LCL Resources Unveils High-Grade PNG Results Amid Strategic Asset Moves
LCL Resources reported promising high-grade gold-copper-silver assays from trenching in Papua New Guinea and is actively pursuing lower-risk jurisdiction assets while advancing its Colombian option agreement.
- High-grade trenching results at Ubei, PNG with assays up to 7.95g/t gold
- Stream sediment sampling completed at Dada, PNG with assays pending
- Due diligence underway on lower-risk jurisdiction assets for potential acquisition
- Ongoing option agreement with Tiger Gold Corp progressing in Colombia
- Company cash position at A$1.44 million with controlled exploration and corporate spending
Exploration Highlights in Papua New Guinea
LCL Resources (ASX, LCL) has delivered a solid update for the December 2025 quarter, spotlighting encouraging exploration results from its Papua New Guinea (PNG) projects. The company’s trenching program at the Ubei epithermal target yielded standout assays, including a grab sample grading 7.95 grams per tonne (g/t) gold, 0.51% copper, and 31 g/t silver. Additional samples returned gold grades exceeding 1 g/t, reinforcing the prospectivity of the mineralised corridor.
The field campaign, conducted over 21 days, confirmed structural geology insights with mineralised veins dipping southeast towards a significant induced polarization (IP) anomaly at depth. This correlation suggests a compelling target for future drilling, although initial quotes for drilling have been prohibitively expensive, prompting LCL to seek partnerships to advance the project.
Advancing Regional Exploration and Business Development
At the Dada prospect in PNG, LCL completed a comprehensive stream sediment sampling campaign involving 63 samples collected over two weeks. These samples aim to delineate additional mineralised centres within the tenement, though assay results remain outstanding. Meanwhile, the company is actively conducting due diligence on several advanced exploration assets in jurisdictions with lower operating risks, signalling a strategic pivot to diversify and mitigate geopolitical and operational uncertainties inherent in PNG.
In parallel, LCL is exploring sale or partnership opportunities for its PNG precious metals projects, responding to credible inbound interest. This approach could enable the company to progress these assets without further capital outlay, a prudent move given current cost pressures.
Progress on Colombian Projects and Corporate Update
On the South American front, LCL’s option agreement with Tiger Gold Corp remains on track. Tiger is scheduled to complete payments totaling $6.5 million by mid-2026 to acquire full ownership of LCL’s Colombian entities. Tiger has already commenced drilling activities and recently listed on the TSX Venture Exchange, marking a significant milestone for the project’s advancement. LCL retains a 1% net smelter return royalty and a $6.5 million payment upon first gold pour, preserving upside potential.
Financially, LCL ended the quarter with A$1.44 million in cash. Exploration expenditure was modest at A$156,000, reflecting focused activity at Ubei and holding costs elsewhere. Corporate and administrative expenses totalled A$124,000. Notably, 19 million performance rights lapsed during the quarter due to unmet performance criteria, a reminder of the challenges in meeting ambitious operational targets.
Navigating Regulatory and Operational Challenges
LCL continues to manage a complex portfolio of exploration licences across PNG and Colombia, with several tenements under renewal or application. The company is monitoring regulatory developments in Colombia, including uncertainties around mining tenement boundaries and informal mining rights, which could impact the footprint of exploration licences. These factors underscore the importance of LCL’s strategic focus on lower-risk jurisdictions and partnerships to sustain momentum.
Bottom Line?
With high-grade PNG results and strategic moves underway, LCL’s next steps will be critical in balancing exploration promise with financial and operational realities.
Questions in the middle?
- Will LCL secure a drilling partner to advance the high-potential Ubei project despite high mobilisation costs?
- When will the pending assay results from the Dada stream sediment sampling clarify the prospect’s potential?
- How will regulatory uncertainties in Colombia affect LCL’s exploration licence holdings and project timelines?
