cerrodorado.com
Company Overview
(OTC – BB: "CDCH")
July, 1999 - On March 19, 1999, the Board of Directors and majority shareholders of Weather All Manufacturing USA, Inc., a Florida corporation, changed the name of the Corporation to Cerro Dorado, Inc. and new management assumed control of the company.
The current officers and members of the Board of Directors are: Mr. Richard W. Cahoon, President and Mr. Gary Davis, Secretary/Treasurer.
Effective March 26, 1999 there was a reverse split of the stock at a ratio of 15:1. As of March 31, 1999 the issued and outstanding shares of common stock of the Company were 4,553,334. Restricted shares have been issued to acquire several important properties. The current number of shares outstanding is 10,700,000.
The public float is estimated to be approximately 300,000 shares. During the last ninety days the price of the stock has ranged from $.65 to $2.75 per share and the average daily trading volume has been 37,796.
BUSINESS OF THE COMPANY
"Cerro Dorado" means "Gold Hill" in Spanish, and the Company's name accurately reflects its business operations. Cerro Dorado, Inc. is a junior exploration company that is acquiring and exploring gold mining properties with major potential in Chile. The Company's goal is to develop its properties to the point that a large mining company will join Cerro Dorado as a joint venture partner in the mining operations.
Chile, because of its favorable political and economic climate, is fast becoming one of the world's leading gold mining countries. But the most obvious reason Chile is attracting the attention of mining companies from around the world is that Chile has over 25% of the world's known reserves of copper, and copper is usually associated with gold and silver.
PROPERTIES WITH SIGNIFICANT POTENTIAL
Lobo Solitario
On April 15, 1999 Cerro Dorado, Inc. announced that it had purchased 60 contiguous mining claim units known as "Lobo Solitario," a gold property of historical significance that adjoins the newly discovered gold/copper deposit at Alto de Lipangue near Santiago, Chile, owned by Medinah Mining, Inc. This new discovery at Alto de Lipangue, located just 35 miles from Santiago, Chile, has attracted the attention of several large mining companies, and many experts now consider these properties to have major potential.
There are numerous gold veins on the Lobo Solitario properties and some of them have been worked with high-grade mining from the days of the Incas and Spaniards to the recent past. However, it is estimated that by re-opening the old workings, at least 80% of the ore reserves are still in place and available for recovery by the Company. There seems to be ample evidence that additional major new discoveries might be found on the Cerro Dorado properties. For example, on the numerous switchbacks on the road leading to the Company properties there are several large gold veins exposed that need to be explored.
Recent fieldwork at Lobo Solitario clearly indicates that a hydrothermal system has been responsible for the gold mineralization and, thus, the gold deposits appear to be extensive. Consulting Engineer, Mr. Ralph Bonham, recently visited Cerro Dorado's Lobo Solitario properties and stated: " . . . We panned material from the dumps of the old mine and there was not a sample that we did not see some free gold. There seems to be free gold almost everywhere on the Cerro Dorado properties and if it were practical, I would recommend heap leaching the whole top of the mountain."
As old mine adits have been re-opened, new veins have been discovered. For example, Cerro Dorado crews have successfully re-opened the famous "Fortuna de Lampa" mine located on the property and miners have drifted in a new tunnel paralleling the old workings. Out of this tunnel came samples of two different newly discovered veins that were assayed as the Clavel Vein and the Lobo Vein. The Clavel sample assayed 4.5 ounces per ton of gold the Lobo Vein assayed 0.765 oz./ton of gold. Sr. Juan José Quijano, a highly-respected mining figure in Chile, and co-owner of the Cerro Dorado properties, reports: "The chemical analysis done on one sample from the Lobo Vein that I sent to the laboratory showed 184 grams of coarse gold per ton and 24.2 grams/ton of fine gold." (1 ounce = approximately 31.1 grams). Several decades ago, there were high-grade mining operations at the Fortuna Mine and for a period of eight years the grades averaged 58+ grams of gold/ton. In a report on the Fortuna Mine issued by the Chilean National Mining Commission in August 1967, it was reported that several samples taken from the mine had assayed as high as 107 grams to 202.5 grams/ton.
Cerro Dorado plans immediate implementation of several work programs including: 1. Opening of the major old workings; 2. Geological mapping and surface exploration to identify the association with the know hydrothermal events; 3. Induced polarization surveys to establish diamond drilling targets; 4. Re-opening the south road from Curacaví to allow better access; 5. Diamond drilling of the IP targets. 6. Establishing an "on-site" laboratory and assaying facility with suitable crew accommodations. Management has mobilized a work team to begin exploration immediately at Lobo Solitario.
The Ipún Island
On June 23, 1999, Cerro Dorado announced that it had acquired 60% interest in the Isle D'Ipún gold properties in southern Chile. Medinah Gold, Inc. will retain the other 40%. The Ipún properties are located 250 miles south of Puerto Mont, Chile. The island is 6 miles wide and 12 miles long and has fresh water lakes, mild climate and can be worked year around. Ipún is the site of reported large areas of gold bearing placer sands that cover major sections of the shoreline and the inland dunes. Bedrock hosted gold deposits are believed to be the source of these placers.
Mr. Ralph Bonham recently visited Cerro Dorado's Ipún Island properties with Sr. Juan José Quijano and reported that their survey was able to verify large deposits of sedimentary reserves. Tests taken of soil samples proved the presence of gold. The survey indicated that two rivers that flow in opposite directions from the interior of the island are the carriers of gold to the beaches.
Mr. Bonham has confirmed that gold is present in the beach sands and has recommended programs to confirm commercial viability. Gold was found in several streams that he tested and the first test site was a stream on the southeast side of the island that showed enough free gold to bring back cons for assay. The second test site on one of the streams also showed enough free gold to bring back cons for assay. The third site was the largest stream to be sampled on the island and carried the best visual showings so far examined. The stream is about 10 feet wide and meanders to the ocean behind sand dunes. Mr. Bonham states that he is confident that under the dunes there are old streambeds carrying gold.
From this field trip it is Sr. Juan José Quijano's opinion and report: "On Henriquez Beach (the western side of the island) I examined an area 2 kilometers long and 800 meters wide. Dunes are found on the island in the Marambio River, which flows on the beach and is the carrier of the ‘large gold' that comes from the interior of the island. At the same time there is a similar river that flows onto the east coast of the island, and this discovery transforms the ‘Ipún Gold Project' into something of major proportions. The particles of gold are visible to the naked eye."
Mr. Bonham concludes: "Ipún Island, with a little more testing, and if found to be commercial, could be put into production within a short period of time and be producing a profit with the least amount of capital expense compared with the other projects being reviewed."
Management of Cerro Dorado, Inc. has approved Mr. Bonham's recommendations for a return trip to Ipún and the undertaking of extensive testing to determine the feasibility of starting immediate production.
Copyright © 1999 Cerro Dorado, Inc.
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