Maiden resource expands Quinchia gold project to 2.6Moz

Our Colombian gold investment Los Cerros (LCL) today announced its highly anticipated maiden resource at its Tesorito prospect, coming in at 1.3Moz Au, at a grade of 0.81g/t Au.

This takes the total resources for the Quinchia Project to 2.6Moz gold @ 1.02g/t Au, with potential for a high-grade starter pit of 540koz Au at 1.23 g/t Au.

This was the #1 Objective that we set for LCL to achieve this year in our 2022 Investment memo. As per the Memo, we consider the size of the Tesorito maiden resource estimate as a pass mark.

We note also that the grade is decent for a shallow gold porphyry deposit and that there are currently five rigs at the project — meaning that this is just the starting mark for the total project gold resources.

LCL is now examining the prospects of a Tesorito-Miraflores (where most of the 2.6Moz are located) development optionality, through metallurgical test work and a Preliminary Economic Assessment (similar to a scoping study).

We were pleased to also get an update on Central Target, or what we’ve previously referred to as ‘Jabba the blob’ that may connect the Tesorito deposit and Miraflores brescia pipe. LCL reports that the first drill hole here was terminated at 1,205m downhole due to “rig depth capability”. We look forward to seeing the full assay suite, expected in April, which will show the significance of intersected hydrothermal alteration, veining and breccias. A second drill hole at the same site has commenced.

We like that LCL retains a very strong cash position of $17.8M, meaning that it is well funded to keep growing its gold resources at Quinchia.

We will cover today’s announcement in more detail later this week.