Axo Metals Drilling Intercepts 48.0 Metres of 1.18 g/t Au From Surface at Recently Discovered Luz del Cobre Target; Additional Results Include 3.94 g/t Au Over 15.0 Metres

Axo Metals Corp. (AXO) has released drill results from 33 holes totaling approximately 3,700 meters at its San Antonio project in Sonora, Mexico. The program targeted the newly discovered Luz del Cobre (LDC) area, located roughly 750 meters east of the Sapuchi pit-constrained resource, as well as the LDC–Sapuchi "gap zone" and Sapuchi peripheral areas.

Key oxide intercepts at the LDC target included hole SOSAP-26-069, which returned 48.0 meters at 1.18 g/t gold from surface, including 23.0 meters at 1.59 g/t gold from 3.0 meters. Hole SOSAP-26-083 intersected 15.0 meters at 3.94 g/t gold from 12.0 meters in sulphide mineralization. Other significant oxide intersections included SOSAP-26-077 with 25.8 meters at 0.88 g/t gold from surface (including 10.3 meters at 1.75 g/t), SOSAP-26-072 with 34.5 meters at 0.51 g/t gold from surface, and SOSAP-26-061 with 29.3 meters at 0.54 g/t gold from surface (including 4.4 meters at 2.33 g/t). Additional oxide intercepts included SOSAP-26-052 with 22.5 meters at 0.55 g/t gold from surface, SOSAP-26-058 with 9.0 meters at 1.58 g/t gold from surface, and SOSAP-26-055 with 16.6 meters at 0.38 g/t gold from surface. Further peripheral oxide results included SOSAP-26-066 with 21.0 meters at 0.34 g/t gold, SOSAP-26-064 with 17.0 meters at 0.19 g/t gold, and SOSAP-26-070 with 21.0 meters at 0.14 g/t gold.

In the LDC–Sapuchi gap zone, hole SOSAP-26-080, drilled at an 83-degree azimuth and -45-degree dip, returned 7.5 meters at 0.29 g/t gold, 39.6 meters at 0.32 g/t gold (including 9.0 meters at 0.73 g/t), 33.0 meters at 0.40 g/t gold, and 11.0 meters at 1.29 g/t gold in sulphide mineralization between 157 and 168 meters. The company stated that at least 450 meters of mineralized strike length has been confirmed between LDC and Sapuchi.

Intercepts at the Sapuchi peripheral included SOSAP-26-053 with 22.0 meters at 1.62 g/t gold (including 10.4 meters at 2.94 g/t), 17.0 meters at 0.94 g/t gold, and 11.0 meters at 1.72 g/t gold. Hole SOSAP-26-062 returned 16.9 meters at 0.92 g/t gold (including 3.0 meters at 4.36 g/t) and 18.8 meters at 0.97 g/t gold (including 1.9 meters at 4.81 g/t). SOSAP-26-073 intersected 17.9 meters at 0.81 g/t gold (including 5.3 meters at 2.22 g/t) and 19.9 meters at 0.90 g/t gold (including 8.5 meters at 1.58 g/t). Additionally, SOSAP-26-056 returned 23.9 meters at 1.17 g/t gold.

The company is also conducting approximately 1,900 meters of reverse circulation drilling over historical LDC waste dumps, with results expected before year-end. Axo Metals Corp. has terminated the La Gallina option at La Huerta, retaining the Juanes concession.

Axo Metals Corp. (AXO) is a brownfield-restart developer rather than a grassroots explorer, holding a 1.12 moz Au resource (576 koz Indicated @ 1.20 g/t, 544 koz Inferred @ 1.02 g/t), existing permits, infrastructure, and a $40.25M treasury against a ~C$214M market cap (~C$257M fully diluted counting 38.9M warrants). The company has no reserves and no completed PEA. Materiality is therefore measured against whether the LDC and gap zone can add meaningful shallow oxide tonnes near infrastructure.

The recent release serves as a solid confirmation and modest extension of the September LDC discovery, rather than representing a net new discovery. The market was shown hole 048 a month earlier and expects LDC to repeat. The new best hole (069) repeats rather than beats the anchor (56.6 g.m vs 66.5 g.m). The genuinely new element is 450 m of confirmed gap-zone strike, supported by too few holes to be a step change in perceived scale, with gap-zone grades being lean (0.29–0.40 g/t).

Hole 048 (2026-09-14, 66.5 g.m) serves as the anchor; the stock reacted from ~$0.92 to $1.16 around it, then round-tripped to $0.99 by 2026-10-19. This supports a positive skew on confirmation, but the confirmation delivered is in-line, not a beat.

The update nudges toward the thesis by increasing confidence that a second shallow oxide zone exists near the plant, but it does not change reserves (none exist) or the NAV story by itself. That is the definition of incremental.

Axo Metals Corp. (TSXV: AXO) is a Canadian-listed mineral company holding two assets in Mexico. The company acquired the San Antonio project in Sonora from Osisko Development, closing the transaction in January 2026. This brownfield gold asset features a resource of 576 koz Au @ 1.20 g/t (Indicated) and 544 koz Au @ 1.02 g/t (Inferred) across oxide, transition and sulphide zones. Existing infrastructure includes the past-producing Luz del Cobre pit, heap pads, a carbon-in-column plant, a camp, grid power, and highway access, with the plant located approximately 1.8 km from the Luz del Cobre mine. The company received environmental approval (MIA) from SEMARNAT in July 2026, with a CUS follow-up guided before year-end.

In Jalisco, Axo Metals holds the early-stage La Huerta copper discovery, specifically the Juanes concession, which was previously retained. Drilling at La Huerta had been on hold pending funding for San Antonio. The La Gallina option has been terminated in this release.

To support operations, Axo Metals closed a ~C$40.25M bought deal in February 2026. Osisko Development (~9.99%) and OR Royalties (~4.99%) are locked-up strategic holders. A 7.15% payable gold/silver stream at 30% of spot prices and up to $8.55M in contingent gold-delivery payments encumbers San Antonio.

Prior-period financials for the period ending March 31, 2026, show cash of ~C$36.6M and total equity of ~C$80.9M. The book value stands at ~C$0.37/share. The company reported a nine-month net loss of ~C$2.65M and negative operating cash flow of ~C$4.49M. A $72M stream liability is recorded, while the MD&A cites working capital of $33.3M. This conflicts with tabulated current assets of $38.2M versus current liabilities of $93.6M, a discrepancy noted for clarification. On the C$0.99 quote, the price-to-book ratio is ~2.7x.