Certain statements contained in this investor update 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.|
On January 13th we reported on the approval of the new mining law by the Ecuadorian congress. The law was subsequently officially enacted on January 29th which now clears the way for "normalization" of exploration and mining activities in the country. It is not however the final piece of the puzzle. That point was made to President Correa during a meeting with Canadian companies and Embassy officials on February 16th. Participants in the meeting described the President's response as "positive" and he offered remedies to fast track the resumption of work. The meeting was followed by remarks to the media by President Correa in which he called for broadened business contacts with Canada and singled out the Canadian mining industry as having among the best environmental and social records in the sector.
To further the promotion of mining investment in Ecuador, the Canadian Embassy has also organized a forum entitled "The future of Mining in Ecuador" at the PDAC convention in Toronto. The event will be held at the InterContinental Centre on March 2, 2009. Presentations will be made by the Canadian Ambassador to Ecuador, Vice Ministers of the Ministry of Mines and Petroleum of Ecuador, the Council of Canadian Responsible Mining in Ecuador, the Mining Chamber of Ecuador as well as representatives of Canadian mining companies with operations in Ecuador.
Cornerstone will participate in the Ecuador forum as well as host a booth during the four days of the convention. We invite our investors to visit us at Booth 2723 in the South Building of the Toronto Convention Centre.
Little Deer Copper
Cornerstone and partner Thundermin announced the final results of the 2008 drill program this week as well as the results of some detective work on the old mining files from the Brinex Whalesback copper mine which operated on the present day Little Deer property during the 1960's to early 1970's.
The last two holes expanded the region of known copper mineralization with a best result in LD-08-16 of 3.4 m grading 4.0% Cu. This intersection is the deepest to date on the property and underscores that the high grade Little Deer mineralization remains open and untested both at depth and to the west. As we noted in the news release, "The copper mineralization on the Little Deer property has now been intersected over a strike length of approximately 1,050 m and to a vertical depth of approximately 800 m."
Results from underground drilling in the 1960's are also encouraging and suggest that not only is the high grade mineralization reasonably continuous but also that there is potential for finding more adjacent to these relatively shallow levels of the deposit. There were some truly spectacular results from this old drilling; e.g.
This bodes well for the potential of identifying other high grade areas within the deposit through more closely-spaced drilling.
- 8-146 5.3% Cu over 7.6 m
- 8-150 7.0% Cu over 3.7 m
- 8-171 10.0% Cu over 6.7 m
- 8-175 7.0% Cu over 3.7 m
Cornerstone and Thundermin will proceed with a new phase of drilling to test the extension of the deposit at shallow to moderate depths, gain further information in the thickest part of the deposit around the 74 m wide intersection of 2.2% Cu in LD-98-07D and test the deeper westward continuation of mineralization.
Cornerstone has a large portfolio of gold properties in Newfoundland including the Cape Ray, El Strato, Colchester, True Grit and Burin properties. The Cape Ray property has a historical resource (non NI 43-101 compliant) of 266,000 tonnes of 10.6 g/t Au (the 51 Zone) in addition to exploration potential for porphyry style gold mineralization within the Windowglass Hill granite. The other properties also host significant gold surface showings and drill intersections but no defined mineral resources at present. We are actively seeking partners for the various properties as well as reviewing our existing databases to identify the best targets that can be tested and upgraded inexpensively. The current strength and outlook for the gold market indicate there are growing opportunities for quality gold projects.