Lavras Gold Corp. (TSXV: LGC) (OTCQX: LGCFF) has approved a fourth diamond drill rig to begin initial testing of the Cerrito North exploration target at its Lavras do Sul Project in Rio Grande do Sul, Brazil. The new rig will execute a 2,000-metre, 22-hole first-pass programme designed to determine whether a compelling surface gold anomaly is underlain by mineralised bedrock. Separately, the company confirmed it remains on track to submit its Fazenda-Butia environmental licence application by the end of December 2026, following a two-year extension of the Terms of Reference granted by FEPAM on October 8, 2026. Investors may be watching how quickly drill results from the new target emerge alongside continued resource-expansion drilling at the Caneleira system.

Key Points

  • Lavras Gold Corp. (TSXV: LGC) (OTCQX: LGCFF) operates the Lavras do Sul Project in Brazil
  • A fourth diamond drill rig has been approved to test the Cerrito North target, approximately 2 kilometres north-northwest of the Cerrito deposit
  • The first-pass programme covers 2,000 metres in 22 holes at depths of 70 to 150 metres; soil sampling defined a gold anomaly approximately 1,600 metres long by 400 metres wide, with rock samples returning up to 6.52 g/t gold
  • Investors should watch for drill results from Cerrito North and confirmation of the Fazenda-Butia LP application submission by year-end

Cerrito North Target Characteristics and Why Lavras Gold Is Moving Quickly

Cerrito North sits on the northern continuation of the Caneleira trend and was identified through the company's district-scale geochemical framework. Within the defined target outline, 368 fire-assay soil samples define a coherent gold anomaly approximately 1,600 metres long by 400 metres wide above a 100 parts-per-billion gold threshold, with 53 samples above that level and eight above 1,000 parts per billion. The anomaly carries elevated tungsten, molybdenum, and antimony — the same multi-element signature associated with mineralised corridors elsewhere at the project — and coincides with a magnetic low interpreted as an indicator of hydrothermal alteration.

22-Hole First-Pass Drill Programme Design at Cerrito North

The approved programme comprises 2,000 metres in 22 holes, with planned depths ranging from 70 to 150 metres. Eighteen holes are oriented to cut the 070° to 080° structures of the eastern structural domain, while four holes in the western portion are oriented to test the 120° to 130° fabric. The release states this programme forms part of the approximately 25,000-metre campaign announced on September 14, 2026, and does not represent additional metreage; the fourth rig provides parallel capacity so that drilling at Caneleira continues without interruption. The objective is to test whether the surface anomaly is underlain by mineralised bedrock, not to define resource continuity.

Three Rigs Continue Expanding Caneleira as Cerrito Deposit Provides Regional Context

While the fourth rig advances Cerrito North, three rigs remain dedicated to expanding Caneleira's mineralised footprint to support potential additions to the resource inventory. The nearby Cerrito deposit — approximately 2 kilometres to the south-southeast — hosts an Indicated mineral resource of 8.3 million tonnes grading 0.70 g/t gold for 188,000 ounces and an Inferred resource of 13.2 million tonnes grading 0.69 g/t gold for 293,000 ounces. The company notes the presence of mineral resources at Cerrito is not indicative of mineralisation at Cerrito North, and no resource has been estimated at the new target.

Fazenda-Butia Environmental Licence Application Timeline Confirmed

On October 8, 2026, FEPAM granted a renewal of the Terms of Reference for the Fazenda-Butia Environmental Impact Assessment, extending their validity by two years to October 7, 2028. The company states this provides additional flexibility but emphasises its commitment to submitting the LP application by the end of December 2026 remains unchanged. The Environmental Impact Assessment field studies, described as the most critical and time-intensive component of the licence process, were completed and announced on September 14, 2026.