San Lorenzo Gold Corp. (SLG:TSXV; SNLGF:OTCMKTS) announced that recent drilling has notably expanded the mineralized footprint and confirmed key strike extensions at its Salvadora property in Chile, according to a June 29 release.
The company focused its efforts on the "San Juan Extension," a northwest extension of the Arco de Oro "Core Zone," where four new drill holes have been completed. These holes aimed to explore the epithermal vein system previously identified in the Arco Core Zone, located about 3.5 kilometers to the southeast, specifically testing the system between 3.4 kilometers and 3.9 kilometers northwest of the nearest previously drilled hole on the Arco de Oro epithermal trend.
The results from these holes have substantially broadened the known extent of the epithermal system at Arco de Oro, the release said. Unlike previous drilling efforts that targeted large porphyry deposits, these four holes were specifically designed to test shallow epithermal mineralization.
The upcoming drilling program, set to begin in about a week, will include step-outs from holes SAL-10-25 and SAL-09-25 to further explore the continuity of the porphyry system, indicating the potential for significant porphyry mineralization at San Juan that warrants additional investigation.
"We have long believed that the epithermal vein systems at Salvadora — especially at the Arco de Oro and Tres Amigos targets — are associated with large porphyritic intrusives and their associated hydrothermal events similar in type and age to those hosting the ore deposits at the producing El Salvador mine, located 15 kilometers to the northeast," Vice President of Exploration Terence Walker said. "The intercepts encountered in these last four holes coincide precisely with our geological model. We have cut numerous intercepts in the upper epithermal system that appear to be associated with several nearby anomalies identified on our IP lines, a conclusion further reinforced by the results of recently drilled holes nine and 10 at San Juan.
All four drill holes intersected the epithermal vein system that extends to surface, together with mineralized surrounding rock, the company said, generating the following results:
- Hole SAL-11-25: 18.9 meters at 1.06 grams per tonne gold (g/t Au) from 48.3 meters, including 1.6 meters at 5.68 g/t Au.
- Hole SAL-12-25: 21.5 meters at 1.32 g/t Au from 68.5 meters, including 3.1 meters at 5.82 g/t Au and 45 meters at 1.24 g/t Au from 113.5 meters, including 4.6 meters at 5.22 g/t Au and 3 meters at 5.68 g/t Au.
- Hole SAL-13-25: 23 meters at 1.41 g/t Au from 31.5 meters, including 1.2 meters at 9.52g/t Au, 12 meters at 1.15 g/t Au from 95.5 meters, and 8.3 meters at 1.71 g/t Au from 174.2 meters.
- Hole SAL-14-25: 13.3 meters at 1.56 g/t Au from 35.2 meters, including 1.4 meters at 9.85 g/t Au.
This recent drilling has extended the known strike of epithermal mineralization by an additional 0.5 kilometers at San Juan, located approximately 3.4 kilometers northwest of the Arco Core area, San Lorenzo said. Previously, drilling at the Arco Core area had defined mineralization over about 1 kilometer of strike. Now, drilling has delineated a very significant strike length from the Arco Core Zone to the San Juan extensions.
Further Drilling Is Needed
Further drilling is necessary to verify the continuity between the two areas. The cumulative potential strike length of over 7.5 kilometers, as indicated by combined geological data including drilling, mapping, rock chips, geophysical surveys, and artisanal workings, suggests that the epithermal system remains open and untested further northwest of San Juan.
Artisanal workings continue for an additional 2.6 kilometers along the trend within San Lorenzo’s Salvadora land package, necessitating follow-up drilling to fully ascertain the extent of mineralization in the Arco de Oro’s epithermal system.
San Lorenzo remains optimistic about the potential of these epithermal systems, which are believed to be associated with intrusive activities as suggested by chargeability and resistivity anomalies observed in the company’s historical and recent geophysical induced polarization lines.
This belief has been reinforced by the recent drilling outcomes from holes SAL 09-25 and SAL 10-25, which have penetrated the upper gold-rich section of a mineralized porphyry copper-gold system.
"We’re pleased with the results of the drill holes reported today," Chief Executive Officer Al Kroontje said. "They help confirm the very significant strike length of the shallow epithermal vein mineralization at Arco de Oro. While the company is also pleased with the recent bulk-tonnage-style mineralization intercepted nearby, we recognize that the higher-grade veins near surface have the potential to host a significant gold-silver resource in their own right. These holes were drilled specifically to test the shallow, epithermal vein system rather than the deeper, intrusive-related, portion of the system. While Phase 7 drilling will be more focused on bulk tonnage targets, it’s gratifying to see that this richly endowed project also has the potential for high-grade mineralization."
Field Programs Underway
Following the completion of its Phase 6 drilling program, San Lorenzo Gold Corp. said it has been actively engaged in detailed soil and rock sampling at its Arco de Oro and Cerro Blanco targets. The company has also extended its geochemical efforts to newly acquired territories to the east and south of Cerro Blanco. Additionally, San Lorenzo has launched a significant IP (Induced Polarization) surveying program, which includes at least 50 additional line kilometers of IP surveying.
San Lorenzo has secured all necessary permits to initiate the next phase of its exploration efforts — Phase 7 — at the Salvadora project. Construction of the drill pads began about 10 days ago, and the deployment of the first drilling rig is expected very shortly. The initial focus of the Phase 7 drilling will be at the Cerro Blanco site, where the drilling aims to expand upon the promising findings from holes SAL 01-25 and SAL 04-25, the company said. This phase will also explore further IP anomalies at Cerro Blanco to enhance the understanding of the site's geological structure.
Moreover, drilling at the Arco de Oro target remains a strategic priority. The company plans to increase its drilling activities, aiming to operate three rigs simultaneously at the Salvador project.
Analyst Increases Target Price
On June 4, 2026, analyst Patrick Streater of Argonaut maintained a "Speculative Buy" rating and raised its price target to CA$13.40 for San Lorenzo, noting "significant scale emerging at San Juan." The analyst argued that finding positive drill results along strike and establishing continuity will be key for the company.
Streater wrote, "We increase our San Juan Exploration target size from 2.0Moz to 3.5Moz, which lifts our price target from CA$12.70 to CA$13.40. Speculative Buy rating maintained. Drilling at San Juan continues to demonstrate a material discovery to add to existing discoveries at Cerro Blanco, Arco 'Core Zone,' and Caballo Muerte. Should drilling demonstrate only 300-400 meters of strike continuity at San Juan, we estimate it's likely the Salvadora project will deliver a ~10Moz (million ounces) resource."
According to Frédéric Tomesco of Mining.com on May 8, the stock experienced a significant surge in its stock value, reaching a record intraday high, following the earlier release promising drilling results at Salvadora.
The company announced that drilling at the Arco de Oro target suggested the potential presence of multiple gold and copper systems. This news was shared on a Friday, causing the company's shares to jump by 45%, Tomesco reported.
"Calgary-based San Lorenzo has emerged as one of the top performing junior explorers on the TSX Venture Exchange this year following a series of discoveries at Salvadora in northern Chile’s Atacama region," the report said. "The project, which covers more than 90 square kilometers, sits about 15 kilometers from Codelco’s long-producing El Salvador copper mine. Regional infrastructure includes roads, power, and access to nearby mining services."
Tomesco said San Lorenzo's stock has seen a remarkable increase, more than quadrupling since the beginning of the year. The company has become one of the top-performing junior explorers on the TSX Venture Exchange in 2026, driven by a series of discoveries at its Salvadora project.
The Catalyst: Gold's Road Is Bumpy, But Could Smooth Out
Despite a lackluster performance in the past four months, the outlook for gold remains positive, according to Goldman Sachs, Ines Ferré reported for Yahoo! Business on June 29.
Samantha Dart, co-head of global commodities research at Goldman Sachs, emphasized in a recent note that the rally for this precious metal is far from over. "Gold is not done," Dart stated, according to the report, highlighting that since 2022, gold has seen a substantial increase of 123%. Dart and her team believe that the future still holds significant potential for gold, driven by a mix of structural and cyclical factors.
From a structural perspective, Dart pointed to the diversification actions of emerging market central banks as a key support for gold's value. This trend was notably influenced by the 2022 freezing of Russia's reserves, which has underscored the importance of diversification.
"Structurally, EM central bank diversification — following the 2022 freezing of Russia's reserves — remains the anchor of our US$4,900/oz end 2026 forecast," she said.
Additionally, a recent survey by the World Gold Council found that a record 45% of the 76 central banks surveyed between February and May anticipate increasing their gold reserves in the next 12 months, further supporting this view.
On the cyclical front, however, gold currently faces some challenges. Dart noted that the near-term outlook is affected by a hawkish Federal Reserve, which diminishes the appeal of gold by strengthening the debasement theme and influencing market expectations of Fed rate hikes amid inflation concerns, the Yahoo! report said. These factors are currently dampening demand for rate-sensitive ETFs.
Despite these headwinds, Dart remains optimistic, stating, "We expect these headwinds to at least partly reverse over time," suggesting a recovery in conditions that could once again favor gold investment.
Streetwise Ownership Overview*
San Lorenzo Gold Corp. (SLG:TSXV;SNLGF:OTCMKTS)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 12/29/20 | TW.P | 1.5 | SLG | 1 |
But on Tuesday, gold prices declined, positioning the precious metal for its most significant quarterly drop in 13 years, reported CNBC on June 30. This downturn is largely attributed to heightened inflation concerns linked to ongoing conflicts in the Middle East, which have spurred expectations of potential interest rate hikes by the U.S. Federal Reserve. Spot gold fell by 0.2% to US$4,008.94 an ounce, reaching its lowest point since November, with a notable 11.3% decrease in June alone.
This quarter marks gold's first decline since 2024 and represents the sharpest fall since the June quarter of 2013. Typically viewed as a hedge against inflation, gold struggles in environments where interest rates are high, as it does not yield returns.
Market analysts, using tools like the CME FedWatch, currently estimate about a 65% likelihood of a rate hike in September. Investors are also keenly awaiting the release of the ADP employment data on Wednesday and the U.S. nonfarm payrolls data on Thursday, which will provide further insights into the Federal Reserve's approach to monetary policy in the coming months.
Ownership and Share Information1
San Lorenzo Gold Corp. has a market cap of CA$452.18 million, with 107.15 million shares outstanding. The company's 52-week range is CA$0.21-CA$5.97.
Institutions own less than 1% of shares, while Management and Insiders own about 16%. The remaining shares are held by Retail.
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- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
