Cerro Dorado, Inc. Geological Update - "Lobo Solitario"
SALT LAKE CITY--(BUSINESS WIRE)--July 19, 1999--Cerro Dorado, Inc. recently employed an independent geological
and geophysical consulting company, ACA Howe International Limited, Toronto, Canada, through their Chilean branch, Howe Chile Limitada. Mr. Robert Cinits,
P.Geo., and Manager of Howe Chile Limitada, has undertaken a review and assessment of the Lobo Solitario property, Chile.
Located on this property is the former producing gold mine ''La Fortuna de Lampa''. The Fortuna mine, during the period from 1941 to 1955, produced a total of
19,871.1 tonnes of ore grading an average of 63.9 grams/gold, 51.2 grams/tonne silver and 0.2% copper/tonne.
Excerpts of interest from the report by Mr. Robert Cinits, P.Geo., are as follows:
''Cerro Dorado's La Fortuna property represents a favorable target
to host narrow, high-grade, vein style, gold mineralization at
relatively shallow depths, and that this target remains open in
most directions and could be larger in extent than currently
exposed. In addition, in the south portion of the property, there
is a weakly defined target that has potential to host breccia
type mineralization similar to Medinah Mining's nearby recently
discovered Alto de Lipangue gold-copper breccia pipe. Other parts
of the Cerro Dorado land position have only been reviewed on a
preliminary basis, or not at all, and these should be further
explored, since the potential exists for additional high-grade
veins, similar to Fortuna. Howe concurs with this target
objective.''
''At the very south end of the area recently reviewed by Howe, a
very weakly defined target consisting of ''bowl shaped'' depression
covering an area of about 250 meters by 250 meters was
identified. Although no outcrop was found in the area, an
abundance of limonitic and quartz rich boulders and pebbles,
mixed with granodiorite rubble, was noted. This has a similar
surface expression as Medinah Mining's newly discovered Alto de
Lipangue copper-gold breccia pipe, located approximately 1.7
kilometers to the southwest. Often breccia deposits will occur in
clusters and it would not be unrealistic for additional pipes to
occur on the Alto de Lipangue plateau within the Fortuna property
boundaries.''
Howe recommends that a two-phase program be conducted to assess the potential of the Fortuna Project. This work for Phase I would include surface gridding,
mapping, sampling, IP surveys, trenching and 1,300 meters of diamond drilling. Phase II would include a further 5,000 meters of drilling. The objective would be to
outline a measured and indicated mineral resource.
The discovery of the potential gold-copper breccia in the south area of the Lobo Solitario property adds an exciting new dimension to the potential size of this
project and validates the Company's belief in this acquisition.
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
Contact:
Cerro Dorado, Inc.
Richard W. Cahoon, President
Investor Relations at (801) 484-2668
Fax:(801) 486-3633 |
