More developments at Colombian gold project

Los Cerros (ASX:LCL) announced today that an ongoing detailed geological review of its Quinchia Project in Colombia has revealed a new area of interest at the Ceibal porphyry target.

This target, located less than 1km from the LCL’s at surface, high grade, Tesorito gold porphyry discovery, has not been previously tested and LCL intends to undertake an immediate low-cost field program to better understand the opportunity.

Additionally, today’s announcement confirmed that LCL can tick the box on two key deliverables that it had set out to achieve at the Quinchia project:

1) Completed the pre-scoping production assessment review investigating production options for the Quinchia Project. Several production scenarios were investigated that warrant further investigations.

The commencement of scoping studies was a key objective that we wanted to see LCL achieve, as outlined in our LCL Investment Memo last year.

2) Submitted the Miraflores Environmental Impact Assessment (EIA), marking the final major submission required for development approvals at Miraflores. LCL notes that commencing with small-scale production here is one of the production scenarios considered in the pre-scoping assessment.

We like to hear that LCL is continuing to make progress at its Colombian project following its recent acquisition of multiple copper, nickel, and gold targets in Papua New Guinea (PNG).

And while we remain positive on Colombia, we are really looking forward to exploration to begin in PNG, particularly given the existing exploration data that includes some of the highest grade rock chip assays we have seen — including massive nickel sulphides measuring 45.8% nickel; surface trenches with 2.6% copper, and 11.5g/t gold grades.

As announced last week, site preparations have already begun ahead of maiden drilling that is scheduled for March ahead of first assay results that should arrive next quarter.