2742 St. Joseph Blvd., Unit 200
Canada, K1C 1G5
| ||May 02, 2017|
17-12 - Cascabel Exploration Update -- Rig 4 mobilization to site -- IP survey to begin
| ||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. |
Figures 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:
- Rig 1 (Hole 23R) at Alpala Central continues to intersect increasingly intense copper sulphide at a current depth of 1136.9m
- Rig 2 (Hole 25) at Hematite Hill, continues drilling at 1481.0m depth
- Rig 3 (Hole 24) at Alpala Southeast, continues drilling at 1377.7m depth
- Rig 4 mobilization to site in progress, with plans to test northeast extensions of the growing Alpala Deposit
- Rigs 5 and 6 being fitted out at HP Drilling Workshops in Cuenca, southern Ecuador
- Drill testing to expand by mid-year to other high priority targets at Alpala East, Alpala West, Carmen, Triviño and Aguiñaga
- 3D IP Spartan-Orion Hybrid Survey due to commence
The Cascabel Project is located within the gold-rich northern section of the Andean Copper belt (Figure 1). The project area hosts mineralization of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte, in northwestern Ecuador just west of the City of Ibarra, approximately 3 hours' drive north of Quito and close to water, power supply and Pacific Ports (Figure 2).
Fifteen individual targets have been defined at Cascabel. SolGold has successfully drill tested three of the fifteen targets, being Alpala Central, Alpala Northwest, Hematite Hill (Hole 25), and Alpala Southeast (Hole 24) (Figure 3). Current drilling focuses on defining the geometry of the growing Alpala deposit, which is open in virtually all directions. Over 36,000m of drilling has been completed to date, and the arrival of Rigs 4, 5, 6 and 7 over the coming two quarters will see drill testing expanding to Alpala East, Alpala West, Triviño and Aguiñaga by mid-year. The drilling program is planned to expand to eight drilling rigs by year end, which will also see drill testing of the Tandayama-America prospect (Figure 3). SolGold believes that several targets clustered within the Alpala area may coalesce at depth.
Hole 23R (Rig 1) at Alpala Central, continues to intersect increasingly intense copper sulphide mineralization from 563.7m to its current depth of 1136.9m (Figure 4).
Hole 23R is being drilled sub-vertical to intersect deep untested pockets of mineralization up to 1800m below surface and has a planned hole depth of approximately 2000m. The position of Hole 23R is shown in cross-section A-A' in Figure 5. Mineralization continues increasing with depth in Hole 23R.
Hole 24 (Rig 3) at Alpala Southeast, continues drilling at 1377.7m depth, having intersected copper sulphide mineralization at 738.9m depth.
Hole 24 confirms the extension the known mineralized corridor at Alpala to approximately 1300 from Hole 13 in the northwest. Hole 24 nearly doubles the strike length of mineralization confirmed by drilling along the Alpala trend. Solgold geologists expect to substantially grow through drilling the size of the main body of mineralization at Hematite Hill and Alpala Southeast.
Hole 24 lies approximately 100m north of Malte Creek, where chalcopyrite and bornite mineralization was noted in surface geological mapping. The Alpala Southeast prospect area is characterized by coincident molybdenum and copper/zinc soil geochemical highs, as well as intense and advanced argillic alteration identified from soil auger chip spectral analysis. High dickite and pyrophyllite clay content mark high temperatures of formation typical of that surrounding a porphyry core. Surface indications are being confirmed by drilling. Hole 24 has a planned hole depth of 2000m.
Hole 25 (Rig 2) at Hematite Hill, continues drilling at a depth of 1481.0m, having intersected copper sulphide mineralization from 772.22m depth. Hole 25 has a planned hole depth of 2000m.
SolGold has completed the ground magnetic survey over Cascabel, and crews for the detailed Orion-Spartan 3D IP survey across most of the licence area are being mobilized (Figure 6). Processing of this improved magnetic data is underway and this work will not only augment the existing geophysical targets at Alpala and Aguiñaga, but further investigate the promising Tandayama-America anomaly and other satellite targets on the property. SolGold is refining exploration and drill targets along the Alpala cluster, as well as those at Moran, Aguiñaga, and Tandayama-America. A 'LIDAR'(c) topographic control survey is being planned for commencement mid-year.
Upgrade and expansion of site facilities are well underway at Cascabel as the project continues to expand towards 7 rigs by October and 10 rigs next year. The geology team have yet to define the extents of the Alpala porphyry system, and the deposit remains open in most directions, continuing to grow with each new drill hole. An aggressive drill program, producing approximately 90,000m of diamond drill core per annum from early 2018 is planned to delineate the system limits along the greater Alpala trend prior to a maiden resource statement, and to test the other multiple targets within the concession.
An increasing understanding of the deposit is now leading to much larger step-outs in drilling as SolGold directs its program towards the copper and gold at a predicted large and rich heart of the Alpala system. The presence of magnetite with chalcopyrite and bornite with potassic alteration endorses the predictive nature of the 3D Magnetic model at Cascabel. The magnetic bodies at Alpala, Moran and Aguiñaga envelope approximately 15 billion tonnes of untested magnetic rock. SolGold is excited by the strong correlation between magnetic signatures and copper mineralization in this system.
SolGold is planning further metallurgical testing and completion of an independent Pre-Feasibility Study at Cascabel (which may or may not be the equivalent of a National Instrument 43-101/CIM definition standards Pre-Feasibility Study), and is investigating both high tonnage open cut and underground block caving operations, as well as a high grade / low tonnage initial underground development towards the economic development of the copper gold deposit/s at Cascabel.
Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company owned by SolGold Plc and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold's fully funding the project through to feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. SolGold Plc is funding 100% of the exploration at Cascabel and is the operator of the project.
Cascabel is in northwestern Ecuador in an under-explored northern section of the Andean Copper Belt, 60 km northeast of the undeveloped inferred resource of 982 million tons at 0.89% Cu Llurimaga (formerly 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 Llurimaga 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, assaying and reporting
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-MSP61, 1g split, 4-acid digestion, ICP-MS 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 up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.63, determined using an updated copper price of USD3.00/pound and an updated gold price of USD1300/ounce. Copper equivalent calculation assumes 100% recoveries of copper and gold.
All reported drill core intervals from the Cascabel Property are core lengths, unless otherwise indicated. At present the true thicknesses of all the holes has not been calculated by SolGold. True width of down hole intersections is estimated by SolGold to be approximately 25-50% of the core length.
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). 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 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:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333
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 after 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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