26 Kyle Avenue
Mount Pearl, NL
Canada A1N 4R5
| ||November 12, 2009|
Author: Colin McKenzie
| ||Cornerstone Corporate Update, November 2009:|
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. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the forward-looking statements contained herein.
We've made great progress since the summer and the pieces are now in place for a successful re-launch of our programs in Ecuador. We are very pleased and excited to have Intrepid Mines Ltd., an Australian-based gold mining and development company, partnering on our highly prospective Shyri property. Intrepid are currently mining the Paulsen's deposit in Australia. They also have a significant gold and porphyry copper discovery in Java, Indonesia. The Tujuh Bukit project has multi-million ounce potential for near-surface oxide gold production as well as deeper porphyry copper-gold mineralization which Intrepid have optioned to Vale, the large Brasilian mining group. Intrepid see compelling geological similarities at Shyri and have committed a minimum $US 1.0 million to drill targets on the Gama prospect in the first year of their earn-in. Another great feature of the agreement is that Cornerstone will provide the personnel and exploration services to Intrepid during the option period. This will allow us to maintain our strong administrative and operating platform within the country. Please see our News Release 09-23, October 29th available on our website www.cornerstoneresources.com for details of the binding letter of intent.
On the permitting front, the Ecuadorian government passed the Mining Regulations on November 4th thus completing the regulatory framework for the re-initiation of exploration and mineral development activities. Subsequently, Kinross (Fruta del Norte) and Corriente (Mirador) received the final sign-off from the Minister to restart their projects. We expect our final approvals will not be far behind and in fact we have already received formal notification that 13 of our 16 concessions have approved preliminary environmental impact assessments (EPIA's). The other three are under review but should be approved in due course. For Cornerstone the final regulatory piece is the issue of a water usage permit to enable diamond drilling on the Gama prospect at Shyri. We've made the required applications to the water agency and are about halfway through the 60-day permitting process. Assuming the water permit and the completion of the definitive agreement with Intrepid proceed as planned we should be ready to mobilize drills to Gama after the Christmas break.
In the meantime our prospecting and reconnaissance exploration work has continued on the Newmont strategic alliance within the 2000 km2 Macará project area. We have been very encouraged by the field results this fall as our geologists have been working in a well-mineralized belt of rocks that extends northwards from Peru into Ecuador. While there are known mineral deposits in Peru, the Ecuador section is very poorly explored, yet constitutes an equally prospective terrain.
Little Deer Copper
Cornerstone and partner Thundermin embarked on a new 4600 m drill program in September budgeted at $600,000. The program is designed to enlarge the 3.04 million tonne mineral resource reported in July. Results are starting to come in and will be released as the program continues. Initial objectives are to extend the mineral resource both up dip and along strike to the west in support of our target of outlining a five million tonne deposit. A second intriguing component of the program is to follow-up high grade gold in float and outcrop to the southwest of the Little Deer deposit. Grab samples of altered and mineralized volcanic rocks have returned gold grades ranging from 2.0 g Au/t to 22.7 g Au/t over a distance of 2.2 km from the western end of the deposit. No previous drilling or other systematic exploration has been carried out along this prospective gold trend.
Cornerstone acted on two opportunities recently to add rare metals properties to our portfolio. A review of government till and lake sediment geochemistry in the Letitia Lake area of central Labrador highlighted two anomalous areas in proximity to known occurrences of rare metals (Be, Nb, Zr, Hf, Ta) and rare earth elements (REE's). The 148 Cornerstone claims were acquired in two separate areas: 1) east of Two Tom Lake; and 2) south of Letitia Lake. In the meantime other companies have staked claims in the area suggesting a regional play may be shaping up for these high tech metals.
We have also staked 676 mineral claims (10,816 ha) in the New Ross area of western Nova Scotia. The New Ross area is underlain by Late Devonian granite intrusions of the New Ross Pluton and related smaller bodies of granite. The area is prospective for hosting lithium (Li) and rare metal deposits of niobium (Nb), tantalum (Ta) and beryllium (Be). The 100%-owned Cornerstone claims cover a 25 km long trend of the favourable, altered and mineralized granites with at least a dozen known mineral occurrences. Many of the prospects have historic mention of lepidolite and amblygonite, ore minerals of lithium, and/or the ore minerals columbite/tantalite (niobium and tantalum) and/or beryl (beryllium) but there has been little systematic exploration for these commodities.
These recent acquisitions of rare earth element, rare metals and lithium properties fit well with our business model of generating quality early-stage projects across a range of commodities, which can then be advanced through joint venture partnerships. Global demand for the high-tech metals is expanding and recently supply concerns, particularly for the rare earth elements (REE's), have been capturing headlines. Our recent property acquisitions provide shareholders with exposure to an emerging sector with tremendous upside.
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