The latest results from Lavras Gold Corp.'s LDS project confirm that LDS is a mineral system that hosts extremely high-grade gold, silver, and copper in certain areas. The results are from Matilde Extension, one of 23 known targets at the LDS project in Southern Brazil. Two new discoveries—Zeca Souza and Matilde—were announced in 2022.

Seven holes totaling 3,123 metres were drilled at Matilde Extension, located 675 metres northeast of the Matilde discovery. While mineralization was encountered in all seven holes, 21MT020 is the best hole. This hole intercepted three intervals of mineralization, with the third intercept being the most important.

It was characterized by a thick interval of continuous mineralization featuring very high-grade gold, silver, and copper. It assayed 10.00 metres grading 13.21 g/t gold, 22.94 g/t silver, and 0.22% copper from 345.00 metres, including: 5.00 metres grading 23.15 g/t gold, 42.75 g/t silver, and 0.41% copper from 347.00 metres. a 1.00 metre subzone that yielded grades as high as 63.70 g/t gold, more than 100 g/t silver, and 0.63% copper from 347.00 metres.

Matilde Extension is a new blind discovery that was made by drill-testing a coincident gold in soil anomaly overlying the intersection of a northeast-southwest trending structure and an east-west trending structure. This discovery is 675 metres northeast of the Matilde gold deposit. Seven drill holes totaling 3,123 metres tested Matilde Extension.

The drilling is part of a 16,000-metre drilling program. To date, 6,000 metres have been drilled. The first hole 21MT018 was drilled from north to south and designed to test a magnetic low feature interpreted to be an east-west structure overlying a coincident gold in soil anomaly.

The hole intercepted multiple narrow gold values within altered granodiorite such as: 8.00 metres grading 0.44 g/t gold from 208.00 metres including, 1.00 metre grading 1.14 g/t gold from 208.00 metres. 10.00 metres grading 0.41 g/t gold from 257.00 metres including, 1.00 metre grading 2.17 g/t gold from 263.00 metres. Drillhole 21MT020 was collared 100 metres east of 21MT018 and drilled from north to south.

This hole was designed to test the intersection of an east-west and northeast-southwest structure that underlies a gold in soil anomaly. The hole intersected one shallow interval of gold followed by two significant intervals of gold, silver, and copper. The first drill intercept returned 2.00 metres grading 0.39 g/t gold and minor silver and copper from 14.00 metres.

The second intercept returned: 3.00 metres grading 1.29 g/t gold, 2.00 g/t silver, and 0.13% copper from 315.0 metres including, 1.00 metre grading 2.93 g/t gold, 5.59 g/t silver, and 0.33% copper from 315 metres. The third major intercept consisted of 10 metres grading 13.20 g/t gold, 12.94 g/t silver, and 0.22% copper from 345.00 metres. It included: 5.00 metres grading 23.15 g/t gold, 42.75 g/t silver, and 0.41% copper from 347.00 metres.

This zone of mineralization consists of intense hydrothermally altered and brecciated granodiorite consisting of semi-massive zones and veins of sulphide minerals including bornite, chalcopyrite, and pyrite. Petrographic work confirms that this zone consists of a red-brown colour attributed to hydrothermal potassium feldspar, albite, and carbonate components of the rock. The rock is comprised dominantly of highly altered medium-grained quartz and feldspar, and relatively coarser-grained white mica (sericite/muscovite and phengite).

The coarse-grained muscovite commonly hosts minute inclusions of fluorine-apatite. Compositionally, coarse-grained muscovites have no iron and may represent primary phenocrysts. The finer-grained hydrothermal muscovite has an iron-component making them phengitic.

These results suggest that the mineralization is related to magmatically derived hydrothermal fluids that were carrying significant amounts of gold, silver, and copper.