Daura Gold Commences Phase II Drill Program at Cerro Bayo & La Flora in Argentina

Daura Gold starts Phase II drilling at high-grade La Flora, targeting four Argentine prospects.

What the company is saying

Daura Gold Corp. is announcing the start of its Phase II diamond drilling campaign at the La Flora gold-silver project, part of the broader Cerro Bayo-La Flora projects in Argentina's Deseado Massif. The company emphasizes the technical significance of this step, highlighting that La Flora is being drill tested for the first time, with historical surface samples up to 82.19 g/t gold and 1,239.28 g/t silver, and a recent 2026 sample showing 63.88 g/t gold and 175.34 g/t silver. The release details a 1,600-metre, 20-hole program across four targets—La Flora, Elena, Ingrid, and Gabriela—outlining specific drill plans and referencing prior Phase I results at Elena and Ingrid. Mark Sumner, Chairman and CEO, frames the program as a critical opportunity to test high-grade mineralization at depth and expand exploration across a larger hydrothermal field. The tone is confident and data-driven, with technical approval by Stuart Mills, Vice President of Exploration. The announcement also reiterates Daura’s 100% interest in 18,000 hectares in Peru and its earn-in agreement for up to 80% of the Argentine projects, underscoring both land position and exploration momentum.

What the data suggests

The disclosed figures show a technically ambitious program: 1,600 metres of drilling in 20 holes, with 900 metres and 12 holes focused on La Flora’s high-grade vein array. Historical surface samples at La Flora reach 82.19 g/t Au and 1,239.28 g/t Ag, while a 2026 sample returned 63.88 g/t Au and 175.34 g/t Ag, indicating the presence of bonanza-grade mineralization at surface. At Elena, Phase I drilling intersected 11.95 metres at 2.00 g/t Au from 11.45 metres depth, including 1.95 metres at 8.83 g/t Au, suggesting a potentially robust near-surface gold zone. Ingrid target results include 16.35 metres at 0.37 g/t Au and 89.0 g/t Ag, with high-grade intervals such as 3.60 metres at 1.43 g/t Au and 321.7 g/t Ag, and 1.80 metres at 739.53 g/t Ag. Gabriela’s 2026 surface samples show strong silver values up to 269 g/t Ag. The technical disclosure is detailed, with explicit hole IDs, intervals, and grades, but all results are downhole lengths with true widths unknown. No resource estimate or economic assessment is provided, which is standard for this early exploration stage. The company’s land position is large—over 18,000 hectares in Peru and a path to 80% of the Argentine projects—but no financial, cash, or cost data is disclosed.

Analysis

The announcement is a factual and technically detailed update on the commencement of Phase II drilling at the La Flora project, with specific references to metres, holes, and assay results from both historical and recent sampling. The majority of claims are realised and supported by disclosed technical data, such as drill intervals and grades, with only a minority of statements being forward-looking (e.g., the design and intent of the new drill holes). There is no exaggerated language or narrative inflation; the tone is proportionate to the operational milestone of starting a new drill phase. No large capital outlay or financial projections are discussed, and the operational focus is appropriate for an exploration-stage company. The absence of financial metrics is not a deficiency in this context, as the company is pre-revenue and the update is about exploration progress. The gap between narrative and evidence is minimal, with all key claims grounded in disclosed facts.

Risk flags

• ●Exploration risk is high: The program is the first drill test of La Flora’s high-grade surface veins, and there is no guarantee that bonanza grades at surface will persist at depth or across the vein system. This is a common challenge in epithermal systems, where mineralization can be discontinuous.
• ●Resource and economic uncertainty: No resource estimate or economic study exists for any of the targets. All reported intervals are downhole lengths, with true widths unknown, making it difficult to assess the scale and continuity of mineralization. Without resource definition, the project's economic potential remains speculative.
• ●Permitting and earn-in structure: Daura’s interest in the Argentine projects is subject to a binding letter agreement with Latin Metals Inc. to earn up to 80%. The final ownership and project control depend on meeting earn-in milestones, which could introduce execution and negotiation risk if terms or relationships change.
• ●No financial disclosure: The announcement provides no information on cash position, program budget, or funding status. This limits visibility into Daura’s ability to sustain exploration momentum or advance to resource drilling and development without additional capital.

Bottom line

Daura Gold’s start of Phase II drilling at La Flora and adjacent targets in Argentina signals an aggressive push to test high-grade gold and silver systems, with strong historical and recent surface assays providing geological justification. The program is technically well-defined, with detailed plans for each target and prior Phase I results supporting follow-up at Elena and Ingrid. However, all results to date are early-stage, with no resource estimate, and the continuity of high grades below surface is unproven. The company’s large land position in Peru and Argentina offers scale, but the lack of financial disclosure leaves open questions about funding and runway. Investors should focus on the upcoming drill results from this campaign, as these will determine whether the high-grade surface potential translates into a meaningful discovery. The most important takeaway is that Daura is entering a critical exploration phase where technical success or failure will set the trajectory for the company’s value.

Announcement summary

(TSXV:DGC, OTCQB:DGCOF) Daura Gold Corp. has commenced diamond drilling at the La Flora gold-silver project, the first of four targets in its approximately 1,600-metre Phase II drill program across the Cerro Bayo-La Flora projects in the Deseado Massif of Santa Cruz Province, Argentina. The Phase II program will include approximately 1,600 metres of drilling in 20 holes across four targets, starting with about 900 metres in 12 holes at La Flora, which is the first drill test of its high-grade vein array. Historical surface samples at La Flora have returned up to 82.19 g/t Au and 1,239.28 g/t Ag, with visible gold in a 2026 sample grading 63.88 g/t Au and 175.34 g/t Ag. At the Elena target, Phase I hole CBD26-012 returned 11.95 m at 2.00 g/t Au from 11.45 m, including 1.95 m at 8.83 g/t Au. At the Ingrid target, CBD26-001 returned 16.35 m at 0.37 g/t Au and 89.0 g/t Ag, including 3.60 m at 1.43 g/t Au and 321.7 g/t Ag, while CBD26-005 returned 15.00 m at 120.8 g/t Ag, including 2.00 m at 427.4 g/t Ag, and 1.80 m at 739.53 g/t Ag. The Gabriela target will be drilled for the first time, with 2026 sampling returning 269 g/t Ag, 182 g/t Ag, and 117 g/t Ag from a quartz vein beside the planned collars. Surface exploration at La Flora has defined a four-vein array across approximately 100 metres within a one-kilometre outcropping vein system, and the 12-hole program will focus on the principal La Flora vein and a second vein within the array. Paired 50-metre and 100-metre holes are designed to establish the dip and geometry of the veins and test continuity of mineralization below surface. At Cerro Bayo, two 100-metre holes at Elena will test the extent of the near-surface gold zone, and four step-out holes at Ingrid will test the continuity of the silver-gold zone. At Gabriela, a 50-metre and a 100-metre hole will test a long, steep, NW-trending structure traced for more than 600 metres. The technical information in the release was reviewed and approved by Stuart Mills, M.Sc., Vice President of Exploration of Daura. Daura Gold Corp. holds a 100% undivided interest in over 18,000 hectares of mineral concessions in the Ancash region of Peru, including the 10,600-hectare Antonella-Libelulas Project. In Argentina, Daura has a binding letter agreement with Latin Metals Inc. to earn up to an 80% interest in the Cerro Bayo / La Flora Projects. The Cerro Bayo / La Flora Projects benefit from established infrastructure, strong community support, and active exploration programs. Daura completed its first drill program on the Cerro Bayo / La Flora Projects in Q2 2026 and is beginning Phase II drilling in October 2026. Mark Sumner is Chairman and CEO of Daura Gold Corp. William T.P. Tsang is CFO and Secretary.

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