Tesorito’s JORC Resource Results

Last week we looked at our Colombian gold investment LCL after the company reported its long-awaited maiden resource estimate at Quinchia Project’s Tesorito deposit.

The market provided a modest response to the milestone, with trading of LCL jumping slightly from 11 cents pre-announcement to about 12.5 cents today.

We noted that respected commodities analyst Warwick Grigor has since provided some insightful commentary on the LCL results in his most recent newsletter. He noted that it was still “early days” with the expectation that more would ultimately be added.

From last week’s announcement, LCL confirmed that after running pit optimisations as part of the Resource estimation process, and using a US$1,800/ounce gold price, the independent Resource Geologist determined an appropriate cut-off off 0.25g/t gold.

Using a 0.25g/t cut-off grade lifts the Resource to 134.3mt grading 0.53g/t gold for a total of 2.3 million ounces of gold, this result sits well above our “Top of the Class” mark.

Given the rise in the gold price, Grigor echoed similar sentiment to ours in regard to the cut-off grade used for the calculation. A cut off of 0.25g/t Au may appear quite low to those more accustomed to 1 g/t Au cut-off grades as typical over the past two decades. Here’s what Grigor wrote:

With five rigs continuing to drill across the Quinchia project area, we look forward to steady newsflow in the year ahead for LCL.

We’re keenly awaiting assay results next month from drilling “Jabba the Blob” – that is, the big magnetic anomaly residing deep between LCL’s Tesorito and Miraflores deposits - our next objective we’d like to see LCL deliver this year.