Drill rig setup at Los Cerros’ Quinchia gold project in Colombia. Credit: Los Cerros
Los Cerros Limited (ASX: LCL) has announced results from an exploration program ongoing at its 100%-owned Quinchia gold project. The company has been drilling for gold in the hills of central western Colombia. The Quinchia project is located in the Mid-Cauca porphyry belt, 100km south of Medellin. The region is home to a number of multi-million ounce gold discoveries, and Los Cerros is aiming to identify another.
The Australian-based company says that drilling results from the ongoing drill campaign at its South American property continue to exceed expectations, eclipsing any other results ever conducted in the broader Quinchia district.
Hole TS-DH16, drilled in the Tesorito South part of Quinchia, showed particularly strong mineralisation. TS-DH16 revealed an intercept of 1.11 grams gold per tonne over 460.9 metres starting from surface, within a broader intercept of 582 metres at 0.94 grams gold per tonne from surface.
While gold mineralisation started from surface, the drill core from TS-DH16 revealed higher grade mineralisation of the target porphyry suite from 90 metres down hole as indicated by increased porphyry signatures, such as vein density. This included 254 metres at 1.6 grams gold per tonne from a relatively shallow depth of 92 metres, including an even higher grade interval of 116 metres at 2.3 grams gold per tonne and 0.12% copper from 132 metres.
One of the features of the drilling results was a 34-metre zone grading just over 3 grams gold per tonne and 0.1% copper, the highest grade porphyry style mineralisation intersected at Tesorito South to date.
An overview of the drilling program at Tesorito South, part of Los Cerros’ Quinchia project, showing modelled gold envelopes and major controlling structures. Credit: Los Cerros
According to Los Cerros’ Managing Director, Jason Stribinskis, the company will continue its drilling program to further explore the property.
“The near surface (first 411 metres of this hole) has expanded to the south-west the modelled gold envelopes described by the high-grade intercepts reported in the TS-DH02, ’14, ’11, ’15 drill fence and mineralisation still remains open to the south west.”
The company believes that the recent results at depth have greatly enhanced the potential for Tesorito to be further expanded to the south-west, and will require a more thorough assessment, including multi-element analysis, to better understand the relationship between this new porphyry suite and the Tesorito South porphyry.
Assays are pending for an additional four holes completed at Tesorito South, all of which tested the lateral and depth extensions of the porphyry system.
“The company will offer further detail on interpretation of the porphyry suite intercepted below and south-west of the fault in coming weeks as we assimilate new drill data as it arrives,” said Stribinskis.
Los Cerros believes that the combination of the value of the in-ground resource, the fact that drilling results will feed into an enhanced resource across multiple deposits, and the potential for further exploration upside provides an implied valuation well above that represented by the company’s current share price.
Upcoming assay results are potential share price catalysts which Los Cerros sees as representing outstanding value even after the 20% share price increase which followed the recent drill results.
For Los Cerros, these recent drill results signal the possibility of effectively elevating the Tesorito South part of the Quinchia asset into becoming a globally significant gold porphyry discovery.
“On a gram per metre basis, TS-DH16 is the best hole ever recorded in the entire Quinchia district,” said Stribinskis, “and has raised exciting questions about the potential scale of this gold system.”
The preceding Joint-Venture Article is PROMOTED CONTENT sponsored by Los Cerros Ltd., and produced in cooperation with Canadian Mining Journal. Visit www.loscerros.com.au for more information.