Quinchia Gold Project

The Quinchia Portfolio is located in central west Colombia, 100km south of Medellin (Figure 1), in the department of Risaralda and in a district known for its high grade epithermal and breccia hosted gold/silver, and porphyry hosted gold/silver/copper systems. The Quinchia Portfolio is located within the same structural trend (Mid-Cauca porphyry gold belt) as the Marmato Gold Mine and the La Colosa gold project which hosts gold resources of 14 million and 29 million ounces respectively. The Quinchia Portfolio covers 10,542Ha consisting of granted titles and applications and includes deposits and targets such as Miraflores, Chuscal, Dosquebradas and Tesorito. Approximately 40,000m of drilling has occurred at  Quinchia and includes an established 877koz Resource and 457koz Reserve at Miraflores.

Included within the Quinchia Gold Project is the Chuscal porphyry/epithermal prospect.  Los Cerros are earning a 51% interest in the Chuscal prospect through exploration investment.

Figure 1: Locality Map:  Key Targets – Quinchia Gold Project

Miraflores Project

The Miraflores Project is the most advanced project in the Company’s portfolio. On 30 October 2017 the Company released the Miraflores Feasibility Study and on 27 November 2017 released a revised Reserve Calculation for the project

In summary, the Feasibility Study considered an underground mining operation generating 4.3Mt of mineralised material at a head grade of 3.3g/t gold over 9.3 years to deliver 421,000ozs recovered gold. Capital costs were estimated at US$72 million and operating costs were estimated at AISC of US$643/oz. At a gold price estimate of US$1,300/oz. over the life of the operation, the Study generated an NPVof US$72 million (at 8% discount rate) and paybackof 3.6 years.

The Miraflores Project Mineral Resource estimate has been estimated by Metal Mining Consultants in accordance with the JORC Code (2012 Edition) and first publicly reported on 14 March 2017. The Miraflores Project Ore Reserve estimate has been estimated by Ausenco Limited in accordance with the JORC Code (2012 Edition) and first publicly reported on 27 November 2017. No material changes have occurred after the reporting of these resource estimates since their first reporting.

Miraflores Mineral Resource Estimate, as at 14 March 2017 (100% basis):

Reserve Classification Tonnes (000's) Au (g/t) Ag (g/t) Oz Au (000's) Oz Ag (000's)
Measured 2,958 2.98 2.49 283 237
Indicated 6,311 2.74 2.90 557 588
Measured & Indicated 9,269 2.82 2.77 840 826
Inferred 487 2.36 3.64 37 57

Note:
1) Reported at a 1.2 gpt gold cut-off.
2) Mineral Resources estimated by Metal Mining Consultants Inc.
3) First publicly released on 14 March 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Mineral Resources estimation and Los Cerros confirms that all material assumptions and technical parameters applicable to the Reserve continue to apply.
4) These Mineral Resources are inclusive of the Mineral Reserves listed below.
5) Rounding may result in minor discrepancies.

Miraflores Mineral Reserve Estimate, as at 27 November 2017 (100% basis):

Reserve Classification Tonnes (000's) Au (g/t) Ag (g/t) Oz Au (000's) Oz Ag (000's)
Proved 1.70 2.75 2.20 150 120
Probable 2.62 3.64 3.13 307 264
Total 4.32 3.29 2.77 457 385

Note:

1) Rounding of numbers may result in minor computational error, which are not deemed to be significant.
2) These Ore Reserves are included in the Mineral Resources listed in the Table above.
3) First publicly released on 27 November 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Ore Reserve estimation and Los Cerros confirms that all material assumptions and technical parameters applicable to the Reserve continue to apply.
4) Source: Ausenco 2017.

Chuscal Project

Los Cerros formed a joint venture with AngloGold Ashanti Colombia SA (AngloGold) in late 2018 to explore the large Chuscal porphyry/epithermal gold target. Chuscal is located approximately 2 kilometres from the proposed Miraflores processing plant in the Quinchia Gold Project in the Mid-Cauca Gold Belt in Colombia. Chuscal features an extensive, surface gold geochemical anomaly (rock-soils and rock chips) with high grade sample results (up to 54 gpt Au). The samples in the Central Zone at Chuscal average 2.66 gpt Au (uncut) and this lies within a large (900m by 530m) envelope averaging 1.76 gpt (uncut) (refer ASX release dated 6 December 2018).

Chuscal’s maiden drilling program was completed in January 2020 and revealed extensive porphyry associated mineralisation through most rock units, such as

350m @ 0.57g/t gold from surface1
320m @ 0.43g/t gold from 32m2 

Over printed by a subsequent event of epithermal veining of higher grade such as –

2m @ 6.44g/t Au and 87.40g/t Ag from 324m1
8m @ 2.82g/t Au and 29.96g/t Ag from 342m1
2m @ 3.09g/t Au and 0.77g/t Ag from 222m1
6m @ 2.52g/t Au and 10.25g/t Ag from 0m1
2m @ 8.28g/t Au from 248m2
6m @ 2.97g/t Au from 250m incl 0.4m @ 31.8g/t from 353.3m3
7m @ 2.07g/t Au from 331 incl 0.5m @ 17.1g/t Au from 333m2

Multiple porphyry drill targets (white and yellow polygons in image) have been identified from surface and drill results and the distribution of pathfinder elements, mineraltion and alteration signatures. 

Notes:

  1. In hole CCDDH001, first announced by the Company on 25 Nov 2019. 
  2. In hole CCDDH002 first announced 5 Dec 2019.
  3. In hole CCDDH003, first announced 23 Dec 2019. 

The Company confirms that it is not aware of any new information that affects the information contained in the announcements.

Tesorito Prospect

Tesorito is located approximately 1 kilometre to the north of Chuscal and only several hundred metres from the proposed processing facility described in the Miraflores feasibility study. Los Cerros drilled the Tesorito gold porphyry prospect in 2018m(see image). A new zone high in gold and Molybdenum in soils has been revealed and is planned for drill testing. Tesorito is regarded as an outcropping medium grade (1gpt to 1.7gpt) gold porphyry system.

Drill results in image were first announced by the Company on 30  Aug 2018. The Company confirms that it is not aware of any new information that affects the information contained in the announcement.