LCL seeks JV partners for another new copper-gold target
Following a review of its newly acquired copper-gold and nickel projects in Papua New Guinea (PNG), Los Cerros (ASX: LCL) has identified another surface geochemical anomaly that it wants to explore alongside a JV partner.
LCL has an abundance of targets at its PNG projects, but its primary near term focus remains on drill testing the high-grade gold-copper Kusi oxide skarn at the Ono Project, which will commence next month.
However, given the large number of targets, LCL is seeking partners to advance multiple targets concurrently.
A review of the PNG projects has now led to LCL identifying the Ubei Project in the Owen Stanley range of southern PNG as a target that it wants to progress with a JV partner.
The Ubei Project is part of a massive 60km copper trend that has multiple undrilled copper-gold targets in high grade vein systems developed over a 4km x 4km area.
The geochemical anomaly at the Ubei project is called the Liamu Copper Trend, which includes the Liamu Project 30km to the NW and extending to Veri Veri in the SE. The trend is entirely under LCL’s tenure and is interpreted to be prospective for multiple porphyry and epithermal style copper-gold deposits.
Importantly, the Ubei veins display a similar mineralisation style to the veins mined by the A$1.8Bn-capped TSX listed K92 Mining at its Kainantu gold mine, also in PNG.
Within Ubei is the Puma target, which is a high grade surface copper-gold anomaly where surface grab samples have graded up to 4.29% copper and 367.7g/t gold.
The Ubei Project requires commitment to an integrated exploration program to test both its vein-hosted copper-gold potential, including the Puma vein, and for porphyry-style copper-gold.
In this context, we think LCL’s strategy to secure a JV partner is sound. The company clearly has a lot of high grade targets to drill, and a JV partner could help move the projects along more rapidly while LCL concentrates on upcoming drilling at the Kusi target.
Here’s the distribution of high-grade gold (left map) and copper (right map) rock chip samples along that >60km corridor that includes the Ubei, Liamu and Veri Veri targets.
In addition to Ubei, in its PNG portfolio review, LCL identified Imou as another major target area worthy of joint venture expenditure - as we reported last week.
LCL is still to review the remaining projects within the PNG portfolio, namely Tauya (6km along strike from the giant Yandera Cu-Mo-Au porphyry project) and Liamu (30km NW of Ubei and within the interpreted Liamu Copper Trend).
What’s next for LCL?
We look forward to drilling commencing at the primary Kusi copper-gold target in March, and any news on joint ventures partners for the other target areas.
