# LCL - Los Cerros



## Joe Blow (14 June 2010)

Metminco Limited (MNC) is a mineral exploration & development company, incorporated in Australia but operating in Chile and Peru, in South America.

http://www.metminco.com.au


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## pedalofogus (22 October 2010)

MNC has been featured in a particular investment newsletter today.

As usually happens with recommendations by this newsletter, watch this thing go berserk this morning.

My initial research after reading the report shows that it is a really good stock, but it is definitely going to be overpriced now!


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## breaker (22 October 2010)

pedalofogus said:


> MNC has been featured in a particular investment newsletter today.
> 
> As usually happens with recommendations by this newsletter, watch this thing go berserk this morning.
> 
> My initial research after reading the report shows that it is a really good stock, but it is definitely going to be overpriced now!




You are right up 38% so far but there was a bit of action in the previous two days I wish my scans had picked up


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## pedalofogus (22 October 2010)

38% is pretty low for a stock recommended in this newsletter.  I would say the subscribers are starting to realise they shouldn't go too hard too early.  

The buying over the last couple of days would be the 'insiders' i reckon.  It happens every time a stock is recommended.

Be interesting to see how much further it goes.  The recommendation was to buy up to 50% above yesterday's closing price, so there may be more increase in the SP to come.


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## noie (22 October 2010)

It is rather amusing watching the reactions.

My policy of in and out on announcement day seem to still be valid.

another funny thing is you see a small pull back in the other stocks in the newsletter as people pull funds and dive into the new one.. ETC  CCC, VMS


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## UBIQUITOUS (24 October 2010)

I think people should really look at the market cap of this company. It has tripled over a few weeks to about $350m. There is no way that massive gains are on offer over the short term now. I would not want to  be holding this now even if there are some more gains on offer. The pullback could be swift


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## roland (30 December 2010)

Looks like MNC has got a rocket under it this morning. Lots of volume and broken the $0.405 resistance. Next stop - resistance at $0.57


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## cessna1947 (17 January 2011)

I see MNC is still creeping up !


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## Boggo (7 March 2011)

MNC admitted to the ASX 300 hence the interest and volume this morning.

(I do hold)


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## slow_trader (30 March 2011)

An interesting article in the Brisbane Times today regarding the demand for copper and Metminco's position.  I would hope to see an increase in volume for MNC as a result, but I guess a some of that hinges on gaining 100% ownership of its tenements, hopefully something they will sort out soon.


A copy of the article can be found at http://www.brisbanetimes.com.au/bus...s-up-for-the-copper-party-20110330-1cf7a.html


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## Gringotts Bank (11 April 2011)

Breakout from inverted H&S.  Target 60c = all time high.  Won't close above 42 today, I don't think.


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## Gringotts Bank (28 April 2011)

Should do ok for the rest of today and tomorrow.  Heavy increase in volume.


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## 1nvstor (13 August 2011)

Gringotts Bank said:


> Should do ok for the rest of today and tomorrow.  Heavy increase in volume.




Hey BOGGO.. Are you still holding?

I think long term is a winner


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## qldfrog (25 November 2011)

share fall then trading halt for announcement;
expect big loss....


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## Gringotts Bank (17 April 2012)

Large inverted H&S at breaking point.

Unfortunately going against the tide of the broader market.  I guess it could still happen.

Worth a look.


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## Crom (18 April 2012)

Great article on MNC in the Australian today.  Puts where they are up to into perspective and strongly states shares are undervalued.

Share price up today with good volume.

Long term hold for me at this stage.


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## Gringotts Bank (19 April 2012)

Have you got the link for that Crom?

I'm happy with where it's sitting, and I'm looking to exit at 20.5 or 24, whichever comes first. :


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## geremida (19 April 2012)

http://www.theaustralian.com.au/bus...e-copper-rebound/story-fnciil7d-1226330741244


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## Gringotts Bank (19 April 2012)

Your first post - welcome.  I thought it might have a been a free article.


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## Buckfont (19 April 2012)

Here is the Australian article from this morning..........

http://www.theaustralian.com.au/bus...e-copper-rebound/story-fnciil7d-1226330741244


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## Buckfont (19 April 2012)

Buckfont said:


> Here is the Australian article from this morning..........
> 
> http://www.theaustralian.com.au/bus...e-copper-rebound/story-fnciil7d-1226330741244




Apologies everyone, same problem as gere


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## springhill (26 July 2012)

*LOS CALATOS PROJECT UPDATE*


● Higher Grade Zones: Drilling confirms the existence of higher-grade zones within a broad mineralised envelope that could provide high grade ore feed in the initial mining years, thereby materially improving the NPV of the project
● Pit Optimisation Studies: The Company’s focus has now shifted to the assessment of pit optimisation scenarios prior to commencing a pre-feasibility study at the end of 2012
● Savings on Drilling Costs: Due to consistent drill results enabling a better understanding of the geology, the Phase 4 drilling program has been trimmed from 100,000m to 61,000m, thereby saving approximately US$12million in the current year
● Drilling Update: A further 17 drill holes have been completed at Los Calatos with all holes delivering intercepts within, or exceeding, expectations. Significant intercepts include 324m at 0.53% Cu and 51 ppm Mo, 956m at 0.48% Cu and 408 ppm Mo and 179m at 0.61% Cu and 79 ppm Mo


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## pavilion103 (20 August 2013)

Now while we are all great hindsight traders. This one presented a few opportunities. I hadn't used my volume scan recently. Would have picked this up. Whether I would have taken it I can't say.


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## skyQuake (20 August 2013)

I eyeballed this but left it alone (doh!) because it also trades in the UK (about 1/2 of aus vol). 

Thus the large gaps, also making it a tad more unpredictable.


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## berbouy (20 November 2015)

gday all- looong time no post
noted earlier in the thread somebody mentioned good long term prospects
anyone still following?
30 cents down to fractions of a cent under howes stewardship-any thoughts


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## System (21 January 2020)

On January 21st, 2020, Metminco Limited (MNC) changed its name and ASX code to Los Cerros Limited (LCL).


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## Dona Ferentes (12 October 2020)

Been getting its drill holes in a row?

_Raised cash, extinguished debt.
Raised more cash
Return to exploration field work in the second half of the year. 
• Final Chuscal drill results confirms extensive epithermal gold overprinting porphyry gold 
• Dosquebradas Resources grows total Quinchia Gold Project Mineral Resources to 1.3Moz 
• AngloGold becomes shareholder; LCL secures 100% of the Chuscal prospect, and therefore 100% of entire Quinchia Project 
• HK Ausino $2M exploration partnership signed, first purchase order placed for drill rig and peripherals 
• Chuscal targeting and 3-D modelling. 3 porphyry targets for 2020 drill program 
• Miraflores review reveals potential for more high grade targets white/Grey Breccia 
 Tesorito: Step out program from previous successful drilling and investigation of NE anomalous region grade ISS veins 
• Early Sept: Exceptionally wide gold intercept 230m returned from Los Cerros’ first diamond hole (TS-DH08) at the southern Tesorito anomaly - Colombia _


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## greggles (21 January 2021)

Dona Ferentes said:


> Been getting its drill holes in a row?




Looks like it.






Today's impressive drilling results have propelled LCL to a high of 21.5c this morning, not far from its previous high of 23c. Drilling is ongoing at Tesorito South, so there could be more good news to come.

One worth watching for the gold bugs.


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## barney (21 January 2021)

The boys are going to need a long Shovel


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## Sean K (16 March 2021)

Results from another 2 potential porphyry systems out. 

More Tesorito before the end of March.

Interesting.


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## Sean K (16 March 2021)

Had a look at their presentations today which are loaded up to You Tube with the MD presenting. Worth a look.

I'm thinking that if the next results from Tesorito are anything like 20 Jan and the targets at depth under Chuscal are proved to be porphyry then we could be looking at a pretty large gold field adjacent to Miraflores. Still pretty speccie.


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## Sean K (17 March 2021)

The one ann that should be coming out this month is the result from hole DH15 at Tesorito which was being drilled back in Jan. If the same strike and grades are discovered anywhere close to hole DH14 then that could cause another spike in the SP at least and perhaps make this look like a longer term asset. I've circled in yellow the area I'm really interested in. If that has similar grades and shows it's open then it could be anything. And if it comes up dry, nothing...


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## Sean K (18 March 2021)

Interesting break up today on a bit of volume.


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## greggles (18 March 2021)

Could be a good year for LCL if the drill bit keeps unlocking value for them. I imagine being a South American operation the cost of production would probably be lower than in Australia or other Western nations.

Looks like there's a lot of mineralisation near the surface but also a lot at depth. Interesting project. When are they going to have a resource estimate?


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## The Triangle (18 March 2021)

Some interesting potential for LCL!  Below from their website - but my question is why aren't they mining already?   Run by geologists so maybe only interested in defining and flipping.

_The Miraflores Project is the most advanced project in the Company’s portfolio. On 30 October 2017 the Company released the Miraflores Feasibility Study and on 27 November 2017 released a revised Reserve Calculation for the project

In summary, the Feasibility Study considered an underground mining operation generating 4.3Mt of mineralised material at a head grade of 3.3g/t gold over 9.3 years to deliver 421,000ozs recovered gold. Capital costs were estimated at US$72 million and operating costs were estimated at AISC of US$643/oz. At a gold price estimate of US$1,300/oz. over the life of the operation, the Study generated an NPVof US$72 million (at 8% discount rate) and paybackof 3.6 years._

The surface deposit looks very potentially large, (maybe why AGA is involved??) but low grade.  About $8 million in the bank with drill rigs turning up results.   250 + meters of 0.8 g/t today.


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## Sean K (18 March 2021)

DH15 is not as good as DH14 but confirms the resource envelope is open to the west with generally similar grades with a couple of large high grade areas of au around the 2g/t mark, plus cu. This is pretty high grade for a porphyry deposit in the Andes.

DH16 may have found an additional porphyry zone at depth, assays pending. MD being pretty conservative on what that means, or it means it's not much. Hoping for much.

"Los Cerros Managing Director, Jason Stirbinskis added; “The Company will refrain from offering an interpretation of this interesting and potentially exciting deep intercept of a porphyry suite below and south west of the fault structure until assays have been assimilated. We are pleased with the performance of the Company owned Atlas Copco rig during the course of its first drill hole.”

In regards to the grades, the ann in Jan described DH14 as: "The wide higher grade gold intercepts are comparable to some of the best gold porphyry style intercepts of the entire prolific Mid Cauca Porphyry Belt." Not sure what that exactly means, must look into it.

DH15 pic.






DH16 pic. It's getting pretty deep but if that is another zone around the same as above, just adds value I suppose.


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## Sean K (18 March 2021)

greggles said:


> Interesting project. When are they going to have a resource estimate?



Not sure Greggles, they've only put 20 holes in it so probably some time. Still in early exploration.


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## Sean K (18 March 2021)

The Triangle said:


> Some interesting potential for LCL!  Below from their website - but my question is why aren't they mining already?



Good question. Perhaps now they've discovered these other deposits they will add these resources to an updated DFS. Not much clarity on that. Or perhaps the question hasn't been asked.


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## greggles (22 March 2021)

Refreshed Investor Presentation released by LCL today for those interested. It sets out the stay of play for their various projects quite well. 

With $7 million in cash and a cash burn of around $1.2 million a quarter (last quarter) they have close to a year and a half until they run out of cash, so they hopefully won't have to raise capital again until 2022. It can be difficult to predict cash burn when exploration ramps up.


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## Sean K (22 March 2021)

greggles said:


> Refreshed Investor Presentation released by LCL today for those interested. It sets out the stay of play for their various projects quite well.
> 
> With $7 million in cash and a cash burn of around $1.2 million a quarter (last quarter) they have close to a year and a half until they run out of cash, so they hopefully won't have to raise capital again until 2022. It can be difficult to predict cash burn when exploration ramps up.




I wonder how much extra gold is going to come out of Tesorito that can be fed into the planned mill next to Miraflores, which is only a few hundred meters away? It's not clear what North is going to provide if anything, the grades there are so far pretty low. But South is about 200x300x300 ish @ 1-2 g/tn and open. I'm not sure if those extra ounces are factored in to the sp yet.


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## barney (22 March 2021)

Certainly have to be classified low grades @kennas as you say. The widths are off the map though.

Many really large deposits  seem to have similar characteristics??  

Still early days of course.


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## finicky (22 March 2021)

_So_, doesn't bother anyone that this Peruvian escapade, under the current M.D, did a *40:1 consolidation* of shares and options approved at a July 2019 EGM and finalised September 2019? This occurred partly "in consideration" of Metminco's takeover of Andes Resources Ltd.

And this was not much more than two years after a *50:1 consolidation *effective January  2017.

Yet today there are still 471,009,533 shares, 53,061,914 listed options and around 46M unlisted options/perf shares. Your equity per share looks safe here.

Anyway, at least the board doesn't look too diminished by dilution:


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## finicky (22 March 2021)

Quick calc:
471M fpos today represents:
471M x 40 x 50 =  *942 Billion* of the original shares
Tack on 200 billion option/perf shares if you want.
Just to belabour the point, if there had been no capital consolidations, there would today be 942 billion shares quoted assuming they would still have been able to do capital raisings, which they wouldn't.

So hyperinflationary companies say they want a share price that will attract institutional interest and want to reduce volatility and reasons like that to justify a 'capital reconstruction' but I suspect naked figures like the above don't look to good to punters without a bit of 'hedonic*' adjustment, lol. Besides, how do you issue more equity at an attractive discount when the s.p is already at 0.001?
* not the right use of hedonically I know, just an analogy


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## The Triangle (22 March 2021)

finicky said:


> Quick calc:
> 471M fpos today represents:
> 471M x 40 x 50 =  *942 Billion* of the original shares
> Tack on 200 billion option/perf shares if you want.
> ...



Would be an interesting exercise to reverse all share consolidations among juniors since about 2010 and see how many would sit above 1 trillion shares - I don't think LCL would be alone. 

The grade just looks too low for a small junior.   We see these sorts of situations every so often.  A little player sinks all its money drilling a deposit that requires the capex only available to a big player.  LCL has too much happening in their presentation.  I want to see a focus on one thing.  Otherwise this will end up in the perpetual capital raising bin...  Mult rig, multi target is good for a big company - not a little one.  3 rigs running turning out core will burn $ quickly.    At 30 million MC I would be interested, at 70 million I think its a bit expensive.  

I hate the number of options...  If LCL is a good deal then these directors can pony up $$$ and buy real shares - not convert options.


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## finicky (22 March 2021)

@The Triangle 
Yes, it's common but this one is one of the worst I've checked out - that's has been a 2000:1 consolidation in less than 3 years. The only personal experience I have of a super diluter almost this bad was one I actually owned and that was Intec Ltd which became SciDev (SDV). Win or lose, I automatically short circuit any 'research' on a company that has been highly dilutionary. 

 "_If LCL is a good deal then these directors can pony up $$$ and buy real shares - not convert options_"
Yeah, if they don't back their company why should we? Nowadays boards seem to favour performance shares - less hurdle and they don't even have to cough up a nominal exercise price. Unfortunately this is not as good a red flag as 'egregious' dilutionary behaviour I've found, e.g. just recently IDT took off and the management of that company loaded up with freebies a year ago - it's one thing that discouraged me accumulating a few more.


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## Sean K (23 March 2021)

finicky said:


> _So_, doesn't bother anyone that this Peruvian escapade, under the current M.D, did a *40:1 consolidation* of shares and options approved at a July 2019 EGM and finalised September 2019? This occurred partly "in consideration" of Metminco's takeover of Andes Resources Ltd.




Not sure where all that consolidation is in the announcements, but I thought the takeover deal was 25 Metminco shares for 1 Andes. That's just out of the merger presentation, maybe that changed.

How does the consolidation you've mentioned dilute the value to holders?


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## finicky (23 March 2021)

If you hold say 50,000 shares in a company and each share has a 'book value' (or equity per share value) of 0.01 and the company consolidates them 50:1 so that you now have 1,000 shares and each share now has a book value of 0.50 then you haven't lost value.

But what if the reason the company has done this is just so they can sneakily issue lots of new shares so that in time your share's book value (equity divided by the number of outstanding shares) is back to .01? Your shares only have a 1/50th of their original value. You have 1,000 shares with b/v = .01 instead of 50,000 shares with b/v = .01

From the screenshot of LCL's financial history you can see this is what happened in the 'shares outstanding' and 'book value' rows. In fy17 there was a share consolidation that resulted in a temporarily increased book value of .08 from .01. Then 1 year later in fy18 the shares have been inflated again and book value is back to .01. 

The paying shareholder loses value in his shares at a rapid rate while management keeps up via salaries/fees and share options/performance shares. 

The Metminco/Andes acquisition did not sustain the book value as the shares rapidly inflated again just as they are doing currently after the second consolidation. It suggests to me that the company will go on like this. Even if they make a big valuable discovery your interest might be inflated away. A trader might lookmat this differently - I look at it like an investor looking for management I can trust to sustain my investment and not just look after themselves.

You can find where a company has done share consolidations by going back over historical announcements or a search on google with this:

'share consolidations los cerros ltd'


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## Sean K (23 March 2021)

barney said:


> Certainly have to be classified low grades @kennas as you say. The widths are off the map though.
> 
> Many really large deposits  seem to have similar characteristics??
> 
> Still early days of course.




La Colosa which is in the same gold belt has about 28m oz @ 0.8 g/tn. That project is on hold due to local politics, which is a worry...


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## Sean K (29 March 2021)

LCL have found another target they're calling Ceibal close to Miraflores and the site of the proposed mill next to Tesorito. 

Could potentially add more ounces to the overall mining program that would cover the four discoveries within a 2km radius. 

Not too exciting. Waiting for the other drill holes at Tesorito to confirm depths, extensions and maybe some better grades.  

*New porphyry target (Ceibal) discovered ~1km southwest of Tesorito*

▪ Large-scale surface footprint, with a 800m x 600m Au-Cu-Mo soil anomaly and adjacent magnetic anomaly
▪ First trench intersects 75m @ 1.2g/t Au and 25m @ 1.3g/t Au
▪ Shares many similarities with Tesorito including regional structural setting
▪ Ceibal promoted to be evaluated within the 2021 drill program


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## Sean K (1 April 2021)

Trading halt - for assay results. That means they must be pretty good. Or, pretty terrible! eeeeek

*REQUEST FOR TRADING HALT*

In accordance with ASX Listing Rule 17.1, Los Cerros Limited (Company) hereby requests an immediate halt in the trading of its securities (Halt) pending an announcement in relation to assay results.

The Company requests that the Halt end on the earlier of the commencement of normal trading on Wednesday, 7 April 2021, or when the anticipated announcement referred to above is released to the market.


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## Sean K (6 April 2021)

Is the MD ramping his stock a bit, or is it really that good?

"elevating Tesorito South to a *globally significant* recent gold porphyry discovery"

There's some pretty wide intercepts here. If this was in Australia I think the MC would be a tad higher.


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## greggles (6 April 2021)

Trouble with these low grades is that you have to dig out a lot of dirt to get the gold. 400 or 500 metres is a long way down to dig to get grades of 2% or 3% and the expense increases the deeper you go. 

I think the project has some potential but I'd like to understand the economics of it better and  wonder what the eventual AISC will be. A lot of unanswered questions at the moment.


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## Sean K (6 April 2021)

greggles said:


> Trouble with these low grades is that you have to dig out a lot of dirt to get the gold. 400 or 500 metres is a long way down to dig to get grades of 2% or 3% and the expense increases the deeper you go.
> 
> I think the project has some potential but I'd like to understand the economics of it better and  wonder what the eventual AISC will be. A lot of unanswered questions at the moment.




It's starting to run pretty deep but there's plenty in the top 300m. I'm taking a punt that this will be multi million ounce based on the dimensions and depths. Just Tesorito South probably has 1m ounces it. Should be an MRE out later this year incorporating all the drilling they are doing now which will add to Miraflores and the thing I can't pronounced to the north. Current MC of $70m just seems cheap for the potential volume. Fingers crossed.


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## Sean K (19 April 2021)

Tesorito South is expanding to the north and remains open. Maybe this deposit could extend all the way to Tesorito North. The holes they dug up there were pretty low grade but if it's all one system it could be one giant pit. I've been doing some research on other Au, Cu, porphyry systems in the Andes and these grades are about average. It's the bulk tonnage that's more important here.

This is certainly going to change the parameters on the DFS they've already done for Miraflores that only had 800k oz au in it.


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## Sean K (27 April 2021)

kennas said:


> LCL have found another target they're calling Ceibal close to Miraflores and the site of the proposed mill next to Tesorito.
> 
> Could potentially add more ounces to the overall mining program that would cover the four discoveries within a 2km radius.
> 
> ...




So, they've diverted a rig from Chuscal to Ceibal after it had finished a few holes and waiting for assays to determine next holes. Good plan. 

They dug another trench in Ceibal and found similar grades so this area looks prospective and closer to the proposed Miraflores plant. 

All still speculative at this point unless Ceibal turns into a Tesorito 2 and there's porphyry under Chuscal.


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## greggles (27 April 2021)

The trenching results look promising but it is the assay results that will tell us what is under the ground at Ceibal. The announcement says "scout holes" but I couldn't see any details about how many holes are being drilled and how deep.

The announcement says that there is a backlog of Chuscal assays pending, so we will hear about them first and then Ceibal at a later date. Chuscal in May and Ceibal June?


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## Sean K (27 April 2021)

greggles said:


> The trenching results look promising but it is the assay results that will tell us what is under the ground at Ceibal. The announcement says "scout holes" but I couldn't see any details about how many holes are being drilled and how deep.
> 
> The announcement says that there is a backlog of Chuscal assays pending, so we will hear about them first and then Ceibal at a later date. Chuscal in May and Ceibal June?




They had a collar indicated in the ann (CEDDH01) pointing SW. I guess that's their best guess of hitting something according to the ground that's there. But yes, that's one hole. The other holes they've been digging have been generally going to 350m so I imagine that's the plan.

_The first diamond hole at Ceibal is designed to drill under the centre of anomalous gold and copper soil and rockchip anomalies, across lithological and veining structures._

They've come in on time with the last few assay results. Maybe the outstanding Chuscal one's didn't hit anything visually exciting and they put a low priority on them or didn't want to scare the punters. I remember they announced Tesorito H16 had hit something visually exciting before the assays come back so it means to me that Chuscal might be dirt.


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## Sean K (11 May 2021)

LCL out ramping their stock again this am. Not sure why they haven't done a geophysical survey over the project as yet. Fingers crossed they do have that larger porphyry at depth that links up their current targets. That would completely change the story. It's getting pretty deep though.


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## Sean K (25 May 2021)

Sounds like Ceibal has got some nice dirt in it. It's a slightly bigger target than Tesorito which is around 300x300x300 at over 1g/t. By my calcs that's about 1m ounces, so if this is similar it's going to significantly add to gold in the ground within walking distance to the proposed Miraflores mill. Could even change the entire PFS and they'll have to start again. Hopefully an MRE on Tesorito later this year and maybe this also gets included. Early days and anything could happen. Might be waiting for some time perhaps.


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## Sean K (28 May 2021)

They're slowly stepping Tesorito out. Very slowly.... Tesorito South is already about 250x300x300 ish which back of the envelope turns into about 1m oz au. So, they've already got about 2.3m oz au in three deposits. If South can join North and Ceibal is the same as Tesorito then we're looking at over 3m oz au. Maybe that's not enough for a porphyry. Dunno.


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## Sean K (18 June 2021)

Picked this in the monthly comp because the assays from the first Ceibal hole were due by 'mid-June' and could potentially put another Tesorito within 1km of the proposed mill. Should have been this week, be most likely next now. Fingers and toes crossed. 

Come on Ceibal!  🏇


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## Sean K (22 June 2021)

More Tesorito results out. Still expecting Ceibal out this week as well, unless the lab's backed up.  

Good that it's extended to the NE towards Tesorito North, hopefully that's all mineralised.

Disappointed in the grades in the 'Tesorito West' target. I was hopeful that was going to turn into a Cu part of the porphyry. Looks like this is going to remain an Au porphyry unless they pull a rabbit out of their hat.


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## Sean K (1 July 2021)

LCL snoozing at the moment. zzzzzzzzz 😴

I was expecting Ceibal assays last month but were held up by the lab. Now supposed to be July but not sure when. These results could be a game changer for the company if they've got something similar to Tesorito, which they are ramping.

16c support respected but down the track 20c is going to be a huge hurdle.


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## Sean K (2 July 2021)

First signs of not snoozing to me. I may be getting ahead of myself as it's intra day but the past 2 weeks have seen it slowly creep higher. Buying coming back in. There will still be major dramas at the .20c mark.


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## Sean K (7 July 2021)

Patiently waiting for the Ceibal first assays, that were due Jun but delayed to Jul, so should be soon. I'm speculating on those being very good, but prepared to be crushed. eeeeek

Got excited about an ann coming out today, but it's just an update/plan for a field program. They've got more prospective sites to evaluate close by which looks promising. 

I've enjoyed getting into this at this phase of the cycle, even though their MC is approaching $100m, it's still early days.


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## Sean K (8 July 2021)

kennas said:


> Patiently waiting for the Ceibal first assays, that were due Jun but delayed to Jul, so should be soon. I'm speculating on those being very good, but prepared to be crushed. eeeeek




I was hoping for 500m @ 1g/t so this is not what I was after. It's obviously a huge intersection but low ish porphyry grades and probably needed zones of higher stuff into the 2-3 g/t range. 

This is comparable to the Tesorito discovery hole though, so it's still prospective to be a large system, close to the other deposits. 

They're going to need some big shovels to dig this all up.


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## Sean K (12 July 2021)

New results. DH25 is important as it extends the mineralised envelop but DH26 looks like it was drilled into previously tested area. Perhaps that's just better defining the model but expanding the horizontal dimensions would be nice. 

These higher grades from surface look really promising for an initial open pit operation.

Wish Ceibal had have pulled up something like this. grrr


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## greggles (14 July 2021)

LCL in a trading halt this morning pending an announcement in relation to a proposed capital raising. Not a bad time to raise capital with the share price at 18c. They should probably try to get as much cash in the bank as possible as global markets may be in for a bumpy ride over the next 12 months.


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## Sean K (14 July 2021)

greggles said:


> LCL in a trading halt this morning pending an announcement in relation to a proposed capital raising. Not a bad time to raise capital with the share price at 18c. They should probably try to get as much cash in the bank as possible as global markets may be in for a bumpy ride over the next 12 months.




Hopefully there's a story behind the reason to raise as well. Like buying another drill rig and increasing the workforce. 

Disappointed that the MD lied in previous statements regarding not needing to raise money in 2021.


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## Knobby22 (14 July 2021)

kennas said:


> Hopefully there's a story behind the reason to raise as well. Like buying another drill rig and increasing the workforce.
> 
> Disappointed that the MD lied in previous statements regarding not needing to raise money in 2021.



Maybe gives me a chance to buy in.


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## Sean K (16 July 2021)

$20m is quite a lot given the MC is only around the $80m mark. Issued at 0.16c only a slight discount to the current sp so not too much damage to be done. Happy to see Sprott involved, should give them some exposure to US investors. Buying a couple more rigs is good news. Once they're up and spinning should be a more steady flow of results and quickly define the resource at Tesorito. 

Not sure how Mr Market will see it.


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## Sean K (28 July 2021)

Impatiently waiting for hole 27 to be released shortly that could extend Tesorito Sth to the NE and perhaps indicate it joins up with Tes Nth. Would add considerable tonnage to an MRE on Tesorito for later this year.

Could turn up dirt too. 😬


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## The Triangle (5 August 2021)

kennas said:


> $20m is quite a lot given the MC is only around the $80m mark. Issued at 0.16c only a slight discount to the current sp so not too much damage to be done. Happy to see Sprott involved, should give them some exposure to US investors. Buying a couple more rigs is good news. Once they're up and spinning should be a more steady flow of results and quickly define the resource at Tesorito.
> 
> Not sure how Mr Market will see it.
> 
> View attachment 127461



It is a good pile of cash to rake in.  I didn't think HCH would get a premium for funding, same thoughts for LCL.  But a raising at 16 cents is a good haul.

I still think the country risk/grade reward ratio is unfavorable right now, but they'll have some wiggle room now.  Always like to see more rigs turning.


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## Sean K (5 August 2021)

The Triangle said:


> It is a good pile of cash to rake in.  I didn't think HCH would get a premium for funding, same thoughts for LCL.  But a raising at 16 cents is a good haul.
> 
> I still think the country risk/grade reward ratio is unfavorable right now, but they'll have some wiggle room now.  Always like to see more rigs turning.




The whole of Sth America is unfavourable I think. It's a basket case. Can't think of anything the Spanish or the Portuguese left behind in better shape than when they arrived. Ibiza?


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## Sean K (28 September 2021)

Another three holes reported this am - 28, 29 and 30. Similar to all the others at Tesorito, probably because they seem to be drilling back in very close to known mineralisation and not extending it all that much. Maybe I'm missing perspective of where these drill holes are going and how far apart they are. 

Hole 28 looks to be an attempted step out of about 100m and more significant than the others but didn't seem to hit anything of substance from surface until the 148m mark. Au intercepts above that are between 0.3 - 0.5 g/t mark. I guess that's reflected in their colourful map. 

All rigs are at Tesorito at the moment too which is interesting. 3 drilling north and 1 south.

They drilled two holes in Ceibal and then left. Those looked prospective too so not sure why they didn't try a couple of more holes to test it a bit further. I don't think Tesorito by itself is enough tonnage.  

Similar thoughts on Tesorito West which the MD has been ramping as potentially the causative porphyry. If so, why not try to hit that with a little more effort?


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## Sean K (16 October 2021)

zzzzzzzzzz, LCL trading sideways and not providing much excitement. Hard for these guys to generate excitement as the MD says, the market has become immune to their incredible intercepts. Need to get an MRE out soon but they're waiting to find the edges of Tesorito. Grrrrr


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## Sean K (16 October 2021)

Sprott have initiated coverage of LCL as well. They did the financing for the $20m CR, so take this fwiw...

Price target 36c which is more than double current price....I'll be satisfied with 20c at this stage.



> Colombian explorer with a new discovery Los Cerros, formerly Metminco, owns two projects in Colombia's prolific Mid Cauca belt, host to >60Moz of gold. Flagship 100% owned Quinchia has a small 840koz UG resource with DFS, and low-grade pittable 459koz; the ‘ah hah’ moment came with the discovery of the Tesorito South porphyry <1km away. Drilling there has demonstrated the trifecta of scale (629m @ 0.88g/t), grade (238m @ 2.1g/t), and a pit but also a high-grade starter area (36m @ 3.3g/t from surface). The maiden MRE is targeted ~1H22 once the limits are established. Existing small UG with A$297m NPV1850-5%: useful addition to a pit Prior owners had focussed on early cash-flow from the small Miraflores UG where a 457koz @ 3.3g/t reserve was defined within an 840koz @ 2.7g/t resource. Although production of 46koz pa on capex of A$90m is useful, it lacks scale. However, like Didipio in the Philippines, when bolted onto a potential pit a few hundred meters away, it has the potential to bulk out production ounces. *Recent discovery could see SCPe 1.5-2Moz maiden MRE in 1H22* Post three holes drilled by prior owners, drilling did not restart at pace until 2020. Early drilling hit lower grade and deeper material, but this subsequently proved to be peripheral to a high-grade core that daylights NE of this. A ~150m core within a ~220m halo supports our sensitised ~40-60Mt potential pit-constrained resource tonnage at various grades and cut-offs. This drives our 1.3Moz @ 1.1g/t mining inventory. Adding the UG, we model a 4Mtpa plant for LOM 166koz pa over 10 years (>200koz pa early years), driving an A$1.1bn NPV, although this is speculative ahead of the MRE.


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## Sean K (26 October 2021)

A geophysical target has been identified after flying their DJI Mavic around the mountains. They've held a theory that this was potentially the place of a causative porphyry for some time, but until now haven't put a deep drill hole into it. I've been speculating on this as well, along with other exploration success, but they're yet to come through. It's almost throw a dart material, but at least they know where the board might be. If they don't hit the board, I think I might have to switch games.


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## Sean K (26 October 2021)

S3 Consortium - Next Investors - have finally come out with a ramp to earn their $200K, or whatever it was, to promote LCL. And, as you can read, it's pure ramp. Don't know how S3 can get away with this dribble. I'm surprised they didn't put in 'it's going to the moon!', in capitals, bolded and underlined.


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## Sean K (9 November 2021)

No drill results for a little while. Probably due for something soon.

Long, casual, very relaxed discussion about their projects in this video. Goes into some detail about porphyrys which is interesting, especially if you don't quite get them. Nice when the MD is a geo.


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## Sean K (10 November 2021)

My crystal ball was correct. News out.

Good news is Tesorito Nth and South combine to form one giant deposit now called the TGP. Overall, normal large scale porphyry grades with a high grade core. 

Once this is combined with their other 3-4 deposits around the Miraflores central hub this will have a combination of discrete high grade zones with huge volume low grade halos.  

I think they're heading towards an MRE in mid Q1 2022, pending any other discoveries. Looking at a combined 3-4m oz at the moment by my guestimate. 

Market cap of $85m with $20m in the bank...EV of $60m  is nuts. Just Miraflores is worth more than that.


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## Sean K (11 November 2021)

New Sprott report out. 36c target is conservative I think. That's only a $220m mc ish on what will become 3m oz at least.


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## Sean K (12 November 2021)

One of my biggest gold holdings and the worst performer. ☹️

Sth American Porphyrys just aren't loved on the ASX. Needs to list on the TSX I think.  

Couldn't even breakout through that resistance between 14-15c yesterday. Woof. 🐶

At least there's some signs of some upward trend support there.


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## Sean K (22 November 2021)

Looks like Ceibal is going to hold some significant low grade bulk tonnage for future mining, but importantly might point towards the causative porphyry for it and Tesorito. The widths they've been getting here are quite significant and point to a lot of gold for their initial MRE for Tesorito, perhaps now including Ceibal and Chuscal. 

Australian's won't understand this deposit that well as we're used to looking at grades well above 1g/t, but for an Andes porphyry this is pretty standard for large scale deposits. The closest Australian example is something like Cadia East underground which is about 2.9Bt @ 0.36g/t au. So, 500m @ 0.5g/t is very good. Just needs scale to eventuate. The real prise though if finding the causative porphyry that's driving these deposits. Might be in the middle at great depth.


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## Sean K (13 December 2021)

Tesorito is expanding to the NNE and S now by several meters. As a guestimate it's now 600 x 300 x 300m for about 54Mt @ 0.5-1g/t. 

The maiden JORC looks like it's just going to be based on Tesorito and not include Chuscal or Ceibal. They're so far low grade but could have added quite a bit of tonnage if they put a few more holes in them. 

For a porphyry at these grades they need to get the tonnage up over the 100Mt, IMO. Unless there's a higher grade core in there, on top of Miraflores.


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## Sean K (18 December 2021)

I'm still backing this woofer to be re-rated to at least double the NPV of Miraflores when you add in the exploration, initial MRE for Tesorito which should be a couple of million ounces, and potential upside with their Andes project. If they hit the causative porphyry with the upcoming deep drilling in the centre of the project, this could be a monster without any local village issues. I have looked into it and there's no villages too close by. And, no monkey parks. Sprott have 36c on it, and it's at 12... Current MC is below the NPV of their small DFS'd Miraflores deposit.


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## Sean K (10 January 2022)

LCL followers (that's just me I think) will be eagerly awaiting results from the 1km hole they're drilling into the gap between Tesorito and Miraflores which is interpreted to be the causative porphyry of each of the deposits surrounding it at surface. I'm not sure what the implications of that being a duster is. They're still going to put out a pretty decent MRE in H1 which probably warrants the current sp, but if they do hit a deeper porphyry in the middle, this could be a gigantic deposit. It's not quite throwing darts at a board but I'm a little bit nervous. They started drilling the hole in mid December so hopefully an ann comes out saying they've intersected xxx m of visual mineralisation or something. Assay turn arounds have been 4-6 weeks.


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## Sean K (2 February 2022)

LCL has been in the toilet the past few months, perhaps due to a flight to less risky plays and Columbia has a history. Different place now but local indigenous villages and Communists at risk of taking more taxes across Sth America is a potential problem. Add in gold continually failing to break up. 

Next Investors came out with the normal ramp style promotion of the companies they own and LCL is one today. More so based on the fact the owners of Next Investor (S3 Consortium) were given $250K shares in the company last year for promotional services. So, this ramping email that went out today is what you get for $250K

The only thing that really interested me in the ramp was assessing the potential size of the initial MRE for Tesorito out next Q - sometime in late June I'd guess. 

The current dimensions are about 600x300x300 x sg of 2.7 = about 150Mts. 

The grades are a mix of .5 g/t to 1.5g/t with a few higher intersections of up to 3g/t. Let's guess 1g/t. 

So, 150Mgms / 31 for troy ounces = about 4.8Moz.

Then, add on Miraflores 800K and Desperado 500K and you get a total resource of 6.1Moz. 

The risks with my assumptions is the 300m depth for the entire deposit. It goes to 600m in some places, but seems much shallower in others. Also, the outer halo of the plan view cartoon might not actually fill the edges in that block model with the grades going down to .4 ish. 

Sprott are only putting 2Moz au on it, but they've been quite conservative with some other estimates, so I reckon they'll under cook it. 

Warrick Grigor put about 3.5Moz on it and he was using 300x350x350 for about 100Mt @ 1g/t.

Anything above Sprott's guestimate should be OK to me.

For what it's worth, here is the Next Investor ramp.


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## Sean K (21 March 2022)

In TH for MRE. That's way earlier than they stated. Maybe the deep hole hit dirt so they're covering up bad news with this MRE. Just being skeptical perhaps. 

Stock has been in the toilet going sideways and down since they first hit the Tesorito porphyry in Sep 2020. Anything less than 2Moz at Tesorito and this turd will be flushed I reckon. Closer to 3Moz and it'll be a very nice start.


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## Sean K (22 March 2022)

Hmmm, not sure about how this is going to go. Not sure if the turd will still be floating or be down the drain. 

Tonnage at the lower cu-off is about what I guessed - 135Mt but at half the grade and therefore half the ounces.

135Mt @ 0.53g/t for 2.3Moz. Or, at the higher cut-offs, lower ounces at higher grades, of course.

At the lower cut-off takes the overall ounces at Quinchia to 3.4Moz, but mostly lower grade, with some high grade pockets. 

Was hoping for more.

MC still at under $80m, so maybe this was all the market was expecting.


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## Sean K (23 March 2022)

Sprott's take on the result here.


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## greggles (9 May 2022)

Disappointing announcement from LCL this morning:






Other than "visible gold" from 750m downhole there is nothing really positive in this announcement, just maybes. LCL need some more positive drilling results but things are moving slowly. Disappointed holders are exiting today, sending the share price down 14.77%.


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## Sean K (22 May 2022)

greggles said:


> Disappointing announcement from LCL this morning:
> 
> View attachment 141404
> 
> ...




Yes, was hoping that the blob would be a massive causative porphyr, but not yet. However, the hole indicated Miraflores may be larger than the current MRE, so hopefully the follow up hole hits something. If they increase the size of that deposit and include it with Tesorito as part of an initial mining scenario it could be enough to take it to production. Still very much a speculative play though. 

EV now down below $30m with 2.6Moz in the ground or $11 an ounce. Might not ever mine those ounces but....


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## Sean K (23 May 2022)

Trading at .065c for a $43m MC with $17m in the bank for EV $26m with 2.6Moz - even if they don't find anything else, the market is factoring in this company going bankrupt.


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## The Triangle (23 May 2022)

Sean K said:


> Trading at .065c for a $43m MC with $17m in the bank for EV $26m with 2.6Moz - even if they don't find anything else, the market is factoring in this company going bankrupt.
> 
> View attachment 142072



Doesn't look that bad does it?  There are still a fair number of these juniors with gold deposits who sit at around a $20 million EV.   Sihayno gold (probably misspelt that), orabana, aau, mth, Tanami right now too,  (I haven't looked at any of these in a while, could be really wrong) 

Assuming nothing sinister is going on behind the scenes this in a way is a very good situation for LCL.   Lots of cash and very little commitments.  What does LCL look like in 6 months, 12 months, 18 months time? They need to somehow avoid the HCH trap of hands out asking for more money to drill more marginal stuff with a cloudily fog over how it can be monetised for current shareholders.  LCL have now been going long enough that if big boys were going to be interested then they'd be interested by now.  They've got something interesting in Columbia but its not obvious if is good enough to get things into production and I think this is why the SP has drifted down (other than the dump of gold juniors this month in general)

I think the best idea would be to seriously consider dumping the whole project in Colombia to a bigger Canadian junior and then regroup and look at other deposits (retain 10% or a royalty or something) - Who knows what they could get? $20 million?  Maybe much more for a combination of cash and shares.

I still can't get over the S3 involvement and that probably makes me view the company and its directors/management in a negative light.

_Disclosure_*: *_The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and Associated Entities, own 3,210,000 LCL shares and the Company’s staff own 136,750 LCL shares at the time of publication. S3 Consortium Pty Ltd has been* engaged by LCL to share our commentary and opinion on the progress of our Investment in LCL over time*._


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## Sean K (23 May 2022)

The Triangle said:


> Doesn't look that bad does it?  There are still a fair number of these juniors with gold deposits who sit at around a $20 million EV.   Sihayno gold (probably misspelt that), orabana, aau, mth, Tanami right now too,  (I haven't looked at any of these in a while, could be really wrong)
> 
> Assuming nothing sinister is going on behind the scenes this in a way is a very good situation for LCL.   Lots of cash and very little commitments.  What does LCL look like in 6 months, 12 months, 18 months time? They need to somehow avoid the HCH trap of hands out asking for more money to drill more marginal stuff with a cloudily fog over how it can be monetised for current shareholders.  LCL have now been going long enough that if big boys were going to be interested then they'd be interested by now.  They've got something interesting in Columbia but its not obvious if is good enough to get things into production and I think this is why the SP has drifted down (other than the dump of gold juniors this month in general)
> 
> ...




The S3 deal in ‘comment for stock’ really turned me off too. They should have gone with a more respected broker for positive research for cash imo. 

I think the sell-off might be indicative of the market expecting POG to tank. Junior explorers seem to lead the POG, although I’m not sure there’s any scientific evidence of that.


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## Sean K (30 May 2022)

I've been trying to work out why this has tanked and valuation been hammered since the MRE and I think there's four reasons. Firstly, it was a little underwhelming MRE on Tesorito and many would have expected another 500k ounces. Secondly, they've effectively closed off that deposit and it's just going to be infill from here. Thirdly, the big hole into the blob hit dust. Lastly, Colombian elections are ongoing and one of the last two candidates is running with an anti mining position, especially for open cut operations. That final situation will be resolved in the next few weeks when the final run-off is held. So, all pretty negative.

I've picked this in the June comp just because it's been smashed the past few months and couldn't go too much lower. Unfortunately, it's decided to go up 16% today, the day before the comp starts.


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## greggles (30 May 2022)

Sean K said:


> it's been smashed the past few months and couldn't go too much lower.




Famous last words. Seriously though, LCL has copped a hiding in the last few months. If the elections go the wrong way, it could resume the previous downtrend. It still seems quite risky to me and it would be prudent to wait a while until the elections play out and some results from the infill drilling are released. Too many unknowns and risks at the moment.


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## Sean K (30 May 2022)

greggles said:


> Famous last words. Seriously though, LCL has copped a hiding in the last few months. If the elections go the wrong way, it could resume the previous downtrend. It still seems quite risky to me and it would be prudent to wait a while until the elections play out and some results from the infill drilling are released. Too many unknowns and risks at the moment.




Serious risk. But in corrupt countries, mining projects seem to get approved and get to mining quite quickly for some reason...even after a coup. Not sure if there's any more political risk and green/red tape here than in West Oz.


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## The Triangle (22 June 2022)

Sean K said:


> Serious risk. But in corrupt countries, mining projects seem to get approved and get to mining quite quickly for some reason...even after a coup. Not sure if there's any more political risk and green/red tape here than in West Oz.



Colombia and WA. Like two peas in a pod...

The elections went pro-leftist and pro-environmental.  LCL couldn't have a worse outcome here.   As mentioned before I'd dump the assets and focus on something else.   

_Mr. Petro has vowed to restrict open-pit mining_









						Colombia update – Energy, mining and pension reform among priorities for 2022 Colombian presidential election front-runner | White & Case LLP
					

On May 29, 2022, Colombians will flock to the polls to elect a new president. The current frontrunner is Gustavo Petro, who is running for president for the third time. On the campaign trail, Mr. Petro has promised sweeping reforms that would affect the country's energy, mining, and pensions...




					www.whitecase.com


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## Sean K (22 June 2022)

The Triangle said:


> Colombia and WA. Like two peas in a pod...
> 
> The elections went pro-leftist and pro-environmental.  LCL couldn't have a worse outcome here.   As mentioned before I'd dump the assets and focus on something else.
> 
> ...




Not good, and the VP is more radical Left than Bandt. As he doesn't have majority in congress, can only hope that the conservatives hold back any anti-mining legislation. It looks like that's the situation in Chile now as well. So, maybe things won't be too dire for explorers. 

This won't be a mine in Petro's first term either, so hopefully he stuffs it up and a conservative gets back in. Still, it's a common trend in Latin America at the moment - moving further Left. 

I just wonder whether they can afford to stop mining development, or attempt to nationalise projects when they rely on the royalties and taxes to run their countries. The miners around Quinchia employ quite a lot of the locals and the social programs they run do support the local infrastructure and schools. I know it's part of the bribing process but it's tangible. 

LCL now down to almost cash backing which is a bit nuts. Or, maybe holding any of this is nuts.


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## Sean K (28 June 2022)

With this update, I've decided to take a hair cut on this puppy for EOFY off-set. The reason I bought was the prospectivity of the region in general and expected the satellite deposits to be expanded to make it into the 3-4Moz au range, but they're pausing on exploration just to focus on the PEA with what they've got. Probably the right decision to conserve cash. But, the latest drilling is pretty much all dust. Combined with Colombian political risk I'm not sure if they'll go near to mining in the foreseeable future and potential exploration success is now out the door for some time. Will probably get taken over now.


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## frugal.rock (11 August 2022)

Interesting little push today, out of the blue


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## Sean K (12 August 2022)

frugal.rock said:


> Interesting little push today, out of the blue
> 
> 
> View attachment 145243




That is a good looking bar. Not sure what news is expected. The PEA is a while away. Maybe just bought due for being oversold.


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## Sean K (21 November 2022)

Been watching the past few days as it looked like it might have hit a bottom. There's been a little bit of buying. Wasn't sure why as nothing was due. Only thing was it was trading at about a $4m EV with 2.6moz. 

But, now in a halt for a 'material corporate transaction'. Not sure if that means a takeover, or them selling the project off or a JV partner.


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## Sean K (25 November 2022)

Well, this is unexpected and I'm a little confused. They had cut back on exploration in Colombia to save money and focus on the PEA. Now, they've bought another exploration company in PNG and are about to start a drilling program there. Doesn't add up. Perhaps they can see that Quinchia hills was a dud and they are going to roll the dice in the PNG mountains. Opened back up 30% but I see that as a selling opportunity.


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