The Colombia-focused explorer undertook the low-cost and easy option of upgrading a Canadian resource completed by TSXV-listed Seafield Resources in 2011 to JORC status for Dosquebradas, as it undertakes a complete review of the wider project.

 

Quinchia contains three gold-copper porphyry systems within 3km of the 877,000oz Miraflores deposit. 

 

Los Cerros admits that while Dosquebradas' grades are low, but said its shallow nature and proximity to a proposed central Miraflores processing plant could make it a supplementary ore source that would improve the economics of any future Quinchia development. 

 

Reserves at Quinchia are 457,000oz.

 

The company is looking to rapidly define additional reserves and resources, with drilling being planned once 3D modelling and IP surveys over Tesorito, Chuscal and Miraflores are completed. 

 

Dosquebradas remains open at depth, and to the north and east, within the company's tenements, and it continues to the south into tenements owned by TSXV-listed Batero Gold, which has the advanced La Cumbre deposit in the immediate area that is being evaluated as a conventional leap leach mining operation.

 

The company is conducting a review of Seafield's work, completed before it fell into receivership in 2014.

 

Los Cerros managing director Jason Stirbinskis said it was already clear financial pressures prevented Seafield from completing an integrated exploration program to understand the porphyry systems and understanding the controls to overprinting high grade epithermal zones.

 

Drilling at Tesorito in 2017 returned 384m at 1.01gpt gold from 16m, and the company is keen to get the drillbit spinning again.

 

There are additional five diamond holes drilled by Seafield in 2012 that were not included in the Dosquebradas resource, but "showed considerable promise", Stirbinskis said.

 

The company is planning to fund the work with the proceeds of a $2.1 million placement and a separate share placement plan.

 

It has also announced plans to clean up its register, with some 1300 of 1859 shareholders holding less than marketable parcels. It is offering to buy the shares at 4.8c. 

 

Sandfire Resources is one of Los Cerros' largest shareholder with 15%.

 

Shares in the company were off 2.4% to 3.8c, valuing the company at $1.1 million.