FOR IMMEDIATE RELEASE
Cuervo Reports Additional 72 Million Tonnes of Inferred Iron Ore Resources at Cerro Ccopane Project
CUERVO REPORTS ADDITIONAL 72 MILLION TONNES OF INFERRED IRON ORE RESOURCES AT CERRO CCOPANE PROJECT IN PERÚ
February 13, 2012 – Toronto, ON
Cuervo Resources Inc. (CNSX-FE; FWB-CRR; “Cuervo” or the “Company”) is pleased to report that an updated National Instrument 43-101 (“NI 43-101”) compliant Mineral Resource Estimate at its wholly owned Cerro Ccopane iron ore project in southern Perú has been completed. Additional Inferred Resources included in the updated resource estimate are located nearby to the previously reported Orcopura zone and reflect the results of approximately 5,000 m of drilling. These additional inferred resources based on a 30% head iron cut-off are reported as follows:
Zone Tonnes (Inferred) Head Fe (%)
Aurora South 6,970,000 49.72
Aurora North 9,080,000 49.01
Huillque 55,990,000 53.54
Total 72,040,000 52.60
The updated study, prepared by B.J. McKay Ltd. (“McKay”), uses a polygonal and sectional model method and includes results from 25 drill holes put down in the Aurora zones of mineralization and from 20 drill holes put down in the Huillque zone of mineralization. This drilling was originally completed and sampled in 2009 but a resource estimate was not commissioned by the Company at that time. The previously reported NI 43-101-compliant Resource Estimate (Orcopura zone, prepared by Micon International Inc. in March, 2009) stood at 55.55 million tonnes (“measured and indicated”) grading 46.75% Fe and 50.83 million tonnes (“inferred”) grading 43.68% Fe with a cut-off of 20% Fe. The new global Measured, Indicated and Inferred Resources on the Cerro Ccopane property, which includes all the drilling performed on the Orcopura, Aurora and Huillque zones now stand at:
Zone(s) Classification Tonnes Head Fe (%) Cut-off(% Fe)
Orcopura Measured 19,696,000 48.26 20
Indicated 35,856,000 45.91 20
M+I 55,552,000 46.75 20
Orcopura Inferred 50,830,000 43.68 20
Huillque and Auroras Inferred 72,040,000 52.60 30
The Mineral Resources reported herein are as per nomenclature defined by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) in CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by CIM Standing Committee on Reserve Definitions. Mineral Resources that are not Mineral Reserves do not have any demonstrated economic viability.
The Company has no reason to believe that the estimate of the mineral resources reported herein may be materially affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
Ground geophysical surveys (magnetic and gravity) completed in 2009 identified two additional primary target zones on the property (designated the “Bob 1” and “Huillque Norte” anomalies), each with gravity-modeled tonnage estimates in excess of one 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. Field investigations also carried out by McKay have indicated that the “Bob 1” zone is marked by the extensive outcroppings of magnetite typical of other known zones of mineralization on the property. Grab samples from the “Bob 1” zone on surface returned values ranging from 57.19% Fe to 68.66% Fe. The Company is currently active in preparing the “Bob 1” zone for a program of diamond drilling.
Mr. Bryan J. McKay, M. Sc. (A.), P.Geo., of B.J. McKay Ltd. is the qualified person under the definition of NI 43-101 responsible for the Company’s updated independent mineral resource estimate reported on herein. Mr. John M. Siriunas, P.Eng., President and a Director of Cuervo, is the qualified person responsible for other technical aspects of this release.
The Company has 37,684,750 shares outstanding (79,173,023 fully diluted).
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.
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.