CuOro Resources Corporation (CUA-TSX-V)
May 20, 2011 Issue
The Most Powerful Name In Corporate News and Information
As a Well Financed Company, with a Proper Share Structure, Institutional Shareholders, Investment Banking Backing and Exceptional Management, CuOro Resources Corporation is Well Positioned to Explore and Develop their Copper-Gold Projects in Mining Friendly Colombia
The Company's current
exploration activities are focused on the 100%-owned Santa Elena Copper/Gold
project, comprising of 1,287.5 hectares in the prolific Antioquia Batholith
district. The Antioquia district and CuOro's project (140km NE of Medellin)
is considered socially stable and mining-friendly.
Infrastructure is excellent including paved road access to the property gate, two hydroelectric plants within 5km, and abundant water supply.
CuOro is well capitalized
with approximately $26 Million in the treasury, providing significant
resources for the 2011 exploration campaigns.
CuOro has assembled a
experienced management and technical team in Colombia. CuOro's management
team has contributed to several significant discoveries throughout Colombia,
South America and around the world. CuOro plans to leverage its share
structure with strategic local and regional relationships, and long-term
financial partners, to develop its prospective project into what the Company
believes will be Colombia's next major mining venture.
The corporate growth strategy
involves focusing on late stage, highly prospective and underdeveloped areas
in secure jurisdictions of Colombia.
Company is currently executing an exploration program and intends to deliver
a NI-43-101 compliant resource estimate at its Santa Elena Property.
1305-1090 W Georgia
(CUA-TSX-V) Interview conducted by: Lynn Fosse, Senior Editor, Published: May 20, 2011
CEOCFO: Robert, you have a long history in the industry, why are you with CuOro today?
CuOro has all the elements to be successful. A proper share structure,
well financed, institutional shareholders, investment banking backing,
exceptional management and an excellent project that we are looking to
CEOCFO: Please tell us about your current projects –location, infrastructure, geology?
Cuoro Resources flagship project is the
Santa Elena property located in the
Batholith district, approx. 140km North of Medellin, Colombia.
Elena Property is surrounded by excellent infrastructure including;
paved road access to the property gate, two hydroelectric plants within
5km, abundant water supply, nearby pueblos with supportive mining
There are two
major lines of evidence suggest to CuOro mineralization could continue
deeper. There has been some past work (tunneling) done 50 meters below
surface and we're getting the same in chip samples there as in the
channel samples at surface.
test work was conducted for Noranda back in the early 1990s when it held
the rights to the property.
finished a transient electromagnetic survey that highlighted four strong
areas of conduction, which CuOro suggests could indicate significant
mineralization underground. Sampling in the Knapp exploration tunnel as
it is officially called, lends some support to that theory.
But drilling, as is always the case, will give the more definitive answer. Small portable drill rigs will be testing shallow 50 or so meters targets in the next month or so until the four drill rigs get on site within the coming two months. These will test for mineralization in the 200 to 600 meter range. If mineralization proves significant the aim is to have a resource estimate out by December.
CEOCFO: Do you own your projects 100%? What is your philosophy in this area?
Yes, We own 100% of the 1,287.5 ha Santa Elena property.
CEOCFO: How has Colombia overcome the somewhat negative impression of the past?
Colombia’s economic growth has slowed over the last few years as a
result of a localised recession that began in 1996 as well as the
country’s worst earthquake in 1999. The Colombian government has taken
steps to encourage foreign investment in the country through a plan to
curb conflicts with insurgent groups, fight illegal drug trafficking and
to modernise the Colombian legal and military institutions.
government of Colombia has shown strong support to the oil and gas
industry within Colombia. The success they have seen with this movement
has lead them to put the same effort and support into the mining
CEOCFO: What is happening on the ground today on your projects?
We have recently released
some fantastic grades from the property.
We CUT SIGNIFICANT RESULTS WITH
AN AVERAGE WEIGHTED GRADE OF 2.53% COPPER OVER 41.66M AT THE SANTA ELENA
PROJECT. Cuoro conducted a channel-sampling program on the mineralized
volcanogenic massive sulphide outcrops at the Santa Elena project. The
program included 51 saw-cut channel samples totaling 41.66 liner meters
forming 15 composite channels across the exposed outcrops. The assay
results were significant, returning the length-weighted average grade of
2.53 per cent copper. The highest individual results from this initial
round of sampling were one meter at 6.31 per cent copper and 0.62 meter
at 6.07 per cent copper, and the highest length-weighted average result
was four linear meters at 4.96 per cent copper. Assay results are listed
in attached table. Channel samples are considered representative of the
in situ mineralization sampled.
The company is planning an aggressive exploration program at Santa Elena, which includes extensive mapping and surveying, and airborne and ground geophysical surveys, as well as extensive diamond drilling. Geophysical surveys are expected to commence within the next few weeks followed up by diamond drilling.
CEOCFO: What is the plan for the next year or so?
We have a 3 phase program that we are carrying out. Phase 1 -
exploration. This includes Geochem and Mapping, channel sampling that we
have begun and come back with initial results that we are very excited
about. Phase 2 which includes 10,000 meters of drilling (2-4 rigs) to be
conducted in and around July. Phase 3 will include a second phase of
drilling of up to 15,000 meters (4 rigs). We also plan to update at that
time the 43-101 technical report, develop an inferred and indicated
resource and to complete scooping study which we plan to complete by the
2nd quarter of 2012 and then proceed to Feasibility.
CEOCFO: What is the availability of workers and equipment in Colombia?
Drill equipment is available and has been leased and our target is to
start drilling and utilize the rigs in mid July.
CEOCFO: What is the financial picture like for CuOro today?
Some of Canada's biggest mining institutions participated in the equity financings including strategic investor Hudbay Minerals, one of the world's foremost VMS specialists who have taken a 13% stake in the company. Other investors include Dundee Precious Metals and Dynamic Metals Funds. It should be noted that management also owns around 30% of the company.
CEOCFO: In closing, why should investors pay attention to CuOro?
• 100% ownership of the Santa Elena Copper and Gold
project: Historical resource estimate of 1.15 billion pounds Cu at
1.88% Cu and up to 2.5g/t Au (non NI-43-101 compliant).
•Strong management and a proven technical team contributing to several significant discoveries.
•Projects located in the Sergovia Belt and Antioquia Batholiths which are associated with some of the most prolific discoveries in Colombia.
•Financed and strategically budgeted to generate
results through an exploration and 2011 drill program to produce two
compliant NI-43-101 resource estimates.
•Looking at expanding 2011 drill program on the Santa Elena project to targeting the VMS and the gold mineralization areas in parallel.
Some of Canada's biggest mining institutions participated in the equity financings including strategic investor Hudbay Minerals, one of the world's foremost VMS specialists who have taken a 13% stake in the company. Other investors include Dundee Precious Metals Fund and Dynamic Metals Fund. It should be noted that management also owns around 30% of the company… These funds will allow CuOro to carry outs its aggressive exploration program and advance the Santa Elena Property through scoping study and to the beginning of PEA without returning to the market. - Robert Sedgemore - www.cuororesources.com
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