Resource World Magazine

ORLD MININGW Volume 2 • Issue E Z I N G A M A 1 Innovative mining equipment and technology www.miningworld.com ies technolog ing GOLD tail ■ BLUE s CS revolution GEOMETRI ■ AERO ng two digital survivi gold and 9.0 m @ 5.88 g/t gold. Historic drill intercepts included SC 22 (26 m @ 2.2 g/t gold), SC 24 (48 m @ 1.0 g/t gold), SC 04 (30 m @ 1.0 g/t gold), and SC 35 (19 m @ 1.9 g/t gold and 18 m @ 1.8 g/t gold). All holes started in mineralization. The Candelones SE IP anomaly is open for over 800 m to the west and remains largely untested. Initial results have been returned from the Candelones Connector. This area is located between the Candelones Main and Candelones Extension. This 700 m long area is coincident with a large and deeper IP anomaly that was largely untested. Geological mapping has also identified significant silicification in surface exposures that occurs between Candelones Extension and the Main Zone. Significant gold values were reported from continuous rock chip sampling. Probe Mines intersects 51 metres of 10.3 g/t gold Probe Mines Ltd. [PRB-TSXV] received further assays from drilling its Borden Lake gold project near Chapleau, Ontario. Results for diamond drill holes BL12247 to BL12-271 continue to expand the Borden Lake gold zone to depth, identify new mineralization to the hangingwall side (northeast) of the main zone of mineralization and confirm the main zone continuity through infill drilling. Of the 25 new holes, six represent expansion of the main zone mineralization to depth; 14 represent drilling in the immediate hanging wall of the main zone testing for parallel gold zones; and five were drilled as infill to previous drilling of the main zone. Results suggest gold grades are improving, with all significant intersections returning values at or above the 0.6-gramper-tonne-gold cut-off used to define the updated resource. Of particular interest is hole BL12-256 february 2013 which returned the highest-grade intersection reported to date for the Borden Lake deposit, averaging 10.3 g/t gold over a 51-metre true-width intercept, including a 25-metre interval averaging 17.8 g/t gold, on Section 1200m SE. This intercept was bounded by two other high-grade intercepts 100 metres above and 90 metres below in holes BL12-248 and BL12-268, which returned intervals of 34.9 metres averaging 2.2 g/t gold and 38 metres grading 1.6 g/t gold, respectively. These results confirm the potential for the Borden Lake Zone to host much higher grades than previously observed. The hanging wall drilling program is continuing to identify and delineate parallel gold zones to the northeast of the main mineralized horizon. Four of the reported holes have continued to define and improve gold-bearing intervals observed above the main zone. Highlights include a 16.1-metre intercept averaging 0.6 g/t gold in hole BL12-250 (Section 600m SE) and a six-metre interval grading 5.4 g/t gold in BL12-254 (Section 500m SE). Continued drilling will be required to further delineate gold mineralization that could potentially be added to future resource updates. The hanging wall zones could be important to further evaluation of the deposit as they can potentially add new gold resources in an area that already falls within the postulated pit outline generated by the most recent resource estimate. Of the five infill holes reported in these results, four confirmed the same or higher grades from previously reported sections. Highlights include a 68-metre wide interval averaging 1.8 g/t gold, including 24.2 metres averaging 2.7 g/t gold, in hole BL12-270 (Section 100m NW) and a 57-metre wide intercept averaging 1.4 g/t gold, which includes a 16.8-metre interval averaging 2.4 g/t gold, in hole BL12-253 (Section 200m NW). Cerro Resources and Primero Mining to merge Cerro Resources NL [CJO-TSXV, ASX] has entered into a definitive agreement with Primero Mining Corp. [P-TSX; PPPNYSE] aimed at progressing the planned Cerro del Gallo gold/silver heap leach mine in Mexico, under which Primero will acquire all issued and outstanding ordinary shares of Cerro by way of a scheme of arrangement at the ratio of 0.023 of a Primero share for each 1 Cerro share. The terms of all issued and outstanding options of Cerro will be amended by way of a scheme of arrangement (the option arrangement) under the Act, so that on exercise of the Cerro options, the optionholders will receive Primero shares based on the share ratio; and a new company (Spinco) will be created to retain Cerro's non-Cerro del Gallo projects and interests. Existing Cerro shareholders will receive 80.01% of the ordinary shares in Spinco. Primero will fund Spinco in the amount of AU $4M and will receive a 19.99% stake in Spinco with antidilution rights for two years and be entitled to appoint one director to Spinco's board. The share arrangement represents a 77% premium to the spot closing price of Cerro shares on the ASX on 13 December 2012, excluding additional value through the creation of Spinco. Cerro owns 69% of the Cerro Del Gallo feasibility-stage project in Guanajuato, Mexico, a gold-silver deposit with 1.15 million oz of in-pit gold equivalent proven and probable reserves and 1.58 million oz of inpit gold equivalent measured and indicated resources (excluding P&P reserves). Cerro also owns 100% interests in the Namiquipa silver and Espiritu Santo gold/silver exploration projects in Mexico, as well as Australian project/investment assets. Primero operates the 100,000 oz gold eq pa San Dimas gold/ silver mine in Mexico, currently under expansion to 160,000 oz gold eq pa. Primero has a $133M pro-forma. n www.resourceworld.com 49

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