Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announced today that all permits have been received and drilling has begun on Cornerstone's Gama Prospect, located in the NW portion of the Company's flagship Shyri Gold-Copper Property in southern Ecuador. This drilling is part of a first phase diamond drilling program comprising approximately 2,900 m of drilling in 11 holes on seven drill targets.
Yvan Crepeau, MBa., P.Geo, President of Cornerstone Ecuador S.A. (CESA) said; "I believe that all the drill targets on Gama have excellent potential. For logistical reasons we are starting in the southern part of the area at target F, and then moving northward." A map showing the drill hole locations can be viewed at; www.cornerstoneresources.com
Cornerstone and its Shyri joint venture partner Intrepid Mines Limited ("Intrepid") (ASX-IAU, TSXV-IAU) have approved a Phase One 2,900 metre diamond drilling program comprising 11 holes over various targets identified on the basis of surface geochemistry, detailed geology, magnetics, and 3-D interpretation of Induced Polarization (IP) geophysical data.
The primary purpose of the current drill program is to drill test both high sulphidation gold systems, comparable to the nearby 3.4Moz Quimsacocha gold deposit, and porphyry copper-gold systems. The targets have not been previously drilled.
The drill program will test the 7 targets over an area of 3 x 2 kilometers.
The approved exploration program includes sufficient scope to test other targets that may emerge as a consequence of the results obtained during the planned drilling, including geophysical targets that are located to the north of Target B.
- Target B is a coincident surface copper-gold-molybdenum geochemical anomaly with a well-defined annular magnetic signature, and IP chargeability and resistivity anomalies. The target model is a porphyry system with areas of high sulphidation overprint;
- Target C is a coincident silver-gold-mercury geochemical anomaly possibly representing a high level epithermal system;
- Target D is a coincident surface copper-gold-molybdenum geochemical anomaly and IP chargeability anomaly that may represent a porphyry system;
- Target E is a coincident surface copper-gold-molybdenum geochemical anomaly, IP chargeability anomaly, and geology that may represent the upper zones of a porphyry system;
- Target F is a coincident surface copper-gold-molybdenum geochemical anomaly with encouraging geology suggesting a porphyry environment. The IP geophysical coverage does not extend over this southern-most target area;
- One initial drill hole is proposed to test the mineralized Ermita Breccia. Rock chips returned up to 5.7g/t gold from the breccia that is interpreted to source a high sulphidation system at depth.
- One drill hole has been planned to test an interpreted flat lying high sulphidation system approximately 500m to the south of the Ermita Breccia.
The Shyri Property is the subject of an Option Agreement with partner Intrepid Mines Limited. As previously announced, Intrepid has the option to acquire an initial 60% interest in Cornerstone's Shyri Property which is located in southern Ecuador, approximately 350km south of Quito and 150km north of the border with Peru. Under the terms of the Agreement, Intrepid has the ability to earn an initial 60% interest in the Shyri Property by spending $US 6.0 million dollars over 5 years, with a firm commitment of $US 1.0 million in the first year. Intrepid will have the further right to earn an additional 20% interest in a specific area of the Shyri property of up to 5,000 hectares defined as a Project Area. Upon designation of a Project Area, Intrepid will make a $US 750,000 private placement in Cornerstone. To earn the additional interest, Intrepid will complete a bankable feasibility study or incur expenditures of $US 20 million, whichever comes first, and make a cash payment to Cornerstone of up to $US 5.0 million based on the gold equivalent ounces in the mineral reserve. There is no limit to the number of Project Areas Intrepid may designate within the property and each 'stand-alone' Project Area requires the same earn-in requirements (see news release dated Oct 29, 2009).
Cornerstone is the operator of the exploration program. Technical teams from Cornerstone and Intrepid have worked closely together to define the current suite of drill targets and to plan the ongoing regional exploration program within the broader Shyri Property area.
Yvan Crepeau, MBa., P.Geo, President of Cornerstone Ecuador S.A. (CESA) and a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this new release.
In other news, Cornerstone announces that Rare Earth Metals Inc. (TSXV-RA) ("Rare Earth") has elected to enter into the second year of the option agreement respecting the Letitia Lake rare earth element (REE) properties in central Labrador (see: www.cornerstoneresources.com). As per the terms of the agreement, Rare Earth has made a cash payment of $10,000 and delivered to Cornerstone 20,000 shares of Rare Earth on the first anniversary date, and exploration work commitments during year 2 total $100,000.
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada, Ecuador and Chile, and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone's projects.
Certain statements contained in this press release 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.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please contact:
North America toll-free: 1 (877) 277-8377
Martti Kangas - Direct Line: 1 (647) 521-9261
Paul Benwell / Pat Kairns - Direct Line: 1 (514) 904-1333
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The link to a recently updated Corporate presentation with narration is:
On Behalf of the Board,
H. Brooke Macdonald
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