Metminco Limited (ASX: MNC), soon to be renamed Los Cerros Limited, is pleased to advise that it has received preliminary gold results for CHDDH002, (silver & multi-element analyses remain outstanding), the second hole of the maiden drill program at Chuscal in the Mid-Cauca Porphyry Belt of Colombia, and part of the Company's Quinchia Gold Project.

Results support the developing interpretation that the Chuscal Prospect has been influenced by a near-by causative intrusive(s) such as a porphyry, resulting in gold mineralisation encountered in every rock unit intercepted thus far - diorites, monzonite and breccias. Zones of higher gold grades and associated silver mineralisation appear to be generally associated with the frequency (or density) of overprinting epithermal veining.

In CHDDH001 and CHDDH002 the numerous intercepts grading 0.7g/t gold or higher correlate to increased vein density and were associated with elevated Ag, Te, Sb & W in the case of CHDDH001 (hole CCHDH002 silver and multi-element results are pending), suggesting an association between gold grade and Intermediate Sulphidation (ISS) epithermal veins. These epithermal veins appear to be conditioned by the regional fault structure that the Company has referred to as a horsetail4 structure with the abovementioned high grade intercepts correlating to modelled horsetail splays. Of note are the two higher grade intercepts in CHDDH002 at 248m (2m @ 8.28g/t Au) and 333m (0.5m @ 17.1g/t Au) which are interpreted to be secondary splays off the main Guayacanes horsetail structures associated with what we now call the Guayacanes Corridor.

The apparent increased importance of the horsetail structure in relation to the gold bearing ISS veins, has prompted the Company to reconsider the surface geochemistry, particularly silver/gold ratios. Surface anomalism potentially attributable to vein gold (higher ratio) is differentiated from porphyry associated gold (lower ratio) to assist in drilling targeting. Six separate E-W trending structural corridors, of between 300m and 500m strike, associated with the distribution of f horsetail splays, have emerged.

Metminco's Managing Director, Jason Stirbinskis added: 'As was the case with the first hole ever drilled at Chuscal, the partial results of the second hole have been illuminating. We now have an improved understanding of both vein gold and porphyry gold targets albeit that we have received assays from only two holes which cover less than 100m strike of the 900m long Chuscal gold in soil anomaly

For the porphyry associated gold, we have learnt that the mineralisation is not restricted to a dioritic porphyry stock but also occurs in dioritic and monzonitic breccias and the monzonite itself. This is evidenced by the 350m long drill core assay result of 0.57g/t 3 in hole 1 within different rock units. Hole 2 has consolidated that conclusion with a 320m long drill core assay of 0.43g/t.

The Company's geologists have begun more detailed interpretation of surface geochemistry and distribution of alteration such as phyllic and potassic alteration (part of porphyry system alteration zonation) logged in hole 2 to test the theory and vector in on a possible porphyry target. The Company will have more to say on the subject once the theory has been validated by further investigation over coming weeks'

The objective of hole CHDDH003, which has just been completed for a total depth of 302m, was to test the two northernmost splays off the 'horsetail' and the Corporacion diorite which has been previously mined by small scale artisanal mines. Assays are expected before the Christmas break.

Mr Stirbinskis further commented that 'the Company's geologists have now determined that two vein sets host the higher grade epithermal gold mineralisation. A dominant 110-degree trending set and a lesser 060-degree trending set. Upon the receipt of all assays for the current drill program (Holes CHDDH001-004) it will be possible to better predict the location of high grade shoots within the structural corridors.'

The drill rig is currently relocating to drill pad four which is roughly equi-distant between holes 1 and 3 to test the Tres Cuevas corridor including the Tres Cuevas breccia another zone of historic artisanal mining activity, and is expected to drill through multiple splays off the horsetail structure. Hole 4 drilling is anticipated to conclude prior to the Christmas break, with assay results expected in mid-January.

Corporate Updates

As announced on 2 December 2019, the settlement date for the sale of the Company's Mollacas assets and repatriation of funds (approximately A$1.5 million) is expected to occur in December. The Company is advanced in preparation of a Prospectus for the offer of Bonus Options. Eligible shareholders on the register at the record date (to be advised in the Prospectus) will be offered 1 Listed Option for every 5 shares held for nil consideration, with each option having an exercise price of $0.16 and expiry date of 16 August 2021. The Company expects to finalise its Prospectus in the coming days.

Contact:

Jason Stirbinskis

Email: jstirbinskis@metminco.com.au

FORWARD LOOKING STATEMENTS

This document contains forward looking statements concerning Metminco. Forward looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Metminco's beliefs, opinions and estimates of Metminco as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur.

(C) 2019 Electronic News Publishing, source ENP Newswire