Gold Veins and Partner Gains: A New Model Strikes it Rich in Argentina

VANCOUVER, BC – June 29, 2026 – In the windswept plains of Argentina’s Santa Cruz Province, a story of metal and models is unfolding. Latin Metals Inc. today announced that its partner, Daura Gold Corp., has uncovered exceptionally high-grade gold and silver from surface samples at the La Flora Project. With assays returning up to 63.88 grams per tonne (g/t) gold, the results do more than just point to rich mineralization; they serve as a powerful validation for the "prospect generator" business model, an intelligent network of risk and reward that is quietly reshaping the high-stakes world of mineral exploration.

A Bonanza-Grade Discovery

The latest findings from La Flora are the kind that make geologists and investors take notice. A surface grab sample yielded a spectacular 63.88 g/t gold and 175.34 g/t silver. For context, many profitable gold mines operate on grades of just a few grams per tonne. These "bonanza-grade" results are not isolated. They are part of a cluster of high-grade samples that confirm the presence of significant precious metals within a sprawling, one-kilometer-long vein system that has, until now, remained untouched by drilling.

Exploration by Daura Gold has identified a dense corridor of mineralization, with four distinct veins clustered within a 100-meter-wide array. Crucially, geologists have identified visible gold within the silica-rich rock, a tangible sign of a potent mineralizing system. The accompanying geochemical signature—elevated levels of arsenic, antimony, and mercury—is a classic fingerprint of the low-sulphidation epithermal systems responsible for the vast majority of the wealth in the surrounding Deseado Massif.

"Surface sampling at La Flora has delivered some very high-grade results in the past, so we're encouraged to see more high-grade samples, including visible gold, as we track these veins and refine our drill targeting for this exciting target," commented Mark Sumner, Daura's CEO. "With high grades and visible gold at surface, it represents a compelling target for our planned Phase II drill campaign."

This isn't the first time La Flora has shown its promise. Previous sampling in early 2025 returned grades as high as 82 g/t gold. The persistence of these high-grade discoveries across the vein system strongly suggests that the project is not just a geological anomaly but a priority target with the potential for a major discovery at depth.

The Engine Room: A Prospect Generator Model in Action

While the glittering gold grades capture the headlines, the underlying strategic architecture is arguably the more compelling story. Latin Metals operates as a prospect generator, a business model designed to maximize discovery potential while minimizing financial risk and shareholder dilution. Instead of spending its own capital on costly, high-risk drilling campaigns, the company identifies and acquires promising geological targets and then partners with other companies—the "generators"—to fund the exploration.

The La Flora project is a textbook case of this model's success. All exploration work, from geological mapping to the recent high-grade sampling, has been funded by Daura Gold Corp. Under their option agreement, Daura can earn up to a 75% interest in the project by making staged cash payments and completing 28,000 meters of drilling. To date, Daura has paid US$300,000 to Latin Metals and completed the initial drilling phase at the nearby Cerro Bayo project, demonstrating both financial and operational commitment.

Keith Henderson, Latin Metals' President & CEO, highlighted the strategic advantage: "These results continue to demonstrate the exploration potential of the broader Cerro Bayo–La Flora district... Importantly, all of this work is being funded by our partner, allowing Latin Metals shareholders to maintain exposure to exploration success while minimizing dilution."

This structure acts as an intelligent network, connecting geological opportunity with capital and technical expertise. For Latin Metals' shareholders, it means participating in the upside of a major discovery without bearing the full weight of exploration costs, which can run into millions of dollars. For Daura, a well-capitalized explorer that recently raised $7 million, it provides access to a highly prospective, pre-vetted project in a world-class jurisdiction.

Unlocking the Deseado Massif's Vast Potential

The La Flora project is not an isolated outpost. It sits within the Deseado Massif, one of the planet's most prolific and sought-after precious metals districts. Since 1990, this geological province has yielded over 20 million ounces of gold and 600 million ounces of silver. It is home to giant, world-class mines like Newmont's Cerro Negro, AngloGold Ashanti's Cerro Vanguardia, and the San José mine.

The geology that created these giants is the same low-sulphidation epithermal system now confirmed at La Flora. The discovery validates Latin Metals' targeting strategy and places the project in the company of titans. The work at La Flora, combined with Daura's recent successful Phase I drilling at the adjacent Cerro Bayo project—which also intersected high-grade gold and silver—paints a picture of a much larger, district-scale mineralized system.

The combination of visible gold, bonanza-grade surface samples, and extensive strike length reinforces the view that the district has the potential to generate multiple discoveries. Satellite lineament mapping has already identified numerous other structural targets across the property that share characteristics with the La Flora vein system, suggesting a pipeline of future exploration opportunities. This regional endowment, combined with strong local community support for mining, makes Santa Cruz Province a hotbed for new discoveries.

The Path Forward: Drills, Permits, and Market Momentum

With high-grade mineralization confirmed at the surface, the next logical and critical step is to see what lies beneath. Daura Gold is planning an ambitious Phase II drill program for the third quarter of 2026, which will include the first-ever drill holes into the La Flora vein system. This program will represent a pivotal moment, testing the theory that the rich surface veins extend into a larger, economically viable deposit at depth.

The logistical backbone for this work is already being assembled. The nearby Cerro Bayo project is fully permitted for drilling, allowing work to continue seamlessly. At La Flora, drill permit applications have been submitted and are advancing, ensuring that this emerging high-grade target can be tested on schedule.

In parallel with its field operations, Latin Metals is actively building its corporate infrastructure to manage the growing interest. The company has engaged multiple investor relations and market-making firms, a strategic move to ensure market stability and clear communication as it transitions from a quiet prospect generator to the holder of a potentially significant discovery. This proactive engagement indicates a company preparing for the next phase of growth, ensuring that the value being unlocked from the ground in Argentina is recognized by the global investment community. The upcoming drill program at La Flora will be a key catalyst, potentially marking the moment a promising prospect begins its journey to becoming a major new mine.