approval for the Consolidation. For a description of the
risks and uncertainties facing the Company and its business and
affairs, readers should refer to the Company’s Management’s
Discussion and Analysis and Listing Statement 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.
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