Axo Metals Reports High-Grade Sapuchi Drilling and First Step-Out Results at San Antonio

• Hole SOSAP-26-039 returned 18.0 metres of 8.15 g/t gold from only 18 metres depth at the Sapuchi deposit, entirely within oxide material.
• Step-out hole SOSAP-26-048 intersected 46.5 metres of 1.43 g/t gold from surface at the Luz del Cobre target, approximately 750 metres outside the existing Sapuchi resource boundary.
• Additional Sapuchi holes returned 47.1 metres of 1.16 g/t gold and 75.0 metres of 0.87 g/t gold, both largely from near-surface oxide material.
• Trenching along the Luz del Cobre highwall returned 20.7 metres of 1.08 g/t gold; these preliminary results have not yet been verified by an independent laboratory.
• Three drill rigs remain active at San Antonio, testing the base of the historical Luz del Cobre pit and the gap zone between Luz del Cobre and Sapuchi.

Axo Metals Corp. (TSXV:AXO) is a Canada-based mineral exploration company operating in Mexico. Its main asset, the San Antonio project in Sonora, is at an advanced stage of exploration and hosts an existing gold and silver resource across oxide, transition and sulphide material. The company also holds the La Huerta property in Jalisco, an earlier-stage copper discovery where surface sampling and initial drilling have identified high-grade mineralisation. Axo's stated focus at La Huerta is defining near-surface mineralisation along the trend, expanding mineralisation at depth, and testing for new discoveries in the surrounding district.

High-Grade Sapuchi Results Confirm Near-Surface Oxide Mineralisation

The latest results from San Antonio cover 29 drill holes, representing approximately 5,000 metres, marking the first resource growth drilling completed since Axo acquired the project earlier this year. The strongest single result came from hole SOSAP-26-039, which returned 18.0 metres of 8.15 g/t gold from 18 metres downhole, including a higher-grade section of 12.0 metres at 11.71 g/t gold. The interval was entirely within oxide material, a near-surface, weathered rock type distinct from the sulphide material found at greater depth.

Other holes within and around Sapuchi also returned wide intervals. Hole SOSAP-26-027 returned 47.1 metres of 1.16 g/t gold from 13 metres depth, and hole SOSAP-26-025 returned 75.0 metres of 0.87 g/t gold from surface. Hole SOSAP-26-028 returned 49.7 metres of 1.20 g/t gold from 79 metres depth. Across these holes, the higher-grade sections were concentrated within oxide and transition material.

Axo is considering Sapuchi as a potential starter pit based on its high-grade oxide mineralisation and favourable topography. Part of the current drilling is directed at areas of the block model previously classified as waste, with the aim of converting some of that material into resource and improving overall confidence in the existing model.

First Step-Out Drilling Extends Gold Mineralisation to Luz del Cobre

Axo also completed its first step-out drilling outside the Sapuchi resource, at the Luz del Cobre target located approximately 750 metres to the east. Hole SOSAP-26-048 returned 46.5 metres of 1.43 g/t gold from surface, entirely within oxide material.

Luz del Cobre was historically mined for copper oxide between 2011 and 2018, with approximately 2.8 million tonnes of ore extracted during that period. Axo identified a separate gold mineralising event at Luz del Cobre, distinct from the earlier copper mineralisation, and has been drilling to test this. A second hole, SOSAP-26-080, collared approximately 380 metres west of SOSAP-26-048, intersected hydrothermal breccia, a rock type associated with gold mineralisation elsewhere at Luz del Cobre; assays from this hole are pending. Trenching along the pit's west highwall returned 20.7 metres of 1.08 g/t gold, though these results are preliminary and have not yet been verified by an independent, certified laboratory.

President and CEO Jonathan Egilo said:

"While the drilling in and around Sapuchi continues to report very strong results, we are excited to announce the initial assays from step out holes well outside the resource boundary. We are excited to follow up on these initial results at the new Luz del Cobre target. Ongoing drilling is being done both in and around the Luz del Cobre historical pit, in addition to testing the wide gap zone that sits between Luz del Cobre and Sapuchi." 

All drilling at Luz del Cobre and the surrounding gap zone falls outside the current San Antonio resource.

Three-Rig Programme Continues Testing Luz del Cobre and the Sapuchi Gap Zone

Three drill rigs are currently active at San Antonio. Two areas remain the immediate focus of this drilling: the base of the historical Luz del Cobre pit, and the gap zone between Luz del Cobre and Sapuchi, an area not previously drill tested.

Drill core is assayed by ALS Chemex, an independent third-party laboratory in Mexico, and all reported drill results have passed Axo's quality assurance and quality control protocols. 

This differs from the trenching and grab sample results, which were processed at the company's on-site laboratory and are described as preliminary pending independent verification.

Milestones and Next Steps

Assay results remain outstanding for hole SOSAP-26-080 at Luz del Cobre. Independent verification of the preliminary trench results from the Luz del Cobre highwall is also pending. The company is continuing drilling at the base of the historical Luz del Cobre pit and within the Sapuchi-Luz del Cobre gap zone, with further updates expected as additional assay results are received.

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