Latin Metals Inc. (TSXV: LMS | OTCQB: LMSQF) announced on October 8, 2026 that option partner Daura Gold Corp. has commenced a partner-funded Phase II diamond drilling program at the Cerro Bayo and La Flora gold-silver projects in Santa Cruz Province, Argentina. The approximately 1,600-metre, 20-hole program spans four targets and includes the first-ever drilling at La Flora. The program is fully funded by Daura under an existing option agreement, providing Latin Metals shareholders exploration exposure without additional dilution.

Key Points

  • Latin Metals Inc. (TSXV: LMS | OTCQB: LMSQF) is a Vancouver-based prospect generator focused on gold, silver, and copper in Argentina and Peru.
  • Daura Gold Corp. has commenced a ~1,600-metre, 20-hole Phase II drill program across Cerro Bayo and La Flora, fully funded under the existing option agreement.
  • Historical sampling at La Flora returned up to 82.19 g/t gold and 1,239.28 g/t silver; 2026 surface sampling returned 63.88 g/t gold and 175.34 g/t silver with visible gold observed.
  • Investors may be watching for initial Phase II drill results from La Flora and follow-up results at Cerro Bayo's Elena and Ingrid targets.

First-Ever Drilling at La Flora Tests High-Grade Vein System

Drilling has commenced at La Flora with approximately 900 metres planned across 12 holes, marking the first drill test of the La Flora vein system. Surface exploration has defined two mineralized veins within an approximately one-kilometre outcropping system. Paired drill holes are designed to establish vein geometry and test mineralization continuity below surface. Latin Metals first identified La Flora as a priority Phase II target when it reported 2026 sampling results on June 29, 2026. The company notes that surface samples are selective in nature and are not necessarily representative of overall grade or mineralization of the vein system.

Cerro Bayo Follow-Up Targets Elena, Ingrid, and First-Pass Gabriela

Following La Flora, the program plans to move to Cerro Bayo, where Phase I drilling previously identified gold and silver mineralization across multiple targets. Two holes totalling approximately 200 metres are planned at Elena to test near-surface gold mineralization, while four step-out holes totalling approximately 350 metres will test silver-gold continuity at Ingrid. Two additional holes totalling approximately 150 metres will provide the first drill test at Gabriela, a northwest-trending structure traced for more than 600 metres. Latin Metals reported initial Phase I Cerro Bayo results on May 21, 2026.

Daura Option Agreement Structure and Funding Commitments

Under the option agreement, Daura may earn an initial 75% interest in both projects, with a right to increase to 80%, through staged cash payments and exploration commitments. To earn its initial interest, Daura must make aggregate payments of US$1.7 million to Latin Metals, assume US$400,000 in vendor payments, complete 28,000 metres of drilling, and deliver an NI 43-101 technical report containing a mineral resource estimate. To date, Daura has paid US$300,000 to Latin Metals, US$250,000 to the underlying vendor, and completed approximately 1,850 metres of Phase I drilling.