LCL’s Gold System Keeps Getting Bigger
2 minute read
Drill results are in... and there are more coming in the next few weeks.
We invested in Los Cerros (ASX:LCL) in April 2020. We were impressed by the potential of its gold assets and management and took a long term position.
LCL has been a great result for us so far - The company found a pretty big porphyry gold system in September and the price tripled. LCL then raised $10M to drill in all directions around it to see just how big it actually is...
Los Cerros Limited
A gold “porphyry” is a giant gold system that has easy to mine, large volumes of gold.
These are usually monster deposits - finding one is an exciting process for investors. Think of it as the “tip of an iceberg”... you need a lot of drilling to see just how big they are.
Today, LCL announced that drill results reveal their gold porphyry system extends to the west.
...and from reading into the announcement (shown in red underline) we think upcoming results might extend the gold porphyry in MORE directions - which would be a massive result if confirmed in the coming weeks:
More results just in... More coming:
LCL now has three drill rigs turning, and continues to serve up excellent drill results, including today.
Today’s results confirmed gold extensions to the west - our read is that visuals from all other holes indicate it might extend in all other directions...
1g per tonne considered high grade in porphyry:
The most important thing here is that LCL extended its ‘high grade gold envelope’ to the west, which remains ‘open’ - this means that LCL has not found a precise end to the gold system, which means it could continue to get bigger.
The company also struck some visible gold which is always encouraging:
Los Cerros Limited
Today’s drill results look pretty similar to the results from 10th of September 2020 that saw the LCL share price triple over a couple of days - our fellow LCL investors will remember what a great day that was:
In January 2021, LCL delivered a globally significant hit:
If there was an Oscars for Gold Exploration, LCL would be nominated for ‘Best Drilling Results’...
It turns out there is and it has.
Since 2021 began, LCL’s January intersection is the second biggest on the ASX and the 8th biggest result in the ENTIRE WORLD!
So what is LCL actually looking for?
LCL is hunting giant gold systems in the hills of Colombia, in a place called the Mid Cauca Porphyry Belt.
This region is home to many multi-million ounce gold discoveries, and LCL is clearly aiming to identify another.
So far so good, based on results to date - we know something is very large here.
LCL continues to serve up impressive drill results that indicate the presence of a large gold system.
2021 is LCL’s biggest year of exploration to date. It is well funded, has three drill rigs going, and has one clear goal:
Uncover the true size potential of its two giant porphyry prospects.
LCL has assays for four completed diamond holes currently PENDING. We are hoping they can deliver continued strong results like today.
We hold a long term position in LCL - As investors we are looking forward to sitting back and watching those results come to market.