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.|
- Second drill rig (Rig 2) is at Cascabel and is being prepared on the T1 target site at Alpala.
- Hole 12 (CSD-15--12) is at a depth of 647.6 metres and drilling continues.
- Encouraging visible copper mineralization increasing with depth in Hole 12.
- Alpala Central zone extended to over 450m.
- Detailed infill mapping and sampling at Alpala confirms the integrity of the Alpala Structural Zone.
- Aguiņaga target summary in preparation.
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 12 is progressing and has reached a depth of 647.6 metres having been in variable but generally increasing visible copper sulphide mineralization since a depth of 88.4 metres. Hole 12 is being drilled at an inclination of -87° towards 210° (south-west), parallel to and 75m south east of Hole 5. The intersection of strong copper mineralization demonstrates a significant south easterly trend extension to mineralization. The diamond drill core shows an increasing intensity of disseminated and vein style copper sulphide and pyrite mineralization with occasional bornite and increasing quartz veining and biotite mica mineralization. These features, increasingly evident in the core, are indicative of closer proximity to the causative intrusive heat source thought to represent one of the centres of mineralization at Cascabel. Three porphyry targets have been identified along the Alpala Structural Zone, of which Alpala Central is one, and the location of all drilling undertaken to date. With regard to the other two targets, Alpala North West (T1) will be drilled by Rig 2 in Hole 13, and the Alpala South East (T2) target will be tested by Hole 14 pending the results of current drill holes.
JV partner SolGold's geologists are currently conducting a detailed infill of the soil sampling grid over the 2.5 x 0.5 km Alpala Structural Zone which has to date yielded drill hole intersections as summarized in Table 1. The infill mapping and sampling program has confirmed the continuity of the mineralized and veined sequence of volcanic rocks and intrusive porphyries. Additional near surface drill targets are being defined from this work.
The second drill rig has arrived on site at Alpala and is currently being established on the T1 target at North-West Alpala. The rig has been modified to be able to drill faster and deeper, enabling drill hole tests of the high grade mineralization encountered in Holes 5 and 9 to date, and to deepen Hole 8 which intersected the mineralized porphyry but did not drill the full expected section, evidently still present underneath the Hole 8 termination point. The drilling of Hole 8 was ceased due to difficult ground conditions.
The T1 target is located underneath strong surface alteration of the host rocks, including the development of high-temperature clays and depletion of manganese with copper and zinc enrichment, suggesting a strong causative intrusion underneath T1. The target is well supported by detailed geophysical data collected and interpreted by SolGold's experts. T1 is characterized by a strong magnetic core and a surrounding conductive halo, a relationship typical of mineralized porphyry systems such as Alumbrera in Argentina; Batu Hijau, Elang and Grasberg in Indonesia. SolGold will also use the dual rig capability at Alpala to drill shallow targets outcropping along the Alpala Structural Zone. In addition, a detailed geophysical review of the target at Aguiņaga has been completed, and a summary is being prepared for release shortly.
The Company also wishes to advise that the eruption in Ecuador from the Cotopaxi Volcano (located approximately 30kms south of Quito) is not affecting operations in the field at Cascabel or at the Company's Quito office. Volcanic eruptions are relatively common on the circum-Pacific Rim of Fire and relevantly on the Andean Copper Belt which hosts some of the world's largest copper mines.
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 cut-off 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 ENSA core logging facility, and half of the core is delivered by ENSA employees for preparation at ALS Minerals Laboratories (ALS) sample preparation facility in Quito. Core samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (ALS code CRU-31, SPL21 and PUL-32). Prepared samples are then shipped to ALS in Lima, Peru where samples are assayed for a multi-element suite (ALS code ME-ICP61, 1g split, 4-acid digestion, ICP-AES finish). Over limit results for Ag (> 100 g/t) and Cu, ( > 1%) are systematically re-assayed (ALS code Ag-AA62, 4-acid digestion, AAS finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AA finish (ALS code Au-AA23).
Quality assurance / Quality control (QA/QC)
The ALS Laboratory is a qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used (1 control sample every 15-20 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 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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