(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?

Mr. Sedgemore: 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 develop.
 

CEOCFO: Please tell us about your current projects –location, infrastructure, geology?

Mr. Sedgemore: Cuoro Resources flagship project is the Santa Elena property located in the Antioquia Batholith district, approx. 140km North of Medellin, Colombia.
 

The Santa 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 friendly populations.

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).

The initial target is the Santa Elena project in Colombia. We reported massive sulphide outcrops and historical workings where channel and chip samples have returned strong hints of copper and zinc. These samples have captured the interest of CuOro's major investors. We reported in late April that at surface it had cut 42 meters in 15 composite channel samples @ 2.5 percent copper.
 

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.
 

Geophysical test work was conducted for Noranda back in the early 1990s when it held the rights to the property.
 

Noranda 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?

Mr. Sedgemore: 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?

Mr. Sedgemore: 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.

Colombia is the most under-explored of the geologically prospective countries in South America.

Colombia is South Americas fastest growing mining jurisdiction.

A highly qualified Colombian workforce and good infrastructure.

Steadiest GDP growth and lowest average inflation in South America.

Rated 7thbest mining jurisdiction in the World (BehreDolbear).
 

The 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 industry.
 

CEOCFO: What is happening on the ground today on your projects?
Mr. Sedgemore: As previously stated, we reported massive sulphide outcrops and historical workings where channel and chip samples have returned strong hints of copper and zinc. These samples have captured the interest of CuOro's major investors. We reported in late April that at surface it had cut 42 meters in 15 composite channel samples @ 2.5 percent copper.
 

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.

We have also hired MPX Airborne Geophysics and are conducting an airborne survey that will be done over the entire property to establish other potential anomalies on site.
 

CEOCFO: What is the plan for the next year or so?

Mr. Sedgemore: 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?

Mr. Sedgemore: 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?
Mr. Sedgemore: We have just completed a $15 million dollar equity financing at $2.00 a share with Scotia Capital and Canaccord Capital, two of Canada's most respected and sophisticated Investment Bankers in the Mining industry.  That brings our treasury to $26 million dollars with only 29.2 million shares outstanding.
 

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.

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.
 

CEOCFO: In closing, why should investors pay attention to CuOro?
Mr. Sedgemore: Investment Highlights

• 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.