Latin Metals Advances on Argentine Gold as Partner Prepares to Drill

VANCOUVER, BC – January 20, 2026 – As Argentina rolls out the welcome mat for mining investment, junior explorer Latin Metals Inc. is gearing up for a pivotal moment at its Cerro Bayo Gold-Silver Project. The company announced today that its partner, Daura Gold Corp., has finalized drill targets and is preparing for a significant drilling campaign scheduled to begin in mid-February 2026, marking a critical step in unlocking the potential of a highly prospective region.

Drill-Ready Targets in a Prolific Precious Metals Belt

The upcoming 1,500-meter diamond drilling program is the culmination of systematic and modern exploration work. Daura Gold recently completed an extensive 27 line-kilometer pole-dipole induced polarization (IP) survey over key areas of the Cerro Bayo property. This geophysical technique, which measures the electrical properties of subsurface rocks, successfully delineated multiple chargeability and resistivity anomalies.

In geological terms, these anomalies are often indicators of structurally controlled zones, such as silicified veins and hydrothermal breccias, which can act as conduits for gold and silver mineralization. By integrating this new IP data with a wealth of historical information—including previous geochemical sampling and earlier gradient array IP surveys conducted by past operators like Barrick Gold—the technical team has defined 15 high-priority targets. The planned program will test these targets with approximately 22 drill holes.

The project's location is a key part of its appeal. Cerro Bayo is situated within the Deseado Massif of Santa Cruz Province, a world-class geological terrain that has produced over 20 million ounces of gold and 600 million ounces of silver since the 1990s. The region is home to major operations like Newmont's Cerro Negro mine and Hochschild's San Jose mine, validating the district's immense mineral wealth. The geological model at Cerro Bayo points toward low-sulfidation epithermal-style veins, a type of deposit known for hosting high-grade "bonanza" zones of gold and silver, potentially at accessible depths. The fact that the project is now fully permitted, with its Environmental Impact Assessment (EIA) approved in March 2025, removes a significant hurdle and allows exploration to proceed without delay.

The Prospect Generator: A De-Risked Approach to Discovery

This advancement at Cerro Bayo serves as a powerful case study for Latin Metals' corporate strategy: the prospect generator model. This business model is designed to navigate the high-risk, capital-intensive world of mineral exploration by minimizing financial exposure for the company and its shareholders.

Rather than funding costly drilling campaigns by repeatedly raising money and diluting shareholder equity, Latin Metals focuses its expertise on identifying and acquiring promising mineral properties at a low cost. The company then conducts initial, cost-effective exploration to de-risk the project and demonstrate its potential before seeking a partner to fund the next, more expensive phases.

The agreement with Daura Gold Corp., finalized in late 2025, is a textbook example. To earn an initial 75% interest in the Cerro Bayo and adjacent La Flora projects, Daura Gold must make substantial investments, including staged cash payments, assuming underlying property payments, and completing 28,000 meters of drilling over several years. The current IP survey and the imminent 1,500-meter drill program represent the first phase of Daura's firm work commitments.

This arrangement allows Latin Metals to see its projects advanced aggressively while preserving its treasury. The company retains a minority interest in the project, providing significant upside exposure to any potential discovery without bearing the full cost and risk of exploration. Over time, the company’s stated goal is to build a portfolio of these retained interests, eventually transforming into a royalty company that generates long-term revenue from multiple discoveries made by its partners.

Favorable Tailwinds: Argentina's Renewed Focus on Mining

The timing for this accelerated exploration could not be better. Latin Metals and Daura Gold are operating in an increasingly favorable political and economic climate in Argentina. The national government has signaled a strong pro-mining stance, implementing policies aimed at attracting foreign investment and boosting the country’s export-driven economy.

A cornerstone of this new approach is the Investment Incentive Regime for Large Investments (RIGI), designed to provide tax benefits and long-term legal and economic stability for major projects. Furthermore, the recent elimination of export duties on hundreds of mining products directly addresses a long-standing competitive disadvantage, making Argentine operations more attractive on the global stage.

This policy shift is resonating with international investors. The European Union has expressed growing interest in partnering with Argentina to secure a stable supply of critical minerals, while major mining companies are advancing large-scale copper and precious metals projects across the country. For junior explorers, this top-down support creates a more predictable and encouraging environment for deploying capital. The social and political momentum is shifting, with a growing recognition that a well-regulated mining sector can be a powerful engine for regional development and economic diversification.

Strategic Outreach and Future Growth

With drilling imminent at Cerro Bayo, Latin Metals is not standing still. The company is actively leveraging the positive momentum to secure its next wave of partnerships. Management has confirmed its participation in a series of key Q1 2026 industry conferences, including the Vancouver Resource Investment Conference (VRIC), the CEM in Whistler, and the prestigious Prospectors & Developers Association of Canada (PDAC) convention in Toronto.

These events are critical networking platforms for a prospect generator, providing opportunities to showcase its portfolio of gold, copper, and silver projects in both Argentina and Peru to a global audience of potential partners and investors.

Simultaneously, the work at Cerro Bayo continues to expand. In parallel with preparations for the Phase 1 drill program, Daura has already initiated a new regional gradient array IP survey in the northern part of the project. This forward-looking approach demonstrates a commitment to building a long-term pipeline of targets, ensuring that the exploration effort can adapt and expand based on the results of the initial drill holes. As the drill rig prepares to turn in February, all eyes will be on Cerro Bayo to see if it will write the next chapter in the storied history of the Deseado Massif.