FOR IMMEDIATE RELEASE
Cuervo Reports First Drill Results from Bob1 Zone at Cerro Ccopane Iron Project in Peru
August 14, 2012 – Toronto, ON
Cuervo Resources Inc. (CNSX-FE; FWB-CRR; “Cuervo” or the “Company”) is pleased to report the results of the initial drill hole completed on the “Bob 1” target zone of its Cerro Ccopane iron project in southern Peru. This initial drill hole (No. 2, drilled vertically) intersected 182.15m of iron mineralization (from 12.35m to 194.5m) that assayed an overall average of 39.64% Iron (Fe) together with 23.22% Silica (SiO2); 2.26% Sulphur (S); 0.08% Phosphorous (P); 0.16% Manganese (Mn) and 0.10% Copper (Cu). Assay results on two additional holes on Bob 1 are expected within 7 days.
The geology of this initial drill hole intersected intervals of massive magnetite (e.g. assayed at 51.63% Fe from 103.45m to 124.50m and 52.78% Fe from 140.50m to 166.50m) alternating with intervals of an intermediate intrusive. Sulphide mineralization (predominately pyrite) is also locally present in the core of the initial Bob 1 drill hole. The sulphides when present exhibit similar grain sizes within the magnetite mineralization that was outlined at the Orcopura, Huillque and Aurora zones some 10 kilometres SSE, where the following global Measured, Indicated and Inferred Mineral Resources have been estimated as follows:
At Orcopura, 55,552,000 Measured and Indicated Tonnes at a grade of 46.75 % Fe and 50,830,000 Inferred Tonnes at a grade of 43.68% Fe both at a 20% Fe cut-off; at Huillque and Auroras 72,040,000 Inferred Tonnes at a grade of 52.60 % Fe at a 30% Fe cut-off. Massive magnetic mineralization has been mapped on surface along more than 3 kilometres at Bob 1 providing the explanation of the geophysical anomaly. Additional information showing the location of the Bob 1 drill hole and the laboratory results can be found at the Company’s website at http://www.cuervoresources.com/index.php/properties/cerro_ccopane_property/
A nominal sampling interval of 2.0m is currently being carried out within the sections of typical iron mineralization. Analyses were performed by the SGS DEL PERU S.A.C. Laboratory in Lima Peru which is a member of the S.G.S. International Group of Laboratories and is ISO 9001 certified. The iron (Fe) analyses were determined by titration methods, the sulphur (S) were carried out with a LECO furnace. All other analyses, which includes phosphorous (P), manganese (Mn) and copper (Cu), were performed ICP-AES after a multi –acid (“total”) digestion. Laboratory check analyses were performed on approximately 10% of the samples submitted while field duplicate samples were performed on average of 1 in 36 samples submitted and field standard samples were performed on an average of 1 in 40 samples sent to the laboratory. The Company is satisfied with the reproducibility of the analyses for the elements reported. All drill cores were logged and sampled at the new Cuervo logging/cutting facility in Cusco under the direction of Velasquez Spring P. Eng., Cuervo’s Senior Geologist, and the designated qualified person for Cuervo under the definition of NI 43-101.
Preliminary low-intensity magnetic separation (Davis Tube) carried out previously on selected samples of mineralization from mineralized sections at the Cerro Ccopane-Orcopura zone containing sulphur-bearing minerals, as well as copper minerals, showed they could be removed with limited processing to produce a very high grade iron ore concentrate. Cuervo plans to carry out Davis Tube processing on samples of the mineralization of Bob 1 when more drill holes have been completed and expect to be able to produce a similar high grade iron concentrate.
BACKGROUND ON “BOB 1” ZONE AND ONGOING DRILL PROGRAM
The Bob 1 anomaly is one of two, estimated billion tonnes geophysical targets (both magnetically and gravimetrically anomalous) to be tested by drilling on the Cerro Ccopane Iron project It is considered highly prospective; geophysics (magnetics and gravity modeling) 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 more than 3 kilometers, 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.
This first report of Bob 1 drill results follows extensive permitting, drill program preparatory work and access road construction in recent months. The on-going drill program on Bob 1 anticipates a total of 4,500 meters of drilling on 16 to 20 drill sites with the completion date targeted for mid-October of this year.
Two drills are presently drilling on Bob 1 (a Longyear 44 machine and a Diamec portable drilling machine) with a third drill machine (another Longyear 44 machine) to be added in September.
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.
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.