Cerro Resources NL
ASX : CJO
TSX VENTURE : CJO

Cerro Resources NL

August 22, 2012 08:30 ET

Cerro Resources: Multiple High Grade Gold Samples Up to 27.8 g/t Au; From Surface Assays at Espiritu Santo, Mexico

LONGUEUIL, QUEBEC--(Marketwire - Aug. 22, 2012) - Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) is pleased to advise receipt of further highly encouraging surface sampling results, in preparation for a drill program at the Espiritu Santo Gold/Silver exploration project, in Jalisco State, Mexico.

Highlights

  • 23.3 g/t Au screen fire assay from 4m section of Patas vein;
  • 27.8 g/t Au rock chip sample from Patas/Pipi vein;
  • Multiple +1 g/t Au samples from multiple veins in results to date, and
  • 18 major quartz breccia veins now identified (strike lengths up to 1km+ and typical widths of 3 - 12 meters) within the 5,800 ha project area.

Tony McDonald, Managing Director: "We are particularly encouraged both by the high grade values in several of the samples and number of gold-bearing veins identified to date at Espiritu Santo."

"It is increasingly apparent that this is a priority gold/silver exploration project, with the Patas/Pipi vein area likely to lead the target list when the first drilling campaign commences later this year."

Espiritu Santo is located 130 km west of Guadalajara and 50 km east of Puerto Vallarta. Lying within a northwest corridor defined by numerous, predominantly gold/silver, low sulphidation mineralised occurrences, this prolific zone hosts several active exploration projects, including Endeavour Silver Corporation's San Sebastian development project to the northwest and Soltoro Ltd's El Rayo Project to the southeast (Figures 1 and 2).

Figure 1: Location of Espiritu Santo is available at the following address: http://media3.marketwire.com/docs/Figure1_Location_of_Espiritu_Santo.pdf.

Figure 2: Location of Espiritu Santo within Major NW Gold Trend is available at the following address: http://media3.marketwire.com/docs/120822-Figure2_Location_of_Espiritu_Santo_within_Major_NW_Gold_Trend.pdf.

Gold and silver with associated copper, as well as low levels of lead and zinc mineralisation at Espiritu Santo occurs as low sulphidation quartz-sulphide style Au + Cu epithermal mineralisation. These systems are typically formed within structures overlying a buried intrusion source.

Cerro's exploration team is currently working on several vein systems within the large concession block, utilising surface sampling and geological mapping for the purpose of defining drill targets to be tested post rain season.

Table 1 lists the significant surface samples (>0.5 g/t Au) not previously reported; 26 of the recent rock samples exceed 1g/t Au.

Table 2 for ease of reference to Figures 3 and 4, lists surface samples previously reported in July.

Table 1: Highlights of Recent Espiritu Santo Surface Sampling AND Table 2: Highlights of Espiritu Santo Surface Sampling Previously Reported are available at the following address: http://media3.marketwire.com/docs/120822-Table_1-2_CJO_Highlights.pdf.

Figure 3: Location of Espiritu Santo Surface Sampling is available at the following address: http://media3.marketwire.com/docs/120822-Figure3_Location_of_Espiritu_Santo_Surface_Sampling.pdf.

Figure 4: Location of Espiritu Santo Surface Sampling in Patas/Pipi Vein Area is available at the following address: http://media3.marketwire.com/docs/120822-Figure4_Location_of_Espiritu_Santo_Surface_Sampling_in_Patas-Pipi_Vein_Area.pdf.

Figure 5: Patas/Pipi Vein Sampling is available at the following address: http://media3.marketwire.com/docs/120822-Figure5_Patas-Pipi_Vein_Sampling.pdf.

Patas/Pipi Vein System- The Patas/Pipi Vein system is developing into a major exploration target as highlighted by the gold assays reported in Table 1 and in Figures 3 and 4. Currently the area is defined by at least two major vein systems that trend NE and are located within a possible dilation zone extending from the gold bearing N-S Arrizon system. The additional discovery of a third vein in the area, the Jenny Vein, is contributing to the Patas/Pipi area being a robust target area.

Twenty (20) of the recent samples collected in the Patas/Pipi area exceed 1g/t Au. Gold values range from less than detection to a high of 27.8 g/t Au (Sample ES-1314).

Field work is continuing in the Patas/Pipi area as well as returning to the Carmela Vein (4 samples exceeded 1 g/t Au, Table 2) and also to El Tigre (high sample 4.06 g/t Au, Table 2) areas where vein widths are observed to be up to 8 - 12 meters. Additional sampling and mapping is needed to finalise drill targets in these areas.

Competent Person/Qualified Person

The technical information in this news release is based on information compiled by 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 mineralisation 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 focus on the Mt Isa, Queensland, region where it holds 100% of the Mt Philp haematite project as well as a continued 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 mineralisation of the project, the results of the exploration program, the interpretation of such results, and the potential of the Espiritu Santo 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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