Cerro announces initial inferred resource at Namiquipa

THE BOURSE WHISPERER: Dual-listed company Cerro Resources (ASX: CJO TSX-V: CJO) has announced an initial inferred resource estimate for the company’s 100 per cent-owned Namiquipa silver project located in Chihuahua, Mexico.

 

Prospect location. Source: Company announcement

 

The inferred resource estimate has come in at 4.6 million tonnes at 154 grams per tonne silver equivalent, containing 22.5 million ounces silver equivalent, including 15 million ounces of silver; 41,000 tonnes of lead, and 76,000 tonnes of zinc.

Cerro indicated the silver equivalent grades were calculated using the 12 month average metal prices of US$31.50 per ounce silver, US$0.89 per pound zinc, and US$0.92 per pound lead. Metal recoveries were not considered in this calculation.

Cerro also said a recently completed IP survey had identified a potentially faulted offset of the Princesa- America mineral system to the north.

“This initial resource estimation confirms our belief in this quality project in a region of other significant discoveries and deposits,” Cerro Resources managing director Tony McDonald said in the company’s announcement to the Australian Securities Exchange.

“This and the potential northern extension provides a solid basis for expansion.”

The Namiquipa deposit is located adjacent to the village of El Terrero in Chihuahua, Mexico, west-northwest of Cuidad Chihuahua.

According to Cerro the deposit occurs as a low-sulphidation epithermal system transecting a suite of shallow dipping breccias and ignimbrites of andesitic and rhyolitic composition.

Extensive silicification has occurred around a major north trending shear zone that is host to the epithermal veins.