LCL RESOURCES LIMITED — Capital/Financing Update 2019

Sep 23, 2019

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ASX Announcement

24[th] September 2019

Chuscal drilling contract executed, drillers on-site

Maiden Drilling Program to start ~ 1 week

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• Chuscal Gold Target diamond drill program commissioned, contractors on site preparing to drill in approximately 1 week

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• Maiden diamond drilling program ~2,400m will test several mineralised structures within the Chuscal Gold Target

Metminco Limited (ASX: MNC) (“ Metminco ” or “ the Company ” ) has commissioned Logan Drilling Colombia SAS for the maiden drilling program at the Company’s highly anticipated Chuscal Gold Target – Quinchia, Colombia ( Chuscal )[1] .

The drilling contractors have commenced scoping out access, logistics and water management strategies in anticipation of commencing the HQ/NQ diamond drilling program of up to 2,400m in one week.

Metminco’s Managing Director said: “We are glad that Logan Drilling were able to provide a competitive bid as they have previously provided drilling services to both Andes Resources and Metminco and demonstrated themselves to be professional, reliable and aligned to our policy of buy local, hire local and employ local”.

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Photo: The Logan rig scheduled for drilling Chuscal is the same model track mounted rig used for the 2018 El Columpio program for Andes and 2018 Tesorito drilling for Metminco – pictured at El Columpio 2018.

1 The Chuscal Gold Target is a JV with AngloGold Ashanti Colombia SA. Metminco can earn 51% through US$2.5M of exploration expenditure (see ASX Announcement 6[th] December 2018). Metminco is the manager of the JV.

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Whilst the field mapping and ground magnetic programs currently underway may result in drill program changes, it is intended that the first drill hole ever to test the Chuscal target is designed to intercept the Guayacanes structure close to surface. The Guayacanes diorite consists of gold bearing veins within a mineralised diorite porphyry (refer ASX announcement 18[th] September 2019 for further detail)[2] .

The Company has previously announced the results of historical channel sampling from underground workings of the Guayacanes veins within the Guayacanes diorite at Chuscal (ASX release 21[st] January 2019)[2] . In summary, the underground sampling comprised 120, approximately two-meter long channel samples taken along the length of the underground working. These delivered gold grades of up to 250gpt with 10% of samples having grades over 10gpt (average grade 62.7gpt) . The higher gold grades are associated with two or three vein systems with elevated silver (up to 59gpt) and associated arsenic, antinomy, tungsten and tellurium. In the cross-cuts between these veins, continuous lower grade (1gpt to 3.9gpt) mineralisation is present[2,3] .

Figure one is a stylised cross section of the structures, vein styles and geology the first drill hole (CHDDH001) is expected to encounter which includes the above-mentioned Guyacanes veins at shallow depth and also the mineralised Tres Cuevas breccia at ~200m below surface. Tres Cuevas is an epithermal level, magmatic breccia mapped at surface.

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Figure 1: Stylised N-S cross section (looking east) depicting the major geological units and structures expected to be intercepted in the Company’s first drill hole at Chuscal (CHDDH001). Note: this is an interpretive section based on limited available surface data, used in planning the drill program. Vein density is unknown. The figure illustrates the relationship between different vein sets that may be intersected in the proposed drillhole.

2 The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX market announcement.

3 The channel samples were collected by a third party in access, drive and cross-cut tunnels, approximately 70m below the surface. It is beneath the south-eastern end of the 600m by 240m Central Zone of high-grade rock-soil and rock chip samples which average 2.66gpt Au (uncut), within a large (900m by 530m) lower grade envelope which averages 1.76gpt Au (uncut). (ASX release 21st January 2019).

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Figure 2: Simplified geological map of Chuscal showing the currently proposed drill targets. Hole CHDDH001 is located approximately central on the map, drilled to the north. Other drill collar locations and drilling sequence are not confirmed and may change as the program progresses.

Drilling is planned to be a two phase operation, with three holes planned initially, and then up to a further four holes to be drilled with the benefit of knowledge gained through analysis of the results from the first phase of drilling. Drilling is indicatively planned to target an average depth of 300-400 meters in each drill hole.

Further information will be provided as the drill targeting completes.

For further enquiries contact:

Jason Stirbinskis

Managing Director Metminco Limited jstirbinskis@metminco.com.au

JORC STATEMENTS - COMPETENT PERSONS STATEMENTS

The technical information related to Metminco’s assets contained in this report that relates to Exploration Results (excluding those pertaining to Mineral Resources and Reserves) is based on information compiled by Mr Nicholas Winer, who is a Member of the Australasian Institute of Mining and Metallurgy and who is a Consulting Geologist employed on a part-time basis. Mr Winer has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Winer consents to the inclusion in the release of the matters based on the information he has compiled in the form and context in which it appears.

The Company is not aware of any new information or data that materially affects the information included in this release.

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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 forwardlooking 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 forwardlooking 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

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random	Underground channel sampling
techniques	chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	•Continuous underground rock-chip channel samples were obtained along the length of artisanal workings, bagged and tagged with unique sample identity numbers, transported and submitted to SGS Colombia Ltda located in Medellin for sample preparation.
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	•Continuous rock-chip sampling is an accepted exploration methodology to obtain a representative sample. However, it does not have the same precision as cut (saw) channel samples and should be regarded as being indicative of the magnitude and extent of mineralization. •Sample preparation included drying at <60°C, crushing, and pulverizing the sample to -75 micron (200 mesh) from which a representative pulp sample was obtained using a riffle splitter. The pulps were sealed, packaged and couriered to SGS Laboratory in Lima, Peru. •Gold assays were obtained using a lead collection fire assay technique (FAA313) with analyses for an additional 50 elements obtained using multi-acid (four acid) digest and ICP finish. (ICM40B) Over limit precious metals (+5,000ppb for Au & 10gpt for Ag) were re-assayed using FAG303 and AAS41B methodologies respectively. Over limit Cu (+10,000ppm) was re-analysed using AAS41B.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer,	•n/a
techniques	rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond
	tails, face-sampling bit or other type, whether core is
	_oriented and ifso, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample	•n/a
recovery	recoveries and results assessed. • Measures taken to maximise sample recovery and ensure
	representative nature of the samples.
	• Whether a relationship exists between sample recovery and
	grade and whether sample bias may have occurred due to
	preferential loss/gainof fine/coarse material.

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Criteria	JORC Code explanation	Commentary	Commentary
Logging	• Whether core and chip samples have been geologically and	•	n/a
	geotechnically logged to a level of detail to support
	appropriate Mineral Resource estimation, mining studies
	and metallurgical studies.
	• Whether logging is qualitative or quantitative in nature. Core
	(or costean, channel, etc) photography.
	• The total length and percentage of the relevant intersections
	_logged. _
Sub-	• If core, whether cut or sawn and whether quarter, half or all	•	n/a
sampling techniques and sample	core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and
preparation	appropriateness of the sample preparation technique.
	• Quality control procedures adopted for all sub-sampling
	stages to maximise representivity of samples.
	• Measures taken to ensure that the sampling is
	representative of the in situ material collected, including for
	instance results for field duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of
	_the material being sampled. _
Quality of	• The nature, quality and appropriateness of the assaying and	•	All sample preparation, assays and analyses were undertaken in Certified
assay data and laboratory	laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the	•	Laboratories using industry standard methods. Gold assays were obtained using a lead collection fire assay technique (FAA313 & FAG303) and analyses for an additional 50 elements were obtained using multi-acid (four acid) digest with ICP finish (ICM40B) at SGS’s laboratory
tests	analysis including instrument make and model, reading		in Lima, Peru.
	times, calibrations factors applied and their derivation, etc.	•	Fire assay for gold is considered a “total” assay technique.
	• Nature of quality control procedures adopted (eg standards,	•	An acid (4 acid) digest is considered a total digestion technique. However, for
	blanks, duplicates, external laboratory checks) and whether		some resistant minerals, not considered of economic value at this time, the
	acceptable levels of accuracy (ie lack of bias) and precision		digestion may be partial e.g. Zr, Ti etc.
	have been established.	•	No field non-assay analysis instruments were used in the analyses reported.
		•	Certified reference material and sample blanks were inserted into the sample
			sequence as were duplicate samples. A review by Metminco indicated no
			significant analytical bias or preparation errors in the reported analyses.
		•	Internal laboratory QA/QC checks are reported by the laboratory and a review
			of the QA/QC reports suggested the laboratory performed within acceptable
			limits.
Verification	• The verification of significant intersections by either	•	For exploration data, that will not be used in resource calculations/modelling,
of sampling	independent or alternative company personnel. • _The use of twinned holes. _		the geochemistry QA/QC procedures adopted are considered adequate. No verification samplingwas carried out.

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Criteria	JORC Code explanation	Commentary	Commentary
and	• Documentation of primary data, data entry procedures, data	•	The digital data has been verified and validated by the Company’s database
assaying	verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	•	specialists before loading into the assay database. No adjustments to assay data were made.
Location of	• Accuracy and quality of surveys used to locate drill holes	•	Surface samples are collected using a GPS combined with tape and compass.
data points	(collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	•	Accuracy is +/- 5m. It is uncertain as to how the underground channel samples were surveyed.
	• Specification of the grid system used.		They have relative spatial accuracy, but the overall tunnel trace may have
	• Quality and adequacy of topographic control.		metric errors in accuracy.
		•	The grid system is WGS84 UTM Z18N.
Data	• Data spacing for reporting of Exploration Results.	•	The underground rock-chip channel samples (120) varied in length from 0.91m
spacing and distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve		to 2.14m, averaging 1.96m along the length of the underground development. Sample spacing is adequate to account for the variability of the mineralization likely to be encountered.
	estimation procedure(s) and classifications applied.	•	No sample compositing has been applied.
	• Whether sample compositing has been applied.	•	No holes have been drilled to date and consequently, there is insufficient
			information to establish geometry nor the degree of geological and grade
			continuity.
		•	The geochemistry is exploration data to assess prospectivity. It is not
			appropriate for inclusion in a Mineral Resource Estimate.
Orientation	• Whether the orientation of sampling achieves unbiased	•	The nature and extent of the underground rock-chip channel samples is limited
of data in	sampling of possible structures and the extent to which this		to the length of the underground development. The sample results were not
relation to geological	is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to		accompanied by underground mapping to indicate the orientation of the key mineralized structures. Assuming the artisanal working followed the known key mineralized structures, it is likely that the samples have introduced a bias and
structure	have introduced a sampling bias, this should be assessed		do not indicate their apparent or true thickness.
	and reported if material.	•	Exploration is at an early stage and, as such, knowledge on exact location of
			mineralisation and its relation to structural boundaries is not accurately known.
			However, the underground sampling pattern is considered appropriate for the
			program to reasonably assess the prospectivity of known features interpreted
			from other data sources.
Sample	• The measures taken to ensure sample security.	•	Unknown.
security
Audits or	• The results of any audits or reviews of sampling techniques	•	There have been no reported external audits or reviews of the then operating
reviews	and data.		company’s sampling techniques and consequently no results generated for
			comment at this stage.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership	•The farm-in and JV agreement with AGAC includes three granted Exploration
tenement	including agreements or material issues with third parties	Titles with AGAC as current beneficial owner.
and land	such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national	•The Exploration Titles were validly issued pursuant to the Colombian Mining Code.
tenure	park and environmental settings.	•The Concession Agreement grants its holders the exclusive right to explore for
status	• The security of the tenure held at the time of reporting along	and exploit Au, Cu, Ag, Zn, Mo, Pt on the parcel of land covered by such
	with any known impediments to obtaining a licence to	concession agreements. Requests for additional related minerals can be made.
	operate in the area.	•There are no outstanding encumbrances or charges registered against the
		Exploration Title at the National Registry.
Exploration	• Acknowledgment and appraisal of exploration by other	•The first prospecting work that refers to the Chuscal Gold Target (Chuscal) was
done by other parties	parties.	recorded in 1986 by the author Michael GA Hill who reported an average of 4ppm to 5ppm gold in the sector "Loma El Guerrero", which today is known as Chuscal Alto. There was no detailed geological description or geological map
		produced. The effects of hydrothermal brecciation in dioritic intrusive rocks was
		noted.
		•In 1995, a Canadian TVX listed company, Minera de Colombia S.A., conducted
		a study in the Quinchia district, focusing on the prospects known at the time
		(Miraflores, La Cumbre, Chuscal and a locality that today is Tesorito). For the
		Chuscal area, three locations with gold mineralization being worked by artisanal
		miners were described, which comprise quartz+ limonite veins within pyritic
		argillic alteration zones.
		•AGAC commissioned a brief reconnaissance survey in 2004 from which their
		geologist reported the types of alteration and mineralization were similar to
		AGAC’s model of “Gold-Rich Porphyry Deposits”.
		•AGAC conducted another prospect assessment in March 2005 from which it
		was reported that artisanal miners were working auriferous quartz-pyrite
		stockwork veins, some within porphyritic andesites, that had intruded into the
		Ira Monzonite. The mineralized veins had a strong structural control trending
		NW-SE.
		•AGAC commissioned various reconnaissance exploration campaigns from
		2005 to 2006 principally focusing on the assessment of the geology exposed in
		the shallow underground openings being developed by artisanal miners.
		•In 2012, Seafield undertook a grid-based C-horizon soil geochemical survey
		and conducted underground rockchip channel sampling over the Chuscal area
		and within the Guayacanes artisanal workings respectively.
		•In 2013, AGAC commissioned a systematic saprolite and rockchip sampling
		and mapping program from which it was concluded that the mineralization at

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Criteria	JORC Code explanation	Commentary
		Chuscal had both porphyry (Au-Cu-Mo) and epithermal (As-Sb) affinities, with
		phyllic alteration overprinting earlier potassic alteration of porphyritic rocks that
		had intruded an older Monzonite.
		•In 2015, AGAC conducted additional mapping, saprolite and rockchip sampling
		detailing the area previously mapped and sampled.
Geology	• Deposit type, geological setting and style of mineralisation.	•The Chuscal Gold Target is associated with two diorite stocks probably of
		Miocene age, that have intruded into the large, Cretaceous-age igneous body
		known as the Irra Monzonite. The stocks are part of a system that generated a
		significant gold rich hydrothermal event, that together produced a NW
		orientated, 900m by 500m zone (+100ppb Au in soils) within which anomalous
		rock samples have been collected by AngloGold (refer Figure 2 in ASX release
		dated 6thDecember 2018). The rock chip sampling has defined a Central
		Zone of 600m by 240m (183 samples) the average grade of samples is 2.66gpt
		Au (uncut) or 1.94gpt Au (cut2). This is incorporated within a broader area (Main
		Zone) of 900m by 530m (289 samples) where the average grade of samples is
		1.79gpt Au (uncut) or 1.33gpt Au (cut2).
		• Note2: The cut samples were capped at 20gpt Au which affected 6
		samples including one assaying 54gpt Au. In neither case was a lower cut
		applied. For the Central & Main zones respectively, the average includes
		53 and 115 samples at <0.2gpt.
		•The underground artisanal workings occur within the Central Zone at a depth of
		approximately 70m below the ridge indicating the continuation of mineralisation
		at shallow depths. The multi-element rockchip underground channel sample
		results indicate two dominant styles of mineralization. A probable early-stage
		stockwork-disseminated porphyry-style mineralization and a late stage high
		grade vein style (possible epithermal overprint). The porphyry-style returned
		average grades of 1.5gpt Au and the epithermal-style veins average 8gpt Au
		(cut3).
		• Note3: The cut underground rockchip channel samples were capped at
		20gpt Au.
		•The soil and rock chip anomalies remain open to the north.
Drill hole	• A summary of all information material to the understanding	•No drilling has been undertaken on the Chuscal Prospect to date.
Information	of the exploration results including a tabulation of the
	following information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea
	level in metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• Ifthe exclusion of this information is justified on the basis

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Criteria	JORC Code explanation	Commentary
	that the information is not Material and this exclusion does
	not detract from the understanding of the report, the
	Competent Person should clearly explain why this is the
	_case. _
Data	• In reporting Exploration Results, weighting averaging	•The summary metrics for the underground rock-chip channel sample results
aggregation methods	techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	have been averaged and reported as cut values. •No metal equivalent values have been stated.
	• Where aggregate intercepts incorporate short lengths of high
	grade results and longer lengths of low grade results, the
	procedure used for such aggregation should be stated and
	some typical examples of such aggregations should be
	shown in detail.
	• The assumptions used for any reporting of metal equivalent
	_values should be clearly stated. _
Relationship	• These relationships are particularly important in the reporting	•The results reported in this announcement are considered to be of an early
between	of Exploration Results.	stage in the exploration of the project.
mineralisatio n widths and	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are	•Mineralisation geometry is not accurately known as there is currently insufficient information to determine the number, orientation and extent of mineralised structures.
intercept	reported, there should be a clear statement to this effect (eg
lengths	‘down hole length, true width not known’).
Diagrams	• Appropriate maps and sections (with scales) and tabulations	•Figure 1 is s schematic section based on limited surface data, prepared as part
	of intercepts should be included for any significant discovery	of the planning for the initial drill program. It provides a stylized indication of the
	being reported These should include, but not be limited to a	possible vein geometries and lithology contacts that may be expected. At this
	plan view of drill hole collar locations and appropriate	time Metminco has no indication of the number, width, distribution and grade of
	sectional views.	veins in the target area.
Balanced	• Where comprehensive reporting of all Exploration Results is	• Assay results for selected elements from Seafield’s rock-chip channel sampling
reporting	not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid	within the artisanal underground working at Guayacanes are presented in Appendix 1 of Metminco’s ASX release of 21stJanuary 2019.
	_misleading reporting of Exploration Results. _
Other	• Other exploration data, if meaningful and material, should be	•A ground magnetic survey and underground mapping is being undertaken on
substantive	reported including (but not limited to): geological	the Property. This information will be used to undertake 3D susceptibility
exploration data	observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater,	inversion modelling and obtain structural information to compliment the surface information and assist in drill program planning. •No other exploration data that is considered meaningful and material has been
	geotechnical and rock characteristics; potential deleterious	omitted from this report.
	or contaminating substances.

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Criteria	JORC Code explanation	Commentary
Further work	• The nature and scale of planned further work (eg tests for	•The preliminary drill program is planned for Q4 2019. It is planned to drill
	lateral extensions or depth extensions or large-scale step-	2,400m in 6 to 8 drill holes, which is anticipated to be completed in early 2020.
	out drilling).	As this is the maiden drilling program in the Project, it is possible that results
	• Diagrams clearly highlighting the areas of possible	will lead to modifications to optimize the drilling program going forward. In
	extensions, including the main geological interpretations and	parallel, soil and rock chip sampling coverage will be extended to the northern
	future drilling areas, provided this information is not	limits of the Company’s exploration permits to cover the extension of the
	commercially sensitive.	Tesorito trend which currently remains untested.

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