Cerro Resources NL
ASX : CJO
TSX VENTURE : CJO

Cerro Resources NL

June 20, 2012 08:30 ET

Cerro Resources-7 holes @ 200g/t+ Silver from Namiquipa, Mexico, Initial Resource Evaluation Work to Commence

LONGUEUIL, QUEBEC--(Marketwire - June 20, 2012) - Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) is pleased to advise it has received excellent final drill results from the Stage 1 diamond core drill campaign at the Namiquipa Silver Project (CJO - 100%), in Chihuahua, Mexico.

HIGHLIGHTS

  • Drilling has identified a broad zone of confluence between the principal Princesa and America vein systems;

  • 11 out of the 16 holes yielded silver intercepts greater than 100 g/t Ag;

  • 7 holes yielded silver intercepts greater than 200 g/t Ag, including:

    • 3.66m@ 738g/t AgEq (NAM-085) from 122.34m (654g/t Ag, 0.62% Pb and 2.43% Zn),

    • 8.8m@ 268g/t AgEq (NAM-084) from 145.12m (255g/t Ag, 0.19% Pb and 0.32% Zn), including 0.25m@ 2,397 g/t AgEq from 145.12m (2,340g/t Ag, 1%Pb and 1% Zn), and

    • 4m@ 383g/t AgEq (NAM-078) from 148m (363g/t Ag, 0.6%Pb and 0.2% Zn).

Stage 1 drilling, comprising 86 holes, has delineated a major silver-driven system of largely contiguous mineralized veins (Ag-Pb-Zn) encompassing 1km lateral strike, and extending from 150m below surface to 500 meters down-dip.

The drill results from this extensive system will now be incorporated into a detailed geological-geophysical-geochemical model for purposes of completing an initial resource estimation during the second half 2012.

Surface exploration, consisting of soil geochemistry and a planned Induced Polarization geophysics, is also underway to better define the northern extension of the Namiquipa mineralization. This will be subject of drill testing at a later stage - post the initial resource assessment.

To view Figure 1: Drillhole Location Plan, please visit the following link: http://media3.marketwire.com/docs/cerroFig1.pdf

Table 1 Assay Summary
HOLE ID FROM TO LENGTH Ag Pb Zn AgEq
(m) (m) (m) g/t % % g/t
NAM-071 No Significant Mineralization
NAM-072 140 153 13 28 0.05 0.20 35
NAM-072 174 181 7 14 0.40 0.82 48
NAM-072 195 209.04 14.04 38 1.11 0.83 91
NAM-072 including 196.74 199 2.26 131 5.54 0.47 296
NAM-072 including 200.9 201.45 0.55 48 1.81 7.16 294
NAM-072 213.5 214 0.5 56 2.58 2.07 183
NAM-072 218.31 232 13.69 29 0.51 1.29 78
NAM-073 63 68 5 34 0.03 0.00 35
NAM-073 91 93 2 51 0.03 0.02 53
NAM-073 103 118 15 65 0.58 0.27 89
NAM-073 123 124 1 45 0.09 0.24 54
NAM-073 128 141 13 26 0.14 0.28 38
NAM-073 160 164.07 4.07 19 0.07 0.26 29
NAM-073 170.8 175 4.2 27 0.31 2.03 91
NAM-074 279 280 1 227 0.01 0.03 228
NAM-074 336.5 338.91 2.41 15 0.97 1.81 91
NAM-074 including 336.5 337 0.5 63 4.25 0.85 203
NAM-074 and 338.6 338.91 0.31 4 0.13 11.25 315
NAM-074 363 365.3 2.3 36 2.68 1.79 158
NAM-074 409.07 409.37 0.3 350 4.45 13.15 832
NAM-074 513.3 514.34 1.04 16 1.43 0.52 69
NAM-074 528.18 542 13.82 7 1.26 0.94 67
NAM-074 including 528.18 528.48 0.3 36 17.60 2.31 580
NAM-074 and 536.64 538.43 1.79 19 4.60 1.99 200
NAM-075 74 84 10 39 0.18 0.08 46
NAM-075 including 78.8 79.25 0.45 221 0.48 0.08 236
NAM-075 96 98.12 2.12 36 0.07 0.03 39
NAM-075 137.24 141 3.76 81 0.86 0.06 106
NAM-075 including 137.24 137.75 0.51 424 6.05 0.27 597
NAM-076 67 71 4 190 0.11 0.10 196
NAM-076 84 105 21 91 0.23 0.13 101
NAM-076 89 94 5 131 0.28 0.09 141
NAM-076 including 89 91 2 91 0.25 0.09 101
NAM-076 and 101 104 3 179 0.94 0.26 212
NAM-076 278 279 1 25 0.72 1.21 77
NAM-076 414 433.2 19.2 26 1.23 1.58 103
NAM-076 including 420 427.5 7.5 50 2.32 3.04 196
NAM-076 436.4 437.5 1.1 22 2.88 5.63 255
NAM-077 28 31 3 50 0.06 0.01 83
NAM-078 90 107 17 56 0.11 0.33 68
NAM-078 131 133 2 12 0.50 0.48 38
NAM-078 135 135.5 0.5 66 1.62 6.67 293
NAM-078 138 140.6 2.6 20 0.32 1.83 79
NAM-078 including 140 140.6 0.6 79 1.26 4.28 231
NAM-078 147 154 7 218 0.49 0.38 242
NAM-078 including 148 152 4 363 0.57 0.16 383
NAM-078 159 160 1 19 0.67 1.19 70
NAM-078 162 162.5 0.5 82 0.44 1.09 123
NAM-078 165 165.5 0.5 26 2.73 1.10 131
NAM-079 42 42.67 0.67 86 0.08 0.01 88
NAM-079 109 110 1 64 0.12 0.05 68
NAM-079 131 134.4 3.4 347 1.02 0.21 381
NAM-080 50.25 50.75 0.5 47 0.02 0.01 48
NAM-080 60.96 71.4 10.44 41 0.06 0.08 45
NAM-080 73 74.44 1.44 39 0.02 0.05 41
NAM-080 80 83 3 33 0.02 0.16 37
NAM-081 64 75 11 103 0.12 0.09 109
NAM-081 including 64 67 3 128 0.28 0.18 141
NAM-081 73 75 2 239 0.03 0.04 241
NAM-081 130 135 5 41 0.39 0.11 54
NAM-082 60 68 8 34 0.05 0.04 37
NAM-083 100 131 31 62 0.12 0.17 70
NAM-083 including 110 117 7 136 0.36 0.17 151
NAM-083 195.8 196.4 0.6 9 0.65 1.59 70
NAM-083 248 252 4 7 0.84 0.87 53
NAM-083 263.85 264.7 0.85 32 0.74 4.97 188
NAM-084 65 66 1 53 0.08 0.04 57
NAM-084 119 120.11 1.11 199 0.03 0.09 202
NAM-084 134 136 2 121 0.26 1.41 166
NAM-084 145.12 154 8.88 255 0.19 0.32 268
NAM-084 including 145.12 145.37 0.25 2340 1.01 1.06 2397
NAM-084 and 148 153 5 311 0.25 0.38 329
NAM-084 157 158 1 99 0.40 1.16 142
NAM-084 162 163 1 46 0.05 0.12 51
NAM-084 168 172 4 38 0.02 0.04 39
NAM-084 186 198 12 41 0.68 0.60 76
NAM-084 including 190 192 2 121 3.30 1.90 263
NAM-084 318 319 1 12 0.82 0.20 40
NAM-084 332 333 1 5 0.66 1.03 51
NAM-084 336 336.4 0.4 9 0.65 1.92 79
NAM-084 349.15 349.54 0.39 19 1.53 5.61 214
NAM-084 352 354.05 2.05 5 0.46 0.80 39
NAM-084 356 357 1 4 0.43 1.42 55
NAM-084 361.55 365.65 4.1 18 1.42 3.97 165
NAM-084 including 361.55 362 0.45 81 8.43 13.80 689
NAM-085 6 7 1 40 0.03 0.01 41
NAM-085 18 23 5 121 0.07 0.02 123
NAM-085 including 19 20 1 390 0.16 0.03 395
NAM-085 48 52 4 285 0.19 0.04 292
NAM-085 62 66 4 30 0.01 0.05 31
NAM-085 93 98 5 77 0.35 0.17 91
NAM-085 102 104 2 84 1.73 3.75 234
NAM-085 including 103.23 103.57 0.34 253 9.18 15.75 935
NAM-085 110.6 112.78 2.18 Open stope
NAM-085 112.78 128.23 15.45 189 0.84 2.32 275
NAM-085 including 120.65 121.03 0.38 354 9.67 14.05 1003
NAM-085 and 122.34 126 3.66 654 0.62 2.43 738
NAM-086 16 18 2 42 0.01 0.07 45
NAM-086 60 67 7 172 0.19 0.10 180
NAM-086 71 78 7 102 0.21 0.07 110
NAM-086 including 73 76 3 188 0.37 0.06 200
NAM-086 149 150 1 33 0.01 0.00 33
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 and its projects 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.

ABN: 72 006 381 684

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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