Micro-Cap Miner Defies Market Selloff With Strong Gold Intercepts in Brazil

2026-05-19 11:55:00 ET

On an otherwise risk-off trading day driven by U.S. Treasury yields climbing to their highest levels in nearly 19 years, sustained bullish momentum was hard to find. However, one micro-cap mining stock managed to buck the broader market trend, surging more than 20% following the release of strong drill results.

Lavras Gold Corp. (TSX-Venture: LGC) (OTCQX: LGCFF) announced additional drill results from the Caneleira target within its Lavras do Sul Project in southern Brazil, highlighting several high-grade gold intercepts that continue to support the area’s exploration potential. Among the latest results, hole 26CN019 returned 33.72 g/t gold over 7 metres, including 64.24 g/t over 4 metres and 178.16 g/t over 1 metre, while hole 26CN026 intersected 2.53 g/t gold over 9 metres, including 5.03 g/t over 4 metres. These results build on previously reported strong intercepts from hole 25CN016 earlier this year.

The company said follow-up drilling has now confirmed a northwest-to-southeast trending system of mineralized vein structures at Caneleira, with at least three distinct zones identified so far. A total of 20 drill holes have been completed at the target, with analytical results from 10 holes included in the latest update. Management believes the new findings strengthen the case for Caneleira as a potentially significant near-surface gold system that could eventually provide early feed for the advancing Butiá-Fazenda development project located roughly two kilometres south of the target area.

"These latest results from the Caneleira Southwest Extension support the target's potential to be part of a larger development and economic scenario," commented Jonathan Hill, Interim VP Exploration, Lavras Gold. "Reviewing these new intercepts alongside our previous results, we have confirmed the presence of at least three discrete northwest-southeast trending mineralized vein structures. These results underscore the geological framework from our recent expert workshop and strengthen our near-term exploration strategy, confirming we are on the right track to demonstrate the significant scale and growth potential of the entire LDS district."

Shares of LGC are currently up 20.81% at $2.38, while U.S. listed shares (LGCFF) rally 23.51% at $1.76 in mid-morning trading.

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