Is LCL Discovering Another Monster Colombian Gold Deposit?
Los Cerros (ASX:LCL) has embarked on its biggest year of exploration drilling to date.
LCL is hoping to uncover the true size potential of its Tesorito and Chuscal porphyry prospects at its Quinchia Project in Colombia.
And on the back of news released today, it has taken a step closer to achieving that aim.
We are long term holders of LCL and see continued upside from here.
What’s happening to the LCL share price today?
The company has three drill rigs running right now, and today’s intercept was “spectacular”.
LCL’s latest hole has returned the strongest porphyry gold intercept ever recorded by Los Cerros.
The intercept was 320m @ 1.5g/t gold, just from 2m surface at Tesorito.
Why is this important?
We just don't know how big the resource LCL is drilling is, and therein lies the excitement around this stock.
LCL’s Quinchia Project is located in the Mid Cauca Porphyry Belt in Colombia, which hosts a number of large multi-million ounce gold discoveries.
This region is otherwise referred to as “elephant country”, with large gold and copper deposits discovered such as La Colosa “the big one” in Spanish, the largest to date with over 28 million ounces.
Also in the region is Titribi at 10.6 Moz, Marmota at 14.4 Moz and Nuevo Chaquiro’s 30 Moz AuEq (gold plus copper).
The market is trying to determine whether or not LCL’s deposit has the potential to grow into this category.
LCL is currently capped at less than $60M, and at 31 December has $7M in the bank - more than enough to fund the current aggressive drilling campaign.
What to expect from LCL in 2021?
Three drill rigs will operate continuously across multiple sites within the Quinchia project – Tesorito, Chuscal and Miraflores.
LCL’s immediate focus will be Tesorito South, where follow up drilling will take place.
This means there are several catalysts on the horizon at Tesorito.
In fact the company’s 12 month plan is detailed, hence the growing interest and plenty of catalysts to come across all prospects..
Drilling at Tesorito will lead into a maiden JORC Resource calculation this year, whilst drilling has also resumed at Chuscal, where gold-copper porphyry targets have been identified.
The company will also be drilling for extensions to the existing Miraflores Resource (877,000 ounces) and Rserve (457,000 ounces).
Given the amount of work going on, there are plenty of opportunities for the company to continue to drive its share price forward.
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