(BSNS WIRE) Cerro Dorado, Inc. Announces That Encouraging Results Justify D
Cerro Dorado, Inc. Announces That Encouraging Results Justify Drilling Program
At Milagro Property, Chile
Business Editors
SALT LAKE CITY, Utah--(BUSINESS WIRE)--April 11, 2000--Cerro
Dorado, Inc. announces that the results of a first phase of mapping
and sampling on the Milagro property have established the presence of
strong gold mineralization in several areas. These results confirm
management's belief that the Milagro property and the surrounding area
have the potential to host a large, economically viable gold deposit.
Consequently, the Company plans to commence a drilling program before
the end of April 2000.
It is of particular significance that this strong mineralization
is not confined to the north-south oriented fault zones that cross the
property but has also been shown to extend laterally into the adjacent
limestone beds forming flat lying bodies known as "mantos".
A summary of these results is as follows:
-0-
*T
OCCURRENCE GOLD GRADE G/T INTERVAL
METERS
N-S Fault in limestone 2.55 18
or 4.2 10
Grab Sample, N-S Fault 5.53 Grab
Grab Sample, N-S Fault 6.41 Grab
Manto Mineralization in limestone 2.84 9
or 6.05 4
Manto Mineralization in limestone 2.57 2
Manto Mineralization in limestone 1.37 3
Manto Mineralization in limestone 2.57 Grab
Manto Mineralization in limestone 3.47 Grab
Manto Mineralization in limestone 2.38 Grab
Manto Mineralization in limestone 2.33 Grab
Manto Mineralization in limestone 1.83 Grab
*T
This sampling and mapping work has confirmed that areas exploited
at surface by small miners are comprised of vertically oriented veins
and adjacent mantos. The veins vary in grade from 3 to 10 g/t gold
over widths of 3 to 10 meters and the adjacent mantos have gold grades
from 1 to 6 g/t. This work has also shown that the manto
mineralization may be up to 150 meters wide where several veins have
intersected prospective limestone beds. The thickness of the gold
mineralized mantos has not yet been determined. Gold mineralization in
the north-south veins has observable strike lengths ranging from 500
to 1,000 meters and is closely related to regional faults that have
possible additional strike lengths of up to 2,000 meters under shallow
gravel cover.
Cerro Dorado, Inc. has an option agreement to earn a 70% interest
in the Milagro property by completing a positive feasibility study on
the property. The property is located at low altitude some 65
kilometers south of the town of Copiap in Region III of northern
Chile.
In another matter, the Company has decided not to continue with
the option to earn an interest in the Resguardo property, which is
also located in northern Chile.
Cerro Dorado, Inc. is a junior exploration company specializing in
gold exploration and development in Chile.
On behalf of the Board of Directors
Per: Richard W. Cahoon, President
For further information, contact Investor Relations at (801)
484-2668 or visit the website at www.cerrodorado.com.
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.
--30--ah/ny*
CONTACT: Cerro Dorado, Inc.
Investor Relations, 801/484-2668
website: www.cerrodorado.com.
KEYWORD: UTAH INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS
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