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 Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador, in which the Company has a 15% interest financed through to completion of a feasibility study.|
True widths of the Hole 9 drill core intercepts referred to in this news release are also shown on figure 2.
- Drill hole CSD-14-009 ("Hole 9") total downhole interval extends over 1 kilometre and remains open at depth. Currently at a depth of 1700.8m with drilling to continue to deeper levels
- Bulk intersection of 1270.8m grading 0.59% copper and 0.77 g/t gold (~485m true width) for 1.06% copper equivalent from 430m to 1700.8m (current hole depth)
- Includes 1058m grading 0.68% copper and 0.92 g/t gold (~401m true width) for 1.21% copper equivalent from 650m to 1700.8m (current hole depth), and 772m grading 0.80% copper and 1.19 g/t gold (~295m true width) for 1.51% copper equivalent from 710m to 1482m
- Two distinct high grade porphyry stockwork zones intersected:
- Upper High Grade Zone of 110m @ 1.13% copper and 2.32g/t gold (~42m true width) for 2.53% copper equivalent from 710m
- Lower High Grade Zone of 420m grading 1.00% Cu & 1.35 g/t Au (~160m true width) for 1.81% Cu equivalent from 1062m; including 298m @ 1.24 % copper & 1.72g/t gold (~114m true width) for 2.28% copper equivalent from 1184m
- Hole 9 intersection gives three dimensions to high grade mineralization intersected so far at Alpala
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:
Drilling of Hole 9 commenced on October 28, 2014. On December 17, 2014 the hole was at a depth of 1700.8 metres depth and located within the Magnetic Vector Inversion (MVI) modelled magnetic high. Drilling recommenced from 1700.8 metres on January 8, 2015 with a planned target depth of 2000m.
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). See figure 1.
Hole 9 was sited to test for the northwest extension of the high-grade copper and gold mineralization in Hole 5 (CSD-13-005) and to test for vertical extension of this mineralization below the depth intersected in Hole 5.
Table 1 summarizes the intersections to date from Hole 9.
|Intersections from Hole CSD-14-009 (to current depth of 1700.8m)
||Cu Eq (%)
| Bulk Intersection
||open at depth. True width ~485m
||True width ~401m
||True width ~295m
| Upper Zone
||True width ~100m
||upper high grade zone. True width ~42m
| Lower Zone
||True width ~160m
||lower high grade zone. True width ~114m
||True width ~81m
Table 1: Assay intersections from Hole 9 to the current depth of 1700.8 metres.
Note: Cu-equivalent values are calculated using copper price US$6614/tonne and gold price of US$40/gram (US$1,244/ounce). Cu equivalent ("Cu Eq.") grade is calculated by the following equation: Cu Eq. = Cu% + (Au g/t x 0.6). Cu-Equivalent values do not take into account the recoverability of gold.
Figure 2 shows a southwest-northeast cross-section through Hole 9 at Alpala. Table 2 tabulates intersections from Holes 1-9 at Alpala.
High grade intervals reflect abundant magnetite-chalcopyrite mineralization and persistent biotite that defines the potassic alteration assemblage.
The intersection of these high grade zones along structures within the broader large tonnage porphyry system (which extends north-west, south-east and at depth) substantiate the confidence the Company has in the presence of a strongly mineralized porphyry system at Alpala.
Plates 1-3 show examples of the chalcopyrite mineralization within porphyry type 'B' and 'C' veins' from Hole 9 at downhole depths; 1466.2m, 1518.7m and 1695.8m.
The upper and lower high grade intervals intersected in Hole 9 occur within a quartz diorite intrusive, which is interpreted to be the same intrusive host rock hosting the high grade intersection in Hole 5.
Mineralization continues to be accompanied by magnetite-biotite alteration and is dominated by coarse chalcopyrite within B-veins and overprinting C-Veins. There is also fine grained disseminated chalcopyrite in fractures in the intrusive host rocks.
The lower interval in Hole 9 demonstrates that strong copper and gold mineralization continues below the base of and 120 metres laterally north of the Hole 5 intersection. The Hole 5 intersection from 458m to 1346m, comprised 888m grading 0.77% Cu and 0.72 g/t Au (for 1.21% Cu-equivalent) as reported on November 10, 2014.
Hole 9 continues to intersect visible copper sulphide mineralization at the current depth of 1700.8 m. Strong association of high grade copper and gold mineralization with magnetite and porphyry intrusions along known structures enhances ability to target high grade zones within the larger Alpala porphyry complex;
Figures 5 and 6 show simplified sections indicating target locations along the Alpala Structural Corridor. These images illustrate that IP chargeability forms a chargeable halo flanking the MVI magnetic model within and over a deep seated conductive zone.
Four targets zones are currently recognized at Alpala: NW Alpala, Alpala Central, SE Alpala, and Alpala Deeps.
Along the Hole 9 path, late stage intra-mineral dykes truncate a portion of the high grade mineralization. Multiple phase mineralized intrusive events with late stage intra-mineral low grade dykes such as this are a common feature in large porphyry systems as illustrated in Figure 7.
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 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 (0.4% Cu cutoff grade; Micon International Co. Ltd. Technical Report for Ascendant Exploration SA, August 20, 2004, pages 28 & 29). Mineralization identified at the 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 the core logging facility of Exploraciones Novomining S.A., the Ecuadorean company owned 85% by SolGold Plc and 15% by Cornerstone ("ENSA"), and half of the core is delivered by ENSA 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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