Why the Los Cerros (ASX:LCL) share price is rocketing 20% today

The Los Cerros share price is off to the races today, up 25%. We look at the company’s latest gold drill results.

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The Los Cerros Ltd (ASX: LCL) share price is off to the races today, up 20% at time of writing.

Below we take a look at the ASX resource share’s latest gold drilling results.

What gold drilling results did Los Cerros report?

The Los Cerros share price is soaring after the company reported high-grade gold drilling results at its 100% owned Quinchia Gold Project in Colombia.

According to the release, the Tesorito South diamond drill hole (TS-DH16) delivered an intercept of 460.9 metres at 1.11grams per tonne of gold from the surface. The company reported a broader intercept of 582.3m @ 0.94g/t Au from surface, easily its best drill results so far.

Los Cerros reported there is “significant potential for higher grade envelopes extending at depth to south west”, with porphyry mineralisation south-west of the fault raising “exciting questions at regional level”.

Commenting on the latest drill results Los Cerros Managing Director, Jason Stirbinskis said:

On a gram/metre basis TS-DH16 is the best hole ever recorded in the entire Quinchia district and has raised exciting questions about the potential scale of this gold system. The near surface (first 411m of this hole) has expanded to the south-west the modelled gold envelopes described by the high grade intercepts reported in the TS-DH02, ’14, ’11, ’15 drill fence and mineralisation still remains open to the south west.

Follow-up drilling will further explore this region of relatively sparse data. The company will offer further detail on interpretation of the porphyry suite intercepted below and south-west of the fault in coming weeks as we assimilate new drill data as it arrives.

Los Cerros is awaiting the assays for 4 other completed drill holes at Tesorito South. In the meantime, drilling continues at the Quinchia Project, with 2 diamond rigs at Tesorito South and 1 diamond rig at the company’s Chuscal prospect.

Los Cerros share price snapshot

If you bought Los Cerros shares 12 months ago, you won’t be complaining today. Over the past full year the Los Cerros share price has gained a whopping 780%. That compares to a gain of 34% on the All Ordinaries Index (ASX: XAO).

Year-to-date, the Los Cerros share price is up 35%.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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