TORONTO, ONTARIO--(Marketwire - Feb. 25, 2013) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to release a geological report by Mr. Simon Meldrum, a geological expert in porphyry-epithermal Au-Cu-Ag systems, on its flagship 100%-owned Juruena Project located in Mato Grosso, Brazil. The report confirms the porphyry-epithermal potential at Juruena and identifies the Arrastro Hills area as the most promising porphyry target on the property. Drilling to test this new target commenced in January.
Forbes Gemmell, President & CEO, said, "Mr. Meldrum's report is particularly encouraging as it provides further support to the porphyry-epithermal model initially proposed by Professor David Groves when he joined the Company as our Technical Advisor. While drilling to date has already identified seven distinct mineralized zones, the Arrastro Hills target has the potential to represent the 'main prize' given it boasts a classic geological setting whereby a gold-rich porphyry system can be preserved. The geological, geochemical and geophysical datasets are also all supportive of its porphyry potential as outlined in Mr. Meldrum's report. We are excited that drilling is now underway at Arrastro Hills and look forward to systematically drill testing this new target over the coming months."
Mr. Meldrum conducted a six-day site visit to Juruena in mid-December. Mr. Meldrum is a consulting geologist with more than 30 years experience focused on porphyry-epithermal systems working for major, mid-tier and junior exploration companies. He has participated in the discovery and evaluation of large-scale porphyry and epithermal gold systems, including Batu Hijau (Indonesia) and Rio Blanco (Peru). Mr. Meldrum's report (available at www.lagodourado.com under Projects-Juruena-Reports) describes his preliminary findings on the Juruena Project and is not a "Technical Report" as defined under NI 43-101.
In his report, Mr. Meldrum concludes that there is little doubt that a porphyry intrusion with the potential to produce high-sulfidation epithermal gold mineralization is concealed under the lithocap at Arrastro Hills based on the extensive clay-silica alteration, multi-element zonation, variable intrusive rock types and magnetic and radiometric characteristics. It is inferred that the intrusion was emplaced at a high crustal setting (near surface) during a period of rapid uplift and erosion, a tectonic environment not dissimilar to the current day Andes mountain chain in Chile.
Highlights from the Arrastro Hills target area and the rationale for its potential to host a gold-rich porphyry-epithermal system are outlined as follows (and in Figure A: http://media3.marketwire.com/docs/ldm_225_figure_a.pdf):
Juruena Geological Model
Based on a thorough assessment and evaluation of the geological, geochemical, geophysical datasets and analysis of drill core, Mr. Meldrum identified not one but three distinct porphyry domains within the Juruena project area (as outlined below). Each porphyry domain is bounded or separated by a major fault which, due to the tectonic environment in action (uplifting and erosion) at their emplacement, has resulted in three very different porphyry settings.
Drilling for 2013 is underway with one drill rig turning on the first hole at the Arrastro Hills target. Drilling to date on this first hole has been slower than expected. This has been a function of fractured ground encountered at the top of the hole as well as trying to ramp up drilling in a new target area in the wet season. Drilling productivity is expected to improve as the wet season subsides (March onwards). Approximately 5,000 metres is still to be drilled as part of the Company's Phase 2 drill program.
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.
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 2013.
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.
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