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Cornerstone Capital Resources Inc Cornerstone Capital Resources Inc Cornerstone Capital Resources Inc
 May 09, 2012
12-09 - Cornerstone Announces Final Trenching Results and Proposed Phase 1 Drilling Program at La Fortuna Copper-Silver Project, Chile

 Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) today announced the sampling results of three additional trenches and completion of the surface exploration program at the La Fortuna copper-silver project located in the Valparaíso Region of central Chile, approximately 100 km north of Santiago. All technical data from the project has been incorporated into a 3D model, and a Phase 1 drilling program has been designed to test eight highly prospective targets. Results from initial trenching and a general description of the exploration program were announced on August 30, 2011 and February 22, 2012.

Maps showing the location of the La Fortuna project, geology and updated exploration results and drill targets can be viewed at www.cornerstoneresources.com.

Highlights

  • Trench TH15: 12.0 m grading 0.39% Cu and 0.5 g/t Ag
  • 3D model completed
  • Phase 1 drill program (18 holes totaling 5,500 m) proposed to test 8 priority targets
"The thorough exploration program carried out at La Fortuna confirms the potential of this property to host significant manto-type copper and silver mineralization. We are very pleased with the encouraging results and the promising drill targets that have been developed" said Brooke Macdonald, Cornerstone's President and CEO. "Consistent with our prospect generator business model, Cornerstone is actively seeking a joint venture partner to help advance exploration on this drill-ready project".

Exploration program
The La Fortuna property covers an area of 2,900 hectares, measuring approximately 10 km north-south by 3 km east-west. The project is favourably located in an established mining district at relatively low elevations (1200 to 1800 m above sea level), and is easily accessed by existing roads. The property is partly contiguous with the Cerro Negro copper-silver mine, a manto-type deposit immediately to the west which combines open pit and underground operations and produces copper cathodes via heap leach SX-EW and copper-silver concentrates via flotation. The El Bronce epithermal gold-silver district is located 30 km to the north. The region is sparsely populated, and has a hot and dry climate which is well-suited for leaching operations. Many surface mineral occurrences have been worked by small scale miners in the past but no drilling has ever been carried out at La Fortuna.

The surface exploration program carried out during the period April 2011 to April 2012 includes prospecting over the entire property, geological and structural mapping and rock sampling (168 representative chip samples), hand-dug trenching (19 trenches totaling 710.1 m, 348 channel samples), a 217 line km ground magnetic survey and a 39.8 line km, deep penetrating (400 m) induced polarization (IP) survey.

Trenching
Results from trenches TH1 to TH7 were released on August 30, 2011 with TH1 returning 19.5 m at 1.34% Cu and 58.0 g/t Ag. Results from Trenches TH8 to TH14 were released on February 22, 2012 with TH8 returning 117.9 m at 0.19% Cu and 9.4 g/t Ag, including 52.4 m returning 0.33% Cu and 16.9 g/t Ag. Table 1 below provides assay results for the final three trenches TH15A, TH15B and TH15C.

Table 1. La Fortuna Trenching Results.
Trench Zone Length (m) # Samples Interval (m)* Cu (%) Ag (g/t)
TH15A Qda. Honda 52.0 25 12.0 0.39% 0.5
TH15B Qda. Honda 5.5 2 No significant results
TH15C Qda. Honda 4.0 2 No significant results
Total   61.5 29      
* The reported copper and silver intervals are apparent thicknesses due to the early nature of the exploration program.

Significant copper and silver assay results were obtained in 2011 in the northern two-thirds of the property, defining seven prospective mineralized zones over a large area of approximately 18 km². Higher-grade mineralization is concentrated in, but not restricted to, veins that are typically 1 to 2 m wide but occasionally up to 4 m, emplaced within wider (up to 50 m) fault zones, often intruded by andesitic porphyry dykes. A structural analysis defined two main structural trends, with the most prominent orientation at N45 to N70 degrees and a second set, striking N320 degrees. Mineralization is also present as disseminations in fractures and shear zones within halos to the structures and within breccias over significant widths (up to 117.9 m in trench TH8). A statistical geochemical study indicates a high correlation factor (0.63) between copper and silver mineralization. It also shows a very high correlation factor (0.80) between As, Sb and Hg, indicating the possible presence of a superimposed high level epithermal system. Information collected thus far suggests that mineralizing fluids migrated along steeply dipping structures and metals were deposited within the structure and wall rocks and within geochemically receptive, sub-horizontal, geological horizons and higher porosity, brecciated rocks. The presence of intrusive rocks (stocks, dykes, etc.) appears to be an important controlling factor for the deposition of mineralization. Geological interpretation suggests that geological Unit 4 (U4, on the geological map) could be the stratigraphic equivalent of the Diablo Breccia unit hosting the copper-silver mineralization at the neighbouring Cerro Negro Mine.

Drill target definition
Eight prospective drill targets were defined through the integration of all datasets. The names and extent of the original target areas have been revised slightly since the August 30, 2011 news release. Updated target information (name and size) is shown on the maps linked to this news release.

  • Vizcachas (V): The Vizcachas Fault is a NNW oriented, SW dipping, important mineralized structure located in the western part of the property. To the north, a few hundred metres outside of the property boundary, copper and silver mineralization is mined by small scale miners. At this location, mineralization is present as disseminated bornite and chalcopyrite within greywacke and shale units in the footwall of the Vizcachas Fault. This structure is present for more than 2 km on the La Fortuna property. In the southern portion of the fault, a well-defined and extensive (NE -- SW elongated, 400 to 800 m wide by > 1200 m long) moderate IP chargeability anomaly is coincident with the thick (> 200 m), porous, U6 breccia unit and the Vizcachas Fault. Four drill holes (FP01, FP02, FP03 and FP04) totalling 1,350 m are proposed to test this large target over a 900 m strike length.
  • Loma Verde East (LVE): This target is located on the eastern extension of the Loma Verde Fault, a N80 degrees oriented and steeply dipping structure. Mapping and sampling at the Loma Verde Mine (third party owner, small scale mining operation) to the west, suggest that this fault is a major control for the mineralization hosted within the greywacke (U3 and U5 units) and the U4 breccia unit. The Loma Verde Fault extends for more than 600 m to the east and probably crosses the contact with the north-south and fault-bounded andesitic sub-volcanic unit. Trench TH2 dug across the structure returned 19.8 m at 1.34% Cu and 58 g/t Ag. Four drill holes (FP05, FP06, FP07 and FP08) totalling 1,150 m are proposed to test the mineralized fault at depth, the U4 unit and a moderate to strong IP chargeability anomaly.
  • Loma Verde Southwest (LVSW): The U4 breccia unit hosts copper and silver mineralization on this target located to the southwest of the Loma Verde Mine. The breccia is dissected by a N45 degrees oriented fault. The fault and breccia have been trenched and returned 117.9 m grading 0.19% Cu and 9.4 g/t Ag, including 53.4 m grading 0.33% Cu and 16.9 g/t Ag. A weak IP chargeability anomaly is present at depth. This target will be tested with two drill holes (FP09 and FP10) totalling 450 m.
  • Loma Verde West (LVW): This target corresponds to a mineralized, N60 degrees oriented, southeast dipping fault associated with a large positive magnetic anomaly to the southeast, indicating a possible intrusive body at depth. Trench TH14A tested the fault at surface and returned 7.7 m grading 0.36% Cu and 11.6 g/t Ag and trench TH14B returned 25.5 m grading 0.19% Cu and 6.2 g/t Ag. Two drill holes (FP011 and FP012) totalling 600 m are proposed to test the mineralized fault, the magnetic anomaly, the U4 unit and a coincident moderate IP chargeability anomaly at depth.
  • Loma Verde Southeast (LVSE): Surface mineralization on this target is associated with a N35 degrees oriented fault, intruded by magnetic, andesitic porphyry dykes. The best surface results were obtained in trench TH7 which returned 10.8 m grading 0.95% Cu and 17.6 g/t Ag, and 16.0 m grading 0.49% Cu and 9.6 g/t Ag from two different zones. Two drill holes (FP013 and FP014) totalling 650 m are proposed to test this target comprising the mineralized fault and dykes, U4 breccia unit and coincident moderate IP chargeability anomaly at depth.
  • Quebrada Honda Central (QHC): One drill hole (FP015, 150 m) is proposed to test surface copper mineralization (Trench TH12: 28.1 m grading 0.19% Cu) associated with the Quebrada Honda Fault, which separates the volcano-sedimentary units to the west from the andesitic subvolcanic rocks to the east. A strong IP chargeability anomaly is associated with this contact and could be coincident with the U4 unit at depth.
  • North Zone (NZ): The North Fault located in the northwest corner of the property, separates the volcano-sedimentary domain to the south from a volcanic domain to the north. The fault strikes N140 degrees, dips 50-60 degrees to the SW and is intruded by andesitic porphyry dykes. The north volcanic sequence and the dykes are silicified, argillized and affected by supergene leaching of the sulphides. The NW part of the fault has an associated a magnetic high anomaly. The IP survey indicates a strong and aerially extensive (1300 m by > 400 m) chargeability anomaly to the SW of the fault. It is associated with the lower units of the volcano-sedimentary package mapped on the property and located in the hanging wall of the fault. Two drill holes (FP016 and FP017) totalling 750 m are proposed to test this target.
  • Quebrada Honda North (QHN): In the north central part of the property the Quebrada Honda Fault is characterized by the presence of breccias, quartz -- carbonate alteration and disseminations of pyrite, chalcopyrite and malachite. One short drill hole (FP018, 150 m) is proposed to test this target below trench TH 15A which returned 12 m grading 0.39% Cu and 0.5 g/t Ag.
Sampling and assaying
All samples are delivered by Cornerstone employees for preparation at Acme Analytical Laboratories (ACME) facility in Santiago, Chile. Rock samples are prepared crushing 1 kg to 80% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 0.075 mm (200 mesh) (ACME code R200-250). Gold is assayed in Chile, using a 30 g split, Fire Assay (FA) and AA or ICP-ES finish (ACME code G601). A 100g-plup is shipped to ACME in Vancouver, Canada where samples are assayed for a multi-element suite (ACME code 1DX2, 15g split, Aqua Regia digestion, ICP-ES finish). All samples with results > 100 g/t Ag, >10,000 ppm Cu, Pb or Zn are systematically and quantitatively re-assayed (ACME code 7AR, Aqua Regia Digestion, ICP-ES finish). All samples with results > 5,000 ppm Cu total are systematically re-assayed to determine leachable copper (ACME code G9, Citric acid leach, Cu, 1 g/100 mL, AAS finish).

Quality assurance / Quality control (QA/QC)
ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Certified blanks and standards are systematically used as part of Cornerstone's QA/QC program, and are inserted every 20 samples at La Fortuna.

Qualified Person
Yvan Crepeau, M.Ba., P.Geo., General Manager of Minera Cornerstone Chile Limitada (MCCL) and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the La Fortuna project and has reviewed and approved the information contained in this news release.

La Fortuna option agreement
Cornerstone, through its wholly-owned subsidiary, MCCL, has entered into an agreement with a Chilean individual to acquire the La Fortuna property. The agreement gives Cornerstone the right to acquire an undivided 100% interest in the La Fortuna property by incurring exploration expenditures of C$3.0 million and making cash payments totalling C$600,000 over a 4-year period. Requirements to maintain the agreement through the first year included a cash payment of C$100,000 and exploration expenditures of C$500,000, both of which requirements have been met. A work program totalling C$750,000 is required to maintain the property until March 2013. The acquisition is subject to a 1.5% Net Smelter Royalty ("NSR"), and to advance payments of the NSR on each anniversary following the date the option is exercised. Cornerstone has a right of first refusal to purchase the NSR if the holder decides to sell it.

About Cornerstone
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. Commitments from JV partners constitute significant validation of the strength of Cornerstone's projects.

Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please contact:

Investor Relations:
Email: communications@crigold.com
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

The link to a recent Corporate presentation is:
http://www.cornerstoneresources.com/i/pdf/Presentations_0112_CRICorporate.pdf

The link to a virtual tour of drilling at the Gama prospect, Shyri concession in Ecuador is:
http://www.youtube.com/watch?v=Ne8XSfgLwIM

Investors can also access Cornerstone on Twitter

Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' Although Cornerstone believes that its expectations reflected in these 'Forward-Looking Statements' are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release. 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 except where outcomes have varied materially from the original statements.

On Behalf of the Board,
Brooke Macdonald
President and CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 
 

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