Los Cerros (ASX:LCL) share price soars 14% after poor start to the week

The company's shares are recovering from yesterday's selloff.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Los Cerros Ltd (ASX: LCL) share price is on the rebound today following a 6% drop yesterday.

At the time of writing, the Australian gold miner's shares are making amends today, up 14.29% to 16 cents.

What happened?

On Monday, Los Cerros released its latest drill hole assay results from Tesorito South, a near-surface gold porphyry discovery in Colombia. The area forms part of the company's wholly-owned Quinchia Gold Project in Risaralda.

Los Cerros revealed that drill hole (TS-DH27) delivered broad zones of gold porphyry mineralisation. The highlighted results included:

  • 36 meters at 1.01 g/t gold from 116 meters; and
  • 72 meters at 1.00 g/t gold from 188 meters; including 6 meters at 2.05g/t gold from 254 meters.

The company expects to complete a drone-based regional magnetic survey and deep IP geophysics programs in the near term. This will provide it with directions on where next to drill possible extensions for mineralisation.

As well, a fourth diamond drill rig will be added to the company's fleet to continue testing on multiple targets. It is expected the rig will arrive within the next 4 weeks.

Los Cerros managing director Jason Stirbinskis commented:

Drillhole TS-DH27, at some 120m to the E of the drillpad for TS-DH24, '25 and '26, was a significant step out that still intercepted gold porphyry mineralisation. It has given us further directions where we might expect to see additional extensions to mineralisation.

About the Los Cerros share price

Over the last 12 months, Los Cerros shares have gained almost 83% and 24% year to date. The company's share price reached a 52-week high of 23 cents in October 2020 before treading lower.

Based on valuation grounds, Los Cerros has a market capitalisation of roughly $95 million with approximately 612 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Share Market News

A woman is excited as she reads the latest rumour on her phone.
Broker Notes

Could these ASX stocks really be set to double after crashing this week?

These companies are expected to rebound.

Read more »

A man in a sweatshirt holds two different phones to compare telco services.
Broker Notes

Forget Rio Tinto and buy this ASX copper share

Bell Potter thinks this stock could be a good alternative to the mining giant.

Read more »

A happy couple drinking red wine in a vineyard.
Broker Notes

2 ASX 200 shares newly upgraded this week

After major company news this week, one stock fell 39% while the other spiked 17%.

Read more »

a woman sits next to her computer screen with her head in her hands with the screens slowing graphs on downward trajectories.
52-Week Lows

Can the beaten-down CSL share price ever reach $300 again?

CSL is near decade lows. Can it ever climb back?

Read more »

A man looking at his laptop and thinking.
Share Market News

5 things to watch on the ASX 200 on Friday

It looks set to be a subdued finish to the week for Aussie investors.

Read more »

Time to sell written on a clock.
Broker Notes

Sell alert! Why this expert is calling time on CBA shares

A leading analyst forecasts headwinds for CBA shares. But why?

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Share Market News

5 years ago, $5,000 bought 118 BHP shares. How many would it buy now?

The mining giant also pays its shareholders very attractive passive income.

Read more »

Three brightly coloured objects against a backdrop of blue, indication three winning ASX share prices
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lacklustre session on the ASX this Thursday.

Read more »