Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announces the following project update for the Company's Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador.|
All reported intervals referred to in this news release are core lengths. At present the true thicknesses are uncertain due to the early stage of drilling.
- Assays received for drill hole CSD-14-008 ("Hole 8"), 914.45m intersection from 396m to end of hole (EOH) at 1310.45m;
- A bulk intersection of 914.45m grading 0.41 % Cu and 0.44 g/t Au from 396m depth, which equates to 0.67 % Cu Eq.;
- Including the following intersections:
- 448.45m @ 0.56% Cu and 0.64 g/t Au from 862m to 1310.45m (EOH), which equates to 0.95 % Cu Eq. (definition for copper equivalent grade calculations below);
- 904m to 1186m, 282m @ 0.60 % Cu and 0.76 g/t Au (1.06% Cu Eq.)
- 1264m to 1310.45m (EOH), 46.45m @ 0.71% Cu and 0.58 g/t Au (1.05% Cu Eq.)
- Hole CSD-14-008 to be deepened;
- Hole CSD-14-009 ("Hole 9") commenced on October 28;
- Copper and Gold grade in the deep intersections at Alpala compare favourably with other operating and development underground block cave operations; and
- Alpala prospect indicating substantial size in three dimensions.
References to figures, photographs and tables related to the version of this release on the Company's website (www.cornerstoneresources.com) or visible in PDF format by clicking the link below:
Hole 8 on the Cascabel concession was drilled at the Alpala porphyry copper-gold prospect (Figure 1). During September, the hole was sited from the same location as Hole 5 and drilled towards grid north at a dip of 85 degrees. Hole 8 was planned to test for the northeast extension of the high-grade mineralization that has been identified extending along a northwest trend from Hole 5 to Hole 7.
The bulk intersection from 396m to end of hole at 1310.45m is 914.45m grading 0.41 % Cu and 0.44 g/t Au (0.67 % Cu-equivalent). Mineralization in Hole 8 remains open at depth and is increasing in grade.
The intersections from Hole 8 are listed in Table 1. Table 2 shows all intersections from the Alpala project expressed as Cu-equivalent values. The intersection of 448.45m grading 0.56 % copper and 0.64 g/t gold establishes continuity of mineralization extending northeast-ward off the Alpala Footwall Structure by at least 175m at this depth. There is now demonstrated significant continuity of mineralization in the vertical dimension as well as the northwest and northeast directions.
Figure 2 shows a cross-section through holes 1, 2, 5 and 8 at Alpala. Hole 8 intersected extensive basaltic andesite and andesite volcanic lavas with lesser volcanic breccia from surface to 715m depth followed by several phases of intrusion that comprise microdiorite, diorite and quartz diorite from 715m to end of hole at 1310.45m.
Extensive lower grade copper and gold mineralization at shallow levels occurs within and around the interpreted early diorite and microdiorite intrusions and overlying volcanic host rocks, over a vertical extent exceeding 500 metres. These diorite and microdiorite intrusions are preserved in the northeast hanging wall to a quartz diorite intrusion that occurs at depth in Hole 8, and was widely intersected in Hole 5 (Figure 2).
High grade copper and gold mineralization occurs within the interpreted younger quartz diorite intrusion that was emplaced along the Alpala Footwall Structure (Figure 3). The high-grade copper-gold mineralization also extends into and overprints the early diorite body.
The quartz B-vein shell, that hosts much of the copper and gold mineralization in porphyry copper deposits, appears to be developed around both the shallow diorite intrusions and the quartz diorite intrusion, suggesting that both phases may have contributed metal to the Alpala deposit (Figure 2).
Copper sulphide mineralization in Hole 8 is dominated by chalcopyrite, with significantly lesser bornite and traces of molybdenite. Plates 1, 2 and 3 show the style of disseminated mineralization encountered near the bottom of Hole 8. Fine grained disseminated chalcopyrite mineralization picked up in intensity over the last 50 metres of the drill hole as it penetrated deeper into the broadening quartz diorite body.
Hole 8 was terminated on 11 October at a depth of 1310.45m. The drill hole intersected extensive high grade copper and gold mineralization from 862m to the end of hole at 1310.45m depth, yielding an intersection of 448.45m grading 0.56 % copper and 0.64 g/t gold. This intersection equates to 448.45m at 0.95 % Cu-equivalent. Using a copper price of US$6614/tonne and a gold price of US$40/gram, the Cu-equivalent ("Cu-Eq.") grade is calculated by [Cu-Eq. = Cu% + (Au g/t x 0.6)].
Hole 9 is located 120m north of the Hole 5 drill pad and is being drilled with an 85 degree inclination towards 210 degrees UTM (Universal Transverse Mercator). Drilling commenced on October 28, and as of November 6 the hole was at 378 metres depth and progressing towards top of target at 860 metres downhole depth.
Block Cave Grade Comparison
The three main high grade copper-gold intersections encountered to date in Holes 5, 7 and 8 (excluding the high grade intersection in Hole 1) commence at depths of 658m, 1056 and 862m respectively. These intersections are within the grade range of current block cave underground mining operations and block cave development projects in Australia, Canada, Mongolia, Papua New Guinea and the United States (Figure 4). This data is encouraging as the Company extends the high grade copper-gold zone at Central Alpala.
SolGold Plc owns 85% of the equity of Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean registered company that holds 100% of the Cascabel concession in northern Ecuador. Cornerstone owns the remaining 15% of ENSA, which also holds the rights to the La Encrucijada gold-silver project. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project with Cornerstone Ecuador S.A. providing some exploration and administrative services. Cornerstone's 15% interest is financed through completion of a National Instrument 43-101 compliant feasibility study.
Cascabel is located in north-western Ecuador in an under-explored northern section of the richly endowed Andean Copper Belt, 60 km northeast of the undeveloped inferred resource of 982 million tons at 0.89% Cu Junin copper project. (Mineralization identified at the Cu Junin copper project is not necessarily indicative of the mineralization on the Cascabel Property).
Yvan Crepeau, MBA, P.Geo., Cornerstone's Vice President, Exploration and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Cascabel project for Cornerstone and has reviewed and approved the information contained in this news release.
Logging, sampling and assaying
Holes referred to in this release were or are being drilled using HTW, NTW, NQ and BQ core sizes (respectively 7.1, 5.6, 4.8 and 3.7 cm diameter). Geotechnical measurements such as core recovery, fracturing, rock quality designations (RQD's); specific density and photographic logging are performed systematically prior to assaying. The core is logged, magnetic susceptibility measured and key alteration minerals identified using an on-site portable spectrometer. Core is then sawed in half at Cornerstone's core logging facility and half of the core is delivered by Cornerstone employees for preparation at Acme Analytical Laboratories (ACME) affiliate laboratory in Cuenca. Core 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). Prepared samples are then shipped to ACME in Vancouver, Canada where samples are assayed for a multi-element suite (ACME code 1E, 0.25g split, 4-acid digestion, ICP-ES finish). Over limit results for Ag (> 100 g/t), Cu, Pb and Zn (each one > 1%) are systematically re-assayed (ACME code 7 TD1 or 7 TD2, 4-acid digestion, ICP-ES finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AA or ICP-ES finish (ACME code G601).
Quality assurance / Quality control (QA/QC)
The ACME affiliate preparation facility in Cuenca was audited by Cornerstone prior to the start of the drilling program and ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used (1 control sample every 15 samples) as part of Cornerstone's QA/QC program. Rejects, a 100 g pulp for each core sample and the remaining half-core are stored for future use and controls.
Cornerstone Capital Resources Inc. is a well-funded mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in 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 partnerships. Commitments from partners constitute significant validation of the strength of Cornerstone's projects.
Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:
North America toll-free: 1 (877) 277-8377
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,
President and CEO
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