Cerro Resources identifies Mexican fiesta

THE DRILL SERGEANT: Dual-listed TSX, ASX gold exploration play Cerro Resources has received positive results from the first three drill holes of an initial scout drilling program at its Namiquipa silver-lead-zinc project in Chihuahua, Mexico.

The drilling program has been designed to test potential extensions of vein mineralisation at the historic La Venturosa Mine.

Historical production at La Venturosa produced an estimated 14.4 million ounces of silver, 32,550 tonnes of lead and 43,530 tonnes of zinc from two prominent quartz/breccias vein systems; the America and Princesa.

The first of the three holed recently drilled intersected the Princesa vein at 158 metres to 165 metres with 63.87 grams per tonne silver equivalents.

The hole also included 0.55m drilled length with 553g/t silver and intersected a second vein system at 228m to 241m with 72.63 g/t silver equivalents.

Hole two was drilled 423m north of the first and approximately 160m north of the Princesa shaft.

This hole also intersected the Princesa vein, this time at approximately the projected drill depth of 194m with a drilled length of 23m containing 109.93g/t silver equivalents with sharp increases of both lead and zinc to highs of 8.61 per cent zinc.

The third hole was drilled 75m south of the first and intersected the Princesa vein as well as an additional two other veins containing both high zinc and lead values including a drilled length interval of 65.7m with 92.87g/t silver equivalents that included 1.44m of 17.68% zinc and 929.13g/t silver equivalents.

High silver grades include 1,730g/t silver over a drilled length interval of 0.82m and 1,350g/t silver over 0.47m.

Cerro said it would continue with drilling in order to test the down dip and strike extensions of the mineralisation.

Geophysical and preliminary geological evaluations carried out by the company to date estimate the strike potential at 2.5km over multiple veins.

“The drill results to date indicate the mineralised system continues at depth along the Princesa vein system with the geological setting suggesting significant potential for high grade material to be hosted in additional vein spurs/shoots,” Cerro Resources said in its announcement to the Australian Securities Exchange.

“Drilling is currently underway along the approximately 1.25 kilometre known strike distance of the Princesa vein as well as targeting other veins in the area such as the Esmeralda, Mexico and America and north and south of the previously drilled areas where vein extensions have been identified.

“In addition to testing extensions of the known vein systems, drilling is also progressing towards the evaluation of geophysical anomalies detected in recently completed IP and ground magnetic surveys.”

Cerro said it was encouraged by the early progress and the number of high priority targets.

The company has now added a second drill rig to the program, which commenced drilling at the end of July.