Mining

Los Cerros bolts on PNG copper, nickel targets to boost battery metals push

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By Robin Bromby - 
Los Cerros ASX LCL PNG Papua New Guinea copper nickel targets gold

Los Cerros managing director Jason Stirbinskis says the near-term prospectivity of the new PNG project is compelling.

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With gold projects in Colombia under way, Los Cerros (ASX: LCL) is now sharpening its battery metals focus by picking up five nickel-copper (and gold) deposits in Papua New Guinea.

The Perth-based company is not only acquiring privately-owned Footprint Resources but putting its two geologist directors and exploration team on the Los Cerros payroll to take the projects forward.

This, it states, will ensure continuity of project and country knowledge.

Los Cerros said it is creating a new exploration focus on top of its 2.6-million-ounce Quinchia gold project in South America where the company is planning a preliminary economic assessment.

‘Immediate and material exploration upside’

Los Cerros plans to focus on a high-grade discovery as a basis on which to attract joint venture partners.

The company is planning work on two of the PNG projects located in the south of that country.

It is preparing a 3,000m diamond drill program at Kusi to follow up historical drill sections including 35m at 3.04 grams per tonne gold and trench sampling which produced an assay of 8m at 11.5g/t gold, 2.6% copper and 24g/t silver.

Kusi is the main target in one of the acquired projects, Ono, which lies on the same structural belt as the Hidden Valley gold mine owned by Harmony Gold and the Wafi-Golpu copper-gold project controlled by Newcrest Mining (ASX: NCM).

At the Veri Veri project, Los Cerros says it is applying modern geophysical techniques alongside field work to locate the source of a massive nickel sulphide float assaying at up to 45.8%.

Managing director Jason Stirbinskis said the PNG acquisition offers immediate and material exploration upside as well as jurisdictional and metal diversity to the Los Cerros portfolio.

“I have walked the ground over the key projects and the near-term prospectivity of our new PNG portfolio is compelling,” he added.

PNG knowledge will help land JV partners

Geologists Glenn Twomey and John Dobe, who own Footprint, will join the staff at Los Cerros, bringing with them the exploration team, logistical support and in-country relationships.

Mr Twomey and Mr Dobe have, between them, 16 years’ experience on exploration in PNG, which Los Cerros considers will be an advantage in its efforts to attract joint venture partners.

Los Cerros is paying $350,000 cash and 65.04 million new shares, with the latter representing a 10% stake in the listed explorer.