Lavras Gold Reports High-Grade Intercept at Caneleira Target in Southern Brazil
High-grade visible gold at Caneleira validates district-scale potential as Lavras transitions from exploration to engineering
The most recent news (Feb 24, 2026) reports high-grade drill results from the Caneleira Target, located 2km north of the flagship Butiá-Fazenda do Posto project. Key intercepts include 21.66 g/t Au over 15m (including a spectacular 132.93 g/t over 2m) in hole 25CN016. This follows the Feb 9, 2026, announcement that the company has engaged Ausenco and GE21 to initiate a Preliminary Economic Assessment (PEA) and mine planning for the Butiá-Fazenda do Posto project.
The news is Material - Positive for three reasons: - Grade and Scale: The 21.66 g/t Au over 15m intercept is significantly higher grade than the existing resource average (~0.9 g/t Au). This suggests the potential for high-grade "sweeteners" or a separate high-grade satellite deposit that could drastically improve the economics of a future mining operation. - De-risking through Engineering: Moving to the PEA stage with top-tier consultants (Ausenco) signals that management believes they have reached a critical mass of ounces (currently ~1M oz combined across Butiá and Cerrito) to justify development studies. - Strategic Execution: The company successfully closed a C$10M financing at C$3.40 in late January 2026. Despite the stock trading below that level recently, the company is now fully funded for its 20,000m 2026 drill program.
Lavras Gold is focused on the LDS Project in Rio Grande do Sul, Brazil. The project covers 23,000 hectares and includes over 24 targets. The flagship is the Butiá-Fazenda do Posto complex, which features a bulk-tonnage disseminated gold system. The company also holds a 0.5% to 3.0% NSR royalty on various mineral rights, including the Mara Rosa royalty.