Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) is pleased to report further progress in the pre-drilling exploration phase at the Espiritu Santo Gold/Silver project in Jalisco State, Mexico.
Espiritu Santo is located 130 km west of Guadalajara and 50 km east of Puerto Vallarta and occurs within a northwest corridor defined by numerous, predominantly gold/silver, low sulphidation mineralised occurrences (Figure 1).
Gold and silver with associated copper, as well as low levels of lead and zinc mineralisation at Espiritu Santo occurs as low sulphidation quartz-sulphide style Au + Cu epithermal mineralisation. These systems are typically formed within structures overlying a buried intrusion source.
Cerro Resource's exploration team is currently working on several vein systems within the large concession block, utilising surface sampling and geological mapping for the purpose of defining drill targets as the permit process is being finalised.
Rock Chip Assay Results - A total of 858 rock chip samples have been collected. Following the last project announcement of August 22, 2012, further anomalous rock chips have been collected, both as extensions of the known veins and there has been success in locating additional zones of mineralisation. Some of these new areas are proving to be encouraging as they contain broad zones on strong alteration with associated anomalous trace elements, that could possibly be interpreted to represent higher stratigraphic levels in a traditional low sulphidation gold-silver system.
One of these new areas; the Agua Mala area was recently discovered as a result of surface geologic mapping and sampling program in an area previously not known and is located NW the Nunez vein and to the SW of the extension of the Carmela area (Figure 2). Although the zone as currently defined is "narrow" the area contains values to 10.75 g/t Au and 24g/t Ag. Additional work is planned for Agua Mala in the near future.
Table 1 is a list of the rock chip assays results received since the last announcement. The list contains samples that are greater than 0.5g/t Au or greater than 10g/t Ag. Sixteen of these recently received rock chip samples exceed 1g/t Au.