Cerro Grande Mining Corporation Reported Today that Watts, Griffis and McOuat has Completed an Updated NI 43-101 Technical Report on Pimenton Mine



Registered Office:

Santiago Office:

ROYAL BANK PLAZA

AVENIDA SANTA MARIA 2224

SOUTH TOWER

PROVIDENCIA, SANTIAGO, CHILE

200 BAY STREET, SUITE 3800

Telephone: 56-2-2569 6200

TORONTO, ONTARIO M5J 2Z4


CANADA




Toronto Office:

For further information, contact:

1 KING STREET WEST, SUITE 4009

Stephen W. Houghton, CEO

TORONTO, ONTARIO M5H 1A1

David R. S. Thomson, EVP

CANADA

E-Mail: ceg@cegmining.com


Telephone: 56-2-2569 6224


Website: www.cegmining.com

 

TORONTO, July 28, 2016 /CNW/ - Cerro Grande Mining Corporation (the "Company" or "CEG") (CSE:CEG) (OTCQB:CEGMF)  reported today that Watts, Griffis and McOuat, Toronto, Canada has completed an updated NI 43-101 "Technical Report on the Pimenton Mine, the surrounding Pimenton Property, and nearby Tordillo Property in Central Chile". A "Summary of Resource Estimate 2016, Pimenton Mine" is as follows:

Summary of Resource Estimate 2016, Pimenton Mine

Category

Tonnes

Au, g/t

Cu, %

Measured

44,000

15.4

1.4

Indicated

36,000

10.0

1.1

Total Measured + Indicated

80,000

13.0

1.2

Inferred

14,000

9.7

1.0

 

"There is potential to expand the inferred resources considerably at this site as well as to find new veins. MMI Sampling has covered the alteration area surrounding the Pimenton Mine and outlined a gold geochemical anomaly 1,100 m by 600 m in extent. Coupled with satellite imagery, CEG has identified sixteen possible targets for trenching at surface or drilling from underground. A target of particular promise is at the western limit of a strong part of the MMI anomaly where strongly leached vein material had in the past reported 3.2 g Au/t over 2m. In WGM´s opinion, this exploration should be undertaken when funding is available ahead of any other exploration on the properties".

The recently discovered Monica vein has the potential to produce significantly higher grades. The Resource section of the WGM report states the following: "The low grades for the Monica stopes in Table 7 were obtained from muck pile samples derived from the lower portion of these stopes where dilution was increased by the uppermost flat-lying fault.  Sampling by CMP at the time of Brady's site visit of the current Monica 3195 stope back 20 m above the level yielded 13.9 g Au/t over 0.8 m (weighted average of 50 samples).  The grade of the Monica Vein is therefore expected by WGM to be higher than that used in our reserves and resources."

Pimenton Mine Mineral Reserves
(Inclusive from the Resource Estimate)
(Effective July 21, 2016)

Category

Tonnes

Au, g/t

Cu, %

Proven




Stopes

2,000

9.6

0.8

Remnants

28,000

15.8

1.4

Total Proven

30,000

15.4

1.4





Probable




Stopes

39,000

9.5

1.0

Remnants

0

0

0

Total Probable

39,000

9.5

1.0

 

The complete report has been filed on SEDAR.

The Company believes this report will be of assistance in helping it to raise a financing of US$3,000,000 to put its Pimenton Mine back into operation, which suspended operations on June 4, 2016 as previously reported.

Cerro Grande Mining Corporation is a minerals producing, exploration and development company with properties and activities currently focused in Chile.

This News Release has been reviewed and approved by James A. Mc Gregor, Ph. D., P. Eng., a Qualified Person under NI 43-101 and one of the authors of the Updated Technical Report on Pimenton dated July 21, 2016.

Cautionary Statement on Forward-looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of CEG. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factorswhich may cause the actual results, performance or achievements of CEG to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release based on current expectations and beliefs and CEG disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader iscautioned not to place undue reliance on forward-looking statements.

SOURCE Cerro Grande Mining Corporation

For further information: Stephen W. Houghton, CEO, David R. S. Thomson, EVP, E-Mail: ceg@cegmining.com, Telephone: 56-2-2569 6224, Website: www.cegmining.com

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