Hi All, Been working on this summary for weeks now and forgot...

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 4^th 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:










AngloGold:
- 3^rd 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 years


Bullet 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!)


























Sandfire 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 233m


Tesorito:
- 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 complete


Chuscal:
- 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 drilling























Adds 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.














Cheers,

GB.





Gold Price currently at all-time-highs too (in both USD & AUD):











Location/map of LCL Projects:











Neighbouring Gold & Copper Deposits:












Los Cerros – Mountain of Gold: