Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) is pleased to provide a further update on recent developments at the Cascabel Project in northern Ecuador as it prepares for drilling on the Cascabel concession. The 5,000 hectare Cascabel Project is optioned to SolGold Plc, which can earn up to an 85% interest in the Project (see news release dated February 19, 2013).|
Recent Follow-up Channel Sampling Results at the Alpala Prospect
- Receipt of additional surface channel sample assay results at the Alpala Prospect has extended the area of outcropping copper gold mineralization to >400 metres by >200 metres
- Final Environmental Impact Assessment ("EIA") submitted to the Ministry of Environment
- Finalization of drill hole locations at Alpala Prospect for Phase 1 drilling
- Upgrading of access tracks and infrastructure for drill rig mobilisation and drill program near completion
- Four other target areas within the Cascabel concession remain to be investigated for future drill testing
The surface extent of copper and gold mineralization at the Alpala Prospect continues to grow. The area of associated intense clay-silica-pyrite (acid alteration) also referred to as a "lithocap" occurs over approximately two square kilometres. The lithocap overlies the copper-gold porphyry target.
On 25th March and 1st May, the Company announced results of follow-up channel sampling at the Alpala porphyry copper-gold prospect within the Cascabel concession in Ecuador. These results yielded highly encouraging copper and gold assay values from surface sampling. The results significantly expanded the copper-gold quartz-sulphide stockwork zone at Alpala. This zone occurs within an erosional window that at the time exposed mineralised dacite porphyry over an area of approximately 220 metres by 120 metres. In May, the Company also announced that 3D magnetic modelling had identified a magnetic apophysis (a geological term for a tapering offshoot from a larger and deeper igneous intrusion) located centrally below the lithocap at Alpala. The presence of this magnetic feature supports the interpretation that copper and gold rich solutions sourced from a deep regional intrusion have focussed around this apex. This magnetic apex covers an area of at least 1000 metres by 500 metres under the clay-silica-pyrite lithocap and occurs below and adjacent to the outcropping copper-gold stockwork zone at Alpala. Geochemical channel sampling and geological mapping confirms mineral zonation typical of a classic copper-gold rich porphyry system.
Additional follow-up channel sampling was conducted during April, within the area of mineralization at central Alpala and also at higher elevation in the lithocap to the northeast, south and west of Alpala. This most recent phase of follow-up sampling has expanded the area of copper and gold mineralization at surface to an area of up to 430 metres by 200 metres (Figure 1 - All figures found at www.cornerstoneresources.com.)
A total of 237 channel samples were collected from 45 new channels. Seven of the new areas sampled yielded significant copper and/or gold grades as listed in Table 1 below. The best results were 34.35m grading 0.46% copper, 0.19 g/t gold and 6.97m grading 1.07% copper, 0.45 g/t gold (Table 1).
Table 1 - Recent significant channel sample results from Alpala. Locations are shown in Figure 1.
The remaining channel samples with weakly anomalous copper and gold grades came from higher levels in the overlying lithocap, or from peripheral areas, where grades are expected to be lower.
In the broader Alpala region, average copper grades in surface samples generally increase with decreasing elevation as illustrated in Figure 2, consistent with our model in which copper and gold grades will increase at depth below the level of surface channel sampling.
Submission of Final Environmental Report to the Ministry of Environment
The final version of the Environmental Report (Estudio de Impacto Ambiental or "EIA") was submitted to the Ministry of Environment ("ME") on 31 May. The approval of the EIA by the Ministry of Environment will progress the Cascabel concession from Early Stage to Advanced Stage Exploration thereby enabling drilling to occur. The final submission of the EIA addressed questions arising from the first draft Environmental Report. Cornerstone utilizes the services of Cardno Latino America ("Cardno"), specialists in all aspects of environmental and social management. Cornerstone and Cardno are confident that all outstanding issues raised by the ME have been addressed in the final EIA Report and believe receipt of approvals for this Environmental License by the ME is imminent.
Finalization of Phase 1 Drill Hole Locations at Alpala Prospect
A Stage 1 drill program at the Alpala Prospect has been prepared and approved by SolGold and Cornerstone. The program comprises five diamond drill holes totaling 2500 drill metres. Three holes are sited at central Alpala to test the area of mineralized porphyry containing quartz stockwork veining that has been identified by surface channel sampling (Figure 3). The fourth and fifth holes have been sited to test the western margin of the 1000 metre long by 500 metre wide magnetic apophysis, which underlies the southeast lithocap at Alpala (Figure 3). The Stage 1 drill program will test a zone 500 metres by 400 metres in area.
Upgrading Access Tracks for Drill Rig Mobilization Near Completion
In anticipation of receipt of the EIA, access tracks to Alpala have been upgraded to allow mobilization of the drill rig and associated drilling equipment. Establishment of drill core logging facilities, field office and other logistic considerations are currently being finalized in advance of the issuance of the EIA to carry out advanced exploration.
Four Other Target Areas at Cascabel
Apart from the highly prospective Alpala Prospect, there are currently four other target areas within the Cascabel tenement including: Quebrada Tandayama-America, Aguinaga and Quebrada Moran are prospective for copper-gold porphyry deposits and Rio Cachaco is prospective for epithermal gold style mineralization (Figure 4). These targets will be investigated further over the next 6 to 12 months.
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.
The technical information contained in this news release has been reviewed and approved by Yvan Crepeau, P.Geo., President of Cornerstone Ecuador S.A. and Minera Cornerstone Chile Limitada (Ecuadorian and Chilean projects), a qualified person in accordance with National Instrument 43-101.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please contact:
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On Behalf of the Board,
President and CEO
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