CORNERSTONE CAPITAL RESOURCES INC : http://www.cornerstoneresources.com/ : QwikReport

News

#June 06, 2019
19-16 - Cornerstone Reports on Hearing of Anti-Mining Referendum Oral Arguments at Constitutional Court

  Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) reports that, further to its news release dated May 30, 2019 regarding a potential referendum on mining in four parishes in which its Cascabel project and its strategic exploration alliance with State Mining Company ENAMI EP are located, the hearing of oral arguments took place yesterday at the Constitutional Court in Quito.

Arguments lasted over 3 hours, and were made by the Vice Minister of Mines, the Solicitor General of the Republic, representatives of mining companies and their workers and stakeholders including members of the communities affected, Chambers of Commerce and others. The overwhelming majority of the presentations were against the proposed referendum.

The Court extended the deadline for receiving amicus curiae (friend of the court) briefs until this Friday, June 7, 2019, to accommodate the more than 60 parties that are expected to file briefs in the proceeding. The Court is currently expected to hand down a decision by June 24th.

The oral arguments included, among others: (1) that the Court should deny the petition for a local referendum because these kinds of referendums are unconstitutional to decide matters that are within the exclusive competence of (a) the National Assembly to legislate on, such as mining, and (b) the National Government to administer, such as the granting of concessions and the issuance of environmental permits; and (2) that the petition was, in substance, a thinly veiled attempt to commit a fraud on the Constitution by seeking to amend it without doing so through the National Assembly.

Representatives of workers and communities at the Cascabel project spoke eloquently in favour of how their lives had changed for the better since Exploraciones Novomining S.A. ("ENSA") began work there, as did community representatives and workers of Cornerstone in the area of its strategic alliance with ENAMI who spoke out in favour of Cornerstone. Many local people mentioned that the petitioner for the referendum did not represent their interests. Cornerstone delivered the last oral argument of the evening highlighting its reputation and history and investments in Ecuador since 2005 and its strategic partnership with state mining company ENAMI.

In other news, Cornerstone notes that the Government announced a new Mining Policy for Ecuador earlier this week intended to strengthen investment in the mining sector as well as setting out a framework for environmental and social sustainability.

About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador. 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.

Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:

Investor Relations:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333

Due to anti-spam laws, many shareholders and others who were previously signed up to receive email updates and who are no longer receiving them may need to re-subscribe at http://www.cornerstoneresources.com/s/InformationRequest.asp

Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's beliefs, plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "intend", "trends", "indicate", "expect," "may," "should," "could", "project," "plan," or the negative or other variations of these words 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,
Brooke Macdonald
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.

 
#May 30, 2019
19-15 - Cornerstone Comments on Share Price Activity

  Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) comments on media reports regarding a potential referendum on mining in the provinces in which its Cascabel project and Cornerstone's strategic alliance with State Mining Company ENAMI EP are located.

Under Ecuadorean law individuals may put forward petitions to the Constitutional Court for the inclusion of specific questions in a future vote. If that question is viewed as valid and constitutionally legal by the Constitutional Court the next phase is for the petitioning party to gain 10% of the signatures of the voting population of the provinces involved.

On May 27th, certain individuals from small communities up around the Cascabel project and other projects in NW Ecuador petitioned the Ecuadorian Constitutional Court in Quito to rule on whether they may legally hold a referendum to ask the question: "Are you in favour of mining in your communities?"

There is a hearing on the petition June 5th at the Court in Quito, and a decision will be issued within 20 days from the filing of the petition, i.e., by June 24th. Lawyers for the companies potentially affected together with lawyers from state mining company ENAMI (which has concessions in the area), the Ministry of Energy & Non-Renewable Natural Resources (MERNNR), and the Solicitor General's Office are coordinating their intervention in the proceeding and are also enlisting the support of the local communities that would be affected.

The lawyers agree that the Court should deny the petition because these kinds of referendums are unconstitutional to decide matters that are the purview of the National Government, such as mining.

In the unlikely event the Constitutional Court were to approve the referendum, the question would then have to be approved by the Electoral Council in order to be included on future ballot papers for the provinces specified.

With strong support from the government and local communities, Cornerstone does not expect approval to be forthcoming from the Court.

About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador. 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.

Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:

Investor Relations:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333

Due to anti-spam laws, many shareholders and others who were previously signed up to receive email updates and who are no longer receiving them may need to re-subscribe at http://www.cornerstoneresources.com/s/InformationRequest.asp

Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's beliefs, plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "intend", "trends", "indicate", "expect," "may," "should," "could", "project," "plan," or the negative or other variations of these words 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,
Brooke Macdonald
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.

 
#May 30, 2019
19-14 - Bramaderos Exploration Update -- Drilling intersects extensive mineralized porphyry system at Limon Target

  Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) is pleased to provide an update on its Bramaderos gold and copper project in southern Ecuador, which it is exploring together with ASX listed Sunstone Metals Inc. under a farm-in agreement (see "About Bramaderos", below).

Figures and photos (plates) related to 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:

http://www.cornerstoneresources.com/i/pdf/NR19-14Figures.pdf.

HIGHLIGHTS:

  • The second hole (LMDD002) drilled at the Limon prospect within the Bramaderos project in Ecuador intersects more than 200m of visible and persistent disseminated chalcopyrite and molybdenite with some bornite in a strongly altered porphyry system
  • LMDD002 has been terminated at 900m (vertical depth of 630m); Previous sampling and trenching has established that the mineralization at Limon also occurs locally at surface
  • Gold mineralization in the drill core cannot be detected by visual inspection and will only be revealed by assay
  • Assay results for hole LMDD002 are expected before the end of June
  • The first hole at Limon (LMDD001) drilled below an interpreted plunging mineralized porphyry intrusion
  • Understanding of the geometry of the Limon porphyry system is evolving and drilling will return to Limon once all assays for hole LMDD002 are received
  • The next drill hole will be undertaken at the Bramaderos Main target (2.5km south-west of Limon) to follow-up on historical hole CURI-03 which intersected 248.1m at 0.56g/t gold and 0.14% copper from 9.1m

The second hole drilled at Limon (LMDD002) has intersected a very encouraging interval of porphyry-related mineralization with visible and persistent chalcopyrite (copper sulphide) and molybdenite (molybdenum sulphide), minor bornite (copper sulphide), anhydrite veining and widespread pyrite in quartz stockwork B-veining1 in the lower parts of the drill hole indicating the intersection has likely drilled adjacent to the core of the system where we are most likely to see enhanced accumulations of copper and gold (see Plate 1).

Hole LMDD002 was drilled from "outside" the interpreted porphyry system towards the interpreted centre and has exhibited very strong zoning supporting that interpretation (see Figures 1 and 2). The alteration suggests that the "hottest" and typically higher-grade portion of the porphyry system has not yet been intersected. This potential higher-grade portion is currently interpreted to lie northeast to east of hole LMDD002, where it may extend to shallower levels if LMDD002 drilled down through the southwest fringe of the main system.

Assay results for hole LMDD002 are expected before the end of June.

Cornerstone Vice President, Exploration, Yvan Crepeau, said:

"We are very encouraged by these early results at Limon. We have drilled two diamond holes into parts of a new mineralized porphyry system and its associated large-scale alteration zone but are yet to test the core of the system, which is our primary target.

"The drill core (see photos in Plates 2-7) show good development of 'B veins' containing some chalcopyrite and molybdenite and local minor bornite. Results from drilling and from surface datasets confirm we are in a porphyry system. Porphyry systems are typically zoned in relation to geochemistry, alteration style and vein mineralogy, and interpretation of geology and geochemistry can define vectors towards better mineralized domains. We are seeing such zoning in a number of datasets and are very encouraged by that.

"We have seen gold to copper ratios established from surface trenching and we will review the pending assay results from LMDD002 in this context."

Next Steps
Following completion of LMDD002, the drill rig will move to the Bramaderos Main target (Figure 3) while Cornerstone awaits full assays at Limon and plans follow-up drilling.

The first hole at the Bramaderos Main porphyry target will drill below the historical intersection of 248m at 0.56g/t gold and 0.14% copper in hole CURI 3, drilled in November-December 1999 by Paragon del Ecuador for Ecuanor, and below recent surface trenching that delivered 615m at 0.52g/t gold and 0.11% copper (refer to news release dated May 9, 2018).

The overall Phase 1 drilling program across the three targets of Limon, Bramaderos Main and West Zone is anticipated to be approximately 5,000m. Drilling at the West Zone target is expected to follow later in the program, where surface trenching has delivered 15.6m at 6.1g/t gold (refer to news release dated November 8, 2017).

About Bramaderos
The Bramaderos concession is owned by Cornerstone subsidiary La Plata Minerales S.A. ("PLAMIN"), which has signed a binding letter agreement with Sunstone Metals Ltd. (formerly Avalon Minerals Ltd.) (ASX: STM), whereby Sunstone has the right to earn a 51% interest in the project by spending US$3.4 million over 3 years to complete a phase 1 drill program. If this first option is earned, Sunstone can go to 70% by funding a bankable feasibility study, and can go to 80% by financing 100% of the cost of construction of a mine and mill (see news release 17-08 dated April 10, 2017).

Qualified Person:
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 Bramaderos project for Cornerstone and has reviewed and approved the information contained in this news release.

Sampling and assaying
Rock samples are collected by PLAMIN's personnel, placed in plastic bags, labeled and sealed, and stored in a secure place until delivery by PLAMIN employees to the LAC y Asociados ISO 9001-2008 certified sample preparation facility in Cuenca, Ecuador.

Rock samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (MSA code PRP-910). Prepared samples are then shipped to MS Analytical Services (MSA), an ISO 9001-2008 laboratory in Langley, BC, Canada, where samples are assayed for a multi-element suite (MSA code IMS-136, 15.0 g split, Aqua Regia digestion, ICP-AES/MS finish) and gold by Fire Assay (MSA code FAS-111, 30 g fusion, AAS finish). Over limit results for Cu (>1%) are systematically re-assayed (MSA code ICF-6Cu, 0.2 g, 4-acid digestion, ICP-AES finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AAS finish (MSA code FAS 111). Over limit results for Au (>10 g/t) are systematically re-assayed (MSA code FAS-415, FA, 30g., gravimetric finish).

Soil samples are dried at low temperature, screened to 80 mesh (MSA code PRP-757), a 15 grams portion is then assayed for a multi-elements suite (MSA code IMS-136, Aqua Regia digestion, ICP-AES/MS finish).

Quality assurance / Quality control (QA/QC)
The MSA Analytical 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 20-25 samples) as part of PLAMIN's QA/QC program. Rejects, a 100 g pulp for each rock sample, are stored for future use and controls.

About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador. 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.

Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:

Investor Relations:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333

Due to anti-spam laws, many shareholders and others who were previously signed up to receive email updates and who are no longer receiving them may need to re-subscribe at http://www.cornerstoneresources.com/s/InformationRequest.asp

Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's beliefs, plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "intend", "trends", "indicate", "expect," "may," "should," "could", "project," "plan," or the negative or other variations of these words 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,
Brooke Macdonald
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.

1 The term 'B veins' refers to a specific style of vein in porphyry systems that typically occur adjacent to the main ore zone, and do not occur at great distances from the main ore zones.

 
#May 29, 2019
19-13 - CORNERSTONE PROPOSES SHARE CONSOLIDATION

  Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN) (OTC:CTNXF) today announced that the Company is proposing to consolidate (the "Share Consolidation") its issued and outstanding common shares (the "Common Shares") on the basis of one (1) post-consolidation Common Share for up to every twenty (20) pre-consolidation Common Shares, or such lower number of pre-consolidation Common Shares (the "Consolidation Ratio") as may be determined by the board of directors of the Company (the "Board") in its sole discretion and as may be required to obtain approval of the Share Consolidation from the TSX Venture Exchange (the "TSXV").

The Share Consolidation must be approved by a special resolution of the shareholders of Cornerstone at the annual general and special meeting of shareholders to be held on June 25, 2019 (including any adjournment or postponement thereof, the "Meeting"). To be effective, the special resolution must be approved by not less than 66 2/3% of the votes cast at the Meeting by shareholders in person or represented by proxy. As noted above, the Share Consolidation is also subject to approval of the TSXV. As a result, the Company may determine that it is necessary to modify the Consolidation Ratio in order for the Board to ensure that the Company will be in compliance with the distribution requirements of the TSXV. Notwithstanding the required approvals being obtained, the Board, in its sole discretion, may abandon the Share Consolidation without further approval by or prior notice to shareholders.

If the approvals required for the Share Consolidation are obtained and the Board decides to implement the Share Consolidation, the Share Consolidation will occur at a time determined by the Board and announced by a press release of the Company. Registered shareholders will then receive a letter of transmittal from the Company's transfer agent with instructions for exchanging their pre-consolidation Common Share certificates for post-consolidation Common Share certificates. Non-registered beneficial holders holding their Common Shares through a bank, broker or other nominee should note that such banks, brokers or other nominees may have specific procedures for processing the Share Consolidation. Shareholders holding their Common Shares with such a bank, broker or nominee and who have any questions in this regard are encouraged to contact their nominee.

If approved and implemented by the Board, the Share Consolidation will occur simultaneously for all of the Common Shares. The Consolidation Ratio will be the same for all such Common Shares and will affect all holders of Common Shares uniformly and will not affect any shareholder's percentage ownership interest in the Company, except to the extent that the Share Consolidation would otherwise result in any shareholder owning a fractional Common Share. No fractional Common Shares will be issued upon the Share Consolidation. In the event a holder of Common Shares would otherwise be entitled to receive a fractional Common Share in connection with the Share Consolidation, the number of Common Shares to be received by such shareholder shall be rounded down to the next whole number if that fractional Common Share is less than one half (1/2) of a Common Share, and will be rounded up to the next whole number of Common Shares if that fractional Common Share is equal to or greater than one half (1/2) of a Common Share.

There are 639,841,422 Common Shares currently issued and outstanding. Assuming a Consolidation Ratio of 20:1, upon completion of the Share Consolidation, the number of post-consolidation Common Shares issued and outstanding will be approximately 31,992,071 post-consolidation Common Shares (on a non-diluted basis and subject to rounding to account for fractional shares).

The expected benefits of the Share Consolidation include increased investor interest, improved trading liquidity and reduced price volatility.

The exercise or conversion price of, and the number of Common Shares issuable under, any convertible securities of the Company will be proportionately adjusted upon the completion of the Share Consolidation.

The Company's name and trading symbol will remain unchanged.

Full details regarding the proposed Share Consolidation are included in the Company's management information circular for the Meeting, which is available under the Company's profile on SEDAR at www.sedar.com.

About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador.

Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:

Investor Relations:
Mario Drolet (Montreal); Email: Mario@mi3.ca;
Tel. (514) 346-3813

Corporate Matters: David Loveys, CFO; Email: loveys@cornerstoneresources.ca;
Tel. (343) 689-0714

Due to anti-spam laws, many shareholders and others who were previously signed up to receive email updates and who are no longer receiving them may need to re-subscribe at http://www.cornerstoneresources.com/s/InformationRequest.asp

Cautionary Notice: 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,
Hugh Brooke Macdonald
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.

 
#May 20, 2019
19-12 - CORNERSTONE ANNOUNCES EXTREMELY POSITIVE PEA RESULTS FOR CASCABEL PROJECT

  Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN) (OTC:CTNXF) is pleased to announce the results of the Preliminary Economic Assessment ("PEA") for its Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador (Figure 1). The Company has a 22.8% direct and indirect interest in Cascabel comprised of (i) a direct 15% interest in the project financed through to completion of a feasibility study and repayable out of Cornerstone's share of project cash flow, plus (ii) an indirect interest comprised of 9.2% of the shares of joint venture partner and project operator SolGold Plc.

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:

http://www.cornerstoneresources.com/i/pdf/NR19-12Figures.pdf.

A "preliminary economic assessment" or PEA means a study, other than a pre-feasibility or feasibility study, that includes an economic analysis of the potential viability of mineral resources. The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. A technical report for the PEA will be filed at www.sedar.com within 45 days of this news release, as required by National Instrument 43-101.

Key aspects and findings from this concept level study are summarized below.

HIGHLIGHTS:

  • Net Present Value ("NPV") estimates range from US$4.1B to US$4.5B (Real, post-tax, @ 8% discount rate, US$3.30/lb copper price, US$1,300/oz gold price and US$16/oz silver price) depending on production rate scenario (see below)
  • Internal Rate of Return ("IRR") estimates range from 24.8% to 26.5% (Real, post-tax, US$3.30/lb copper price, US$1,300/oz gold price and US$16/oz silver price) depending on production rate scenario
  • Pre-production Capex estimated at approx. US$2.4B to US$2.8B depending on production rate scenario
  • Payback Period on initial start-up capital -- Range from 3.5 to 3.8 years after commencement of production depending on production rate scenario
  • Preferred Mining Method -- Underground low-cost mass mining using Block Cave methods applied over several caves designed on two vertically extensive Lifts
  • Four alternative mine production cases have been pre-selected and assessed as part of the PEA -- The Production Rate Scenario (see Mine Production Cases table below) proposed as the base case is Case 2b: 50Mtpa -- Fast ramp-up:

  • Resources scheduled in the PEA block cave designs total 2.4Bt @ 0.54% CuEq ROM grade (0.36% Cu, 0.27g/t Au and 1.1g/t Ag), including:
    • 89% of the MRE#2 Indicated Mineral Resources: 1.83Bt @ 0.61% CuEq ROM (0.41% Cu, 0.31g/t Au and 1.2 g/t Ag)
    • 61% of the MRE#2 Inferred Mineral Resources: 0.55Bt @ 0.36% CuEq (0.27%Cu, 0.13g/t Au and 0.8g/t Ag)
  • Annual Metal Production (average for the first 25 years) -- Estimated at 207,000t of copper; 438,000oz of gold and 1.4Moz of silver in concentrate per year (based on the 50Mtpa mining scenario)
  • Annual Metal Production (life-of-mine average) -- Estimated at 150,000t of copper, 245,000oz of gold and 913,000oz of silver in concentrate per year
  • High copper (28.2%), gold (22.1 g/t) and silver (65.7g/t) contents in sales concentrates.
  • The high quality of the concentrates and the relatively low arsenic contents in comparison to a number of other major producers are expected to deliver a sales premium for the concentrates
  • Activities for rest of 2019 will focus on continued exploration at Alpala, a further update to the Mineral Resource Estimate (MRE#3), metallurgy and process design, tailing disposal options and incorporation of further geotechnical and hydrogeological data into the study basis
  • Permitting and fiscal discussions with the Ecuadorian Government to commence
  • Pre-Feasibility Study ("PFS") expected to be completed in December 2019 with definitive Feasibility Study scheduled for completion at end of 2020
Cornerstone CEO, Brooke Macdonald, said: "The PEA indicates a very financially robust project achievable with industry standard mining and metallurgical technology and benefiting from the well-established regional infrastructure. The implied value of Cornerstone's 22.8% direct and indirect stake is between US$935M and US$1.26B depending on which of the four mine production cases is selected."

SUMMARY:
The PEA was prepared by independent consultants Wood plc in the role of Lead Consultants with direct responsibility for the Minerals Processing, Materials Handling and Project Infrastructure components of the study, and the participation of SRK Exploration (Geology and Resource Estimation), Mining Plus (Geotechnical, Hydrogeology and Mine Planning), Knight Píesold (Environmental and Community), and Ernst and Young (Economic Analysis).

The PEA addresses findings based on the updated mineral resource (MRE # 2) announced November 2018 of 8.4 Mt Cu and 19.4 Moz Au in the Indicated category & 2.5 Mt Cu and 3.8 Moz Au in the Inferred category with the MRE across both Indicated and Inferred classifications equating to a current 2.95 Bt @ 0.52% CuEq (15.4 Mt CuEq) containing 10.9 Mt Cu and 23.2 Moz Au at 0.2% CuEq cut-off, 79% of which is in the Indicated category (by gold and copper metal content).

Table 1: MRE 2 Resource Table
*Notes:
1. Mr. Martin Pittuck, CEng, MIMMM, FGS, is responsible for this Mineral Resource statement and is an "independent qualified person" as such term is defined in NI 43-101
2. Mineral Resource is reported using a cut-off grade of 0.2% copper equivalent calculated using [copper grade (%)] + [gold grade (g/t) x 0.63]
3. Mineral Resource is considered to have reasonable prospects for eventual economic extraction by underground mass mining such as block caving
4. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability
5. The statement uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) as required by NI 43-101.
6. The MRE is reported on 100 percent basis.

The full National Instrument 43-101 technical report entitled "A Technical Report on an Updated Mineral Resource Estimate for the Alpala Deposit, Cascabel Project, Northern Ecuador" (MRE #2) can be found at the following link: http://www.cornerstoneresources.com/i/pdf/AlpalaMRE_1218.pdf

Additional drilling since the data cut off has not yet been modeled for MRE#3 and exploration activities on site with 10 drill rigs continues to define extensions to the mineralized envelope at Alpala, especially to the north towards Trivinio, Moran and Alpala north west at depth.

An additional MRE#3 is expected to form (along with further metallurgy, geotechnical and materials handling and storage studies) the basis for the PFS by the end of December 2019.

Ongoing work is currently focusing on exploration, geotechnical drilling, metallurgy, and materials handling & storage options, and will form the basis for the PFS.

Economic Summary and Sensitivity Analysis of Four Pre-Selected Production Cases (Base Case is 50 Mtpa -- Fast ramp-up)

Note: A discounted cash flow model was developed to evaluate the economics for the Project on a 100% project ownership basis.

Mine Production Scenarios
Concept level assessment of mining methods carried out as part of the PEA suggests that mining at Alpala should be conducted using low-cost underground mass mining methods such as Block Caving or Panel Caving for higher grade sections of the orebody.

Based on the November 2018 MRE #2 resource base, geological characteristics of the Alpala orebody, grade distribution, geotechnical and hydrogeological characterisation, size of the mining footprint, and other technical and economic considerations, several Block Cave mine production cases were pre-selected and assessed as part of the PEA.

These scenarios attempt to provide environmentally sound project development options aimed at optimizing the economics of the project while maximising extraction of the Alpala resource.

  • Case 1 -- 40 Mtpa mine production rate (life-of-mine 66 years)
  • Case 2a -- 50 Mtpa, staged ramp-up (life-of-mine 57 years)
  • Case 2b -- 50 Mtpa, fast production ramp-up (life-of-mine 55 years) -- Base Case
  • Case 3 -- 60 Mtpa (life-of-mine 49 years)

Based on MRE #2 and as reported above in this news release, the Indicated resource at the 0.2% CuEq cut-off grade is approximately 2,050Mt averaging 0.60% CuEq, and the Inferred resource is approx. 900Mt @ 0.35% CuEq. Accordingly, the resources scheduled in the PEA block cave designs correspond to ~89% of the Indicated Mineral Resource and ~61% of the Inferred Mineral Resource.

Mineral Processing
The dominant copper mineral at Alpala is chalcopyrite (33% copper content), with lesser amounts of bornite (63% copper content). In most cases the gold is included as a particulate form in chalcopyrite, bornite or pyrite.

Metallurgical test work for the PEA was conducted based on 20 samples averaging 53kg per sample, obtained from 480m of NQ sized half core from five drill holes representing the major geological domain groups from preliminary geometallurgical models.

The testwork program for the PEA was conducted at ALS Metallurgical Laboratories in Kamloops, Canada. The laboratory program consisted of sample preparation and composite formation, comminution tests including SMC, Bond Ball Mill Work Index (BWI) and Bond Abrasion Index (AI), flotation optimization and locked cycle tests on specified composites and rougher concentrate kinetic tests.

The copper concentrator and gold recovery circuit proposed for Alpala is based on two parallel lines with one line built for Phase 1 (ramp up to 50% nameplate capacity) and a second line to reach 100% nameplate capacity in the case of the 40 and 50Mtpa mine production scenarios. Three parallel modules are considered for the 60Mtpa scenario.

Metallurgical recoveries to the chalcopyrite copper concentrate for the first 30 years of operation are estimated to range between 93.9% and 87.1% for copper and between 85.4% (high grade) and 49.4% (low grade) for gold (50Mtpa staged ramp-up) depending on mill feed grades.

Further investigations are underway to further increase copper and gold recoveries to the copper concentrate and improve gold recoveries from the pyrite concentrate.

Infrastructure
The Alpala deposit is favourably located at low altitude (600-1,800masl), with easy access via a sealed highway from the regional capital (Ibarra) some 90km by road to the south, and in proximity to water and HV power supply sources. The deep-water port at Esmeraldas is located some 180 km to the west of the project site.

Unlike some other Tier 1 porphyry copper-gold deposits which are located in the high Andes in remote locations and at very high altitude, the low elevation and mild climate year-round in the Alpala area allows exploration activities and mining operations to be conducted throughout the year.

Benefiting from these natural advantages the infrastructure requirements at Alpala are significantly reduced in comparison to many of its peers.

The likely infrastructure (on-site and off-site) requirements considered in the PEA study, include the following:

  • Roads and logistics
  • Concentrate pipeline from the process plant to Esmeraldas port and water return pipeline
  • Tailings storage facilities options and associated infrastructure
  • Surface facilities
  • Underground mine infrastructure facilities
  • Concentrate shipping facilities at the Esmeraldas port
  • Water supply system
  • Power supply system
  • Communications, process control and instrumentation system
  • Other Services

Marketing
Metallurgical testwork carried out to date indicates that the main product from the Cascabel project will be a high-quality copper-gold-silver concentrate with no penalty impurities and medium to high copper and gold grades plus additional silver credits, making it a desirable product for copper smelters worldwide.

Average concentrate grades over the life-of-mine are currently estimated at 26% copper, 13.2g/t gold and 49.2g/t silver. Average figures over the first 15 years of the operation are estimated at 28.2% copper, 22.1g/t gold and 65.7g/t silver. The relatively high valuable metal contents and low deleterious elements such as arsenic is expected to attract premium sales values and keep treatment and refining charges low.

Environmental and community
SolGold has conducted environmental studies in the project area using qualified practitioners for a number of years, which contributes to a defensible baseline data set. An experienced project team is leading meaningful social engagement programs to support appropriate Corporate Social Responsibility programs as part of future studies and any proposed development plans.

Current exploration activity is fully permitted and in good standing. Mine development will require the successful conclusion of an Environmental Impact Assessment and permitting from the Ministry of Environment. This is a recognized process with successful precedent in Ecuador. There are no known environmental issues that could materially impact the ability of SolGold to extract the mineral resources at the Cascabel Project. Base line environmental data has been collected at Alpala for approximately four years.

Capital and Operating Cost Estimate
Capital cost estimates for the cases assessed during the PEA range from US$2.4B to US$2.8B for pre-production Capex and from US$7.5B to US$7.8B for post-implementation and sustaining Capex.

The operating cost over the life of the project is estimated at between US$25.5B and US$25.9B depending on the production scenario. Unit C1* operating cost over the life of the project is estimated at US$0.90/lb copper after gold and silver credits (50Mtpa - Fast ramp-up base case). C1* Production Cost (average for the first 25 years, 50Mtpa - Fast ramp-up base case) -- Estimated at US$0.23 per payable pound of Cu after gold and silver credits.

The capital cost estimate has been developed in accordance with Wood's capital cost estimating procedure (PRJ-340-05) for a Conceptual study to meet the requirements of National Instrument 43-101 for a PEA and is consistent with "AACE International" cost estimating guidelines for a Class 5 estimate for the Process Industries.

The estimate accuracy range of -/+ 35% for cost inputs is defined by the level of project definition. The accuracy of the total cost estimate has been assessed to comply with the above guidelines.

Due to the long mine life, it is not expected that significant salvage values at the end of the ultimate mining resource life will be gained.

Note: * C1 Includes all site operating costs, concentrate shipping costs, smelting and refining charges, etc, but excludes royalty payments, taxes and profit share.

Economic Analysis
A discounted cash flow model was developed by Ernst & Young to evaluate the economics for the Project on a 100% project ownership basis.

The economic modeling was done on a post-tax basis and the results indicate an after-tax NPV from US$4.1B to US$4.5B based on a copper price of US$3.30 /lb and a gold price of US$1300 /lb at an 8% discount rate for the four scheduled cases. The project's Internal Rate of Return (IRR) is estimated at between 24.8% and 26.5%, with payback periods after production commencement from 3.5 to 3.8 years.

See Figure 2 for the annual and cumulative cashflows for Case 2b: 50 Mtpa Fast ramp-up.

Sensitivity analysis was conducted on the copper and gold prices as outlined in the range in the NPV output.

The model assumes a corporate tax rate of 25% (current Ecuadorian corporate tax rate), a profit share (Labour Tax) of 15% on earnings before tax (12% government, 3% employee), a government royalty of 5% to 8% depending on the type of mineral, and a straight-line depreciation rate of 10%.

The model also includes a sovereign adjustment levy where project contributions to government (royalties, income tax, government profit share) fall below 50% of cumulative economic project benefits. Under the scenarios considered, no sovereign adjustments are required.

The basis for the Economic Analysis is from the commencement date of the project, and therefore, it does not include sunk costs which will have been incurred prior to approval to proceed to project implementation.

Risks and opportunities
Project risks and opportunities identified by the consulting team at this PEA stage of the Cascabel project include:

  • SRK is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the exploration information and Mineral Resource discussed herein.

    As with all mineral projects, there is an inherent risk associated with mineral exploration. As such, there is no guarantee that additional drilling will grow the model or improve confidence in the model. SRK are confident the Mineral Resource can be further upgraded in confidence with more drilling and that there is some potential to grow the deposit model further.

  • Mining Plus has identified that typical risks for a large block caving project (including seismicity, mud rush and cave performance) exist in this project. However, based on the available data, it is expected that these can be managed to acceptable levels through further study and operation strategies, which would be typical for a large block caving project of this nature.

    Mining Plus has identified several opportunities to improve the project that should be studied in more detail in a pre-feasibility study. These include:

    • Campaign mining and stockpiling to expedite further the processing of higher grade ore
    • Mechanical ore sorting to remove uneconomic material from the mill feed
    • Production design optimization
    • Footprint layout design optimization
    • Materials handling optimization
  • From a mineral processing prospective Wood anticipate no obstacles being present to hinder the progressing of the project to the next phase. Recoveries and concentrate grades are representative of a copper-gold porphyry deposit of this nature with no deleterious elements reporting to the copper-gold concentrate. Wood see the following mineral processing opportunities for the project:
    • Production of a gold rich pyrite concentrate that may be sold or processed on site to produce gold bullion, enhancing gold and to a lesser extent copper recovery.
    • Implementation of ore sorting technology to upgrade the mill feed grade.
    • The potential for the generation of additional revenue from the Cascabel Project. To determine what additional revenue may be generated, Wood recommended to investigate the following areas in the next phase of the project:
      • Flotation test work: Work to date has indicated that it is possible to produce a gold rich pyrite concentrate from the first cleaner scavenger tailings stream, which could be amenable to hydrometallurgical processing to produce gold in the form of dore and to a lesser extent copper in the form of cathode copper. Initial testwork on pyrite concentrate using the Albion Process is currently underway.
      • Other metallurgical testwork: That needed to assess the potential for commercial production of molybdenum concentrate from some parts of the Alpala deposit, the potential for economic recovery of magnetite ore, and the likelihood of generating revenue (or credits) from the production of sulphuric acid during the normal smelting process.
  • From an infrastructure prospective, Wood anticipate no obstacles being present to hinder the progressing of the project to the next phase. During the subsequent phases there are infrastructure opportunities in areas such as TSF design where more detailed work will be required to optimize storage and reduce capital costs associated with this area.
  • Knight Piesold comments indicate that there are no known environmental issues that could materially impact the ability of SolGold to extract the mineral resources at the Cascabel project as currently proposed. Mine development will require the successful conclusion of an Environmental Impact Assessment and permitting from the Ministry of Environment.
  • Ernst & Young have stated that the results of the analysis show the Cascabel project to be potentially viable, warranting further study.

Conclusion and Recommendations
Based on the current mineral resource base (MRE #2) and other geological, mining, metallurgical, environmental, logistical, and financial information available for the study, this preliminary economic assessment (PEA) suggests that the Alpala copper-gold-silver deposit has the potential to support a large-scale, low-cost underground Block Cave mining operation and associated processing and project infrastructure facilities, capable of sustaining commercial production over a mine life in excess of 49 years depending on the production scenario finally adopted (55 years in the base case 2b: 50 Mtpa - Fast ramp-up).

Additional information and preparatory work required for subsequent study stages include geotechnical drilling and testing, sterilization drilling in areas currently identified for the location of infrastructure and project facilities, more advanced metallurgical testwork, additional environmental and community baseline surveys, infrastructure and logistics trade-off studies and others, much of which is currently in progress.

Based on the findings from this PEA study It is recommended that given the strong fundamentals the Cascabel Project - Alpala Deposit progresses to PFS stage.

About the Cascabel Joint Venture with SolGold:
Exploraciones Novomining S.A. ("ENSA"), an Ecuadorian 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 completion of a feasibility study, SolGold will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project. SolGold shall receive 90% of Cornerstone's distribution of earnings or dividends from ENSA to which Cornerstone would otherwise be entitled until such time as the amounts so received equal the aggregate amount of expenditures incurred by SolGold that would have otherwise been payable by Cornerstone, plus interest thereon from the dates such expenditures were incurred at a rate per annum equal to LIBOR plus 2 per cent until such time as SolGold is fully reimbursed.

Qualified Person:
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.

About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador.

Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:

Investor Relations:
Mario Drolet (Montreal); Email: Mario@mi3.ca;
Tel. (514) 346-3813

Corporate Matters: David Loveys, CFO; Email: loveys@cornerstoneresources.ca; Tel. (343) 689-0714

Due to anti-spam laws, many shareholders and others who were previously signed up to receive email updates and who are no longer receiving them may need to re-subscribe at http://www.cornerstoneresources.com/s/InformationRequest.asp

Cautionary Notice:
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,
Hugh Brooke Macdonald
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.

 

Copyright © 2019 by Cornerstone Capital Resources Inc   All rights reserved worldwide.
For more information, send questions and comments to
This page was created on Mon Aug 19, 2019 at 6:16:08 PM Pacific Time.