Mondays are not always fun days

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Monday proved to be a challenging day for the junior mining sector, with numerous companies facing significant selloffs.

In the current market climate, it seems everyone is quick to hit the sell button.

One of today's worst performers caught our attention, especially considering the selloff was accompanied by some rather good news. Lavras Gold announced a substantial 204 meters of continuous gold.

There are a few key points to note here:

• The gold mineralization starts only 31 metres at depth.

• Gold mineralization remains continuous.

However, it's essential to consider the relative significance of these findings. For mining enthusiasts, Lavras Gold might ring a bell as one of the few companies that made a genuine discovery in 2023.

$LGC.V made headlines on Tuesday, August 29th, revealing a remarkable blind discovery at Fazenda do Posto—340 meters grading 1.09 g/t gold. Shareholders rode an impressive paper gain of 330%, closing at C$1.70 on September 13th, just two weeks later.

Last Friday, with speculative buying some must have predicted drill results early this week. $LGC.V closed the week strong at C$1.25.

However, today marked a notable shift as the stock closed at C$0.87, reflecting a significant paper loss of 30.4%. Speculators clearly were anticipating more.

Despite today's downturn, it's crucial to note that $LGC.V is a thinly traded stock (in which we have no position), making this potentially a compelling entry point.

At a market cap of ~C$44 million and an exceptionally tight share structure, this stock can be quite temperamental.

If you are comfortable speculating in Brazil, it is an interesting play with multiple gold targets and projects as well as a 2% net smelter royalty (NSR) on Mara Rosa.

• Benton Announces $1.56 Million Non-Brokered Premium Flow-Through Financing With Investment By Eric Sprott

• Vizsla Silver Reports Additional High-Grade Intercepts On The Copala And Copala 2 Structures

• AbraSilver Reports 258 Million Silver-Equivalent Ounces Contained in M&I Categories, Substantially Increasing the Diablillos Mineral Resource Estimate.

For a silver deposit, surpassing the 200 million ounce mark is significant. This Mineral Resource Estimate from AbraSilver was released after hours. Tomorrow's market reaction will be telling, although it's no secret that $ABRA.V was already known to have a sizable deposit.