Mar. 10, 2011 (Marketwire Canada) --
LONGUEUIL, QUEBEC -- Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) ("Cerro" or "the Company") is pleased to announce that it has satisfied all of the remaining pre-conditions and steps for the completion of its previously announced acquisition of the Namiquipa Silver Project.
As a result, the Company is now in a position to close the transaction with the shareholders of Minera Tasmania S.A. de C.V. ("Minera") as outlined in the Company's press release dated December 13, 2010. At completion, the Company will acquire all of the shares of Minera in consideration for 30,000,000 ordinary shares of Cerro. The parties expect to complete the transaction on Friday, March 11, 2011.
The Namiquipa Silver Project consists of three concessions totalling 4,400ha. It includes the La Venturosa silver mine, which was the site of underground mining operations for silver, lead and zinc from 1929 – 1936, 1948 – 1955 and 1990 - 2002. Completion of the acquisition will give the Company control of the mineralized trend to the north and south of the La Venturosa mine, where no previous systematic exploration has been undertaken other than some shallow mine production drilling in the early 1990's. Several high priority targets have already been identified, including areas where mining occurred to depths of only 150-250m and along strike in both directions from the existing mine workings.
Since receiving shareholder approval for the acquisition and as part of its due diligence process, the Company has reviewed, digitised and re-mapped existing records of the old mine workings and has identified a number of drill targets. This will be combined with a programme of geophysics to commence this month and with the intention to commence the initial drilling programme in April.
The Company has retained Adrian Fleming, RPGeo of RockWorks Limited to prepare an independent National Instrument 43-101 compliant technical report on the Namiquipa Silver Project. The report will be filed under the Company's profile on SEDAR at www.sedar.com.
About Cerro Resources
Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico and maintains an active working focus on the Mt Isa exploration project, Queensland, Australia.
Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Tony McDonald, Managing Director
+61 7 3252 0122
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