Cerro Resources NL
ASX : CJO
TSX VENTURE : CJO

Cerro Resources NL

August 24, 2011 08:00 ET

Cerro Resources-Mt. Philp Haematite Iron Prospect: Further Diamond Drill Results

LONGUEUIL, QUEBEC--(Marketwire - Aug. 24, 2011) - Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) is pleased to announce further diamond drill results for its 100% owned Mt. Philp Haematite Iron Prospect located in Queensland, Australia.

Highlights

  • Further 10 drill holes intersect Fe grades up to 64%, with an average 23.75m @ 41.1% Fe, primarily drilled in the central and northern Zones 1 and 2 of the 3.7Km strike;
  • Findings in-line with indicative geological analysis of 15 November 2010;
  • Mineralisation consistent with test work material that produced a 68% Fe post-beneficiation product (22 December 2010);
  • Resource drilling continuing with two rigs;
  • Partial resource estimate targeted for September quarter 2011;

Continuing the Mt. Philp drilling program that commenced in March 2011, the Company has now completed the drilling of 29 holes for a total of 2310 metres, with 16 now assayed. Drilling and analysis is continuing.

Location data for the first 13 holes was released to the Market in June 2011 along with assay results for the first 6 holes. This news release provides location data for holes MP-014 to MP-029 and assay results for MP-008 though MP-017.

Drillholes MP-007 and MP-008 did not intersect the main ironstone body. Subsequent detailed mapping indicates that tight folding in the ironstone has locally flipped the dip of the ironstone to the east in this location and the holes drilled parallel to the body. A horizontal drillhole from the MP-007/008 pad will test this interpretation.

Drillholes MP-009 to MP-014 and MP-017 tested the central portion of the ironstone body where the ironstone was expected to be more siliceous. The average intersection width of these holes was 32 meters at average grades of 28% iron and 59% silica. These widths and grades are comparable with expectations based on the surface rock-chip sampling but they also included higher grade material (averaging 12 meters at 36% iron and 44% silica).

This material is expected to beneficiate similarly to the previous sample material using flotation to separate the silica from the haematite. The higher silica content material tends to show coarser grain size and is more friable. It may be possible to reject some of the silica using gravity separation methods. These will be investigated in the upcoming test work programme.

An RC rig was contracted and drilled RC drillholes MP-015 and MP-016 to test the northern extension of the ironstone away from the surface outcrop. Small widths of high grade massive haematite were intersected.

The RC rig was also used to infill the northern portion of the deposit. Significant widths of high grade massive haematite were intersected in holes MP-020, 021, 022 and 024; assays are awaited.

Infill drilling of Zone 1 is nearing completion.

Hole Drill Type Easting Northing RL Azimuth (GDA54)
Dip
Total Depth
MP-014 DDH 389472 7679015 486 110 30 92.6
MP-015 RC 390332 7681014 388 24 51 88.0
MP-016 RC 390469 7681205 406 117 60 49.0
MP-017 DDH 389472 7679015 486 112 60 162.0
MP-018 DDH 390027 7679992 472 86 30 78.5
MP-019 DDH 390027 7679992 472 86 60 96.8
MP-020 RC 390234 7680709 426 109 60 73.0
MP-021 RC 390188 7680631 419 111 60 116.0
MP-022 RC 390231 7680781 404 99 60 82.0
MP-023 DDH 390148 7680424 420 118 30 56.6
MP-024 RC 390212 7680720 405 109 30 86.0
MP-025 DDH 390148 7680424 420 118 60 52.1
MP-026 DDH 390050 7680268 450 106 30 40.8
MP-027 DDH 390050 7680268 450 106 60 51.7
MP-028 DDH 390003 7680070 462 072 30 56.4
MP-029 DDH 390003 7680070 462 072 60 82.0
MP-030 DDH 389380 7678254 490 085 30 In progress
DDH Diamond drillhole
RC Reverse Circulation drillhole
TOTAL
GRAND TOTAL
1,263.5
2310.0

Table 1 Drillhole Location Data

Hole From To Length (m) Fe% SiO2%
MP-008 8 10 2 64.03 6.92
and 26 28 2 56.75 17.58
MP-009 80 109 29 42.17 32.01
MP-010 27 65 38 27.36 56.92
including 37 50 13 38.66 39.50
MP-011 45 84 39 26.77 58.24
including 69 84 15 32.94 41.99
MP-012 41 61 20 42.64 36.57
including 46 55 9 53.89 22.49
MP-013 59 91 32 17.69 73.69
including 82 91 9 20.77 69.56
MP-014 51 91 40 24.4 59.5
including 67 81 14 34.8 49.6
MP-015 71 74 3 59.7 14.7
MP-016 33 35 2 45.1 30.9
MP-017 86 161 75 31.0 52.8
Including 127 140 13 53.3 23.0
and 150 153 3 55.5 19.2
MP-018 Submitted for assay
MP-019 Submitted for assay
MP-020 Submitted for assay
MP-021 Submitted for assay
MP-022 Submitted for assay
MP-023 Submitted for assay
MP-024 Submitted for assay
MP-025 Under Core Processing
MP-026 Under Core Processing
MP-027 Under Core Processing
MP-028 Under Core Processing
MP-029 Under Core Processing
MP-030 In Progress

Table 2 Summary Assay Data

A second core rig is now drilling which will accelerate the completion of drilling to allow a resource estimate. It will conduct the required horizontal drilling from pad MP-007 and MP-008.

Figure 1: Location Map (http://media3.marketwire.com/docs/cjo0823.pdf)

Figure 2: Stacked Long Section showing Drillhole Locations & Assay Results (http://media3.marketwire.com/docs/cjo0823.pdf)

Competent Person/Qualified Person

The information in this news release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Skeet (as it relates to process related material), who is a Member of the Australasian Institute of Mining and Metallurgy and Mr Trevor Leahey, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Skeet is the Chief Operations Officer of Cerro Resources NL and Mr Trevor Leahey is a consultant to Cerro Resources NL. They have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and "qualified persons" as this term is defined in Canadian National Instrument 43-101 ("NI 43-101"). Mr Skeet and Mr Leahey consent to the inclusion in the report of the matters based on their 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 and has commenced exploration on the Namiquipa silver project in northern Mexico. 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. Specifically, this news release contains forward looking information about the completion of the potential to produce a saleable iron ore product, the plans to increase the iron recovery and the planned drilling program and plans to complete a resource estimate. 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.

Contact Information

  • 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
    +1-514-544-2696
    +1-514-544-2696