Ottawa, ON, 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. SolGold Plc is funding 100% of the exploration at Cascabel and is the operator of the project.|
- CSD-16-016 ("Hole 16") intersects significant visible copper mineralization from 568.1m, containing porphyry style "B" type stockwork veining forming greater than 5% of the rock volume
- Hole 16 at a current depth of 738.6m
- Hole 16 is planned to extend the Alpala Central deposit by 100m to the southeast
All reported intervals referred to in this news release are core lengths. At present the true thicknesses of Hole 16 intersections are uncertain due to the early stage of drilling.
Figures, photographs and tables referred to in this news release can be seen in PDF format by accessing the version of this release on the Company's website (www.cornerstoneresources.com) or by clicking on the link below:
The Cascabel project is located in northern Ecuador, within the Eocene aged Andean Copper belt, the same metallogenic belt as some of the world's largest porphyry copper and gold deposits (Figure 1).
CSD-16-016 ("Hole 16") commenced on January 25, 2016 from the same drill site as Holes 4 and 14, and is at a current depth of 738.6m. This hole is being drilled to the southwest (at an azimuth of 198 degrees) and a dip of -83 degrees, and is planned to extend the known extent of the Alpala Central deposit 100m to the southeast as well as to the northeast of the hole 12 intersection (Figure 2).
Hole 16 initially intersected volcanic rocks with weak disseminated sulphide mineralization and veining from surface to 563.4m. The drillhole passed through a major NNW trending post-mineral fault zone from 563.4m to 568.1m, and entered into host rock containing porphyry style "B" type quartz magnetite and copper sulphide veining, typical of the Alpala porphyry mineralization, overprinted by later "C" type chalcopyrite veining, which combined form greater than 5% of the rock volume, diagnostic of the mineralized intrusive porphyry phases at Alpala.
The mineralization encountered so far is typical of other holes drilled at Alpala. The presence of significant altered fracture zones along with visible networks of copper sulphide quartz and magnetite veining at relatively high levels, similar to that intersected at similar depth within Hole 12, is very encouraging. Solgold geologists believe this suggests that the porphyry system at depth could be very strong and fertile, similar to that intersected in Hole 12, which penetrated the high grade core of the Alpala deposit, returning an intersection of 576m @ 1.03% Cu, 1.19 g/t Au (1.75% CuEq) (see Cornerstone news release 15-23 dated October 20, 2015).
The evolving Leapfrog 3D geological model at Alpala predicts that Hole 16 will intersect the prospective "D10" early phase diorite intrusion from around 880m down hole, and pass thereafter into the often higher grade "QD10" quartz-diorite intrusion from 1270m. The hole is projected to a total depth of approximately 1600 metres.
Photographs of drill core examples from mineralization intersected in Hole 16 thus far are typical of mineralization previously encountered in the upper parts of the Alpala deposit (Figure 3).
Significant portions of the Alpala system remain untested, and an aggressive drilling program is planned for 2016 in order to test these targets and also test the numerous targets being developed within the broader Cascabel concession area. The presence of these recent discoveries at surface, in conjunction with geophysical, geochemical and geological signatures of the inferred porphyry centres to date are highly encouraging and highlight the fertility and strength of the mineralizing systems present within the Cascabel cluster of porphyry copper gold targets.
SolGold Plc owns 85% of the equity of Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean 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. 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).
Drill hole intercepts are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.6, determined using copper price of US$3/pound and gold price of US$40/gram.
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.
SolGold has announced it is planning a resource statement at Alpala, the most advanced target at Cascabel, during 2016, in addition to drill testing the other key targets at Aguinaga, Trivino, Tandayama America and Chinambicito in the Cascabel concession. By the end of 2016 SolGold has reported it is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study for an economic development at Cascabel. SolGold is investigating both high tonnage / low grade open cut and high grade / low tonnage underground developments as a block caving operation.
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven 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.
Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:
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On Behalf of the Board,
President and CEO
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