Lavras Gold

Primary ticker: TSXV:LGC
Stage of development: Exploration
Primary minerals: Gold
Project to promote: Lavras do Sul (LDS) Project
Project location: Brazil
Website: www.lavrasgold.com

Lavras Gold (TSXV: LGC) is a Canadian company exploring to realize the potential of a multi-million-ounce gold district in southern Brazil. The Company was spun out from Amarillo Gold Corporation when it was acquired by Hochschild Mining in early 2022.

Led by a management team that unites exploration expertise with capital markets acumen, our Lavras do Sul (LDS) Project is in Rio Grande do Sul state and is primarily an intrusive-hosted gold system of possible alkaline affinity. LDS Project has consolidated gold resources across two targets of approximately one million ounces of gold. More than dow dozen gold prospects centred on historic gold workings have been identified on the +22,000-hectare property.

Lavras Gold has a tight capital structure of approximately 51 million shares outstanding, enough cash to meet its immediate goals, and the potential to surface additional value from a 2% royalty on the exploration ground around Hochschild’s Mara Rosa mine in central Brazil.

Cash: CAD6.4M
Debt: NIL

Major shareholders:
Eric Sprott – 14.3%
Lawrence Lepard – 12%
Equity Management Associates – 12%
Rostislov Raykov – 9%
Kinross – 5%
Solas Capital

Management ownership – 31%

Financials

Management Profile

Michael Durose, President and CEO
A Professional Geologist (P.Geo) with a Master of Science in Mineral Economics from Queen’s University in Kingston, Ontario, Mr. Durose is a highly-ranked financial analyst who has worked in the capital markets for more than 25 years. Founder and CEO of Durose Asset Management Inc., he previously held increasingly senior positions as a well-regarded mining analyst with Scotia Capital Inc., Morgan Stanley, Bunting Warburg, and Nesbitt Burns. He has travelled extensively to visit mining and exploration projects all over the world. Before joining the capital markets, Mr. Durose worked as an exploration geologist in the Canadian base metal and gold industries.

What is your rationale for taking part in 121 Mining Investment?

To augment the company’s shareholder roster commensurate with the significantly increased market cap and exploration potential. Support in the market is always appreciated as we continue to make new discoveries on the LDS property and begin to de-risk the Butia/Fazenda do Posto areas, now in the pre-development stage.

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
New discoveries on the LDS property

6 Months:
internal resource on the combined Butia/Fazenda do Posto area

12 Months:
early permits

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Challenging capital markets, however we have enough cash to reach our short term goals.

What do you think makes your company such a compelling investment?

The LDS property, with its large intrusive complex, is a globally significant gold-bearing structure, possible on par with similar volcanic complexes such as Olympic Dam, Porgera and Cripple Creek. There are hundreds of old workings from the 1700s onward across this 11km by 12km structure and almost all recent drilling has encountered gold mineralization.

What are the top 3 key investor takeaways?

A highly prospective property that has the potential to be a district scale deposit

Starting from an existing base of 1 million ounces

A royalty that has the potential to deliver near term value