Partner-Funded Rock Chips Hit 63 g/t Gold in the Deseado Massif

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Monday, June 29, 2026

For mining exploration companies, the prospect generator business model offers a corporate shield during volatile market cycles. By securing joint-venture partners to absorb capital-intensive drilling and field costs, generators shield their shareholders from continuous, dilutive equity financing while retaining non-dilutive upside exposure to discovery success. This structural advantage becomes particularly ideal when exploration partners validate high-priority targets with headline-grabbing, surface bonanza grades. Today, a prospect generator booked a sharp validation milestone after its project partner delivered spectacular surface results from a premier South American silver-gold jurisdiction.

Latin Metals Inc. (TSX-Venture: LMS) (OTCQB: LMSQF) reported the receipt of exceptionally high-grade surface sampling results from its partner-funded La Flora Project, situated in the world-class Santa Cruz Province of Argentina. Field operations executed by project partner Daura Gold Corp. returned headline rock chip assays yielding up to 63.9 g/t gold and 175.3 g/t silver, validating the property as a premium, high-priority drill target within the wider Cerro Bayo–La Flora district. The incoming data packages successfully confirm the structural continuity of a high-grade epithermal system and will directly underpin initial drill targeting as Daura advances toward a planned Phase II exploration campaign.

Engineers specifically engineered the systematic surface sampling initiative to confirm the spatial grade distribution of previously identified gold-silver anomalies across the property. The field results featured the 63.88 g/t gold intercept prominently, and a cascade of robust secondary veins grading 6.17 g/t gold (with 9.29 g/t silver), 4.77 g/t gold, 4.72 g/t gold, and 3.26 g/t gold paired with 41.69 g/t silver.

Geologically, field teams found four distinct mineralized veins inside a compact, 100-metre-wide structural corridor and traced more than 380 metres of continuous strike length within the current tenement borders. This high-grade array forms a key structural component of the broader, master La Flora Vein System, which outcrops across approximately one kilometer of surface strike.

Crucially for district-scale resource potential, the technical teams identified visible gold localized within highly silicified vein matrices. This visible gold is strongly associated with elevated pathfinder elements, specifically arsenic, antimony, and mercury, which generated a diagnostic geochemical fingerprint that is highly characteristic of the most productive, multi-million-ounce low-sulphidation epithermal deposits found throughout Argentina's Deseado Massif.

"Surface sampling at La Flora has delivered some very high-grade results in the past, so we're encouraged to see more high-grade samples, including visible gold, as we track these veins and refine our drill targeting," stated Mark Sumner, Chief Executive Officer of Daura. To unlock this system, Daura is planning to launch an aggressive Phase II diamond drilling program in Q3 2026. At the neighboring Cerro Bayo asset, which is already fully permitted, Phase II rigs will execute step-out and extension holes to track continuity discovered during initial Phase I drilling. At La Flora, the incoming campaign will represent the first-ever systematic drill testing of the outcropping system. Drill permit applications have already been submitted to regional regulators in advance of the Q3 deployment.

The commercial parameters of the partnership highlight the non-dilutive leverage delivered to Latin Metals' balance sheet. Under the terms of the active option agreement, Daura can earn up to a 75% interest in the project (expandable to 80% via a top-up right) by executing a series of aggressive, staged exploration milestones. These commitments include delivering US$1.7 million in aggregate cash payments directly to Latin Metals (US$300,000 completed), US$400,000 in payments to the underlying property vendor (US$250,000 completed), funding and drilling a substantial 28,000 metres of diamond core (1,850 metres completed to date), and authoring a compliant NI 43-101 technical report containing a maiden mineral resource estimate.

LMS and LMSQF are trading at C$0.20 and US$0.143, up 11% and 9.6%, respectively. 

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