Lavras Gold and their monumental rise after results

Gold Is Here To Stay

Have you ever thought gold stocks were over, leaving the spot to lithium, uranium, and EV stocks? Gold has always been here and all we can say is that gold is the safest commodity in the world. In other words, Gold is here to stay. 

While in the common idea, we mainly acknowledge that gold is used for jewelry, you would be surprised to read that the commodity is employed in our day-to-day lives. How? 

Gold is, for example, used in electronics for its exceptional electrical conductivity and corrosion resistance. Gold is also used in memory devices, including RAM (Random Access Memory) modules. Gold bonding wires are used in memory chips to achieve reliable data storage and retrieval and in medical devices where its biocompatibility and resistance to corrosion make it suitable for use in medical devices such as pacemakers, implantable sensors, and electrodes.

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Although gold found its usage in several technologies, it is still wildly famous as a strong hedge against inflation. The 1970s marked a period of substantial inflation, commencing with an average interest rate of 5.84% in 1970 and culminating in an astonishing average rate of 13.58% by 1980. Concurrently, the value of gold experienced a remarkable surge, as per NASDAQ data, ascending from $35 per share to an impressive $850 per share during this same decade. In 2023, the price of gold has shown an upward trajectory, with an increase of up to 9% recorded for the year by April. As of September, the year-to-date rise stands at approximately 13%, with the price hovering around US $1,920 per ounce.

Brazil Is A Leader In Gold Production

Among top gold producers, Brazil has been renowned as one of the top performers with a previous history. We can trace exploration back to the Portuguese colonization in the 18th century. The discovery of gold in the state of Minas Gerais during the Brazilian Gold Rush (1690–1750) attracted thousands of miners and played a pivotal role in the country's history.  

• The Paracatu Mine, situated in Minas Gerais and owned by Kinross Gold, yielded approximately 545.81 thousand ounces of gold in 2022. Its operations are slated to continue until 2031;
• In Para, the Salobo Mine, under Vale's ownership, is a surface mine that produced around 388.89 thousand ounces of gold in 2022. It is expected to remain in operation until 2053;
• Moving to Bahia, the Jacobina Mine, a property of Yamana Gold, contributed an estimated 195 thousand ounces of gold in 2022. It is set to operate until 2035;
• The Cuiaba Mine, an underground mine located in Minas Gerais and owned by AngloGold Ashanti, produced approximately 145.65 thousand ounces of gold in 2022. Its operations are expected to extend until 2035;
• Lastly, the Corrego do Sitio Mine, also owned by AngloGold Ashanti and situated in Minas Gerais, combines surface and underground mining methods. It produced an estimated 128.51 thousand ounces of gold in 2022 but is slated to conclude its operations in 2023.

These mines operated by multi-billon market cap would bring you safety as an investor, but if you look at junior exploration companies, this is where you can make real money. All you need to know is what company combines strong financials, an experienced board, and properties with solid exploration results. 

Well, stop looking for the golden one, Lavras Gold Corp (TSXV: LGC, OTC: LGCFF) gather all the characteristics you are looking for.   

Why Has Lavras So Much Potential? 

Zeca Souza Discovery Unveils Promising Discoveries

Lavras Gold Corp has made substantial strides in its exploration efforts at the Zeca Souza Discovery, located within its LDS Project in the southern regions of Brazil. The outcomes of the company's recent drilling campaign are undeniably promising, with the discovery of visible gold and the interception of high-grade gold deposits at multiple depths and strategic locations within the designated area. These findings strongly suggest the existence of a robust gold system at Zeca Souza, a compelling development for the company and its stakeholders. 

Lavras has recently achieved a significant milestone at the Zeca Souza Discovery by completing an additional 7 drill holes, bringing the total number of drill holes to 21, covering a total drilling of 5,291 meters. The assay results stemming from these drill holes have unveiled compelling findings, notably the presence of visible gold and elevated gold grades across multiple intercepts. 

Here are the key highlights gleaned from these exploration results:  

• Shallow Gold Find: Hole 23BT004 revealed remarkable gold grades, notably 110.50 g/t gold over a 1-meter span, at a depth of just 27 meters. 
• Deep Gold Encounter: Hole 23ZS018 found visible gold at a deeper depth, with a high-grade interval of 9.07 g/t gold over 1 meter at 230 meters. 
• Lengthy Gold Strike: Hole BT003 showcased a substantial 32.00-meter intercept averaging 1.92 g/t gold, including a remarkable 43.20 g/t gold over 1.24 meters. 
• Extended Gold Zone: Hole 23ZS016 delivered multiple elevated gold intercepts, with a vast 28.00-meter interval grading 0.78 g/t gold and higher-grade subintervals. 
• Vertical Gold Spread: Impressively, visible gold was encountered in five of the 21 drill holes at Zeca Souza, spanning a 204.40-meter vertical extent.

These exciting results strongly indicate that the gold-hosting structures at Zeca Souza extend over a substantial area and possess the potential for further expansion. The mineralization's association with hydrothermal alteration, characterized by minerals such as albite, silica, sericite, chlorite, and disseminated sulphides, underscores the significance of these findings. Lavras Gold Corp's continued exploration efforts at Zeca Souza hold promise for an even more prosperous future in the realm of gold discovery. 

Mara Rosa Royalty: A Strategic Asset Poised for Near-Term Value Growth 

Lavras Gold was spun out from Amarillo Gold Corporation when Amarillo was acquired by Hochschild Mining plc in April 2022. The spin-out included a 2% NSR royalty on Hochschild’s exploration concessions at Mara Rosa in central Brazil. This royalty applies to 6,000 hectares along the Posse structural trend and 59,000 hectares of regional exploration. However, it doesn't apply to the Posse Gold Deposit, where Franco-Nevada Corporation has a 1% royalty and Royal Gold has a 2.75% royalty 

Recent drilling by Amarillo indicates that the Pastinho area could be a significant asset for royalty holders. It shares similarities with the Posse Gold Deposit, with mineralization starting at the surface, extending over 1.7 kilometers in strike length, and reaching depths of 200 meters. Notable assay highlights include 4 meters at 2.42 g/t gold from 81 meters and 11 meters at 1.20 g/t gold from 222 meters.

Hochschild has committed US$200 million to build the Mara Rosa Gold Mine, set to begin producing gold in the first half of 2024. This positions Lavras Gold for potential near-term value creation.

Famous Names, Experienced Management Team For Success

Lavras Gold Corp boasts a diverse and robust shareholder base, which speaks volumes about the company's potential and credibility in the market. At the helm of its major shareholders is the notable presence of Eric Sprott, a prominent figure in the industry known for his astute investment acumen. Adding to this impressive lineup is the influential EMA, led by the esteemed director Lawrence Lepard. 

The company has also garnered strong institutional support, with names like 683 Capital, Myrmikan, Ruffer, and Solas holding stakes in the company. Their involvement underscores their confidence in Lavras Gold Corp's growth prospects and strategic vision.  

Michael Durose is a highly qualified and experienced professional with a P.Geo. in Ontario and a BSc in mineral deposits from Carleton University. He holds an MSc in mineral economics from Queen's University, as well as a graduate diploma in environmental engineering from McGill University. With over 25 years of experience in capital markets, Michael has achieved top rankings as a financial analyst. Prior to his finance career, he worked as an exploration geologist in Canada. Currently, as the Founder and CEO of Durose Asset Management Inc., he leads the company's operations and financial strategies. Michael has held senior positions at Scotia Capital Inc., Morgan Stanley, Bunting Warburg, and Nesbitt Burns. Additionally, he served as a Director of Amarillo Gold Corporation from 2009 to 2014.

Their Solid Financial Position Unveils Impressive Numbers

The company's capital structure is well-balanced, with 41.1M outstanding shares. Additionally, there are 3.7M options in play at a weighted average price of C$0.36. 

Regarding financial strength, Lavras Gold Corp is in a robust position. As of June 30, 2023, its cash reserves amounted to C$2.1 million, providing the company with the financial flexibility needed to pursue strategic objectives and fuel growth. 

It is important to mention again the 2% NSR revenue-based royalty, strategically positioned to unlock significant near-term value. Hochschild's substantial commitment of US$200 million towards the construction of the Posse Gold Mine serves as a testament to the project's robustness and the company's dedication to its success. With gold production anticipated to commence in the first half of 2024, the potential for value creation is both tangible and compelling.

Why Is Lavras Gold (TSXV: LGC, OTC: LGCFF) a First Phase Choice?  

• Gold remains a safe and versatile commodity, used not only in jewelry but also in electronics, memory devices, and medical equipment. It retains its status as a strong hedge against inflation.
• Brazil, historically rich in gold exploration, continues to be a prominent player in gold production. Mines like Paracatu, Salobo, Jacobina, Cuiaba, and Corrego do Sitio contribute to Brazil's status as a gold leader, offering stability for investors. 
• While major mining companies offer stability, junior exploration companies like Lavras Gold Corp present potential for significant returns. Lavras combines financial strength, experienced leadership, and promising exploration results. 
• Lavras Gold Corp's Zeca Souza Discovery has shown compelling exploration results, including shallow and deep gold finds.
• Lavras Gold's 2% NSR royalty at Mara Rosa, central Brazil, positions the company for near-term value growth as Hochschild Mining invests $200 million in the Mara Rosa Gold Mine, set to produce gold in H1 2024. 
• Lavras Gold Corp maintains a well-balanced capital structure and a strong cash reserve of C$2.1 million as of June 30, 2023. With the NSR royalty strategically positioned, the company is poised to unlock significant value, aligning with its commitment to project success and gold production in 2024.

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