Lavras Gold Approves Fourth Diamond Drill Rig to Fast-Track Cerrito North Drill Testing; Fazenda-Butia LP Application Remains on Track

2026-10-21

TSXV - TSX Venture Exchange · Gold · Silver · Copper · Canada · Drill Results

New drill program advances a district-scale exploration opportunity while three rigs remain focused on expanding Caneleira's mineralized footprint.

Toronto, Ontario--(Newsfile Corp. - October 21, 2026) - Lavras Gold Corp. (TSXV: LGC) (OTCQX: LGCFF) ("Lavras Gold" or the "Company") announces that it has approved a fourth diamond drill rigto begin initial drill testing of the newly identified Cerrito North target at its Lavras do Sul Project ("LDS Project" or the "Project") in Rio Grande do Sul, Brazil. The Company also remains on track to submit its Fazenda-Butia LP application by the end of December 2026. Located approximately two kilometres north-northwest of the Cerrito deposit and on the northern continuation of the Caneleira trend, Cerrito North extends the Company's systematic testing of this district-scale corridor.

"Cerrito North is a key result of this year's broader geological work and warrants prompt drill testing," said Federico Velásquez, President and Chief Executive Officer of Lavras Gold. "Located on the northern continuation of the Caneleira trend, approximately two kilometres north-northwest of the Cerrito deposit, it reinforces the district-scale opportunity we are testing. Its large gold and multi-element soil anomaly, favourable geology, structural and geophysical characteristics, historical workings and rock samples returning up to 6.52 g/t gold provide a compelling case for drilling."

"Approving a fourth rig puts our commitment to the full potential of Lavras do Sul into action. Three rigs remain focused on expanding Caneleira's mineralized footprint to support potential additions to our resource inventory, while the fourth is dedicated to testing targets across the broader district. These complementary priorities advance our strategy: grow the resource base to support our development ambitions and systematically test the discovery potential of our landholdings."

"Submitting the Fazenda-Butia LP application by year-end remains a key priority, and we remain committed to that deadline. The Fundação Estadual de Proteção Ambiental (FEPAM), the environmental authority of the State of Rio Grande do Sul, has granted an extension of the Terms of Reference. This shows our good standing and reaffirms we are fit for purpose to accomplish our commitment to submit the LP application by end of year."

"Cerrito North combines a 1.6-kilometre gold-in-soil anomaly with the geochemical and geophysical indicators we use to identify new drill targets," commented Jonathan Hill, Director and Interim Vice President of Exploration. "The anomaly carries the same tungsten-molybdenum-antimony association we see over the mineralized corridors at Caneleira and Cerrito and coincides with a magnetic low of the kind that has consistently guided us to altered ground across the district. Rock samples collected at historical workings returned 4.49 grams per tonne gold within the anomaly and 6.52 grams per tonne gold approximately 900 metres east of it, providing further evidence of gold mineralization in the wider target area."

"Twenty-two shallow test holes are the right first step. At this stage, we want to determine whether the surface geochemistry is underlain by mineralized bedrock, not define continuity. Our structural work has identified two clear orientations to test, and the results will directly inform the ranking of targets for 2027," added Jonathan Hill.

Highlights:

Fourth diamond drill rig approved.Three rigs will continue developing the consolidated Caneleira system, while one rig will advance regional targets, beginning with Cerrito North. The additional capacity allows systematic testing of targets generated by the district-scale geochemical framework announced on October 13, 2026, without reducing the pace of drilling at Caneleira.

The Company has approved a first pass diamond drilling programme of 2,000 metres ("m") in 22 holesat Cerrito North. Holes are planned at 70m to 150m depth and are laid out to test the two structural domains identified at the target in their respective orientations.

Cerrito North lies approximately two kilometres ("km") north-northwest of the Cerritodeposit, which hosts Indicated mineral resource estimate of 8.3 million tonnes ("Mt") grading 0.70 grams per tonne ("g/t") Au containing 188,000 ounces ("oz") of Au and an Inferred mineral resource estimate of 13.2Mt grading 0.69 g/t Au containing 293,000 oz Au, and sits on the northern continuation of the Caneleira trend, as described in the Company's news release dated October 13, 2026.

The target pipeline now being drilled originates from the specialist technical workshop held in April 2026 (see news release date May 12, 2026), at which the Company committed to integrating over 20 years of legacy data into a unified district-scale model and to expanding the integration of geochemical, geophysical and spectral datasets. Cerrito North is the first target to be drill tested under that approach.

Integrated targeting and vectoring.Target generation and drill planning now combine multi-element soil and drill core geochemistry, airborne magnetics and gamma-ray spectrometry, and spectral geology in a single district-scale model, used both to rank new targets and to vector within the known deposits. A LiDAR topographic surveyhas been flown over the Project and the data are in final processing, after which they will be incorporated into the same model.

Multiple converging indicators.Within the target outline, 368 soil samplesanalyzed by fire assay define a gold anomaly approximately 1,600m long by 400m wideabove a 100 ppb Au threshold. The anomaly coincides with favourable geophysical and structural features, historical workings and rock samples returning up to 6.52 g/t Au, including 4.49 g/t Au from an historical excavation within the anomaly. Results include:

53 samples above 100 ppb Au, 15 samples above 500 ppb Au and eight samples above 1,000 ppb Au, to a maximum of 4,030 ppbAu; and

a 95th percentile of 263 ppb Au against a median of 10 ppb.

Compared with the remainder of the Project analyzed by the same laboratory and the same analytical method, samples above 100 ppb Au are approximately 4.5 timesmore frequent at Cerrito North, samples above 500 ppb approximately eight times more frequent, and samples above 1,000 ppb approximately 12 times more frequent.

Geochemical signature.The Au anomaly is accompanied by elevated tungsten, molybdenum and antimony - median values of approximately 3.9, 2.3 and 2.1 times the Project background respectively, on a method-matched basis - together with weaker arsenic and silver. This is the same W-Mo-Sb-As associationinterpreted in the October 13, 2026 news release as marking late, structurally confined corridors where the granodiorite-related and potassium-rich granite-related systems overlap.

Geophysics.The target coincides with a magnetic low in the tilt derivativeof the Company's magnetic data. Destruction of magnetite is a recognized component of the alteration associated with gold mineralization at the LDS Project, and magnetic lows have been the most consistent geophysical vector to mineralized zones across the district.

Rock sampling and historical workings.Twelve rock samplescollected across the target area returned up to 6.52 g/tAu, with three samples above 1 g/t Au. At the western end of the gold-in-soil anomaly, a sample taken from a historical excavationreturned 4.49 g/t gold. The highest sample, 900m east of the anomaly, returned 6.52 g/t gold together with >100 g/t silver, 3,792 ppm lead and 573 ppm zinc - the Au-Pb-Zn-Ag association described in the October 13, 2026 news release. Rock samples are selective by nature and are not necessarily representative of the mineralization present on the property.

Soil and rock geochemical results are exploration indicators only and do not establish the extent or continuity of underlying mineralization. They are not mineral resources, and there is no certainty that the drilling described in this release will intersect gold mineralization or result in the definition of a mineral resource.

[](https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_002full.jpg)

Figure 1 -Gold-in-soil geochemistry across the Lavras do Sul Project, showing the Cerrito North target on the northern continuation of the Caneleira corridor and approximately 2km north-northwest of the Cerrito deposit. Drill-defined mineralized envelopes are outlined at Fazenda-Butia, Caneleira, Cerrito and Matilde. Soil values are gold in parts per billion and combine results from more than one laboratory and analytical method, as reported. Background is the tilt derivative of the Company's airborne magnetic data in greyscale. Grid WGS 84 / UTM zone 22S; grid lines are spaced 5km apart. White areas are gaps in the background raster and do not indicate an absence of soil sampling.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_002full.jpg

The Cerrito North Target

Cerrito North is located in the northeastern part of the Lavras do Sul intrusive complex, approximately 2km north-northwest of the Cerrito Mineral Resource and on the northern continuation of the trend linking Fazenda-Butia, Caneleira and Cerrito. Independent re-processing and statistical levelling of the Company's soil geochemical database, reported on October 13, 2026, identified Cerrito North as the first new target to emerge from the district-scale framework.

Local Geology and Structure

The target area is underlain by monzogranite, one of the intrusive phases of the Lavras do Sul complex. Alteration mapped and sampled at surface is dominated by sericite with variable silica, accompanied by hematite and fine disseminated pyrite. Boxwork after sulphides is widespread in the weathered exposures and quartz veining is locally developed as stockwork. Galenaoccurs locally within the altered rock, consistent with the elevated lead returned by rock sampling, and fluoritehas been tentatively identified in the field at the eastern end of the 100 ppb Au-in-soil contour.

Field structural measurements indicate two distinct structural domainsacross the target. In the western domainthe dominant fabric is subvertical with a strike of 120° to 130°, interpreted to dip steeply towards 030° to 040°. In the eastern domainthe fabric strikes 070° to 080°, coincident with the orientation of the magnetic low described below. The first pass drilling has been laid out to test both domains in their respective orientations.

Cerrito North remains an early-stage exploration target. No mineral resource has been estimated at Cerrito North, and drilling is required to determine whether the surface geochemical and geological indicators correspond to underlying gold mineralization.

Soil Geochemistry

Within the Cerrito North target outline, 368 soil samples were collected on the Company's regional grid and analysed by SGS GEOSOL using 30-gram fire assay combining an atomic absorption (AAS) finish, with a further 42 elements by multi-acid digestion and an ICP-OES/ICP-MS finish.

The October 13, 2026 news release referred to 1,212 samples covering the wider Cerrito North area - 186 analyzed by aqua regia digestion with an ICP finish and 1,026 by fire assay with an AAS finish. The values reported here relate only to the samples that fall within the target outline and were analyzed by fire assay, so that Au values are compared on a single analytical method.

Gold values range from below detection to 4,030 ppb, with a median of 10 ppb, a 90th percentile of 150 ppb and a 95th percentile of 263 ppb.

Fifty-three samples returned more than 100 ppb Au. These define a coherent anomaly of approximately 1,600m long by 400m wide.

The eight highest values, all above 1,000 ppb Au, are clustered over approximately 1,400m of strike in the western and central parts of the anomaly.

Comparisons of element tenor between Cerrito North and the remainder of the Project have been made only between samples analyzed by the same laboratory and digestion, because the Project database combines aqua regia and multi-acid results that are not directly comparable for many elements.

[](https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_003full.jpg)

Figure 2 -Levelled multielement soil residuals over the Cerrito North area for gold, silver, arsenic, antimony, molybdenum, tungsten and sulphur, shown as robust z-scores of centred log-ratio values, with the suggested target outline and the interpreted continuation of the Caneleira trend. Values are levelled compositional residuals and are not absolute concentrations. The levelling of the residualized values in this area requires recalibration, and the outline shown is conceptual. The target outline measures approximately 1,600m long by 400m wide.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_003full.jpg

Geophysical Signature

The Cerrito North target coincides with a magnetic low defined in the tilt derivative of the Company's magnetic data. Destruction of magnetite accompanies the hydrothermal alteration associated with gold mineralization at the LDS Project, and magnetic lows have proved the most consistent geophysical vector to mineralized zones across the district, including at the Company's more advanced targets. The magnetic low is elongate at approximately 070° to 080°, the same orientation as the structural fabric measured in the eastern part of the target.

Rock Sampling

Twelve rock samples were collected from outcrops, road cuts, drainage exposures and the walls of historical excavations across the Cerrito North target area between May and June 2026. Gold values range from below detection to 6.52g/tAu, with three samples above 1 g/t Au and six above 0.1 g/t Au. Sample locations and values are shown in Figure 3 and set out in Table 1.

Two samples were collected at the western end of the gold-in-soil anomalyand returned 4.49 g/t and 0.11 g/tAu. The 4.49 g/t Au sample is silicified granite carrying fine pyrite and hematite, taken from a historical excavation within the anomaly.

A further two samples, from the wall of a separate historical trench approximately 100m east of the anomaly, returned <0.02 g/t and 0.02 g/tAu. Both are monzogranite altered to sericite and hematite with boxwork after sulphides.

Seven samples were collected between approximately 500m and 900m east of the anomaly, where altered monzogranite with sericite and silica alteration, boxwork after sulphides and local quartz stockwork veining returned up to 6.52 g/t Au. The 6.52 g/t Au sample was taken at a historical aditdeveloped on the structure (Figure 5). One further sample, approximately 400m south of the anomaly, returned <0.02 g/t Au.

The highest gold value, sample 23464, also returned silver above the upper reporting limit of the method (>100 g/t), together with 3,792 ppm lead, 573 ppm zinc, 180 ppm copper, 397 ppm molybdenum and 3.4% sulphur. No over-limit silver re-assay has been completed and the true silver value may be higher. This is the Au-Pb-Zn-Ag associationdescribed in the October 13, 2026 news release as characteristic of the potassium-rich granite-related system.

Rock samples are selective by nature and the values reported are not necessarily representative of the mineralization present on the property.

Table 1.Rock sample results, Cerrito North

[](https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_004full.jpg)

Figure 3 -Cerrito North work map showing the twelve rock sample locations with their gold values in g/t, the 100 ppb gold-in-soil contour that defines the target, individual soil sample values, and the drill-defined mineralized envelope at the Cerrito Mineral Resource approximately 2km to the south-southeast. Grid WGS 84 / UTM zone 22S. Background is the tilt derivative of the Company's airborne magnetic data in greyscale.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_004full.jpg

Planned Drilling

The approved programme comprises 2,000m of diamond drilling in 22 holes- 15 holes of 70m, two of 100m and five of 150m. The program is a first pass test of the target: its objective is to establish whether the gold-in-soil anomaly is underlain by mineralized bedrock at shallow depth, rather than to define continuity or to support the estimation of mineral resources. Planned collars are shown in Figure 4 and listed in Table 2.

Coverage.Collars are distributed over approximately 1,100m of strikealong the Au-in-soil anomaly, between 223,218mE and 224,348mE, with the closest-spaced holes over the western part of the anomaly, where the highest Au-in-soil values and the 4.49 g/t rock sample occur.

Orientation and depth.All holes are planned at a dip of -60°. Eighteen holes are oriented at an azimuth of 170°, designed to cut the 070° to 080° structures of the eastern domain at a high angle, and four holes in the western part of the target are oriented at 220°to cut the 120° to 130° structures of the western domain. Planned depths of 70m to 150m are set to test the interpreted structures beneath the weathered profile.

Sequencing.The Cerrito North first pass programme forms part of the approximately 25,000m diamond drilling programme announced in the September 14, 2026news release and does not represent additional metreage. The fourth rig provides the capacity to drill it in parallel, so that near-term drilling at the consolidated Caneleira Target continues at its planned pace.

[](https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_005full.jpg)

Figure 4 -Planned first pass drill programme at Cerrito North, showing the collar positions over the 100 ppb gold-in-soil contour, individual soil sample values and the rock sample locations. Collar positions are indicative and subject to confirmation in the field. Grid WGS 84 / UTM zone 22S. Background is the tilt derivative of the Company's airborne magnetic data in greyscale.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10429/320093_fcc46cbbb44b3a41_005full.jpg

Table 2.Planned drill hole locations, Cerrito North

| Drill Hole | Easting | Northing | Elevation (m) | Azimuth (°) | Dip (°) | Planned Depth (m) | | 26CRN001 | 223,302 | 6,590,821 | 378 | 170 | -60 | 70 | | 26CRN002 | 223,687 | 6,590,792 | 359 | 170 | -60 | 70 | | 26CRN003 | 223,321 | 6,590,772 | 385 | 170 | -60 | 70 | | 26CRN004 | 223,690 | 6,590,760 | 365 | 170 | -60 | 70 | | 26CRN005 | 223,406 | 6,590,771 | 388 | 170 | -60 | 70 | | 26CRN006 | 223,689 | 6,590,721 | 362 | 170 | -60 | 70 | | 26CRN007 | 223,394 | 6,590,818 | 372 | 170 | -60 | 70 | | 26CRN008 | 223,696 | 6,590,697 | 364 | 170 | -60 | 150 | | 26CRN009 | 223,369 | 6,590,736 | 373 | 220 | -60 | 70 | | 26CRN010 | 223,905 | 6,590,822 | 370 | 170 | -60 | 70 | | 26CRN011 | 223,494 | 6,590,858 | 368 | 170 | -60 | 70 | | 26CRN012 | 223,523 | 6,590,678 | 369 | 220 | -60 | 150 | | 26CRN013 | 223,494 | 6,590,811 | 370 | 170 | -60 | 70 | | 26CRN014 | 224,297 | 6,590,864 | 360 | 170 | -60 | 150 | | 26CRN015 | 224,094 | 6,590,882 | 366 | 170 | -60 | 150 | | 26CRN016 | 224,296 | 6,590,924 | 359 | 170 | -60 | 150 | | 26CRN017 | 224,105 | 6,590,832 | 361 | 170 | -60 | 70 | | 26CRN018 | 224,348 | 6,590,922 | 350 | 170 | -60 | 100 | | 26CRN019 | 224,039 | 6,590,785 | 365 | 170 | -60 | 70 | | 26CRN020 | 223,520 | 6,590,739 | 373 | 220 | -60 | 70 | | 26CRN021 | 224,310 | 6,590,770 | 346 | 170 | -60 | 100 | | 26CRN022 | 223,218 | 6,590,796 | 393 | 220 | -60 | 70 | | Coordinates in WGS 84 / UTM zone 22S. Collar positions, azimuths, dips and planned depths are as currently designed and are subject to confirmation in the field; actual collars may differ. | | | | | | |

Earlier from Lavras Gold Corp

More drill results releases

Quartz to Commence Phase 5 Drilling at Maestro, Targeting Prodigy Expansion and Multiple Potential Sulphide-Mineralized Systems Quartz Mountain Resources Ltd. (QZM.V), 2026-10-21
Green Bridge Metals Commences Phase 2 Diamond Drilling Program at the Titac Project, Minnesota, USA Greenbridge Metals Corp. (GRBM.CN), 2026-10-21
AbraSilver Drills Best Gold Intercept to Date at Oculto: 228 Metres Grading 1.79 g/t Gold In Oxides, Including 66 Metres at 4.04 g/t Gold Abrasilver Resource Corp. (ABRA.TO), 2026-10-21