Cerro Resources: 9m @ 237g/t AgEq at Namiquipa, Mexico Significant Silver/Lead/Zinc Mineralization
LONGUEUIL, QUEBEC -- (Marketwire) -- 03/05/12 -- Cerro Resources NL (ASX: CJO)(TSX VENTURE: CJO) is pleased to announce positive results from 11 additional drill holes at the Namiquipa Silver Project, in Chihuahua, Mexico. The results are from drilling conducted in the second half of 2011, aimed at targets beyond the main Princesa/Megan system.
Highlights Include:
-- 9m @ 237g/t AgEq (NAM-60) from 195m;
-- 27m @ 167g/t AgEq (NAM-57) from 332m, including 1.33% Pb and 4.03% Zn;
-- 3m @ 545g/t AgEq (NAM-57) from 231m;
-- 4.3m @ 440g/t AgEq (NAM-55) from 341m, including 1.1m @ 1190g/t Ag and
2.03g/t Au (gold not included in AgEq calculation);
-- 3.4m @166g/t AgEq (NAM-10) from 75m;
-- 5m @ 160g/t AgEq (NAM-10) from 115m.
Namiquipa Drill Program
Cerro Resources has continued to test the six-vein system that hosted the historic, high grade La Venturosa silver mine. A total of 68 diamond holes have been completed for 26,000m of core.
Figure 1 (p. 2) is a location map showing the locations of recent drill hole results in the main target area (southern extension holes not shown).
Tables 1 and 2 (p3, 4-5) list the significant assay results for these drill holes. Assay results were also received for two core holes (NAM-051 and NAM-054) in the southern extension area but did not contain any significant results.
The Namiquipa system
From the initial approx. 6 months of drilling results, an exploration model has now been developed to identify the controls of mineralization at Namiquipa - a system that falls into the low sulphidation epithermal polymetallic Ag-Au style.
Although Namiquipa is not historically known for producing significant quantities of gold, some recent drill holes do contain narrow intervals with gold mineralization (eg. 2.03 g/t Au in NAM-055).
An area to the north (NAM-018, NAM-047 area - announcements 25 October 2011 and 1 February 2012) is now being targeted using this global model, in conjunction with the core logging observations - which indicate a transition from red through yellow to white sphalerite and the presence of kaolin possibly suggestive of an acid sulphate cap.
A drill program to test this premise is currently underway.
Figure 1: Location Map of drill holes referenced in this announcement: http://media3.marketwire.com/docs/Fig1_0305.pdf
The America Vein
Core hole NAM-010 was positioned between the Princesa and the America Vein to test an IP anomaly and the potential for near-surface mineralization associated with the hanging wall of the America Vein (Figure 2). The near-surface mineralization is of prime interest because it represents potential for open pit exploration in a future development scenario.
NAM-010 successfully intersected multiple narrow veins consisting primarily of moderate to high silver values (high of 392g/t Ag over 1m from 115m) and moderate to low lead and zinc values above 117m. From 117m to 120m the zinc grades increased to highs of 1.61% over 1m.
Figure 2: Vertical Section showing the location of NAM-010 in relationship to IP anomaly: http://media3.marketwire.com/docs/Fig2_0305.pdf
Table 1: America Vein Drill Intercepts
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FROM TO
HOLE ID (m) (m) LENGTH (m) Ag g/t Pb (%) Zn (%) AgEq
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NAM-010 68.00 69.00 1.00 49.4 0.05 0.07 52
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NAM-010 74.82 78.23 3.41 154 0.25 0.21 166
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including 77.00 78.23 1.23 361 0.35 0.13 374
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NAM-010 107.24 109.50 2.26 51 0.07 0.10 56
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NAM-010 115.00 120.00 5.00 136 0.27 0.57 160
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including 115.00 116.00 1.00 392 0.17 0.23 403
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The Silver equivalent grades ('AgEq') have been calculated using metal prices of US$25oz Silver; US$1.00/lb Zinc; and US$1.00/lb Lead. Metal recoveries are not considered in this calculation. Further drilling is required to provide a more accurate assessment of vein thickness and true width may vary.
The Princesa and Megan Veins
Drill testing the Princesa/Megan system continues to be the main focus of the current program and is returning significant and strongly encouraging results.
Table 2: Princesa/Megan Drill Intercepts
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FROM TO
HOLE ID (m) (m) LENGTH (m) Ag g/t Pb (%) Zn (%) AgEq
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NAM-015 No Significant Mineralization
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NAM-035 366.00 370.00 4.00 32 0.53 2.91 126
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including 367.00 367.60 0.60 152 1.82 13.65 576
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NAM-038 207.60 211.00 3.40 63 0.01 0.05 64
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NAM-038 219.00 223.00 4.00 98 0.03 0.07 101
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including 222.00 223.00 1.00 230 0.08 0.10 234
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NAM-053 172.00 174.00 2.00 54 1.11 3.22 173
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NAM-053 191.00 192.00 1.00 26 0.87 1.24 84
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NAM-053 200.00 233.40 33.40 7 0.65 1.26 59
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NAM-053 265.00 271.00 6.00 23 0.77 0.95 70
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NAM-055 205.58 207.00 1.42 66 0.85 2.80 166
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NAM-055 239.80 240.24 0.44 47 2.40 10.80 409
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NAM-055 243.00 247.00 4.00 6 0.30 1.50 55
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NAM-055 252.00 257.00 5.0 11 1.18 4.55 169
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NAM-055 269.00 272.00 3.0 8 0.31 2.74 92
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NAM-055 275.00 277.00 2.00 296 0.05 0.17 302
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including 275.00 276.00 1.00 193 0.05 0.14 198
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including 276.00 277.00 1.00 400 0.06 0.19 406
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NAM-055 303.00 303.50 0.50 289 0.03 0.07 291
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NAM-055 341.00 345.30 4.30 432 0.09 0.20 440
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including 342.00 343.00 1.00 376 0.17 0.49 393
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including 343.00 344.10 1.10 1190 0.08 0.19 1197
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NAM-057 221.80 222.30 0.50 21 0.52 0.65 53
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NAM-057 231.00 234.00 3.00 193 2.83 9.99 545
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including 231.00 232.35 1.35 72 6.25 22.10 849
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including 232.35 233.00 0.65 126 0.02 0.04 127
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including 233.00 234.00 1.00 401 0.07 0.11 405
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NAM-057 332.00 359.00 27.00 20 1.33 4.03 167
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including 344.00 344.42 0.42 139 5.10 12.30 616
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including 344.42 346.00 1.58 31 2.32 15.10 508
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including 350.00 351.00 1.00 44 2.96 14.75 530
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including 351.00 351.60 0.60 64 6.21 17.10 703
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including 353.85 355.00 1.15 15 0.69 2.48 102
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including 355.00 356.00 1.00 14 1.92 4.56 191
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NAM-059 201.00 202.00 1.00 92 0.12 0.13 99
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NAM-059 216.80 217.70 0.90 86 0.16 1.67 136
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NAM-059 217.70 219.00 1.30 165 0.12 0.35 177
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NAM-059 315.00 316.00 1.00 28 1.64 6.86 261
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NAM-059 329.50 330.50 1.00 131 3.34 14.75 627
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NAM-059 336.00 358.70 22.7 7 0.49 1.26 56
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including 341.80 343.00 1.20 26 2.43 4.12 205
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including 343.00 344.20 1.20 24 1.43 3.67 164
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Including 347.00 348.00 1.00 8 0.16 1.72 60
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including 348.00 349.00 1.00 13 0.67 1.25 65
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including 357.50 358.70 1.20 6 0.60 2.98 104
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NAM-060 195.00 204.00 9.00 39 0.64 6.58 237
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including 196.00 197.00 1.00 32 0.39 6.89 231
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including 197.00 198.00 1.00 50 0.11 12.95 409
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including 198.00 199.00 1.00 74 0.98 22.00 704
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including 199.00 200.00 1.00 15 0.12 3.27 108
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including 200.00 201.00 1.00 8 0.09 2.12 68
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including 201.00 202.00 1.00 13 0.30 1.06 50
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including 202.00 203.00 1.00 48 1.27 4.84 216
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including 203.00 204.00 1.00 38 2.40 5.69 260
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NAM-060 253.00 262.00 9.00 12 0.90 2.19 97
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The Silver equivalent grades ('AgEq') have been calculated using metal prices of US$25oz Silver; US$1.00/lb Zinc; and US$1.00/lb Lead. Metal recoveries are not considered in this calculation. Further drilling is required to provide a more accurate assessment of vein thickness and true width may vary.
Competent Person/Qualified Person
The technical information in this news release is based on information compiled Mr Bill Fleshman, who is a Chartered Professional and Fellow of the Australasian Institute of Mining and Metallurgy. Mr Fleshman is a consultant to Cerro Resources NL and has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results and 'qualified person' as this term is defined in Canadian National Instrument 43-101 ('NI 43-101'). Mr Fleshman consents to the inclusion in this news release of the information in the form and context in which it appears.
About Cerro Resources
Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on Mexico where it is developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico, actively exploring the Namiquipa silver project in northern Mexico, and commencing exploration on the Espiritu Santo gold/silver project in Jalisco. It also maintains an active working focus on the Mt Isa, Queensland, region where it is exploring the Mt Philp haematite project and it holds an interest in the Kalman molybdenum, rhenium, and copper project.
Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.
Forward-Looking Information
This news release contains certain 'forward-looking information' under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Forward looking information in this news release includes statements regarding the structure of the mineralization of the project, the results of the exploration program, the interpretation of such results, and the potential of the Namiquipa project. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Tony McDonald, Managing Director
+61 7 3252 0122
admin@cerroresources.com
Greg Germon
General Manager Investor Relations - Australia
+61 2 9300 3341
greg@cerroresources.com
Ms. Gerri Paxton
Manager Investor Relations - North America
514-544-2696
gpaxton@cerroresources.com