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 country has projects at various stages of advancement and pleasingly more than one shows significant promise.

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 early 2012. Mine construction could potentially commence first 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 2 drill rig exploration program is underway. As of December 31, 2011, approximately 22,000m, in 60 holes, has been completed with assays for 23 holes reported to date. Multiple mineralized systems/veins have been encountered with encouraging initial results.

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 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. An initial 25Mt inferred resource on part of the northern area of the project was announced in October 2011. The Company intends to complete resource drilling in the southern portion and report a resource estimate over the total strike length by Q1 2012.

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 $15M of cash available (end September2011), 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.