Los Cerros Limited (ASX: LCL)
Announced a maiden Mineral Resource Estimate (MRE) for the Tesorito Gold Porphyry of 1.3 m OZ Au, a near surface gold porphyry discovery, which is part of the Company’s 100% owned Quinchia Gold Project (Quinchia), in Risaralda – Colombia.
This grows the Quinchia Project to 2.6Moz gold Including a High Grade potential “starter pit” of 0.54Moz at 1.23g/t Au. […]
|Los Cerros||ASX: LCL|
|Market cap||A$71 m @ 11 c|
Los Cerros declare a 1.3Moz maiden Resource at Tesorito, grows Quinchia Project to 2.6Moz gold Includes High Grade potential “starter pit” of 0.54Moz at 1.23g/t Au
Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) is pleased to announce a maiden Mineral Resource Estimate (MRE) for the Tesorito Gold Porphyry (Tesorito), a near surface gold porphyry discovery, which is part of the Company’s 100% owned Quinchia Gold Project (Quinchia), in Risaralda – Colombia.
Quinchia is an established project which includes the advanced Miraflores deposit (Reserve status), Tesorito and Dosquebradas deposits (Resource status) and many additional early-stage targets.
Importantly, Tesorito is situated less than 1km from the Miraflores gold ore body. The Company sees strong potential for all our gold resources within Quinchia to be developed as a “mining” hub with a central processing facility.
Pit optimisations have been performed by independent firm Snowden Optiro as part of the MRE process using a US$1,800/oz gold price and other relevant economic parameters for all pit scenarios, which has identified a 0.25g/t Au cut-off as the optimal economic configuration, resulting in a optimised pit shell constrained Inferred Resource of 2.3Moz of gold.
Elevated cut-offs have been applied to identify higher grade subsets within the optimised pit shell including 1.0 Moz @0.94g/t Au or 1.3Moz @ 0.81g/t Au (Table 1) at cut-offs of 0.5 g/t Au and 0.6 g/t Au, respectively.
The Inferred Resource of 2.3Moz gold reflects substantial volumes of low grade mineralised andesite country rock surrounding the higher grade causative porphyry, particularly to the north of the high grade zone.
▪ Maiden Mineral Resource Estimate (MRE) (Inferred) of 1.3Moz of gold @ 0.81g/t for the Tesorito Gold Porphyry, located in the mid-Cauca gold porphyry belt of Colombia
▪ Tesorito MRE drives growth in Quinchia Project Mineral Resources to 2.6Moz1 @ 1.02g/t Au
▪ Tesorito central high-grade gold zone of 0.54Moz @ 1.23g/t Au2 provides compelling
opportunity to consider higher margin “starter pit” mining scenarios
▪ Optimised pit shell of 2.3Moz @ 0.53g/t Au3 demonstrates potential for sustaining a longer term mining project
▪ MRE highlights joint Tesorito-Miraflores development optionality which is now being examined through metallurgical test work and a Preliminary Economic Assessment
▪ Massive potential to continue increasing resources with five drill rigs in operation across multiple targets within 3km radius of Tesorito-Miraflores
▪ Strong cash position of $17.8M
Los Cerros Limited management comments
“Tesorito has the hallmarks of a major discovery with excellent development optionality.
“For instance, the high grade at surface ~0.5Moz gold optimised pit shell, when combined with high grade ~0.8Moz gold Miraflores resources, makes a compelling conceptual case for fast payback of development capital.
“Following this initial phase, a transition to longer term contributions from the larger pit configurations capturing the significant volumes of lower grade material in the Tesorito MRE could be considered.
“Quinchia now has global resources of 2.6Moz of gold. With five rigs spinning to test excellent exploration upside within a 3km 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 gold potential.
“Not unlike some of our peers who have enjoyed great success on the mid-Cauca gold porphyry belt of Colombia.
“I would like to thank our entire team for their hard-work and determination in reaching this MRE benchmark and transforming and growing Los Cerros in size and scale over the last 18 months. 2022 is shaping up to be another very busy and exciting year for the Company.”
Los Cerros’ Managing Director, Mr Jason Stirbinskis
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