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Brazilian Gold Company Rallies Nearly 700%

This Brazilian gold company has rallied nearly 700% over the last 30 days and is showing no signs of stopping!

Gold company Lavras Gold (TSX-V: LGC) (OTCQB: LGCFF) is a gold exploration company that is focused on realizing the potential of its LDS Project, which is located in the gold-rich state of Rio Grande Do Sul in Southern Brazil.  Lavras Gold holds nearly 30 mineral rights which spans over 22,424 hectares of land and has an exploration pipeline of 23 known gold targets within the region.

Lavras Gold’s path to building shareholder value also stems from its 2% net smelter return (NSR) revenue-based royalty the company has on 6,000 hectares of exploration ground along the Posse structural trend and 59,000 hectares of regional exploration on the Mara Rosa tenements located in Goiás state Brazil.

 

In the news

The month of August was a busy time for Lavras Gold. To kick the month off, LGC announced that its results from its expansion drilling plans at the Zeca Souza Discovery at the Lavras Do Sul Project also referred to as (“LDS Project”) have proven to be a big success with bonanza gold grade being obtained. Assay results from LDS includes; 110.6 g/t gold over 1 metre at depth of27 metres from hole 23BT004 along with 43.59 g/t gold from 31 metres, 1.00 metre grading 52.30 g/t gold from 31.00 metres,1.00 metre grading 110.50 g/t gold from 33.00 metres to name a few.

Micheal Durose the CEO and President of Lavras Gold stated, “We are very pleased with these follow-up drill results from Zeca Souza, where we are seeing more bonanza gold grade near the surface of this recent discovery and at depth in various parts of the target,”. Mr. Durose further stated “The exceptional gold grades associated with visible gold in silicified stockwork style veinlets, together with long intervals of elevated gold values relatively close to surface, suggest a robust gold system at Zeca Souza”. To date, Lavras Gold has completed 5,291 metres of drilling with a total of 21 drill holes at the site.

At the end of August, Lavras Gold announced new assay results from the new Fazenda do Posto discovery, and uncovered continuous mineralization of 340 metres grading 1.09 g/t gold from 117 metres. The drill hole which these results stim from (23FP002) was collared roughly 150 metres west from the Butiá Gold Deposit which currently has an NI 43-101 gold resource estimate of roughly 500,000 ounces.

“It is remarkable that we have discovered a long, continuous bulk-tonnage disseminated style of gold mineralization in this intrusive-hosted gold system only 150 metres from the western edge of the Butiá Gold Deposit.” stated the CEO Mr.Durose. The CEO further commented “This is a blind gold discovery associated with an interpreted down-dropped block of rock across a northeast trending fault. The discovery was made by good old-fashioned field geology with boots on the ground”.

This week Lavras Gold announced that it is raising capital through a private placement offering which if filled completely would result in an additional $10.8 million in capital for the company. The financing is being priced at $1.35 per share and does not include any warrants which does not add any further dilution to its share structure. Not including warrants is very favorable to investors as it limits dilution to only the 8 million shares that would be added to its already tight share structure.

The share structure for Lavras Gold (TSX-V: LGC) (OTCQB: LGCFF) is very favorable for an early exploration company, with approximately 41 million shares outstanding, however the float remains extremely low with roughly 7.8 million shares available for purchase by retail investors. The availability of shares to purchase is low mainly due to the high ownership between institutional investors, insiders and large shareholders. Currently LGC insiders own approximately 23.7% of the company, while institutional investors own 40.8%, and billionaire investor Eric Sprott, who owns approximately 16.6%.

 

 

 
 
 
Shares of Lavras Gold (TSX-V: LGC) (OTCQB: LGCFF)  have risen nearly 700% over the last 30 days, and this Brazilian gold junior company is showing no signs of stopping as it completes its $10.8 million financing.
 
 
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