Los Cerros Limited (Metminco)
Los Cerros Limited (Metminco)
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Colombian-focused explorer Los Cerros has moved to 100% ownership of the Quinchia project in the Mid-Cauca copper-gold porphyry belt after formalising its acquisition of the remaining 49% of AngloGold Ashanti’s interest in the Chuscal JV.
Quinchia, which also includes the Miraflores, Tesorito and Dosquebradas deposits as well as Chuscal, holds JORC-compliant measured and indicated resources of 840,000oz and reserves of 547,000oz.
The easing of COVID-19 restrictions will allow Los Cerros to accelerate exploration at its Colombian projects through the implementation of its new strategic partnership agreement with geologist Dr Minlu Fu’s Hongkong Ausino Investment.
Ausino will supply equipment and services worth $A2M over 18 months, including a new diamond core drill rig, consumables and senior operators for IP survey and drilling services. Los Cerros, which may elect to pay in cash or shares, will also acquire its own rig and survey equipment.
Renowned geologist Dr Minlu Fu is poised to conclude a strategic partnership agreement that would see his private company Hongkong Ausino Investment provide a range of equipment and services covering survey, drilling, personnel and consumables to the Colombian projects of Australian-based explorer Los Cerros.
Dr Fu is emerging as a cornerstone investor in Los Cerros, expected to hold about 10.3% of the company after its recent placement.
A new review has come up with a maiden JORC inferred resource of 20.2Mt containing 459,000oz gold at 0.71g/t for Australia-based Los Cerros’ Dosquebradas deposit, part of the company’s Quinchia Project in Colombia’s prolific Mid-Cauca porphyry belt.
Australia-based Metminco’s all-share takeover bid for Andes Resources will close Aug 15, 2019, after reaching 99.5% of the unlisted public company.
The acquisition is part of a strategy to establish a dominant position in Colombia’s Mid-Cauca Gold Belt, combining Metminco’s advanced Miraflores Gold Project, Chuscal, Tesorito and other prospects, with Andes’ nearby gold-silver-copper tenements. Andes’ MD Jason Stirbinskis is set to become Metminco MD with director Ross Ashton joining the board.
Australian explorer Metminco’s plans to establish a dominant position for itself in the Mid-Cauca gold belt in Colombia has moved a step closer with full commitment for a $A2.3M equity capital raising.
Australian explorer Metminco aims to establish a dominant position in Colombia’s Mid-Cauca gold belt through a proposed merger with unlisted public company Andes Resources.
The proposed 33.5-for-1 share issue deal will combine Metminco’s advanced Miraflores gold project, Chuscal, Tesorito and other prospects with Andes’ nearby gold-silver-copper tenements.
A planned $4M capital raising will initially fund maiden drilling at Chuscal, 2km from the proposed Miraflores plant.
Metminco has flagged average annual gold production of 45,000oz and 22,600oz silver over an initial 9.5-years LoM from its 100%-owned $US90.3M capex Miraflores Project in Colombia, previously earmarked for 1st gold in the Mar 2019 qtr.
The study gives Miraflores an after tax NPV8% of $72.3M and 25% IRR, with LoM cash operating costs of $599oz, AISC of $643oz and producing LoM undiscounted free cash flow of $150M, using $1,300oz gold price.
FS sees 421,241oz gold/210,815oz silver over initial 9.5years from its Miraflores underground project in Colombia
Metminco has outlined maiden proven/probable NI 43-101 and JORC 2012-compliant reserves containing 417,00oz of gold and 295,000oz silver for its 100%-owned Miraflores Gold Project in Colombia.
The reserves, within 2.97Mt at 4.35g/t gold and 3.08g/t silver, using a 1.20g/t gold cut, are within measured/indicated resources of 9.269Mt @ 2.82g/t Au and 2.77g/t Ag, plus an inferred 487,000t @ 2.36g/t Au and 3.64g/t Ag.