bankable feasability study

With huge gold and silver prospects CERRO has the potential to follow hot on the heels of companies such as TROY RESOURCES.

The "Bankable Feasability" study has been held pending upgrade to proven resources.

In Mexico, Cerro Resources is currently focused on developing the Cerro del Gallo gold/silver project, part of the greater San Anton project in the central state of Guanajuato. The aim is to deliver attractive long term cash flows to the Company. A positive internal feasibility study has been completed on Stage 1 (heap leach) and a preliminary assessment completed on Stage 2 (carbon-in-leach) (April 2011). The studies have focused on the higher grade gold domain within the Cerro del Gallo resource. A 14.5 year mine life is anticipated, with 1.2M oz Au and 13.5M oz Ag recovery with a decision to mine to be undertaken early 2012. Mine construction could potentially commence first half 2012 with production targeted for twelve months later.


At the highly prospective Namiquipa Silver Project, which includes the La Venturosa Silver Mine, an aggressive 2 drill rig exploration program is underway with a minimum of 20,000m of drilling to be completed. As of October 31, 2011, 16,000m, in 43 holes, has been completed with assays for 14 holes reported to date. Multiple mineralized systems/veins have been encountered with encouraging initial results.


The Company has recently secured exploration rights and contracted an option to acquire 100% of the highly prospective Espiritu Santo Gold/Silver project in Mascota-Navidad Mining District in Jalisco, Mexico, further boosting its precious metals portfolio. A preliminary work program is being designed to identify drill targets.


In Australia at Mt Isa, Queensland, Cerro Resources has announced excellent beneficiation results from its Mt Philp Iron Prospect, averaging 68% Fe from 3 zones. An initial 25Mt inferred resource on part of the northern area of the project was announced in October 2011. The Company intends to complete resource drilling in the southern portion and report a resource estimate over the total strike length by Q1 2012.