Monday 28th September 2020

Resource Clips

A Big Footprint

Lago Dourado Sources Artisanal Gold in Brazil

By Ted Niles

It’s early days at Lago Dourado Minerals’ 70,000-hectare Juruena project, but the company’s President and CEO is full of optimism. “I think the key thing that makes our project stand out from others,” Forbes Gemmell remarks, “is the size of the footprint. We’ve had artisanal workings as well as gold and silver anomalies over 10 square kilometres. That would make it one of the biggest gold and silver anomalies in Brazil.”

Lago Dourado Sources Artisanal Gold in Brazil

Acquired by the company last year, Juruena is located on the Alta Floresta Gold Belt in Mato Grosso State, Brazil. Gemmell says of the Belt, “It’s 500 kilometres long, and it’s got 40 gold deposits. There’s been up to 10 million ounces mined by artisanals on it.” Since the 1980s, these garimpeiros have taken in excess of 500,000 ounces of gold from the 30 metres of saprolite material between the surface and bedrock at Juruena itself. The only drilling done on the project was in the 1990s, by Ourominas Minerals. Gemmell notes that while 90 holes were drilled, Ourominas’ focus was only under two of the artisanal pits. But, he adds, “There is plus-10 kilometres, so it’s a very large geochem anomaly. It’s a structural deposit, [so] what we’ve done differently is a geophysical interpretation, which is showing some nice structures. That’s what we’re going to be testing off with the drill bit over the next six months or so.”

Lago Dourado began its Phase 1 Juruena drilling program in December 2010. June 2 assay results include 1.39 grams per tonne gold over 57.5 metres, 1.07 g/t over 36 metres, 101.1 g/t over 1 metre and 0.75 g/t over 34 metres. Gemmell comments, “We’ve got three rigs; we’re basically testing three different targets. We’ve put out 13 holes of a 70-hole campaign, so you’re probably going to see another 60 holes from now through the end of the year on those three areas.”

We’re interested in finding a multimillion-ounce deposit – Forbes Gemmell

Gemmell admits that it likely won’t be until next year that any serious thought can be given to a resource estimate. He explains, “Because it’s such a big area, and we’re testing multiple targets, we’d only be able to drill off a resource on the back of a Phase 2 campaign. That would be a drill campaign through 2012. So we’re still a while away yet. This first pass is trying to find out where the juicy spots are through nice, wide-spaced drilling. Then we can fill in the gaps in Phase 2.”

Gemmell continues, “There’s a lot of gold at surface, and the key for us is trying to get an understanding of the structures that brought all that gold to surface. That’s what we’re trying to test with this Phase 1 drill campaign.”

As befits a company that sees exploration as its primary strength, Gemmell wants to find something extraordinary. “We are trying to show that this thing has size,” he emphasizes. “We’re interested in finding a multimillion-ounce deposit. So we’re less interested in finding a half-million to million ounces and putting feasibility studies on that.”

He concludes, “It’s going to be a busy six months, so there’s going to be a lot of news flow on the drill front. It’s an interesting point in time for us.”

The company acquired the remaining 16 exploration licences for the Juruena project from a private Brazilian company, Geomin, in March. At press time, Lago Dourado has a market cap of $40.35 million, with 62.1 million shares outstanding.

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