Cerro Resources: Significant Drill Results from Namiquipa Silver Project Demonstrates System Potential
LONGUEUIL, QUEBEC -- (Marketwire) -- 10/25/11 -- Cerro Resources NL (ASX: CJO)(TSX VENTURE: CJO) has received drill results with significant high-grade silver, lead and zinc mineralization intercepted at the Namiquipa Silver Project, in Chihuahua, Mexico.
Highlights
-- 14 hole-assays from current 2-drill program targeting extension of
historic Princesa and America vein systems and newly identified veins;
-- Zones of good grade mineralization with short intervals of noteworthy
grade encountered, including:
-- NAM-009: 16m @ 921g/t AgEq from 202m, including 1m @ 14,741g/t AgEq
(12,136g/t Ag, 26.97% Pb and 6.06% Zn) (i) ;
-- NAM-014: 7.5m @ 601g/t AgEq from 354.4m, including 1m @ 1,606g/t
AgEq;
-- NAM-016: 13m @ 272g/t AgEq from 301m;
-- Potential extension to Princesa Vein identified - NAM-018: 15m @ 184g/t
AgEq from 102m, including 3.6m @ 535g/t AgEq and 10m @ 272g/t AgEq from
156.6m, including 1.2m @ 1,583g/t AgEq;
-- Drill program extended to minimum of 20,000m of core drilling;
-- Vein extension drilling also identifying further potential.
(i) Sample was re-assayed using four methods, including as a concentrate,
at ALS in Vancouver and it should be noted that core recovery was
within fault zone with 50 to 70% core recovery.
Two drill rigs operating at the Namiquipa Silver Project have completed 39 drill holes for a total of 14,000 meters of core (Figure 2). Assay results have been received for 14 drill holes, including NAM-001; NAM-002; and NAM-003 previously announced, with others pending.
Princesa Vein
Eight core holes (NAM-001, NAM-002, NAM-003, NAM-004, NAM-008, NAM-009, NAM-014 and NAM-016) targeted the down dip extension of the Princesa Vein system (Figure 1).
Figure 1: Long Section of Princesa Vein with geology interpretation from current core program (http://media3.marketwire.com/docs/111025_CJO_Figure1.jpg)
Figure 2: Drill hole location map and cross section locations at Namiquipa Silver Project (http://media3.marketwire.com/docs/111025_CJO_Figure2.jpg)
Of those, results for NAM-001, NAM-002 and NAM-003 were previously reported in the Press Release of August 11, 2011 (See Table 2). Assay results for subsequent assayed holes are summarized in Table 1 linked at the end of this press release. Mineralization along the Princesa Vein system remains open at depth and along strike to the north. To the south drilling is intersecting extensions or splays of mineralization which are currently being tested with two core drill rigs.
Initial drill holes have been designed to test potential extensions of the vein mineralization from the historic La Venturosa Mine which 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.
The drill results to date indicate the mineralized system continues at depth along the Princesa vein system with the geological setting suggesting significant potential for high grade material to be hosted in additional vein spurs/shoots.
Based on the results from the first core drilling assays, previously reported in August 2011, the drill program was expanded from 10,000m to 20,000m. The core program which has targeted the main vein systems at the historic La Venturosa Mine has successfully continued to intersect broad zones of both silver as well as lead and zinc mineralization, highlighted by 16m of 921g/t AgEq including 1m containing 12,261g/t Ag, along with 26.97% Pb and 6.06% Zn.
One drill rig has been devoted to the prime target and potential resource definition along the Princesa vein system. Mineralization continues to contain high levels of both lead and zinc with values in both elements ranging to highs of 20%.
The second core rig brought to the project has focused on exploration of possible extensions of the known systems as well as testing for new systems. In addition, ground magnetic anomalies are also being tested along the known and projected strike length of the main vein systems.
Princesa Vein Extensions
The first main step out drill hole to test the 'northern' extension has returned encouraging results warranting further evaluation. NAM-018, drilled approximately 750m north of NAM-001, has intersected silver, lead and zinc mineralization at shallow depths from 102 to 117m averaging 184g/t AgEq including 3.6m averaging 535g/t AgEq. In addition, NAM0-018 intersected mineralization from 156.6 to 166.7m averaging 272g/t AgEq, which included 1.2m averaging 1,583g/t AgEq with silver values of 645g/t, lead values of 10.69% and zinc values to 23.55% (See Table 3).
This step out drill hole at the north area has delineated a major target that also coincides with a ground magnetic anomaly detected during the geophysical program conducted by Zonge Engineering. These exciting intercepts are being evaluated and a drill program is being laid out to delineate mineralization in the area.
Figure 3: Long Section of Princesa Vein system and historic workings, view to the west (http://media3.marketwire.com/docs/111025_CJO_Figure3.jpg)
Figure 4: Cross Section B - B', by reference to Figure 2 (http://media3.marketwire.com/docs/111025_CJO_Figure4.JPG)
Megan Vein
An additional vein was intersected while drilling the eight drill holes designed to test the Princesa Vein. The Megan zone is a vein system semi parallel to the Princesa and consists of broad zones of higher grades of silver and zinc mineralization near the intersection of the projection of the Mexico Vein with the Princesa (Figures 3 and 5).
Drill holes NAM-009, NAM-014, and NAM-016 were designed to follow up on high values intersected in NAM-003 (Figure 3 and Figure 5). This recent drilling has intersected mineralized zones that include 16.0m averaging 921g/t AgEq (NAM-009) and includes a 1m interval that contains 12,136g/t Ag, 26.97% Pb and also contains 6.06% Zn. Drill holes NAM-014 and NAM-016 were also designed to follow the observed mineralization in NAM-009 and NAM-003 down dip and extend the mineral zone. Both holes succeeded in hitting the target in terms of grade and widths of mineralization.
Figure 5: Long Section of Princesa Vein historic workings and new Megan Vein drill intersections, view to the west (http://media3.marketwire.com/docs/111025_CJO_Figure5.JPG)
Figure 6: 3D Projection of the Namiquipa Silver Project 'main' veins. Mexico and Esmeralda Vein systems (http://media3.marketwire.com/docs/111025_CJO_Figure6.JPG)
Mexico and Esmeralda Veins
The semi parallel Mexico and Esmeralda Veins were not exploited to the same extent as the America and Princesa system during the early mining at the Venturosa Mine therefore Cerro Resources core drilling program has also targeted these systems (Figures 2). Assays have been returned for two of these holes (NAM-007 and NAM-013, Table 4). NAM-007 intersected fairly broad zones of mineralization along the target zone of the Mexico Vein system with high values to 3.82m of 128g/t AgEq and values to 613g/t Ag Eq where the core hole intersected the projection of the Esmeralda Vein with a 6.8m zone averaging 207/t AgEq.
NAM-013 was drilled south of where mining stopped along the Mexico Vein. NAM-013 was successful in intersecting multiple intercepts believed to be related to the Mexico, Esmeralda as well as new veins (Figure 7).
Figure 7: Cross Section C - C', by reference to Figure 2 (http://media3.marketwire.com/docs/111025_CJO_Figure7.JPG)
America Vein System
NAM-012 was drilled to test potential mineralization associated with the America Vein system. NAM-012 intersected zinc and lead mineralization with anomalous silver values including 3m averaging 141g/t AgEq below a 9m open stope (Table 5). Additional drilling will test below the down dip projection of the America Vein system, which was one of the most prolific silver producers during the operation of the Venturosa Mine.
Additional Exploration
Exploration outside of the main veins and the northern extension area has included drill testing the NW Antenna system (Figure 2 and 8). NAM-005 and NAM-006 intersected silver mineralization at relatively shallow depths and included 8.0m averaging 114g/t AgEq and included 3m averaging 219g/t AgEq (Table 6). NAM-006 drilled from the same pad but oriented more to the north (Figure 2) also intersected silver to 310g/t (AgEq) over 0.6m. Further drilling is planned to test the mineralization intersected in these drill holes at depth.
Figure 8: Namiquipa Silver Project Vein System (http://media3.marketwire.com/docs/111025_CJO_Figure8.pdf)
LINKS BELOW TO ALL DRILL RESULT TABLES MENTIONED IN THIS RELEASE
Table 1: Princesa and Megan Vein Drill Results (http://media3.marketwire.com/docs/Oct24-2011-Table_1_PrincessMeganResults.pdf)
Table 2: Drill Results for NAM-001 to NAM-003 (http://media3.marketwire.com/docs/Oct24-2011-Table_2_ResultsNami1-3.pdf)
Table 3: North Zone Drill Results (http://media3.marketwire.com/docs/Oct24-2011-Table_3_NorthZonePrincessaResults.pdf)
Table 4: Mexico and Esmeralda Vein Drill Results (http://media3.marketwire.com/docs/Oct24-2011-Table_4_MexicoEsmeraldaResults.pdf)
Table 5: America Vein Drill Results (http://media3.marketwire.com/docs/Oct24-2011-Table_5_AmericaVeinResults.pdf)
Table 6: NW Antenna Vein Drill Results (http://media3.marketwire.com/docs/Oct24-2011-Table_6_NW%20Antenna%20Results.pdf)
1 The Silver equivalent grades ('AgEq') in all tables within this
release, have been calculated using metal prices of US$25oz Silver;
US$1.00/lb Zinc; and US$1.00/lb Lead. Metal recoveries are not
considered in this calculation. Further drilling is required to provide
a more accurate assessment of vein thickness and true width may vary.
AgEq amounts, from previously reported holes 1-3, have been
recalculated using Silver, Zinc, and Lead prices consistent with other
disclosures in this press release. As a result, AgEq amounts shown in
this press release vary from the press release of August 11, 2011.
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 mineralization 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.
Contacts:
Cerro Resources NL
Tony McDonald
Managing Director & CEO
+61 7 3252 0122
admin@cerroresources.com
Cerro Resources NL
Greg Germon
General Manager Investor Relations - Australia
+61 2 9300 3341
greg@cerroresources.com
Cerro Resources NL
Ms. Gerri Paxton
Manager Investor Relations - North America
+1-514-544-2696
gpaxton@cerroresources.com
www.cerroresources.com
