Mara Rosa Royalty

Potential for near-term value creation

Lavras Gold owns a 2% net smelter return (NSR) revenue-based royalty that applies to 65,000 hectares of exploration ground around Hochschild’s Mara Rosa mine in Goiás State in central Brazil.

This royalty was created as part of the arrangement agreement between Amarillo Gold Corporation and Hochschild Mining PLC that resulted in the sale of Amarillo and the creation of Lavras Gold. It applies to exploration concessions at Mara Rosa, where Hochschild is developing the Mara Rosa Mine, and does not include the Mara Rosa Mine itself, which has royalties held by Royal Gold Inc. and Franco Nevada Corp.

Hochschild has committed US$200 million to building the Mara Rosa Mine, which began gold production in the first quarter of 2024 and is expected to be in commercial production by the end of the first half of 2024. (Mara Rosa Exploration Ground – Source of Image below: Hochschild Mining BMO Presentation Feb 2024)

Pastinho Gold Deposit

The Posse structural trend includes the Pastinho Gold Deposit, which is likely to be a source of future ore feed for the Mara Rosa Mine.

Pastinho is a structurally controlled orogenic gold deposit that is similar to the deposit at the Mara Rosa Mine. Mineralization has been defined over strike length of 1.7 kilometres and to depths of at least 200 metres. It features multiple parallel gold structures and good continuity of grade and width.

Mineralization begins at surface, strikes in a north-easterly direction and dips about 60 degrees to the northwest. Some assay highlights include:

• 7 metres at 0.88 g/t gold from 37 metres
• 8 metres at 1.24 g/t gold from 73 metres
• 4 metres at 2.42 g/t gold from 81 metres
• 8 metres at 0.83 g/t gold from 97 metres
• 11.0 metres at 1.20 g/t gold from 222.0 metres
• Surface trench at 0.95 g/t gold from 11 metres