2012-10-02 14:06:05 -
HIGHLIGHTS
* 10 Diamond Drill Holes (DDH) Completed in Central Area of "Bob 1" Zone: 5 Holes Reported; 5 Holes Pending; 2 Holes In Progress
* Recurrent Intersections (100 meters +) of Massive Magnetite or Mixed Magnetite Evident With Average Fe Grades of 40 + %.
* Step-Out Drilling Planned to Test Northern and Southern Segments of known Three Kilometer Belt of Outcropping Magnetite.
October 2, 2012 - Toronto, Ont.
Cuervo Resources Inc. (CNSX-FE; FWB-CRR;"Cuervo" or the "Company") is pleased to report aggregated technical data and summary commentary on drilling activity which is ongoing at the "Bob1" zone of its Cerro Ccopane Iron Project in Peru.
Summary of Results to Date: Phase 1
Exploration expenditures on the BOB 1 zone
have totaled approximately $5 million over the past 14 months under the first of a two phase investment agreement with Strike Resources Inc. of Perth, Australia which is providing funding. These activities have included extensive permitting, infrastructure construction and associated community relations programs as well as initial drilling of a total 2,880 meters in 13 holes. Drill results thus far have been strong, showing multiple and large (100+meters) intersections of massive magnetite. Laboratory analysis of drill cores of 5 reported holes has shown average grades above 40% Fe with manageable impurity levels, and preliminary evidence of course grain sulphide content amenable to low cost iron concentrate production.
Laboratory results of 5 yet to be reported holes (which typically lag hole completion by five to eight weeks) are pending, of which 2 are expected soon. One hole was abandoned due to poor ground conditions and 2 holes are in progress.
All holes drilled to date have been within the central area of the Bob 1 zone where an additional 1200+ meters of drilling are scheduled. Included are two to three holes planned to test northern and southern segments of the known 3 kilometer band of outcropping magnetite on the Bob 1 zone. The overall Phase 1 drilling program has been supported with advanced geophysics and mapping surveys, reinforced by approximately 460 meters (360 meters horizontal length) of surface trenching across the outcropping belt at 100 meter intervals along the belt. Analysis of trenching samples has shown the principal iron-bearing mineral present to be massive magnetite. Results of an additional 232 meters of chip sampling are expected in the very near term.
Preparation of a 43-101 compliant resource estimate on the Bob 1 zone will commence following the expected completion of scheduled drilling activity early next month. That report is targeted for release during February 2013.
Technical Data
The virtually continuous 3 kilometer outcropping belt of magnetite coupled with the associated strong magnetic and gravity geophysical signatures confirms the presence of magnetite as the source of the geophysical estimated 1 billion tonne anomaly of the Bob 1 deposit.
All of the DDH drilled to date have exhibited strong magnetite mineralization. Sulphides when present in this type of deposit (a skarn) have exhibited similar size crystals to those in the DDHs of Cuervo's nearby Huillque magnetite deposit where simple metallurgical testing ( Davis Tube) produced a high grade iron concentrate.
Table 1
Overall Length and Principal Grades of Drill Results to Date:
"Bob" 1 Zone with Cutoffs from 0% - 20%
-
Cutoff - 0% Fe
--
From To Length Fe SiO2 S Cu
Hole# (m) (m) (m) (%) (%) (%) (%)
--
BDH-12-01 86.2 219.2 133.0 49.6% 14.4% 2.36% 0.110%
--
BDH-12-02 12.4 194.5 182.2 39.6% 23.2% 2.26% 0.098%
--
BDH-12-03 19.2 175.2 156.0 40.8% 23.4% 2.91% 0.117%
--
BDH-12-04 66.1 255.0 188.9 32.4% 30.3% 2.38% 0.079%
--
BDH-12-05 35.8 179.6 143.8 38.3% 22.6% 1.83% 0.074%
--
Cutoff - 10% Fe
--
From To Length Fe SiO2 S Cu
Hole# (m) (m) (m) (%) (%) (%) (%)
--
BDH-12-01 86.2 219.2 133.0 49.6% 14.4% 2.36% 0.110%
--
BDH-12-02 12.4 194.5 176.9 40.6% 22.5% 2.30% 0.100%
--
BDH-12-03 19.2 175.2 151.6 41.8% 22.6% 2.93% 0.120%
--
BDH-12-04 66.1 255.0 167.8 35.7% 25.6% 2.72% 0.091%
--
BDH-12-05 35.8 179.6 124.5 43.3% 18.1% 2.04% 0.083%
--
Cutoff - 20% Fe
--
From To Length Fe SiO2 S Cu
Hole# (m) (m) (m) (%) (%) (%) (%)
--
BDH-12-01 86.2 219.2 131.3 50.1% 14.1% 2.37% 0.110%
--
BDH-12-02 12.4 194.5 157.7 43.7% 19.8% 2.46% 0.105%
--
BDH-12-03 19.2 175.2 133.7 45.3% 19.3% 3.19% 0.129%
--
BDH-12-04 66.1 255.0 147.8 38.4% 22.2% 3.01% 0.102%
--
BDH-12-05 35.8 179.6 117.5 44.9% 16.8% 2.05% 0.083%
--
The current exploration work and content of this release has been carried out under the supervision of Mr. Velasquez Spring, P.Eng., a qualified person for Cuervo under the definition of NI43-101.
For further information, please contact Mr. Brian Berner, CEO and a Director of the Company, at 416-203-3957 Ext 201 or Mr. Tom Berner, Investor Relations, at 416-203-3957 Ext 202. Additional information about Cuervo can be found at the Company's website at www.cuervoresources.com.
The Canadian National Stock Exchange (CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
The term "iron ore" used within this document means rocks or deposits containing compounds from which iron can be extracted. This is not meant to imply that the contained iron can necessarily be extracted at a profit. This document also contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to: (i) the amount of mineral reserves and mineral resources; (ii) expected grades of iron mineralization; (iii) the timing of the Company's exploration programs and results therefrom; and (iv) the status of negotiations. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "envisages", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
All forward-looking statements are based on the Company's current beliefs as well as various assumptions made by and information currently available to them. These assumptions include, without limitation: (i) the presence of and continuity of iron mineralization at modeled grades; (ii) the capacities of various machinery and equipment; (iii) the availability of personnel, machinery and equipment; (iv) the availability and timing of laboratory analysis and reporting on drill core samples; (v) weather conditions; (vi) reasonable contingency requirements; and (vii) receipt of community and regulatory approvals on acceptable terms.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation, risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals and minerals markets; risks relating to fluctuations in the Canadian dollar relative to other currencies; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in mineral exploration plans due to changes in logistical, technical or other factors, changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory and community approvals; political risks, adverse weather conditions; risks associated with the extreme topography of the areas in which mineral exploration is conducted; operational and infrastructure risks; and the additional risks described in the Company's annual financial statements and management's discussion and analysis for the year ended March 31, 2011. The foregoing list of factors that may affect future results is not exhaustive.
When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
247 Major Street, Toronto, ON,
M5S 2L5 Canada
Tel. 416-203-3957
Fax 416-203-4197
www.cuervoresources.com
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Source: Cuervo Resources Inc. (FE - CNSX) (CRR - FWB)
www.cuervoresources.com
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