Caerus Resource Corporation

Caerus Resource Corporation

September 07, 2010 11:10 ET

Caerus Resource Corp. Reports 41.6 Grams Per Tonne Gold, 136 Grams Per Tonne Silver and 1.87% Copper at El Cafatel-Acquisition Proceeding Subject to Conditions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Caerus Resource Corporation ("the Company") (TSX VENTURE:CA) is pleased to report it has advised Inversiones Midas Ltd. (hereinafter IML), a private Colombian corporation, that the Company intends to proceed with the 100% acquisition of the El Cafetál Mine, located in Valparaiso Municipality, Department of Antioquia, Republic of Colombia. The 135 hectare mine lies 12 kilometers north of the Marmato disseminated gold-silver district. Medoro Resources Ltd. (TSX-V: MRS), owner of the Marmato deposit in Marmato district reports an NI 43-101 compliant measured and indicated resource of approximately 7,490,000 ounces of gold and 47,956,000 ounces of silver in a total of 245 million tonnes of material with an average grade of 0.95 gpt gold and an average grade 6.09 gpt silver, plus an additional inferred resource of approximately 2,232,000 ounces of gold and 13,432,000 ounces of silver in a total of 76 million tonnes of material with an average grade of 0.92 gpt gold and 5.51 gpt silver. The project is also adjacent to the Yarumalito Project, currently under evaluation by Colombia Mines Corporation (TSX-V: CMJ). The completion of the transaction is subject to several conditions being met.

During recent due diligence, the Company determined that a title issue existed between IML and a prior partner. IML has extended the previous Letter of Intent with the Company to allow time to clear the title on the project. Advice to the Company from Colombian counsel is that it will take 30 to 60 days to complete the title resolution. Upon completion of the title resolution, the Company has 30 days to complete regulatory approval of the transaction. Completion of the transaction will be subject to resolution of the current title issue, the completion of an NI 43-101 Technical Report, and all necessary regulatory approval.

The Company has commissioned Mr. Paul Pelke, a consulting geologist in Nevada, and a Qualified Person under National Instrument 43-101 to complete a Technical Report on the property. Mr. Pelke has completed a site visit, during which he conducted a sampling program. Mr. Pelke obtained chip samples from one accessible adit on the project as well as one sample from the existing, but non-operation mill. Sample analysis was performed by ACME Analytical Laboratories in Vancouver B.C. Canada, with preparation at ACME Laboratories, Medellin, Colombia. The assays were one fire assay tonne.

Sample 199031 returned 41.6 grams per tonne gold (gpt Au), 136 grams per tonne silver (gpt Ag), and 1.827% copper (% Cu) over one half meter. Sample 199032 returned 14.4 gpt Au, 47.7 gpt Ag and 0.36% Cu. Sample 199032 was a one meter chip sample taken adjacent to 199031. Sample 199033 returned 11 gpt Au, 91.8 gpt Ag, and more than 1% lead. This sample was taken from material left at the mill. This material was said to have had the coarse gold removed by gravity separation and then these "tailings" were to report to the cyanide circuit.

The results indicate the presence of high grade mineralization in sulphide veins. Twelve adits have been located on the property. The one adit sampled by Mr. Pelke was the only one accessible. The eleven other adits have since been opened and sampled by the Company. Results are pending. Zones of stockwork mineralization have been located and sampled. The target for the property is high grade veins with potential dissemination. The known strike of the veins identified exceeds 1,400 meters.

Caerus Resource Corporation is currently completing the acquisition of the El Pino Gold Mine, located in Antioquia Colombia, and is evaluating the Antioquia Gold Project, located adjacent to the Buritica Gold Project currently under evaluation by Continental Gold Inc. (CNL: TSX).

Mr. Lawrence Talbot has resigned as Corporate Secretary of the Company. We thank Mr. Talbot for his contribution and wish him well in his future endeavors. Mr. Ken Sadowski, a director of the Company is appointed Corporate Secretary. Mr. Sadowski has worked with the Company since October 2005 and holds a B.A. in Economics from Simon Fraser University.

Mr. Paul A. Pelke, California Registered Geologist No. 4150, a Qualified Person as defined in National Policy Instrument 43-101 has reviewed the content of this press release.

On Behalf of the Board of Directors of Caerus Resource Corporation

Adrian F.C. Hobkirk / President and Chief Executive Officer

This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this News Release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this News Release. We seek safe harbour.

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.

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