LCL Resources (ASX:LCL) has received a ‘critical’ environmental licence for its Miraflores gold deposit in Colombia from the Environmental Authority of the state of Risaralda, CARDER.
The $22.24 million market capitalisation company says this environment impact assessment (EIA) approval is a ‘positive’ and ‘significant’ development, as this is the company’s final substantial approval requirement, allowing the company to progress to the development of the Miraflores deposit.
LCL notes the EIA assessment and environmental licence cover a broad range of considerations and ‘greatly enhance’ the value of its Quinchia Gold Project.
A ‘Forest Use Permit’ is still outstanding, but LCL does not consider this relevant until it’s closer to making a development decision on the Quinchia project.
This permit relates to removing individual trees, if required, on privately held land. The company notes there are no protected areas, nature reserves, or parks within the environmental licence-approved area of influence, and none of the identified trees fall within the Miraflores mine footprint.
Following this announcement, LCL shares spiked 14.29% to close at $0.032 on Monday 16 October.
LCL Resources Managing Director Jason Stirbinskis says this licence approval is a ‘major’ milestone for the Miraflores prospect, and it de-risks the Quinchia project.
“We see the awarding of the environmental licence as further evidence of an improving working relationship between the mining industry and government and look forward to continued government support for new mine development in Colombia.
“We see the awarding of the environmental licence as further evidence of an improving working relationship between the mining industry and government and look forward to continued government support for new mine development in Colombia”
Currently, the company remains focused on its PNG portfolio of compelling early-stage nickel, gold, and copper/gold targets.”
The company plans to build upon the prospect’s approvals in the future and apply similar steps for the Quinchia project development.
LCL Resources is an exploration and mining company that holds 3,890km-square of exploration titles in 5 regions of Papua New Guinea prospective for copper, gold, and nickel.
As of 30 June 2023, the company had $5.8 million cash at hand, according to its latest financial report.
Write to Aaliyah Rogan at Mining.com.au
Images: LCL Resources
