Cerro Resources NL

Cerro Resources NL

December 12, 2011 08:30 ET

Cerro Resources: Namiquipa Drilling Continues to Expand a Major Silver/Lead/Zinc Multiple Vein System

LONGUEUIL, QUEBEC--(Marketwire - Dec. 12, 2011) - Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) is pleased to announce nine additional core hole drill results from the Namiquipa Silver Project, in Chihuahua state, Mexico. Currently 57 holes have been completed for a total of 21,256m of core, with further assays pending.

Highlights include

  • 13.9m @ 121g/t AgEq (NAM-023 Princesa vein);
  • 7.7m @ 229g/t AgEq (NAM-023 Princesa vein);
  • 10m @ 120g/t AgEq (NAM-020 Northern extension area); and
  • 13m @ 101g/t AgEq (NAM-026 Mexico vein).

Continued good grade wide interval intercepts, combined with shorter intervals of high grade material, from this latest round of assays increasingly demonstrate the scale of silver/lead/zinc mineralization throughout the 1.5km (approx to date) strike length Namiquipa system.

Vein Systems

The two core rigs, currently operating, are testing the main vein systems at Namiquipa at depth and drilling along strike of the known systems. To date the drilling confirms the system consists of multiple veins and strongly anomalous assays across the six main veins identified to date: Princesa, America, Mexico, Megan, Esmeralda and Antenna. This news release relates to some of these veins with others to be reported on as further results come to hand.

Figure 1 shows the drill-hole locations, the veins referred to in this news release and the section locations. Figures 2 to 5 are sectional views and locations of a number of the drill hole intercepts as reported in the tables and as discussed in this news release.

The Princesa and Megan Veins

The historic La Venturosa Mine produced an estimated 14.4 million ounces of silver, 32,550 tonnes of lead and 43,530 tonnes of zinc from two prominent quartz/breccias vein systems; the America and Princesa, in a wider six-vein system.

The Princesa/Megan vein continues to be one of the principle targets of the current exploration program as the Princesa vein was only reported to have been mined to 100m below the surface and the down dip projection of the mineralization remains open at depth as well as along strike to the north and south (Figures 1 - 4). What is interpreted as the Megan Vein, and is likely a splay of the Princesa and Mexico Veins, continues to show potential with increasing silver and zinc grades.

Assay results have been received for three core holes (NAM-023, NAM-024 and NAM-029) which drilled into the Princesa/Megan System (Table 1).

NAM-023 (Figure 4), was drilled below the previously reported NAM-003 (Aug 2011), and was successful in intersecting the projection of mineralization discovered in NAM-003. In addition NAM-023 crossed multiple veins over a drilled interval of 366m to 393m. Highlights from NAM-023 include 373 to 374.5m containing 645g/t AgEq (117g/t Ag, 10% Pb and 9% Zn) and 382 to 382.5m of 906g/t AgEq (96g/t Ag, 5 % Pb and 24% Zn).

NAM-024 intersected relatively narrow veins at both the projected intersection of the Princesa and the Megan Veins respectively from 282 to 283m of 135g/t AgEq, and from 355.5 to 356.8m 477g/t AgEq (Figures 2 and 3).

NAM-029, drilled between NAM-002 and NAM-008, intersected the Princesa Vein at the interpreted location in a narrow 0.7m vein at 200m averaging 643g/t AgEq (196g/t Ag, 3.26%Pb 13% Zn). Additionally, the Megan Vein was intersected from 276.83 to 279.58m (2.75m drill thickness) containing 204g/t AgEq (19ppm Ag, 1.5% Pb and 5.2% Zn) (Figures 2 and 3).

Figure 1: Drill hole location map at Namiquipa Silver Project and ground Magnetics (http://media3.marketwire.com/docs/Namiquipa_figure1.pdf)

Figure 2: Long Section A-A' (refer Figure 1) with Princesa Vein Intercepts (http://media3.marketwire.com/docs/Princese_Vein_figure2.pdf)

Figure 3: Long Section A-A' (refer Figure 1) with Megan Vein Intercepts (http://media3.marketwire.com/docs/Megan_vein_figure3.pdf)

Figure 4: Cross Section B-B' (refer Figure 1) through Princesa/Megan System (http://media3.marketwire.com/docs/Princesamegansystem_figure4.pdf)

Table 1: Princesa and Megan Vein Drill Intercepts: http://media3.marketwire.com/docs/princesamegandrill_tab1.pdf

Mexico Vein

The Mexico Vein was not exploited to the same extent as the America and upper levels of the Princesa System during the La Venturosa mine life. Early drill results during Cerro's current drilling program have returned assay values that are high in silver, lead and zinc (Table 2).

NAM-019 was drilled 100m south of the extent of known mining activity along the Mexico Vein for the purpose of exploratory drilling and over a drilled interval of 0.84m from 238.2m intersected high levels of zinc (8.7%) and lead (3.31%) equating to 394g/t AgEq.

NAM-021 was drilled to test for extension of the Mexico system on the northern extension of the vein, where the vein was projected to intersect along strike with the Princesa Veins. NAM-021 intersected multiple narrow veins with silver grades up to 221g/t Ag.

Drill holes NAM-026 and NAM-030 were drilled as follow up to the mineralization intersected in NAM-013 previously reported in October. NAM-026 intersected multiple veins over a 13m drilled interval from 444m averaging 101g/t AgEq (Table 2 Figure 5). Likewise NAM-030, which, was drilled under NAM-026, intersected a broad zone of mineralization from 494m to 543m with grades extending to a high of 329g/t AgEq (542.54m to 543.1m).

Table 2: Mexico Vein Drill Intercepts: http://media3.marketwire.com/docs/mexicoveindrill_tab2.pdf

Figure 5: Cross Section C-C' (refer Figure 1) showing drill holes NAM-013, NAM-026 and NAM-030 southern extensions of the Mexico Veins: http://media3.marketwire.com/docs/mexicovein_figure5.pdf

Northern Extension Area

NAM-020 and NAM-027 were drilled to further test mineralization along the northern extension area.

NAM-020 was drilled below the previously reported NAM-018 at a steeper angle and successfully intersected multiple zones of both high silver and zinc values. Notable intervals were from 141.21 to 142.0 which intersected 588g/t Ag and 162 to 163m which intersected 408g/t Ag with 2.94% Zn or 513g/t AgEq. A lower zone at 195 to 196m intersected anomalous silver values and 3% Zn.

NAM-027 was drilled to test a magnetic anomaly and narrow veining in the north extension area. This hole failed to intersect significant silver or zinc mineralization.

Table 3: Northern Vein Area Drill Intercepts: http://media3.marketwire.com/docs/northernveindrill_tab3.pdf

With 1.5km approx of strike along 2 principal North-South vein systems there appears to be significant potential.

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 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 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 mineralisation 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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