Cerro Resources NL
ASX : CJO
TSX VENTURE : CJO

Cerro Resources NL

March 05, 2012 07:41 ET

Cerro Resources: 9m @ 237g/t AgEq at Namiquipa, Mexico Significant Silver/Lead/Zinc Mineralization

LONGUEUIL, QUEBEC--(Marketwire - March 5, 2012) - 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 ~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

HOLE ID FROM
(m)
TO
(m)
LENGTH (m) Ag g/t Pb (%) Zn (%) AgEq
NAM-010 68.00 69.00 1.00 49.4 0.05 0.07 52
NAM-010 74.82 78.23 3.41 154 0.25 0.21 166
including 77.00 78.23 1.23 361 0.35 0.13 374
NAM-010 107.24 109.50 2.26 51 0.07 0.10 56
NAM-010 115.00 120.00 5.00 136 0.27 0.57 160
including 115.00 116.00 1.00 392 0.17 0.23 403

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

HOLE ID FROM
(m)
TO
(m)
LENGTH (m) Ag g/t Pb (%) Zn (%) AgEq
NAM-015 No Significant Mineralization
NAM-035 366.00 370.00 4.00 32 0.53 2.91 126
including 367.00 367.60 0.60 152 1.82 13.65 576
NAM-038 207.60 211.00 3.40 63 0.01 0.05 64
NAM-038 219.00 223.00 4.00 98 0.03 0.07 101
including 222.00 223.00 1.00 230 0.08 0.10 234
NAM-053 172.00 174.00 2.00 54 1.11 3.22 173
NAM-053 191.00 192.00 1.00 26 0.87 1.24 84
NAM-053 200.00 233.40 33.40 7 0.65 1.26 59
NAM-053 265.00 271.00 6.00 23 0.77 0.95 70
NAM-055 205.58 207.00 1.42 66 0.85 2.80 166
NAM-055 239.80 240.24 0.44 47 2.40 10.80 409
NAM-055 243.00 247.00 4.00 6 0.30 1.50 55
NAM-055 252.00 257.00 5.0 11 1.18 4.55 169
NAM-055 269.00 272.00 3.0 8 0.31 2.74 92
NAM-055 275.00 277.00 2.00 296 0.05 0.17 302
including 275.00 276.00 1.00 193 0.05 0.14 198
including 276.00 277.00 1.00 400 0.06 0.19 406
NAM-055 303.00 303.50 0.50 289 0.03 0.07 291
NAM-055 341.00 345.30 4.30 432 0.09 0.20 440
including 342.00 343.00 1.00 376 0.17 0.49 393
including 343.00 344.10 1.10 1190 0.08 0.19 1197
NAM-057 221.80 222.30 0.50 21 0.52 0.65 53
NAM-057 231.00 234.00 3.00 193 2.83 9.99 545
including 231.00 232.35 1.35 72 6.25 22.10 849
including 232.35 233.00 0.65 126 0.02 0.04 127
including 233.00 234.00 1.00 401 0.07 0.11 405
NAM-057 332.00 359.00 27.00 20 1.33 4.03 167
including 344.00 344.42 0.42 139 5.10 12.30 616
including 344.42 346.00 1.58 31 2.32 15.10 508
including 350.00 351.00 1.00 44 2.96 14.75 530
including 351.00 351.60 0.60 64 6.21 17.10 703
including 353.85 355.00 1.15 15 0.69 2.48 102
including 355.00 356.00 1.00 14 1.92 4.56 191
NAM-059 201.00 202.00 1.00 92 0.12 0.13 99
NAM-059 216.80 217.70 0.90 86 0.16 1.67 136
NAM-059 217.70 219.00 1.30 165 0.12 0.35 177
NAM-059 315.00 316.00 1.00 28 1.64 6.86 261
NAM-059 329.50 330.50 1.00 131 3.34 14.75 627
NAM-059 336.00 358.70 22.7 7 0.49 1.26 56
including 341.80 343.00 1.20 26 2.43 4.12 205
including 343.00 344.20 1.20 24 1.43 3.67 164
Including 347.00 348.00 1.00 8 0.16 1.72 60
including 348.00 349.00 1.00 13 0.67 1.25 65
including 357.50 358.70 1.20 6 0.60 2.98 104
NAM-060 195.00 204.00 9.00 39 0.64 6.58 237
including 196.00 197.00 1.00 32 0.39 6.89 231
including 197.00 198.00 1.00 50 0.11 12.95 409
including 198.00 199.00 1.00 74 0.98 22.00 704
including 199.00 200.00 1.00 15 0.12 3.27 108
including 200.00 201.00 1.00 8 0.09 2.12 68
including 201.00 202.00 1.00 13 0.30 1.06 50
including 202.00 203.00 1.00 48 1.27 4.84 216
including 203.00 204.00 1.00 38 2.40 5.69 260
NAM-060 253.00 262.00 9.00 12 0.90 2.19 97

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.

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