Ann: Trading Halt, page-23

Hey DA,
thought I'd put together a few thoughts based on current state of operations across the company's many assets whilst we wait for next week and whilst I await the Easter festivities to begin later today. This will be a little long but it should cover most things and take it with a pinch of salt as it's just my interpretation.

Firstly, the company has in it's employ a slew of geologists who've been involved with major discoveries in the area.

They've done it before in this region so highly likely they have the knowledge to do it again, add in Dr Fu and some of the world's porphyry experts (Garwin, Doric) on a consultancy basis and the odds are in LCL's favour to make something special out of this, which they're on their way to doing.

Firstly the zone we're in is a "flat slab" scenario where the tectonic plate subduction occurs at 20 degrees, not traditional 45 degrees.
In "flat slab" zones there tends to be an abundance of gold, hence my comments of this is not traditionally a copper rich area. I'll happpily be surprised if we do uncover some Cu at depth on any of the targets especially Chuscal.

Having said that, such zones have been responsible for circa 120 million ozs Au.

1) Miraflores: This deposit this far has been identified as a "breccia pipe" and we're still looking for the source of major intrusives and where two such sheets intersect = high gold content.

More drilling should bring us closer to this. Having said that, current gold price (USD$1700) NPV8 should be around $150 million.

Submissions are in with the govt for the progression of this project, would be nice to beef it up a little with some more tonnage and some of those high grade intrusive zones.

2) Tesorito: (aka Little Treasure)

Hole 7 and hole 2 were at 90 degrees to each other so interesting to extrapolate the depth, width and length and Hole 8 was confirmation of this.
Use SG of 2.7 at avg 1g/t (even though we have higher numbers) and we definitely have a discovery. IT IS THERE AND HAS SIZE.

Hole 11 is the extension to the west and hole 10 to the east.
Hole 15 shows mineralisation to the West

Holes 16,17, 20,21 have visuals and we are awaiting assays (seems more eagerly now!)
The exciting part about these holes is THEY HAVE MINERALISED UNITS IN DIFFERENT DIRECTIONS, IN EVERY DIRECTION NTH,STH, EAST AND WEST which means if confirmed with any decent grades, this is just getting BIGGER.

The confirmatory hits in hole 8 indicate a high grade Cap and defines a high grade Cap aka the CUPOLA!

To hit something similar in hole 21 would be SPECTACULAR as it would indicate SIGNIFICANT WIDTH
Total speculation on my part but this may be the reason for the TH today. (90metres?+)

Now on top of that, Hole 16 may also be a new little Cupola which has shown elevated porphyry minerals/metals.
Is it ANOTHER PORPHYRY OR IS IT THE THE ENGINE?
Also worth wetting the panties over depending on the outcome.

Remember the Breccias are the glove (that smashes through) around the porphyry and the Diorite is the host.
The Breccia reference was referred to "interesting in that announcement.


3) Chuscal:

The high grade epithermal veins (overlays) are of particular interest and are they linked to the ones in Miraflores????
Good for blending ore in Miraflores.

Chuscal has a massive footprint of surface anomalism covering a huge area.

Last week's announcement confirms 2 targets at Chuscal at this stage, but could these also be fingers joining up at depth on a massive hand???
So is it multiple porphyries or on large one??? re: Hole 13. More drilling required.

Eastern zone of Chuscal is where the "interesting" targets lie at this stage but lots more vectoring to be done but make no mistake, "there is smoke there, just gotta get closer to the fire" so to speak.

A very exciting prospect which requires more drilling but the LCL team is onto it, still early days but very exciting, especially
re: the FATHOM Target.

This could be something very special.

4) Andes Ground:

This is 8x the Qhinchia Prospect size and LCL(at the time Andes) were very lucky to pick these leases up literally a month or two after they were made available. Remember this land parcel has been on ice for Socio Political reasons not because of lack of Geological Prospectivity.

The company has completed lots of surface sampling in this area the results of these are some very serious targets generated but they need some follow up drilling in due course.

The bottom line for my rant being that the company has a VERY ROBUST PIPELINE and LOTS OF OPTIONALITY.

To me it looks like they are implementing lots of strategic optionality in their execution of their development strategies and risk mitigation.
Either way, we have a very exciting 6-8 week pipeline of news based on tying in assay results and continued news flow in the short term.

Medium term, the drilling can throw up any number of new discoveries in this highly fertile N-W oriented tectonic influenced area that host some VERY BIG DISCOVERIES.

As mentioned, just my 2 cents worth and could be way off the mark but thought whilst we wait, it provides some context to what LCL actually has as it is very diverse and most companies would be envious of such a portfolio of projects and such a team to work those prospects up to a commercial level.


For the trading halt let's see if it the Hole 21 tie in w/ Tesorito to give us some width.
Girth matters, I'm told.