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Los Cerros (ASX:LCL) releases maiden Tesorito mineral resource estimate

ASX News, Mining
ASX:LCL      MCAP $11.46M
22 March 2022 12:35 (AEST)
Los Cerros (ASX:LCL) - Managing Director, Jason Stirbinskis

Source: Los Cerros

Los Cerros (LCL) has delivered a maiden Mineral Resource Estimate (MRE) for its Tesorito Gold Porphyry discovery, part of its wholly-owned Quinchia gold project in Colombia.

The MRE shows an inferred resource of 2.3 million ounces (Moz) of gold at 0.81 grams of gold per tonne (g/t gold), taking the total Quinchia project mineral resource to 2.6 Moz at 1.02 g/t gold.

The Tesorito MRE includes a 0.54Moz optimised pit shell at 1.23 g/t gold, which the company said provided a compelling opportunity to consider higher-margin “starter pit” scenarios.

Managing Director Jason Stirbinskis said Tesorito had the hallmarks of a “major discovery with excellent development optionality”.

“With five rigs spinning to test excellent exploration upside within a three-kilometre radius of Tesorito-Miraflores, strong cash holdings and a first-class technical and operational team, we remain very bullish about the potential of our project to evolve into a cluster of economic gold deposits, with multi-million-ounce potential,” Mr Stribinskis said.

Los Cerros said it saw the potential for Quinchia to be developed into a “mining hub” with a central processing facility.

The company said since the confirmation of the discovery in 2020, it had moved “aggressively” to explore Tesorito, completing 22,620 metres of diamond drilling in 58 diamond holes.

Mineralisation has been reported deeper than the modelled pit shell, most notably within 629 metres at 0.88 g/t of gold including 461m at 1.11 g/t of gold from surface.

Los Cerros added that it intended to commission a Preliminary Economic Assessment (PEA) of Quinchia incorporating resources from the Tesorito, Miraflores, and Dosquebradas deposits once the first round of Tesorito metallurgical testwork was complete.

As of February 28, the company reported a strong cash position of $17.8 million.

LCL shares were trading grey at 12 cents each at midday AEDT.

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