Archived News
In August 2021 Finfeed changed from a website that covered ASX listed news to a website
that covered a select range of ASX
listed small cap Biotech stocks that we are personally
invested in: find out more.
The old Finfeed website, and all of the old articles are kept here for record keeping purposes.
VISIT NEW SITELos Cerros ready to grow another leg, driven by Tesorito results
2 minute read
Shares in Los Cerros (ASX:LCL) have plateaued in the last three months after surging more than 50% in March/April on the back of outstanding exploration results from drilling at Tesorito South, part of the group’s Quinchia Gold Project.
These results included a spectacular intercept of 461 metres grading 1.1 g/t gold with gold mineralisation starting from surface.
With important exploration results expected in July, it wouldn’t be surprising to see the company’s shares run ahead of that news after having a breather in the last few months.
There have been signs that such a rally could be imminent with a major shareholder having just exercised options some 10 months before the due date, a move that has provided the shareholder with leverage to an uptick in Los Cerros’ share price.
Lizeng Pty Ltd was issued 12,500,000 ordinary shares in Los Cerros, for a total consideration of $1.25M.
Lizeng Pty Ltd is a company owned by Dr Minlu Fu, Los Cerros’ largest shareholder.
LCL sees Dr Fu’s ongoing support and additional investment as a strong endorsement of its progress and future prospects.
LCL has also captured the attention of analysts with Warwick Grigor from Far East Capital just last week saying that Hole 24 at Tesorito could be a surprise packet with better grades and tonnage than originally anticipated.
He also noted that hole 27 is currently being drilled to test for another extension with results expected in late July.
Grigor is correct in joining the dots regarding the possible implications that upcoming drilling results could go a long way to proving that the current area of focus is part of a much larger strike.
Stirbinkis’ comments also point to something much bigger
Los Cerros’ managing director Jason Stirbinskis pointed to this possibility when discussing exploration results last week in saying, “In previous recent announcements, and interpolating from nearby near-surface drill results, we flagged the possibility that the higher grade central zone at Tesorito South may reach surface to the east or north-east of where much of our attention has been to date - this latest result adds considerable weight to that idea.
"Drillholes TS-DH25 and 26 (awaiting assays) and TS-DH27 (currently drilling) are testing extensions in the general N/NE region and we are currently designing another series of step out holes, even further to the north-east and approaching the Tesorito North target zone, as we clearly haven’t found the limits of gold mineralisation yet.
"Looking back on TS-DH08, the first hole drilled by new management and under the Los Cerros banner, we had high expectations for Tesorito.
"It now looks like even those expectations might have been under-estimated.”
News & Analysis
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain.