The Los Cerros Ltd (ASX: LCL) share price headed north today following the company's latest diamond drilling results.
At the closing bell, Los Cerros shares ended the day up 7.69% to 14 cents a pop.
What did Los Cerros announce?
Los Cerros revealed a high-grade gold zone situated at the company's 100% owned Quinchia Gold Project in Risaralda, Colombia.
According to the release, the Tesorito South gold porphyry discovery has netted significant intercepts from the surface. As such, Los Cerros highlighted the below results:
- Drill hole (TS-DH29) intercepted 107.6 meters at 1.1 grams per tonne of gold from surface
- Drill hole (TS-DH30) intercepted 144 meters at 1.2 grams per tonne of gold from 6 meters
- Drill hole (TS-DH28) intercepted 280 meters at 0.83 grams per tonne of gold from 148 meters
The results form a large part of a drilling program that aims to identify boundaries of Tesorito South's gold mineralisation. Los Cerros noted that the latest findings continue to demonstrate a further expansion of the high-grade shallow gold zone.
Los Cerros managing director, Jason Stirbinskis added:
We continue to be encouraged by strong results from our Tesorito drill campaign, particularly the high-grade surface results in TS-DH29 and '30 which add to the potential volumes of 2-3g/t gold extending from surface- which is always going be a positive when we ultimately consider mining economics.
The next steps for Los Cerros will be conducting a drone-based regional magnetic survey and deep IP (Induced Polarisation) geophysical programs over the Tesorito-Miraflores area.
The company has four drill rigs currently drilling at Tesorito South with three rigs pursuing extensions to the north of the established zones. The fourth rig has commenced testing southern extensions which remain open on a wide front.
Los Cerros share price summary
Despite today's gains, Los Cerros shares have tracked almost 30% lower over the past 12 months. When looking at year-to-date, its shares have travelled the other way, up around 10%.
On valuation grounds, Los Cerros presides a market capitalisation of roughly $89 million, with approximately 635.6 million shares on issue.
