Cerro Resources

Cerro Resources

Cerro Resources NL (“The Company”, “Cerro Resources”) is a dual listed global gold, silver and metals exploration and development company. Cerro Resources’ common shares trade under the symbol “CJO” on the ASX and TSX.V.

Cerro Resources has 4 distinct properties based in two geographical locations: Mexico and Australia. Each project is at different stages of advancement and pleasingly more than one shows significant promise.  The Company's portofolio remains concentrated on precious metals in Mexico.

In Mexico, Cerro Resources is currently focused on developing the Cerro del Gallo gold/silver project, part of the greater San Anton project in the central state of Guanajuato. The aim is to deliver attractive long term cash flows to the Company. A positive internal feasibility study has been completed on Stage 1 (heap leach) and a preliminary assessment completed on Stage 2 (carbon-in-leach) - April 2011. The studies have focused on the higher grade gold domain within the Cerro del Gallo resource. A 14.5 year mine life is anticipated, with 1.2M oz Au and 13.5M oz Ag recovery with a decision to mine to be undertaken Q2-2012. Mine construction could then potentially commence second half 2012, with production targeted for twelve months later.

At the highly prospective Namiquipa Silver Project, which includes the La Venturosa Silver Mine, an aggressive exploration program is well underway. Multiple mineralized systems/veins have been encountered with encouraging results received to date. From commencement in May 2011, to December 2011, 22,000 meters of drilling, in 60, holes has been completed.  Continued drilling and news flow expected throughout 2012, with the objective of defining a resource estimate towards the end of 2012.  The system remains open to the North and South, and at depth.

The Company has recently secured exploration rights and contracted an option to acquire 100% of the highly prospective Espiritu Santo Gold/Silver project in Mascota-Navidad Mining District in Jalisco, Mexico, further boosting its precious metals portfolio. A preliminary work program is being designed to identify drill targets with an initial exploration program to commence Q1 2012.
 

In Australia at Mt Isa, Queensland, Cerro Resources has announced excellent beneficiation results from its Mt Philp Iron Prospect, averaging 68% Fe from 3 zones. Following completion of 48 diamond and RC drill holes, an increased and upgraded 30Mt resource was announced February 1, 2012. Commercialisation studies underway with a 43-101 report expected within 45 days.

In May 2011, Cerro Resources announced the farm-out of its Mt Isa Kalman project and restructuring on the JV agreement with Syndicated Metals, in order to advance the project. The Kalman exploration project, has an initial 60Mt molybdenum/copper/gold/rhenium resource identified in a small area of this tenement package to date. The agreement with Syndicated Metals will allow Cerro Resources to redirect its focus towards Mexico and carry out exploration work at Mt Philp while maintaining shareholder exposure to the Kalman project's future potential.
 

Cerro Resources has an experienced team, with a wealth of industry experience and prior successes, who intend to aggressively advance its pipeline of quality exploration and development projects both on the ground and in the marketplace.

With circa $11.3 of cash available (December 31, 2011), the Company intends to significantly advance its current work programs and continue to review quality projects of merit to add to the Company’s existing strategic portfolio.