More high grade gold hits for Los Cerros

Our gold exploration Investment Los Cerros (ASX:LCL) has provided an update on infill drilling at its Tesorito porphyry discovery in Colombia, delivering more high grade gold intercepts.

The short three drill hole infill drilling program was designed to better define the high-grade potential starter pit within the 1.3Moz Tesorito Inferred Resource pit shell, as part of LCL’s plan to advance and de-risk mature prospects within the Quinchia Gold Project.

The best results from surface include:

These results give greater certainty to the nature of the high grade porphyry core of the Tesorito discovery.

We think the move towards infill drilling is sensible given the nature of markets right now, and in particular, the lack of market sentiment for gold stocks.

This follows results of Tesorito metallurgical test work that demonstrated Tesorito ore is likely to be amenable to a conventional process flow and to enjoy typical porphyry style recovery performance characteristics.

LCL’s strong cash position of over $13 million at the end of June leaves it well funded to continue advancing the Miraflores and Tesorito deposits.