Stockworks Gold begins exploration at Pirenopolis

The most recent news release, dated 2025-10-16, states that Stockworks Gold Inc. has commenced its inaugural exploration program at its 100-per-cent-owned Pirenopolis Gold Project in Goias, Brazil. The program begins with a high-resolution, low-level drone airborne magnetic (mag) survey, intended to provide detailed geophysical data. This will be followed by a geochemical survey program, including stream, soil, and rock sampling. The collected data will be integrated to determine areas for detailed evaluation and potential drilling targets. The company highlights existing anomalous gold in stream sediment samples (4.7 ppm and 3.9 ppm gold) and an interpreted regional magnetic structural break across the property. The region has historical placer gold production but no identified hard-rock sources. The project is situated in a geological belt similar to Kinross Gold Corp.'s Paracatu gold mine and benefits from excellent infrastructure.

This news is a positive development for Stockworks Gold, as it signifies the active advancement of its flagship Pirenopolis Gold Project, a core component of its strategic shift towards Brazil. The commencement of exploration activities, following the recent appointment of David Kelsch as President and COO (a qualified geologist with significant experience in mineral exploration), demonstrates the company's commitment to developing the project.

However, the current activities (airborne magnetics and geochemical sampling) represent a very early stage of exploration. While essential for building a geological model and identifying targets, these are routine initial steps for any junior explorer and do not, by themselves, constitute a material derisking event or guarantee future success. The news confirms management is executing on its stated strategy, which is positive, but it does not yet provide definitive results or significant new geological insights beyond existing historical data. The market's reaction to such early-stage news is typically muted unless it comes with a surprise or exceptional initial findings. Given that the news is the start of a multi-stage process, its immediate impact is likely to be routine but incrementally positive.

The previous warrant amendments (reprice and extend 722,778 warrants, and an earlier announcement for 1.72 million warrants) suggest that the company previously struggled to see warrants exercised at their original terms, implying either a lack of share price appreciation or a need for capital that was not met through organic exercise. While the approval of the amendments provides some certainty, the underlying reasons for the amendment (lower share price, need for financing) are less positive. The current exploration work will require funding, and the market will be looking for future capital plans if this early stage exploration yields positive results and requires more significant investment (e.g., drilling).

Stockworks Gold Inc. is an early-stage gold exploration company. Its primary focus has shifted to the Pirenopolis Gold Project located in the state of Goias, Brazil. The company holds 100% ownership of this project.

Pirenopolis Gold Project highlights: * Location: Goias, Brazil, which is the third-largest mining state in the country, home to operating mines like Serra Grande (Anglo Ashanti), Chapada (Lundin Mining), and Pilar Gold's PGDM complex. * Historical Context: The region experienced a significant placer gold rush in the 1700s and 1800s, but the hard-rock sources for this gold were never identified, representing a key exploration opportunity for Stockworks Gold. * Existing Data/Indications: * Two parallel stream catchments show highly anomalous gold in sediment samples (4.7 ppm and 3.9 ppm gold). * A quartz vein float boulder in a stream assayed 0.8 g/t gold. * Government geophysics suggests a large-scale regional magnetic structural break across the property. * Geological Interpretation: The company interprets the target type as an orogenic gold target, drawing analogues to Kinross Gold Corp.'s large Paracatu gold mine in Brazil, due to similar geological belt and regional tectonic structures. * Infrastructure: The project boasts excellent infrastructure, being located on cattle grazing farmland, near quartzite quarries, within the power grid, and accessible by light truck/SUV via an extensive road network. * Exploration Stage: Currently in the inaugural exploration phase, starting with drone airborne magnetic surveys and planning geochemical surveys.

Stockworks Gold also holds the Cabin Lake project in the Northwest Territories, which has historical successful drill campaigns, but the current strategic focus is clearly on Pirenopolis.