Hi All,
Been working on this summary for weeks now and forgot how long they take to do, plus other things just kept coming up.
Anyway, below is a bit of a summary and not as big as I wanted to but thought I’d wrap it up and post it.Numbers:MC: $25m Cash: $4.5m (raised $3.5m recently after receiving bids for $10m)Major Shareholders/backers: Ross Ashton:- LCL Chairman & major LCL shareholder
- Founder/MD/Chairman of Red Back Mining Ltd which got taken over by Kinross for US$7.2B (Kinross is the 4th largest gold miner in the world)
- Founder/MD/Chairman of PMI Gold Corporation which got taken over for C$183M
- Director of Brockman Resources which got taken over for $456M- Ashton & other Directors put in $2.5M into Andes
Dr Minlu Fu:- currently biggest LCL Shareholder with ~14%
- put in a lot of his money into LCL in recent CR’s
- additionally, LCL entered into a $2M partnership with Dr Fu’s company to provide IP survey & drilling services + supply LCL with its own diamond core drill rig
- Dr Fu also holds ~14% of TIE (Tietto Minerals) and entered the same partnership with TIE (11c to 76c share price in last 5 months)
- acclaimed Australian geologist with an unbelievable amount of discoveries/deposit definitions:
View attachment 2434427AngloGold:- 3rd biggest gold miner in the world
- binding term sheet signed for AngloGold to become a 4.3% LCL shareholder, with an option to go to 10%
- owns the biggest gold deposits in Colombia (Quebradona; 30Moz AuEq, La Colosa; 50Moz AuEq – both next to LCL)
- previously owned LCL’s Chuscal prospect (sold for LCL equity per above 4.3%)
- will provide to LCL; access to its regional IP geophysics dataset and unlimited use of its IP equipment for 1.5 yearsBullet Holding Corporation:- one of the biggest LCL shareholders
- own 10% of LCL’s Andes grounds
- largest exploration grounds holder in Colombia
- pretty much every decent exploration/mining project in Colombia has gone through them (including Buritica & La Colosa)
- below images explain everything (read them!)View attachment 2434430View attachment 2434433View attachment 2434436Sandfire Resources:- ~$1B ASX copper-gold producer.
- Even though sold their LCL this month/currently not a holder, still mentioning as obviously they thought LCL was onto big things and bought in.
- They also put in another ~$1M dollars into the CR done this time last year and doubled their LCL holding as a result (they put in another $2M originally into Andes).
- Not sure why they sold this month, but general thoughts are to increase their war chest in anticipation of a bid for ADT.
LCL neighbours/next door deposits:
- 100Moz discovered in the area in the last 6-7 years.
The bigger next-door deposits:
- Zijin Mining - Buritica (11Moz (could grow to 30Moz) at 10g/t Au (recently acquired by (Chinese) Zijin for $1.4B / US$1B)
- AngloGold - Quebradona (30Moz AuEq)
- AngloGold - La Colosa (50Moz AuEq)
- Gran Colombia - Marmato (14Moz Au)
- GoldMining Inc - Titiribi (12Moz Au)- Plenty of smaller next-door deposits too (<4Moz).
LCL’s Quinchia Project:- 3 main prospects (Miraflores, Tesorito, Chuscal – all within a 3km radius)
- 2.8Moz (NI 43-101)
- 1.3Moz (JORC)Miraflores:- Gold deposit
- 877Koz at 2.80g/t Au (Resource)
- 457Koz at 3.29g/t Au (Reserve)
- Feasibility Study complete
- NPV of A$322M (at current gold price of US$1,965) (45,000oz annually, AISC ~US$650)
- Drill results:
-- 449m @ 1.29g/t Au from 53m, incl 23.9m @ 9.18 g/t Au from 282m
-- 238m @ 2.06g/t Au from 146m, incl 59.2m @ 5.72 g/t Au from 182m
-- 194m @ 1.57g/t Au from 159m, incl 6.0m @ 11.04 g/t Au from 343m
-- 114m @ 1.89g/t Au from 185m, incl 10.6m @ 11.97g/t Au from 233mTesorito:- an at-surface gold mineralised porphyry system
- Might house at least a few million ounces
- Drill results:
-- 384m @ 1.01g/t Au from 16m, incl 29m @ 1.9g/t Au from 136m
-- 253m @ 1.01g/t Au from 2m, incl 64m @ 1.67g/t Au from 144m
-- only 7 holes drilled to date
-- currently drilling again, first hole completeChuscal:- has porphyry associated gold mineralisation + higher grade mineralised epithermal veins which overprint the porphyry mineralisation
- Might house at least a few million ounces
- Massive surface anomaly (per below image)
- Drill results:
-- 4 holes drilled (ending in January 2020) and are the only holes ever drilled
-- 350m @ 0.57g/t Au from 0m, incl 22m @ 1.22g/t Au from 10m
-- 320m @ 0.43g/t Au from 32m, incl 2m @ 8.28/t Au from 248m
-- substantial porphyry targets identified below, and untested by, the above drillingView attachment 2434448View attachment 2434457Adds up to 10Moz+ from the above-mentioned, which is about right for this area and fits in as just another 10Moz+ deposit, and is what the company originally envisioned when they acquired the project. Current Activities & Upcoming Activities/Newsflow:Tesorito:- hole 1 of current drilling campaign completed on 24/08/2020 (325m depth)
- hole 1 intercepted potassic alteration with intense porphyry and epithermal veining interpreted to be the core of the Tesorito Porphyry
- hole 1 visual observations show compelling similarities with previous drilling that delivered very wide zones of strong gold mineralisation (384m @ 1.01g/t Au from 16m)
- hole 1 intersected 270m wide intersection of diorite porphyry
- hole 1 assays due mid-September
- rig moving to hole 2
- hole 2 to test undrilled zone of strong gold and molybdenum assays in soil over a magnetic high
- current drilling campaign to inform further/resource definition drilling
- additional resource definition to further improve economics of the Miraflores gold deposit (NPV $322M)
Chuscal:- 2
nd drill rig contracted & to arrive on site in mid-September
- to drill high-grade epithermal targets
- 1,000m to 2,000m shallow diamond drilling campaign
Miraflores:- 3
rd, owned/purchased diamond drill rig arriving in October
- to drill high-grade gold targets outside the existing 877,000 ounce Mineral Resource
- rig to be used for exploration and resource drilling (to start with)
Other/Recent Corporate Developments:- Dr Minlu Fu participates in recent CRs and becomes the biggest LCL shareholder
- $2M drilling Partnership deal signed with Ausino/Dr Minlu Fu
- own diamond rig and equipment purchased (arriving in October)
- AngloGold deal signed to gain full/100% control of Chuscal prospect (formerly JV with AngloGold)
- AngloGold to become 4.3% shareholder of LCL (with an option to go to 10%)
- Raised $3.5M (after receiving bids for $10M)
- sold non-core project in Chile for US$1M
All of the above relates to the Quinchia Project only.
And then there's the newly acquired/merged Andes grounds, which are ~10 times as large as Quinchia and just as prospective. Didn’t have time to summarise the Andes projects/prospects but the below video from Jason the MD does a pretty good job of that, and is a must watch for any LCL holder/potential holder (video is from when Jason was MD at Andes Resources, just before they merged into LCL).
In summary:
- a lot of Corporate deals/work has been done recently as mentioned above
- a lot of work has been done to understand what they’ve got on their hands at Quinchia
- they have just started an on-going drilling campaign with one rig, + another rig arriving in mid-September, + their own/purchased rig arriving in October
- so, plenty of news to come and it won’t stop as they will keep drilling from here on in as they’ll have 3 rigs drilling shortly, including their own rig
- see what they can prove up from their prime gold-real estate, in the neighbourhood of 10-50Moz deposits.
Chart seems to also be forming a cup & handle, so see if that plays out in the short term too.
View attachment 2434460Cheers,
GB.
Gold Price currently at all-time-highs too (in both USD & AUD):View attachment 2434463Location/map of LCL Projects:View attachment 2434466Neighbouring Gold & Copper Deposits:View attachment 2434469Los Cerros – Mountain of Gold:View attachment 2434472
(20min delay)