Next Investors logo grey

LCL’s Gold System Keeps Getting Bigger


Published 18-MAR-2021 12:08 P.M.


2 minute read

Drill results are in... and there are more coming in the next few weeks.

We invested in Los Cerros (ASX:LCL) in April 2020. We were impressed by the potential of its gold assets and management and took a long term position.

LCL has been a great result for us so far - The company found a pretty big porphyry gold system in September and the price tripled. LCL then raised $10M to drill in all directions around it to see just how big it actually is...

A gold “porphyry” is a giant gold system that has easy to mine, large volumes of gold.

These are usually monster deposits - finding one is an exciting process for investors. Think of it as the “tip of an iceberg”... you need a lot of drilling to see just how big they are.

Today, LCL announced that drill results reveal their gold porphyry system extends to the west.

...and from reading into the announcement (shown in red underline) we think upcoming results might extend the gold porphyry in MORE directions - which would be a massive result if confirmed in the coming weeks:

Next Investors Image

More results just in... More coming:

LCL now has three drill rigs turning, and continues to serve up excellent drill results, including today.

Today’s results confirmed gold extensions to the west - our read is that visuals from all other holes indicate it might extend in all other directions...

1g per tonne considered high grade in porphyry:

Next Investors Image

The most important thing here is that LCL extended its ‘high grade gold envelope’ to the west, which remains ‘open’ - this means that LCL has not found a precise end to the gold system, which means it could continue to get bigger.

The company also struck some visible gold which is always encouraging:

Next Investors Image

Today’s drill results look pretty similar to the results from 10th of September 2020 that saw the LCL share price triple over a couple of days - our fellow LCL investors will remember what a great day that was:

Next Investors Image

In January 2021, LCL delivered a globally significant hit:

Next Investors Image

If there was an Oscars for Gold Exploration, LCL would be nominated for ‘Best Drilling Results’...

It turns out there is and it has.

Since 2021 began, LCL’s January intersection is the second biggest on the ASX and the 8th biggest result in the ENTIRE WORLD!

Next Investors Image

So what is LCL actually looking for?

LCL is hunting giant gold systems in the hills of Colombia, in a place called the Mid Cauca Porphyry Belt.

This region is home to many multi-million ounce gold discoveries, and LCL is clearly aiming to identify another.

So far so good, based on results to date - we know something is very large here.

LCL continues to serve up impressive drill results that indicate the presence of a large gold system.

2021 is LCL’s biggest year of exploration to date. It is well funded, has three drill rigs going, and has one clear goal:

Uncover the true size potential of its two giant porphyry prospects.

LCL has assays for four completed diamond holes currently PENDING. We are hoping they can deliver continued strong results like today.

We hold a long term position in LCL - As investors we are looking forward to sitting back and watching those results come to market.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.