FOR IMMEDIATE RELEASE
Cuervo Commences Drilling on “Bob 1” Zone at Cerro Ccopane Iron Project in Peru
June 5, 2012 – Toronto, ON
Cuervo Resources Inc. (CNSX-FE; FWB-CRR; “Cuervo” or the “Company”) is pleased to report the commencement of a program of diamond drilling on the “Bob 1” zone of its Cerro Ccopane iron project in southern Perú. The first phase of the drilling program is expected to extend over a four month period through September 2012, with a minimum of 4,500 meters of drilling to be carried out utilizing up to three drill rigs. Reports on initial drill results are anticipated in July of this year.
The Bob 1 zone is considered highly prospective; geophysics (magnetics and gravity modelling) suggest an iron ore resource potential in excess of 1 billion (1,000 million) tonnes. This potential quantity of mineralization, of undetermined grade, is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The Bob 1 zone hosts a broad band of magnetite outcroppings extending over 3 kilometres, the largest yet identified on the Cerro Ccopane property, and bears a geological similarity with that of three other smaller zones. Initial drilling of those nearby zones (designated Orcopora, Huillque and Aurora) was completed in 2009 and an updated NI 43-101-compliant resource estimate report was released earlier this year. That estimate reported an additional 72 million tonnes (inferred) averaging 52.6% Fe (30% Fe cut-off) to complement the 55.6 million tonnes (measured and indicated) averaging 46.7% Fe and 50.8 million tonnes (inferred) averaging 43.7% Fe (both 20% Fe cut-off) reported in 2009.
Funding of the drilling program on the Bob 1 zone has been provided by Strike Resources Limited of Perth, Australia under the first stage of a CAD$15 million financing agreement entered into with Cuervo in July 2011. Strike itself is an important explorer for iron ore in southern Perú through its interest in Apurímac Ferrum S.A.C. The companies believe that a cooperative exploration effort between Cuervo and Strike will be strategic to the development of the large scale iron ore resource potential of Perú.
Commenting on the commencement of drilling operations, CEO Mr.Brian Berner said: “Bob 1 is one of two quite large, but as yet undrilled target zones on the Cerro Ccopane property. We look forward to results from Bob 1 which show the consistency in grade and metallurgical properties which previous drilling in smaller neighbouring zones has shown.”
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 http://www.cuervoresources.com.
The Canadian National Stock Exchange (CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.