CERRO RESOURCES AND PRIMERO MINING C$119M MERGER PROGRESSING CERRO DEL GALLO AND FORMING NEW EXPLORER
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which was posted on March 25, 2013
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 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 annual production averaging 95,000 oz Au Eq. (1.2M oz Au and 13.5M oz Ag recoverable). A decision to mine is expected by Q4-2012. Mine construction could then potentially commence shortly thereafter with production targeted for 12-16 months later.
At the highly prospective Namiquipa Silver Project, which includes the La Venturosa Silver Mine, an aggressive exploration program has delineated a preliminary Inferred Resource of 4.6 million tonnes grading 154 g/t silver equivalent. The resource is calculated from over 30,000 meters of drilling in 86 drill holes, which have principally tested the Princesa Vein and partially tested the America Vein. The system remains open to the North and South, and at depth.
The Company has also secured exploration rights and contracted an option to acquire 100% of the highly prospective Espiritu Santo Gold/Silver project in the Mascota-Navidad Mining District in Jalisco, Mexico, further boosting its precious metals portfolio. Geologic mapping and rock chip sampling has identified numerous vein structures with gold and silver values up to 27.8 g/t Au and 372 g/t Ag. Permitting for drilling in early 2013 is underway.
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 along with a 43-101 report filed. Commercialisation studies are underway.
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.
The Company intends to advance its current work programs, and transform from developer to producer in the near term.