Ann: Extensive gold porphyry mineralisation drilled at Ceibal, page-42

Latest update from Warwick Gregor @ FEC, the man know a thing or two about gold explorers...follow the smart money.


"Los Cerros opens the lid on a new prospectLCL started to look interesting on the charts early last week, moving higher on good volume. I was wondering whether this was a sign that finally the market was taking it to a new level, but then a drill release came out and the share slipped back a bit ... but without good reason.On Thursday LCL reported big intercepts in the first two holes drilled into the Ceibal porphyry prospect located about 1 km to the SW of Tesorito South. While the market didn’t take a shine to these holes on the day, intercepts of 500m at 0.52 gpt and 586m at 0.51 gpt, being the first two holes drilled, are very impressive. Both holes were into the mineralisation from the surface. Each of them had higher grade intervals that will be the subject of further evaluation.If this was a junior exploration company with no previous drill holes, and it came up with intercepts like these, the management would be doing cartwheels. Here, LCL is capitalised at around $80m and it already has many good holes, so the market may be a little de-sensitised to good news. These additional holes signify a system that is getting bigger and bigger, taking it down the path to being seriously interesting to some of the largest gold mining companies in the world.Shareholders might be asking how many more holes have to be drilled before corporate activity starts to emerge. A deal with a major could be both good and bad. On the good side it would enable a third party verification of value, and it would relieve shareholders from having to fund a continuous program of drilling. On the bad side it would invariably slow down the pace of progress as big companies rarely move quickly. Thus it would require more patient investors. However, it would allow the Company to focus on other, earlier stage projects so that there could still be plenty of speculative upside in the stock.In a separate announcement last week, LCL said that it had another eight porphyry and epithermal targets that it is working on. There will be no shortage news flow going forward."