 |
Address:
26 Kyle Avenue
Mount Pearl, NL
Canada A1N 4R5
Telephone:
(709) 745-8377
Fax:
(709) 747-1183
Toll Free:
(877) 277-8377
|
 |
|
| | August 11, 2008
July Update
Publisher: Cornerstone Resources Inc.
Author: Colin McKenzie
|
| | There seems to be a consensus that precious and base metals have been in a bull market since 2001 and will most likely continue for many years as the economic growth in China and other emerging economies demands ever-increasing amounts of the world's raw materials.
Jitters over the health of the U.S. economy amid escalating fuel costs and the subprime credit crisis weighed heavily on the minds of Investors and caused a mid cycle steep sell-off led by resource shares in the past year.
During this period the price chart of Cornerstone's shares generally followed the pattern of the TSXV, as did many other junior resource stocks. In addition to the general market woes, Cornerstone was very negatively impacted by the mining moratorium imposed in Ecuador during late April. This was at a time when expectations for the commencement of drilling on our highly regarded Shyri project were running high.
I took over the reins of Cornerstone about one week before the announcement of the Ecuador mining moratorium. Since then we have been working very hard to adapt Cornerstone to the quickly changing situation. We have made real progress in that regard and at this point we are optimistic about a number of our projects as well as the outlook for the equity markets;
1. At the recent Agora conference in Vancouver, at which Cornerstone was one of a limited number of invited, screened participants, many attendees and speakers expressed the view that we are at or near the bottom of the market and many expect a market rally by October 2008 followed by continued market momentum in 2009.
2. The Little Deer copper project, located in the historic Green Bay mining district near Springdale in Central Newfoundland, has been producing excellent drilling results in the form of wide zones of good grade copper mineralization. We are quite excited as we look forward to further positive results from the ongoing drilling.
3. We are initiating exploration on the 100%-owned Dorchester and Goshen SXEW copper prospects in southern New Brunswick. We expect to be drilling on the project later this year.
4. The new project in the Labrador Trough, which is a joint venture with Altius Minerals, is underway and an airborne survey is currently being conducted.
5. From our operational platform in Ecuador we are currently assessing precious metals opportunities in Argentina and Brazil, while awaiting resolution of the mining moratorium.
The following are links to some recent news items that you may find of interest in regards to the situation in Ecuador.
Kinross makes US$1.19bn friendly bid for Aurelian
Ecuador's Constituent Assembly finishes work on new constitution
IAMGOLD Releases Quimsacocha Pre-Feasibility Study
In short, we remain very positive on the outlook for Cornerstone.
Best regards.
Colin
Colin B McKenzie, President & CEO
Cornerstone Capital Resources Inc.
Excellence in Mineral Exploration
"People, Process, Projects"
TSXV - "CGP" / OTC - "CTNXF"
F - "GWN" / B - "GWN"
Email: mckenzie@crigold.com
www.cornerstoneresources.com
Toll Free 1-877-277-8377
Cautionary Notice:
Certain statements contained in this email may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. |
| |
| | You can view the Previous Corporate Update item: Thu Sep 25, 2008, August Update
You can view the Next Corporate Update item: Thu Jun 19, 2008, June Update
You can return to the main Corporate Update page, or press the Back button on your browser.
|
|
|
|