LCL Resources, which operates the Ono gold project and the Liamu project, has provided an update on its is continuing divestment of Colombian assets.
According to LCL’s interim financial report, released in September, the company is shedding its South American projects with the goal to focus all of its attention on its Papua New Guinea (PNG) assets.
The company has a binding share purchase option agreement with Tiger Gold corporation, for the sale of its Andes and Quinchia gold projects. Under the terms of that agreement, $14 million will be payable by Tiger over an extended timeline reaching to the first gold pour from the assets.
The first cash payment was received in June, when the option was first exercised. A second payment of $2 million is due in February next year.
In PNG, the focus during the half-year to June 30 was predominantly mineral exploration for gold, copper and nickel.
The Ono gold project delivered its maiden inferred Mineral Resource Estimate for the Kusi skarn deposit during that term, highlighting 18.3 million tonnes at 1.42 grams per tonne gold. The resource, which could have as much as 831,000 ounces of gold, is hosted within a limestone unit belonging to the Owen Stanley Metamorphic sequence.
The Dada gold-copper porphyry prospect, part of the Liamu project, saw systematic trenching and surface sampling over the half-year. The company produced five new trenches confirming porphyry-style veining in the June quarter. The results suggest a large, multi-phase mineralised system, with mineralisation remaining open along strike and at depth.
LCL Resources is now exploring all options for its PNG portfolio including the sale or joint venture of its assets.
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