Los Cerros Limited: Exploring High-Grade Gold and Copper in PNG, While Advancing the Quinchia Gold Project in Colombia

• Los Cerros' share price has dropped 75% partly due to political risk in Colombia after a change in government there.
• Los Cerros has 2.6 million ounces of gold reserves at its project in Colombia and is doing engineering studies to demonstrate economic viability.
• The company acquired assets in Papua New Guinea (PNG) with very high grade copper, gold and nickel samples.
• In PNG, Los Cerros is focused on shallow, high impact drilling at the Kusi project to get quick wins and positive headlines.
• The company wants to demonstrate value in Colombia while generating excitement through exploration success in PNG with exceptionally high grades.

About Los Cerros

Los Cerros Limited is a minerals exploration company focused on gold, copper and nickel assets in Colombia and Papua New Guinea. The company holds an extensive portfolio including the 2.6Moz Quinchia gold project in Colombia and several high-grade gold, copper and nickel projects in PNG acquired in 2022. Los Cerros is led by a highly experienced management team with track records of exploration success.

Interview with Jason Stirbinskis, MD of Los Cerros

Quinchia Gold Project, Colombia – De-Risking a Large Gold Resource

The company's flagship project is the Quinchia gold project in central west Colombia which hosts a total resource of 2.6Moz at 1g/t gold. The project benefits from excellent infrastructure including nearby roads, power and water. While Quinchia holds significant resource potential, Los Cerros has slowed exploration spend due to the change in Colombian government introducing additional risk. The company is focused on de-risking the project by advancing engineering and metallurgical studies to determine optimal development scenarios.

Test work has demonstrated high recoveries of 87-97% from simple processing, providing confidence in the project economics. Several development scenarios are being assessed including starting with a small scale underground operation at the Mireflores deposit, which holds a 2017 DFS-backed reserve of 400koz. Environmental approvals have been submitted for Mireflores, representing the final step required to gain production approvals. Advancing engineering and environmental studies requires minimal spend relative to drilling, allowing Los Cerros to steadily de-risk Quinchia until country risk stabilizes. Quinchia offers significant upside potential for the company once the political environment improves.

High-Grade Copper & Gold Projects, PNG – Near-Term Drilling to Unlock Value

In 2022, Los Cerros acquired an extensive portfolio of copper and gold projects in PNG, a premier jurisdiction neighboring some of the world’s largest mines. The assets include advanced exploration projects as well as early stage targets, providing a pipeline of opportunities. Los Cerros’ focus is on ‘high impact, high grade, quick win’ exploration programs to rapidly demonstrate value.

Drilling is set to commence in Q1 2023 at the Kusi project, where surface samples have returned exceptional grades up to 63g/t gold and 18% copper. An initial 3,000m program will test the Kusi skarn zone where mineralization could significantly expand beyond currently sampled areas. Several other projects are being advanced in parallel through low cost fieldwork programs.

The Keveri nickel-sulphide project represents a strategic addition to the PNG portfolio. Massive and matrix nickel sulphide float samples from Keveri have returned outstanding grades up to 45% nickel, demonstrating potential for a major discovery. The project will be advanced while initial focus remains on the copper-gold targets.

Conclusion

With extensive high-grade gold and base metals projects in Colombia and PNG, Los Cerros offers investors exposure to significant near-term exploration upside and long-term development potential. The PNG assets provide clear opportunities for ‘quick win’ exploration drilling results in a premier mining jurisdiction, while steady technical work in Colombia aims to de-risk the large Quinchia gold resource. Los Cerros represents an attractive value opportunity for investors seeking leveraged exposure to high-impact minerals exploration.