FOR IMMEDIATE RELEASE
Cuervo Reports over 350 m of over 40% Iron from Continuing Drilling Project in Perú
January 15, 2008 – Toronto, ON
Cuervo Resources Inc. (CNQ-IRON; FWB-CRR; “Cuervo” or the “Company”) wishes to
announce additional results from the Company’s ongoing diamond-drilling program on its Cerro
Ccopane iron ore project in Perú. The Cerro Ccopane property is located in southern Perú, 65 km
to the south of Cuzco.
Over 350 m of mineralization was intersected by the Company in a vertical drill hole, ODH – 33.
Massive iron mineralization (magnetite ± hematite) was found intercalated with metasomatized
host diorites and limestones (skarn); overall weighted average for the intersection was 41.29% Fe
over 356.50 m. The zones of massive iron mineralization within the overall intersection are up to
almost 90 m thick (e.g. 54.95% Fe over 87.80 m). ODH – 33 is also the most westerly of the drill
holes in the current program; mineralization has now been intersected over a strike length of
about 750 m.
Drill hole ODH – 33 is also of particular significance because whereas previous drilling has
mainly been located in areas where the Company has targeted outcropping iron mineralization,
this hole was located to test a gravity anomaly believed to be related to the (grid) western
extension of the Orcopura body of mineralization; iron mineralization in the drill hole was
intersected under almost 27 m of non-mineralized diorite. The total extent of this geophysical
anomaly continues to be explored by the current drilling program. In addition, the Company is
aware of four other gravity anomalies on the Cerro Ccopane property. These will be explored by
drilling in the near future. Geophysical surveying (magnetics and gravity), interpretations and
modeling have been carried out by VDG del Perú S.A.C. under contract to the Company’s
wholly owned subsidiary Minera Cuervo S.A.C. (“Minera Cuervo”).
The total intersection in ODH – 33 returned sulphur and copper values similar to those
encountered elsewhere on the property in association with the iron mineralization (4.81% S and
0.10% Cu over the 356.50 m). The Company has carried out preliminary low-intensity magnetic
separation (Davis Tube) testing on selected samples from the early stages of the exploration
program. The preliminary Davis Tube results indicate that most of the contained sulphur-bearing
minerals as well as the copper can be removed with limited processing while producing a very
high-grade iron ore concentrate. Silica values were also found to be within acceptable limits by
analyses carried out as part of this testing. Cuervo plans an ongoing program of metallurgical
testing.
Shallow drill holes with narrow intersections reported herein continue to outline the perimeter of
the Orcopura body on its eastern boundary.
Three diamond drills are operating on the property. The field work program was suspended for
the holiday season on December 22nd, 2007 and operations resumed on January 7th, 2008. At this
time the Company believes that relatively normal operations can be maintained during the
summer rainy season in this part of Perú. Previous results were announced in press releases dated
October 22nd, October 30th, November 1st, November 15th and December 6th 2007 and included
intersections of up to 57.31% Fe over 131.25 m. The following list describes the general
locations of the drill holes being reported on in this release:
ODH – 30, ODH – 32, ODH – 34 and ODH – 35 were all drilled from the same platform, ODH
– 30 was a vertical drill hole to a depth of 154.75 m, ODH – 32 was drilled toward grid east at an
inclination of 50° to a depth of 94.15 m and ODH – 35 was drilled toward grid south at an
inclination of 60° to a depth of 108.45 m The site was located 100 m to the (grid) east of holes
ODH – 23, ODH – 24, ODH – 26, ODH – 27 and ODH – 29. Hole ODH -34 was also drilled
from this location toward grid north at an inclination of 45° and to a depth of 96.90 m; however,
results from this hole are still pending and will be released when available. Elevation of the
location is 3665 m AMSL;
ODH – 31 was a vertical hole drilled to a depth of 94.80 m. This site was located at a point 150
m to the (grid) west of previously announced holes ODH – 20, ODH – 22, ODH – 25 and ODH -
28. No iron mineralization was intersected in this hole. Elevation of the location is 3635 m;
ODH – 33 was a vertical hole drilled to a depth of 411.60 m. This site was located at a point 250
m to the (grid) west of previously announced holes ODH – 20, ODH – 22, ODH – 25 and ODH –
28 and 100 m to the (grid) west of ODH – 31. Elevation of the location is 3630 m; and
ODH – 36, ODH – 37 and ODH – 38 were all drilled from the same platform, ODH - 36 was a
vertical drill hole to a depth of 60.00 m, ODH – 37 was drilled toward grid south at an
inclination of 45° to a depth of 49.50 m and ODH – 38 was drilled toward grid east to a depth of
73.20 m. The site was located 100 m to the (grid) east of previously announced holes ODH – 04,
ODH – 05 and ODH – 06. Elevation of the location is 3640 m AMSL.
The following table presents a list of the significant intersections that were sampled during the
recent work program:
All drill holes were logged and sampled at the property campsite on the property under the
direction of Minera Cuervo’s senior geologist, ing. Abraham Castillo Ll. A nominal sampling
interval of 1.5 m is currently being used within sections of typical iron mineralization. Analyses
were performed by SGS Minerals Services at their laboratory facilities in Lima (Callao), Perú.
The reported Iron (Fe) analyses were determined by titration methods, sulphur (S) were carried
out with a LECO furnace. All other reported analyses, which include phosphorus (P), manganese
(Mn) and copper (Cu), were by 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 are submitted on a rate of approximately 5% of the total samples
sent to the laboratory. The Company is satisfied with the reproducibility of analyses for the
elements reported. The Company is planning to establish a dedicated sample-preparation
laboratory on site for future requirements. The Company is also awaiting the final version of a
preliminary transportation study which was commissioned late last year.
Exploration work and content of this release has been carried out under the supervision of Mr.
John M. Siriunas, P.Eng., the designated qualified person for Cuervo under the definition of
NI43-101.
The Company has 26,489,050 shares outstanding (33,716,000 fully diluted).
DRILL HOLE INTERSECTION (m) LENGTH (m) TVD (m)* Fe (%) S (%) P (%) Mn (%) Cu (%)
ODH – 30 2.00 – 13.80 11.80 47.14 0.10 0.04 0.05 0.11
Other 20.30 – 44.60 24.30 24 57.41 1.89 0.03 0.10 0.09
Other 48.40 – 79.70 31.30 38.57 2.55 0.07 0.07 0.06
Other 124.50–136.40 11.90 49.03 3.55 0.04 0.08 0.20
ODH – 32 24.40 – 46.30 21.90 16 62.55 0.07 0.04 0.08 0.06
ODH – 33 26.90 – 384.20 356.50 356 41.29 4.81 0.04 0.07 0.10
Including 26.90 – 73.60 45.90 56.75 3.38 0.06 0.06 0.11
Including 84.20 – 88.70 4.50 60.33 4.07 0.06 0.05 0.12
Including 97.50 – 185.30 87.80 54.95 3.57 0.04 0.08 0.12
Including 252.50-307.40 54.90 54.24 3.52 0.02 0.09 0.11
ODH – 35 20.10 – 84.45 64.35 55 55.39 2.62 0.05 0.06 0.08
ODH – 36 3.20 – 18.35 15.15 15 45.34 1.97 0.18 0.09 0.09
ODH – 37 6.47 – 20.10 13.63 9 48.26 2.30 0.04 0.07 0.10
ODH – 38 9.70 – 33.70 24.00 20 58.43 3.36 0.04 0.07 0.18
* TVD – approximate total vertical depth from top to bottom of intersection
For further information, please contact Mr. Siriunas, a director and President of Cuervo, at 416-
203-3957 x701 or Mr. Tom Berner, Investor Relations, at 416-203-3957 x202. Additional
information about Cuervo can be found at the Company’s website at http://www.cuervoresources.com.
The Canadian Trading and Quotation System Inc. has neither approved nor disapproved of the
contents of this press release.