Proactiveinvestors recommends
Additional Information
Market: CNSX
Sector: General Mining
EPIC: FE
Cuervo Resources Inc.
www.cuervoresources.com

Cuervo Resources Inc.is a public Canadian exploration company that completed an initial public offering on May 30, 2007. The company has acquired and is drilling properties prospective for iron ore in Perú through its Peruvian subsidiary Minera Cuervo S.A.C. Cuervo Resources Inc. is listed on the Canadian National Stock Exchange (CNSX) under the symbol FE. The company also trades on the Frankfurt Exchange under the symbol CRR.

Full Cuervo Resources Inc. profile here
Pdf

Cuervo Resources confident to find JV partner for Cerro Ccopane project as iron ore prices and demand rise

22nd Dec 2009, 3:51 pm
Cuervo Resources confident to find JV partner for Cerro Ccopane project as iron ore prices and demand rise

Cuervo Resources Inc (CNSX: FE, FWB: CRR) said that the outlook for finding a joint venture partner for its Cerro Ccopane iron ore project in Peru has improved, adding that the company’s share price did not reflect the developments that have taken place at Cuervo or in the industry in general.

These developments included the increase of iron ore spot prices from US$60/lb to US$100/lb, while China’s iron ore imports have reaches record levels. The company has also noted the decision from FTSE 100 base metal focused miner Xstrata (LSE: XTA) to enter the iron ore industry for the first time with a US$50 million investment for a 50% interest in an iron ore project located in the Democratic Republic of Congo.

The company got another confidence boost from the sale of Caldero Resource’s Pampa de Pongo iron ore property in southern Peru to a Chinese steelmaker for US$100 million, also saying that apart from China, steelmakers and iron ore producers in India, South Korea, Australia and Brazil were not satisfied with their current supplies of THE raw material.

As for the company’s own project Cerro Ccopane, Cuervo said that the construction of a slurry pipeline to the coast was found to be the solution making the most economical sense by a study by Sandwell Engineering, addressing the transportation issues at the property that have been a matter of concern by investors. Cuervo also defended its decision to list on the Canadian National Stock Exchange (CNSX), saying it was a “streamlined, fully disclosed, fully accredited and cost effective alternative.”

“As an emerging company, we have been able to concentrate our focus on the Cerro Ccopane project without being overly burdened. The company does recognize the need for its shares to be listed and traded on a senior exchange, which would be advantageous to attract institutional investors. This opportunity should be achieved upon gaining project financing from a joint-venture partner,” said chief executive and chairman of Cuervo, Brian Berner.

Finding a partner will help the company fund the planned drilling program with an estimated cost of US$40 million to explore two major target zones at the property.

An NI43-101-compliant resource estimate for the Orcopura zone of mineralization currently stands at 56 Mt (million tonnes) grading 46% iron in the measured and indicated categories, while a further 51 Mt grading 43% iron is reported to be present in the Inferred category. Orcopura is only one of six known zones at the property, which is believed to have the potential to contain up to 2 billion tonnes of iron ore.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.