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.”