Lavras Gold Corp (CVE: LGC) reported intercepting long intervals of substantial gold mineralization at its flagship Brazilian project this week. Company representatives are currently at the Beaver Creek Precious Metals Summit in Colorado to discuss the operation’s potential.
The gold miner reported results from 12 new holes, 11 of which had notable quantities of the yellow metal. Most significantly, 2.9 grams per tonne gold over 59 metres and 3.4 g/t Au throughout 32 metres in the best two.
“Long continuous intervals of gold mineralization over more than 200 metres depth beginning at surface confirm the bulk-tonnage nature of Fazenda do Posto,” chief executive Michael Durose said in a statement.
Lavras claims that the audience at the Beaver Creek Ski Resort was impressed with the new results. This event is focused on gold, silver and platinum group metals. Notable sponsors include Agnico Eagle Mines Ltd (Ontario) (TSE: AEM), Canaccord Genuity Group Inc (TSE: CF) and Newmont Corporation (TSE: NGT).
“The energy around Lavras Gold was high, with strong interest and positive reactions to our recent drill results at Fazenda do Posto [the drill campaign’s target area],” Lavras said on LinkedIn Thursday.
The goal of the current 25,000-metre drill program is to enhance the company’s understanding of the Lavras do Sul (LDS) project’s geometry and grade distribution. Also, to test for potential extensions of gold mineralization in the operation’s surrounding area.
Investors who bought shares of the company last year, particularly before mid-August, appear to have made a wise decision.
Same for Lavras Gold – very strong performance and stunning 1-year chart! Discovery stocks are still working quite well. 🔥🪙$LGC.v #brazil #gold #stocks https://t.co/TgKEKUhNH5 pic.twitter.com/7m9btPE5Fz
— Oliver Groß (@minenergybiz) July 6, 2024
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Kinross has faith in Lavras
The major gold producer currently holds a 5 per cent stake in the company.
Other notable investors include Rob McEwen, Eric Sprott and Lawrence Lepard.
There has been some notable insider buying recently too. Director Rostislav Raykov just bought an additional 17,800 shares on Tuesday. He currently owns an 8.4 per cent stake with a stock holding of about 4.3 million.
In addition to its primary asset in Brazil, Lavras currently holds a 2 per cent net smelter return royalty on mining concessions in the country held by Hochschild Mining Plc (LON: HOC).
Other influential Canadian gold mining companies capitalizing on Latin American deposits include Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF), G Mining Ventures Corp. (TSE: GMIN) and Aurania Resources Ltd (CVE: ARU).
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
