Gold Intersected At The Butiá Gold Deposit-LDS Project

Gold Intersected At The Butiá Gold Deposit-LDS Project

TORONTO – Lavras Gold Corp. reported on nine (9) new drill holes testing the Butiá Gold Deposit, located at the western edge of the LDS project in southern Brazil. Gold mineralization was intersected in all nine holes at the Butiá Deposit, which hosts a NI43-101 compliant measured, indicated and inferred gold resource of approximately 0.5 million ounces. Several of these new holes were designed to increase the confidence in the Butiá resource (converting the Inferred Resource into the Measured & Indicated categories) and others to potentially increase the gold endowment as explained below. These new results continue to move Lavras Gold toward its short-term corporate goal of defining an economically feasible gold resource on the LDS Project, focused on the Butiá gold deposit and the adjacent Fazenda do Posto gold target.

“The new drilling results demonstrate the excellent near-surface gold grade and continuity of the Butiá gold deposit. Results like these have the potential to materially enhance the economics of a near-surface bulk tonnage open-pit type of gold project,” commented President & CEO, Michael Durose. “We are also working to increase the gold endowment at Butiá by relogging and selectively re-assaying the 78 historic drill holes (20,000 metres). The purpose of this initiative is to reinterpret historical results and standardize the geological interpretation and assay results of the data, consistent with new information and geological observations from the adjacent Fazenda do Posto gold discovery. In this way possible new extensions to known gold mineralization can be tested. The results from the regional geochemical (soil) surveys and airborne magnetic survey programs, combined with surface exploration work, will help us select and prioritize future drilling targets as we strive to unlock the full exploration potential of the LDS Property.

“An update of drilling results for the recently discovered Fazenda do Posto target is expected as soon as final assay results are received and the geological interpretation is completed. Drilling is on-going in this area.”