Los Cerros ready to grow another leg, driven by Tesorito results
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
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.”
tagsQUINCHIA GOLD PROJECT IN COLOMBIA SHARE PRICE CATALYSTS MORE DRILLING RESULTS TO COME TESORITO SOUTH
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.