CuOro Resources Corp.

CuOro Resources Corp.

September 08, 2011 09:00 ET

CuOro Provides Santa Elena Exploration Update

MEDELLIN, COLOMBIA--(Marketwire - Sept. 8, 2011) - CuOro Resources Corp. (TSX VENTURE:CUA)(FRANKFURT:6BC) ("CuOro" or the "Company") is pleased to provide an update on the Company's exploration efforts to date, the progress it has made, and its plans on a move forward basis at its Santa Elena Copper-Gold project (Santa Elena). Over the last five months, the Company has established its base of operations and office in Medellin and has assembled a very talented management and technical team with over 60 employees working on Santa Elena.

Drilling Update

In mid-July the Company received final environmental approvals and mobilized the first drill rig to site to start its Phase 1 25,000-meter drill program at Santa Elena. To date six HQ diamond drill holes at depths ranging from 54 meters to 248 meters for a total of 692 meters have been completed. All six of the drill holes have been drilled from the same drill pad location at different angles and directions. Core has been logged, split at 1m half samples and sent to the SGS laboratory in Medellin for sample preparation and SGS laboratory in Lima for assay. Results from these first holes are expected to be ready for release shortly.

The initial drill program will continue with 68 holes planned at varying depths from 70 meters to 600 meters and spaced at 100 meters to 150 meters along the northerly axis of the TEM anomaly, which extends approximately 900m (north-south) by 500m (east-west) and remains open to the north. A second drill rig is scheduled to arrive in the coming days.

A channel sampling program of the Knapp exploration tunnel that is located along strike of TEM-1 on the edge of the halo of the TEM survey and extends underground for over 120 meters has also been initiated. The tunnel contains extensive visible mineralized sulphides. Historical rock chip samples from the tunnel returned up to 3.3% Cu and 4.4 g/t gold. The tunnel has been mapped and channel sample locations selected and marked over the full length of the tunnel.

Geophysics Update

Airborne Mag/Radiometrics

The airborne magnetic and radiometric survey has been completed and was flown over the entire property comprising of 1,287 hectares and will total of 317 line-km with east-west flight lines at 50m spacing and north-south tie lines at 500m spacing. Preliminary raw, un-filtered data has been received and has revealed several areas of interest. The final filtered and leveled data is expected within a few weeks. A preliminary surface investigation of select areas of interest and other targets will be carried out. Once received, the final data from the completed survey will be further processed in an effort to identify structural trends, contacts, regional lithologies, and anomalies that may be associated with sulphide mineralization. Upon the completion of a detailed interpretation and a surface exploration program, a drill rig will be mobilized to test the most prospective targets.

Ground IP

The Company recently completed its Phase I induced polarization and resistivity (IP) ground surveys. The survey grid was centered over the visible massive sulphide outcrops and the previously defined TEM anomalies, and extended north and south of this zone. An area 1800m in length - from north to south - was surveyed. Results have significantly increased the Company's understanding of the geology and structural controls within the project area. The IP lines were oriented EW to cross the N-NE structural trend on the property that is interpreted from surface mapping, outcrop locations, and the previous TEM surveys. A total of 12 lines were surveyed amounting to 12.5 km of data being collected. Lines varied from 600m to 3400m in length, and were separated by distances of 100m and 200m. The pole-dipole survey used 50 meter dipoles with separations up to 500 m (n = 10), achieving an average depth of penetration of approximately 200 m.

Based on the results of this initial geophysical work and on preliminary reconnaissance style field work, a number of favourable targets have been delineated. Results show that various strong chargeability anomalies exist at moderate depths below surface - starting at 10 meters - and extend to depths of over 200 meters. Many of these chargeability anomalies are coincident with the historical TEM survey, recent drilling results, and visible massive sulphide outcrops mapped over the property. Chargeability anomalies are interpreted to be associated with sulphide mineralization.

In addition, 4 new chargeability anomalies have been delineated north of the core area (historical TEM survey) where previous exploration has not been done. Many of these anomalies are coincident with the interpreted N-NE structural trend across the area. These IP anomalies are considered high priority targets, and drill platforms are currently being built and each target will be drill tested.

Lines south of the core area are currently being evaluated and interpertated. When the final airborne magnetic and radiometrics data are received it will be used in conjunction with the IP data to define and locate additional drill targets.

The Santa Elena deposit has been classified as a Besshi-type VMS deposit, based on the geological and geochemical characteristics. The full geological understanding of the deposit will continue to evolve as further drilling is completed. Samples of the core have been carefully selected and are in transit at this time to a laboratory in Bogota for thin section analysis, which will also aid in further explaining the nature of the deposit.

Social/Community Update

The Company's social, community, and environmental programs are also well underway. Social and environmental base line studies are currently being conducted to determine what programs would be best suited for the surrounding area and communities. Efforts to date have gained the support of the local community and the Company has created over 40 jobs for local residents. The mayor and priest from Guadalupe recently sent out a community letter giving their support for the Santa Elena project and Father Lorenzo - the local priest - will be on site during the last week of September to bless the Santa Elena project and people working on the project.

Robert Sedgemore, President & CEO, stated: "We are very pleased with our progress to date. I would like to thank our team for their hard work and our investors for their continued support during our development stage as we continue to build and deliver results."

Santa Elena Property

The Company's current exploration activities are focused on the Santa Elena Copper-Gold project, where the Company holds an option to acquire a 100 % interest by making staged cash payments and funding work program costs. The project comprises 1,287 hectares in the prolific Antioquia Batholith district located 140 km northeast of Medellin in a socially stable and mining-friendly district. Infrastructure is excellent from a development perspective, including paved road access to the property gate, three hydroelectric plants within a 5km radius and abundant water supply.

About CuOro

CuOro's growth strategy has been to identify mineral properties that have significant potential to develop large scale resources in well-established and mining friendly districts such as Colombia. Management looks to leverage its exploration and development expertise to bring additional resources and value to shareholders and to reduce development risk and expense through its focus on community relations, and corporate and social responsibility. With approximately $20 million in its treasury, the Company will continue to look for additional opportunities that can bring value to the Company and its shareholders' through its approach to business. The company is committed to upholding the highest environmental and social standards while focusing on delivering financial growth to shareholders.

The above information has been prepared under the supervision of Micheal Rowland, P.Geo., who is designated as a "Qualified Person", and who has reviewed the information and has verified the authenticity and validity of the data.

For further information regarding CuOro, see CuOro's disclosure documents on SEDAR at

On Behalf of the Board of Directors of CuOro,

Robert Sedgemore, President & CEO

Forward Looking Statement

Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. Forward-looking statements include, without limitation, possible events, statements with respect to possible events, the future price of gold and silver, the realization of mineral resource estimates and success of exploration activities. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of the Company contained in this release which may prove to be incorrect, include, but are not limited to, (1) the discovery and expansion of mineral resources on the Company's Property being consistent with the Company's current expectations; (2) the implementation of Colombia's mining law and related regulations and policies being consistent with the Company's current expectations; (3) certain price assumptions for gold and silver. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold or certain other commodities; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Colombia or other countries in which the Company does business or may carry on business in the future; business opportunities that may be presented to, or pursued by, the Company; operating or technical difficulties in connection with mining activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this release are qualified by these cautionary statements and those made in our other filings with the securities regulators in Canada. These factors are not intended to represent a complete list of the factors that could affect the Company. Although the Company believes that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

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