(BSNS WIRE) Cerro Dorado, Inc. Completes Acquisition and Plans to Commen
Cerro Dorado, Inc. Completes Acquisition and Plans to Commence Drilling
SALT LAKE CITY--(BUSINESS WIRE)--Nov. 10, 1999--Management is
pleased to announce that an agreement between Cerro Dorado, Inc. and
Fremont Gold Corporation, for the purchase of the Cenizas and Milagro
properties has been completed. The joint-venture agreement between
Cerro Dorado, Inc. and Fremont Gold Corporation on the Resguardo
property has also been finalized. All properties are in northern
Chile.
Cerro Dorado, Inc. is planning to commence a drilling program on
the Cenizas property within the next two weeks. This extensive
property, covering over 13,000 hectares, has many of the same
geological characteristics of the large number of major gold or
gold/copper porphyry deposits in the area. The property is located
along the southern end of the West Fissure Fault Zone between the
world-class Escondido and El Salvador porphyry copper deposits. This
part of Chile is known as the most productive copper province in the
world. Gold content of the copper deposits is known to increase
progressively in the southern part of the West Fissure Fault Zone
where significant gold is now being produced. Sampling of trenches in
one area of the property that is untested by drilling show values of
1.00 g/t gold over 42m and 1.1 g/t gold over 28m. This target and
others will be drilled in the upcoming 2,500m, 15 to 20
reverse-circulation drilling program.
Cerro Dorado, Inc. has taken over the option agreement between
Fremont and Rio Tinto Mining & Exploration Ltd. whereby Cerro Dorado,
Inc. would spend a total of $1million on the property over 3 years.
Rio Tinto has the right to maintain a 51% interest in the property by
committing to spend $2 million over the subsequent 2 years. Should Rio
Tinto not exercise its rights within 60 days of Cerro Dorado, Inc.
spending the $1 million and paying Rio Tinto $250,000, Rio Tinto would
lose its option and retain a 2% Net Smelter Return to a maximum of $10
million.
The work at Cerro Dorado, Inc.'s Lobo Solitario property near
Santiago, Chile is progressing well. Geologist Eric Hanson reports
that several parallel and sub-parallel veins to the known Fortuna Mine
gold vein structure have been located and mapped. A geophysical survey
is almost complete and results should be available shortly. It is
anticipated that several drill targets will be established to
intersect the new vein structures as well as to test the property for
the existence of breccia style mineralization similar to the adjoining
Alto de Lipangue gold/copper discovery.
On behalf of the Board of Directors
Per: Richard W. Cahoon, President
Note: This News Release may contain certain "forward-looking
statements" within the meaning of the United States Securities
Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included in this release, including,
without limitation, statements regarding potential mineralization and
reserves, exploration results, and future plans and objectives of
Cerro Dorado Inc. are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future
could differ materially from those anticipate in such statements.
Important factors that could cause actual results to differ materially
from the Company's expectations are disclosed under the heading "Risk
Factors" and elsewhere in documents filed from time to time with the
United States Securities and Exchange Commission and other regulatory
authorities.
Trading OTC/BB
Symbol CDCH
Cusip No. 156834
Tel: (801) 484-2668
Fax: (801) 486-3633
--30--lp/ny*
CONTACT: Investor Relations
801/484-2668
KEYWORD: UTAH INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS MARKETING AGREEMENTS MERGERS/ACQ
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