Cerro Resources NL

Cerro Resources NL

April 27, 2012 10:34 ET

Cerro Resources NL Reports Quarterly Activities and Files Financial Statements for the Period Ending March 31, 2012

LONGUEUIL, QUÉBEC--(Marketwire - April 27, 2012) - Cerro Resources NL (TSX VENTURE:CJO)(ASX:CJO) ("Cerro" or "the Company") is pleased to release a summary of the Company's quarterly activities. The detailed Quarterly Report which includes the financial statements for the period ending March 31, 2012, has been filed on www.sedar.com and posted on the Company's website www.cerroresources.com. The Company had $7.5M cash as of March 31, 2012.

To view complete quarterly report: Quarterly March 31, 2012. (http://media3.marketwire.com/docs/CJO_Quarterly_Report_2012_Q3.pdf)


Cerro del Gallo ~100,000oz pa AuEq gold/silver advanced development project

  • Release of DFS imminent
  • DFS works substantially completed and report finalization progressing

Namiquipa silver/lead/zinc exploration project

  • Princesa Vein and Northern extensions the primary focus
  • High grade mineralization in northern extension

Espiritu Santo Jalisco gold/silver exploration project

  • Rock chip sampling program continues
  • Mapping and vein identification program underway


  • Mt Philp Ironstone exploration project
  • Updated resource estimate announced and NI 43-101 report filed

Management focused during the quarter on advancement of the definitive feasibility study at Cerro del Gallo and advancement of exploration projects: Namiquipa and Espiritu Santo Jalisco.

Work on the Cerro del Gallo stage 1 Definitive Feasibility Study (DFS) by Sedgman Metals has advanced significantly. The Company anticipates it will be in a position to release results relatively soon and whilst cautious of specifying a timeline given recent experiences, it is considered safe to say the report will be released within the 2nd quarter 2012.

Disappointment with the delay in delivering this key study is acknowledged however, incorporation of a High Pressure Grinding Roll (HPGR) crushing circuit and SART process, together with delays in receipt of additional laboratory test work, costings and inputs from 3rd party consultants and contractors have necessitated additional time to be taken to produce a definitive project evaluation. The Company has taken time, and continues to do so, to evaluate all test work and costs where there has been an escalation.

These delays unfortunately reflect, in part, the peak demands on the time and availability of requisite external technical specialists during the current global mining boom. Likewise, cost increases highlight the industry demands. The Company is confident, however, that these additional efforts and processes will enable a more robust project to be presented for the Cerro del Gallo 1st stage heap leach.

The Namiquipa Project in Chihuahua, Mexico continues to advance. To the end of March 2012, 76 core holes had been completed for a total of 29,350m.

At Espiritu Santo, Jalisco; logistics, drill and exploration permitting, soil sampling and mapping work has advanced in preparation for drilling which is likely to occur after drill permits are issued by the Government, post the wet season (May - August).


The Company also wishes to advise of a change to its head office address and contact details, as follows:

Address: Level 1 Telephone: 07 3221 7501
143 Coronation Drive Facsimile: 07 3221 0698

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.

Competent Person/Qualified Person

The information in this report 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; Mr Bill Fleshman (as it relates to the San Anton, Namiquipa, and Espiritu Santo Projects), who is a Fellow of the Australasian Institute of Mining and Metallurgy; and Mr Trevor Leahey (as it relates to the Mt Philp Project), who is a Chartered Professional and Member of the Australasian Institute of Mining and Metallurgy. Mr Skeet is the Chief Operating Officer of Cerro Resources NL. Mr Fleshman and Mr Leahey are 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, Mr Fleshman 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.

Forward-Looking Information

This quarterly report contains "forward-looking information" under Canadian securities law. Any statement that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words such as "expect", "anticipate", "believe", "plans", "estimate", "scheduling", "projected" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information relates to, among other things: the results of exploration programs, the interpretation of such results, the potential of the projects, the planned continuation of a drilling program, the accuracy of mineral resource and mineral reserve estimates, the ability of the Company to finance its operations and capital expenditures, future financial and operating performance including estimates of the Company's revenues and capital expenditures and estimated production.

Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; operations and political conditions; environmental risks; and risks and hazards of mining operations. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company's forward-looking information is based on the assumptions, beliefs, expectations and opinions of management as of the date of this quarterly report, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes occur in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

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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