19-35 - Update on Investment for Accounting Purposes in Cascabel
The periodic valuation of the investment is required by International Financial Reporting Standards (IFRS). The Company engaged a valuation firm to assist in the reevaluation of that investment after receipt of the National Instrument 43-101 technical report on the Alpala Deposit filed on Sedar on January 3, 2019 as a result of the November 20, 2018 disclosure of the updated mineral resource estimate for the Alpala deposit. The Company engaged the same valuation firm, received the updated valuation report and management selected what it believes is a conservative valuation of ENSA within the range provided in the report. The estimated fair value of the Company's long-term investment in ENSA for financial statement reporting purposes as at September 30, 2019 is $69,700,000.
The value has fluctuated over time, in line with the change in many variables, including the market value of SolGold shares.
About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador. Cornerstone 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 at Libor plus 2% out of 90% of its share of the earnings or dividends from an operation at Cascabel, plus (ii) an indirect interest comprised of 9.2% of the shares of joint venture partner and project operator SolGold Plc. Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company owned by SolGold 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.
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.
19-34 - Cornerstone Files Amended Technical Report for Cascabel (Alpala Deposit) Preliminary Economic Assessment
Specifically, with regards to the Technical Report titled "Cascabel Project, Northern Ecuador, Alpala Copper-Gold-Silver Deposit, NI 43-101 Technical Report on Preliminary Economic Assessment" which has an effective date March 25, 2019 and which was first announced in a news release dated May 20, 2019, the Company wishes to announce the filing of an amended Technical Report which incorporates certain revisions to the originally filed report, including:
(i) inclusion of an updated Qualified Person (QP) certificate from lead consultants Wood showing Mr Peter Gron's updated status as Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM);
(ii) inclusion of an "Important Notice" provided by Wood in replacement of the Disclaimer in the original document;
(iii) amendment to the reliance on experts references to include references to other experts concerning Items 3.3 (Mining) and 3.4 (Mineral Processing and Infrastructure) now described in Item 2.6 (Information Source References);
(iv) additional information with respect to the key assumptions to support the basis for the cut-off grade used in resource estimates set out in the report; and
(v) the inclusion of a spider sensitivity diagram covering ±25% variations in copper price, gold price, discount rate, Capex and Opex (at 5% intervals). An revised report incorporating the above-noted amendments has been filed on SEDAR and is available under the profile of the Company and on the Company's web site. The May 20, 2019 news release summarizing the PEA results can be viewed at: http://www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=850697
About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador. Cornerstone 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 at Libor plus 2% out of 90% of its share of the earnings or dividends from an operation at Cascabel, plus (ii) an indirect interest comprised of 9.2% of the shares of joint venture partner and project operator SolGold Plc. Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company owned by SolGold 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.
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.
19-33 - Drilling continues at the Limon and Bramaderos Main gold-copper porphyry prospects
Figures and 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/NR19-33Figures.pdf.
HIGHLIGHTS:
FURTHER INFORMATION:
The Phase 1 drill program of 5,347m tested the three targets of Bramaderos Main, Limon and West Zone. The Phase 2 has commenced with follow-up drilling at Limon and Bramaderos Main.
The Bramaderos Project comprises multiple gold-copper porphyry targets and an epithermal gold corridor (Figures 1 & 2).
Receipt of assay results from drill holes at West Zone and Limon have been delayed due to laboratory delays. These are being managed and incorporated into future planning.
Cornerstone Vice President, Exploration, Yvan Crepeau said:
"It is still early days at the Bramaderos Project. Our Phase 1 drilling delivered a gold-copper porphyry at Bramaderos Main that shows potential for significant scale with mineralization extending from surface to at least 300m deep, and with a strike extent of at least 500m. Drilling now will focus on increasing the scale of this system.
"At Limon, we have intersected compelling 'near porphyry' alteration and mineralization in a very large system, with evidence in one drill hole of a shallow 'high sulphidation' copper-gold system. Follow-up drilling is aimed at intersecting both the shallow copper-gold system and the deeper main porphyry gold-copper zone.
"At the West Zone epithermal gold prospect, we have completed eight shallow holes which intersected a variety of host rocks and several zones of alteration. We need to wait for assay results before we can comment on the significance of the West Zone drill program."
Limon Prospect:
Drill hole LMDD005 is currently being collared to test a porphyry gold-copper target (Figures 3 & 4).
Importantly, the process for targeting hole LMDD005 has included further detailed review of all Limon datasets and has focused on a 3-D review of new ground magnetics data in the context of geological constraints provided by drilling results. It is still early days at Limon, but we have established that we are within a large alteration envelope to a porphyry system.
LMDD005 will also test for extensions to the shallow high-sulphidation epithermal copper-gold system intersected in LMDD004 (13.3m at 0.43% copper and 0.11g/t gold, see Cornerstone news release dated October 15, 2019), and then drill to a final depth of ~1100m to test a magnetic anomaly approximately 800m below surface that is located adjacent to and below the intervals of most intense veining, alteration and gold-copper mineralization intersected in holes LMDD002 (see Cornerstone news release dated July 2, 2019) and LMDD004 (see Cornerstone news release dated October 15, 2019). LMDD002 intersected 14m at 0.2% copper, 0.1g/t gold, and 40.8ppm molybdenum at bottom of hole, with clear evidence of a porphyry gold-copper system.
In addition to LMDD005, two more drill holes have been planned that will test targets that may be associated with outcropping gold-copper porphyry mineralization defined in trench LM-01 which intersected 97.6m at 0.71g/t gold and 0.23% copper (see Cornerstone news release dated May 29, 2018).
The link between outcropping porphyry gold-copper mineralization (trench LM-01), shallow high-sulphidation mineralization at ~60m below surface in LMDD004, and deep porphyry mineralization in LMDD002 at 600m below surface, is being pursued with this exploration program and the next 3 drill holes.
Bramaderos Main Prospect:
Final assays for hole BMDD002 at Bramaderos Main have been received and, as predicted, the bottom of hole has returned low grade gold results (Table 1 and Figure 7). The copper assays are consistent throughout the hole, but the gold grade is lower at depth. We interpret this to most likely represent multiple 'events' of mineralization and the target zone now becomes the domain on the north-eastern side of the diorite host rock (see Figure 6).
This is mapped out well at surface from extensive trenching with three higher grade domains defined (see Cornerstone news release dated August 26, 2019, and Figure 5). A north-west extension of the longitudinal trench is currently being prepared and sampled which is expected to extend the domain of surface mineralization.
BMDD004 is currently at ~70m downhole and has intersected mineralization from 5m downhole comparable to that seen in the upper part of hole BMDD001 (see Cornerstone news release dated July 18, 2019). It is designed to test a 500m vertical section of the higher-grade domain (Figure 6) below hole BMDD001.
Additional holes to be drilled include at least two holes on sections to the NW of BMDD001 and 004 testing the higher-grade zones in trenches over a strike length of 400m, a shallow hole to twin and extend historical hole CURI-03, and two holes under the main topographic high of Bramaderos Hill which exhibits extensive epithermal style alteration.
Detailed ground magnetics have been collected over Bramaderos Main and these will be processed over the next month to assist with further drill targeting.
| Hole ID | From (m) | To (m) | Interval (m)1 | Gold (g/t) | Silver (g/t) | Copper (%) |
| BMDD002 | 8.4 | 68.7 | 60.3 | 0.18 | 0.82 | 0.10 |
| 68.7 | 310.3 | 241.6 | 0.42 | 1.82 | 0.14 | |
| incl. | 234.3 | 307.1 | 72.8 | 0.68 | 2.17 | 0.16 |
| incl. | 250.0 | 305.8 | 55.8 | 0.74 | 2.24 | 0.15 |
| incl. | 266.0 | 284.1 | 18.1 | 1.04 | 2.91 | 0.19 |
| incl. | 291.6 | 297.7 | 6.1 | 0.81 | 1.43 | 0.14 |
| and | 320.5 | 328.8 | 8.3 | 0.34 | 1.29 | 0.07 |
| and | 463.55 | 684.6 | 221.05 | 0.16 | 1.18 | 0.13 |
| incl. | 463.55 | 524.35 | 60.80 | 0.27 | 2.00 | 0.18 |
Table 1: Assay results from BMDD002.
West Zone:
Drilling has just been completed and comprised 8 shallow diamond drill holes for 1200m. The West Zone target is an epithermal gold breccia system and the drilling program has been focused on follow-up to high-grade trench sampling and to determine the geometry of the breccia systems which host the mineralization at surface.
From drilling it is clear that the geometry of the breccia bodies is complex, and other epithermal style veins and zones of alteration have been defined.
A complete release of the West Zone drilling results will be prepared once all assay results have been received and a coherent geological and mineralization model can be presented.
Drill hole details for the Bramaderos project to date are shown in Figure 8.
About Bramaderos
Measuring 4,949 hectares, the Bramaderos project is located approximately 130km from the Loja provincial capital in southern Ecuador. The project is easily accessible via the Pan American Highway which crosses the property.
The Bramaderos concession is owned by La Plata Minerales S.A. ("PLAMIN"), which in turn is owned 51% by Sunstone and 49% by Cornerstone, Sunstone having earned its initial 51% interest by spending US$3.4 million over 3 years to complete a phase 1 drill program. Sunstone has 90 days (i.e., until November 27, 2019) to elect to earn an additional 19% to go to 70% by funding a bankable feasibility study within 5 years, and can go to 80% by financing 100% of the cost of construction of a mine and mill (see Cornerstone news releases dated April 10, 2017 and August 28, 2019).
Sunstone is the project operator.
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
PLAMIN uses a fire assay gold technique for Au assays (FAS-111) and a four acid multi element technique (IMS-230) for a suite of 48 elements. FAS-111 involves Au by Fire Assay on a 30-gram aliquot, fusion and atomic absorption spectroscopy (AAS) at trace levels. IMS-20 is considered a near total 4 acid technique using a 20g aliquot followed by multi-element analysis by ICP-AES/MS at ultra-trace levels. This analysis technique is considered suitable for this style of mineralization.
Standards, blanks and duplicates are inserted ~1/28 samples. The values of the standards range from low to high grade and are considered appropriate to monitor performance of values near cut-off and near the mean grade of the deposit. The check sampling results are monitored and performance issues are communicated to the laboratory if necessary.
Sample security was managed through sealed individual samples and sealed bags of multiple samples for secure delivery to the laboratory by permanent staff of the joint-venture. MS Analytical is an internationally accredited laboratory that has all its internal procedures heavily scrutinized in order to maintain their accreditation. MS Analytical is accredited to ISO/IEC 17025 2005 Accredited Methods.
PLAMIN's sampling techniques and data have been audited multiple times by independent mining consultants during various project assessments. These audits have concluded that the sampling techniques and data management are to industry standards. All historical data has been validated to the best degree possible and migrated into a database.
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.
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,
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 True widths cannot be determined at this time from the limited number of holes drilled.
19-32 - Cascabel Copper Gold and Silver Recovery Improvements Drive Modeled Revenue Increases
Figures 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/NR19-32Figures.pdf.
HIGHLIGHTS:
FURTHER INFORMATION:
SolGold is continuing large scale metallurgical tests and is continuing to assess changes to operating and capital cost estimates in order to evaluate any changes to profitability and project value that may arise as a result of delivery of any extra revenue indicated by upgraded recoveries. In addition to copper, gold and silver, SolGold is testing for molybdenum, rhenium, magnetite and pyrite recoveries. Improvements in concentrate grades since those reported in the PEA, point to reductions in concentrate volumes, that may result in further modelled cost reductions in that area.
Davis Tube Recovery (DTR) tests indicate that 60% of iron in tailing can be recovered to a rougher magnetic concentrate grading 50% Fe. This is comparable to operations where magnetite has been recovered as a by-product of copper treatment, such as Ernest Henry and Atlas Copper. Following regrind of concentrate it is anticipated that product grades >60% Fe can be achieved. This is economically sensible plus also has a positive impact by reducing the material to be stored in tailing storage facilities.
Mineralogy drives excellent results
The mineralization of the Alpala deposit is considered a classic porphyry copper-gold system and the porphyry-related vein types and copper, gold and silver mineralization indicate a systematic development in time. Main-stage quartz veins typically contain chalcopyrite, magnetite and pyrite. Transitional-stage, chalcopyrite-rich veins (Figure 4) contain rare to minor bornite and cross-cut earlier vein types. These two vein types contribute to the majority of the gold, copper and silver in the deposit.
Late-stage, pyritic veins contain chalcopyrite, minor bornite and locally, molybdenite. Many of the later vein stages exploit and re-open earlier vein types. Anhydrite is a common vein constituent and re-opens earlier vein stages. Early-formed, hydrothermal magnetite occurs within main-stage quartz veins and as monomineralic veinlets, disseminated grains and replacements of magmatic hornblende. Magnetite is variably converted to metallic hematite and pyrite in the upper part of the deposit. The earliest formed copper sulphide minerals observed in drill-core consists of abundant chalcopyrite and rare bornite in main-stage quartz veins. Chalcopyrite most commonly forms after, and surrounds, cubic and massive pyrite in transitional- and late-stage veins. It also occurs in anhydrite-rich veins and main-stage quartz veins that have been re-opened by later vein types. Bornite is in textural equilibrium with pyrite and chalcopyrite in transitional- and late-stage veins.
Scanning Electron Microscopy (SEM) techniques including Backscattered Electron (BSE) imaging and Energy Dispersive X-ray Spectroscopy (EDS) indicate that gold and silver occur as discrete grains of electrum (typically 60% to 85% Au, with the remainder as Ag) that range from 1 to 50 microns in diameter (Figure 5, right). Electrum is rarely coarse-grained and ranges up to 1000 microns (1.0 mm) in diameter (Figure 5, left). The electrum grains occur within chalcopyrite, bornite, pyrite and more rarely quartz and anhydrite. Grains of low-Ag gold (> 90% Au) that are 1 to 3 microns in diameter are associated with sulphide grains and occur locally within silicate gangue minerals.
In summary, the sulphide mineral assemblages at Alpala are characterized principally by chalcopyrite, pyrite and bornite, which are similar to the main-stage to transitional-stage sulphide mineral assemblages present at Grasberg, Indonesia and the El Salvador and Portrerillos mines in northern Chile. The simple chemical formulas of the minerals at Alpala contribute to enhanced metallurgical recoveries and clean concentrates that lack any significantly deleterious elements.
See Figures 6 (Gold Recovery Benchmarking) and 7 (Copper Grade Benchmarking).
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.
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 gravity and photographic logging are performed systematically prior to assaying. The core is logged, magnetic susceptibility measured and key alteration minerals identified by experienced loggers and sometimes 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).
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. release.
1 See Cornerstone news releases dated May 20, 2019 (PEA results) and June 28, 2019 (Sedar filing of NI 43-101 Technical Report for the PEA).
19-31 - Cascabel Metallurgical Test Work Yields High Grade Copper and Gold Content Rates at Alpala
Cornerstone 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.
SolGold is now actively engaged with concentrate market participants and expects to confirm alignment on the high quality and marketability of the Alpala concentrate in the prefeasibility study ("PFS").
HIGHLIGHTS:
FURTHER INFORMATION:
Background on the Metallurgical Test Work and Design
Metallurgical test work on the Alpala project is being conducted by ALS Metallurgy Kamloops, British Columbia. The high precious metal bearing copper concentrates produced from the locked-cycle tests at Kamloops were then analyzed for trace elements by ALS Geochemistry in North Vancouver, BC.
The test work program was carried out under the supervision and guidance of Dr. Gregory J. Harbort, General Manager Process and Metallurgy (SolGold Plc) (see summary below).
SolGold Plc have specified a test program aligned with the resource size and quality to maximize capital payback early in the project. The ALS Report considered 5,500 kg of drill core from fifty-three variability samples representing different lithology, alteration styles and head grades, selected to provide a good spatial distribution within the mine plan. Further, the samples were composited into three master composites based on gold and copper head grade, to allow for optimization and locked cycle flotation tests and solid-liquid tests.
Variability testing of the 53 samples has included extensive comminution testing2 with SAG Mill Comminution (SMC) (profiling an orebody to predict its comminution circuit throughput as well as its rock mass characteristics and blasting properties), Bond Abrasion Index, and Bond Ball Mill Work Index testing. Bond rod mill work index tests were also conducted on selected samples, where sufficient material was available.
Assessment of the elemental content of each Master Composite and variability sample was conducted via standard analytical techniques and multi-element ICP analyses. In addition, detailed scanning electron microscope (SEM) mineralogy was undertaken.
Variability flotation test work included both kinetic roughing tests and open circuit cleaning tests. Davis Tube Recovery (DTR) tests were conducted on the rougher tailing to determine the amount of recoverable magnetite.
Master Composite optimization tests focused on developing conditions to enhance recovery and concentrate grade, including size-by-assay analysis and diagnostic leach tests on the cleaner tailing stream.
Locked cycle flotation tests were conducted under optimized conditions to produce expected plant recoveries, concentrate grades and mass balances to feed into the PFS. Concentrates produced were/are being assayed for an extended assay suite to confirm concentrate quality. The assays will also be used to evaluate the recovery of molybdenum and a valuable rhenium credit.
Please refer to Table 1: Critical timeline for test work in http://www.cornerstoneresources.com/i/pdf/NR19-31Figures.pdf.
Please refer to Figure 1: Master Composite Locked Cycle Test Summary -- Locked Cycle Flowsheet in http://www.cornerstoneresources.com/i/pdf/NR19-31Figures.pdf.
Appointment of Dr Gregory J Harbort, General Manager Process and Metallurgy
Greg has 33 years of in-depth experience in copper and precious metals extraction and mineral processing, including heap leaching, gravity concentration, flotation, leaching and purification, roasting, and fuming. He authored 47 technical publications, contributed to seven books on mineral processing technology, flotation development and flotation optimization and is the co-author of "History of Flotation" and contributing author of SME "Mineral Processing & Extractive Metallurgy Handbook".
Greg brings a wealth of porphyry copper experience to SolGold plc, including five years working for Philex Mining Corp Padcal site, recognized as one of the world's most efficient block cave operations and two year's involvement with design, construction, commission and operation of the Minera Alumbrera concentrator. He had a five-year involvement with the CMOC NorthParkes operation, working on process optimization, refurbishment and life of mine geo-metallurgical planning. In the two years prior to joining SolGold he was involved with design and life of mine geo-metallurgical planning for the Oyu Tolgoi concentrator expansion to allow treatment of the Hugo North block cave ore.
Greg holds a Ph.D. from University of Queensland, Australia, 2005 and holds a bachelor's degree of Engineering Metallurgy, University of Queensland, 1990. Mineralogy at Alpala drives exceptional recoveries and produces a clean high-quality copper and precious metals concentrate.
Summary of Mineral Processing and Metallurgical Testing to Date
The flotation locked cycle test is critical to simulating plant operation with regard to recirculating loads, water quality and reagents and has been the industry standard for developing circuit design for several decades. The locked cycle program has shown that the Alpala material responds rapidly to flotation, with low circulating loads and reagent addition. Please refer to Table 2 in the Figures document (http://www.cornerstoneresources.com/i/pdf/NR19-31Figures.pdf).
Further Planned Test Work
During 2020 a pilot plant operation is planned, to treat approximately 30 tonnes of core and coarse rejects. The material has been sourced and is currently being packaged. The pilot plant will allow for confirmation of the flowsheet at a larger design and provide copper sufficient concentrate to operate a molybdenum-rhenium recovery evaluation, conduct vendor thickening and filtration tests, measure rheological properties for concentrate pipeline design and measure transport moisture limits (TML) and supply samples for smelter evaluation.
The large quantity of flotation tailing will allow testing of rougher recovery enhancements and magnetite recovery at a substantial scale, in addition to allowing for tailing deposition and environment tests. The production of significant pyrite concentrate allows for pilot testing of the cleaner recovery enhancement. The pilot is designed to be an effective blueprint for the first ten years of performance.
At the same time material flow tests will be conducted allowing for ore chute and stockpile design. It is anticipated that several hundred kilograms will also undergo ore sorting evaluation trials.
Summary of the Quality of Concentrates and Concentrate Specifications
The concentrate assay indicates a premium quality; high in copper and gold and low in deleterious elements.
Copper measured between 29% and 31%, iron measured between 29% and 31%, and sulphur measured between 37% and 38%. Combined, these three elements account for 96% to 99% of the concentrate mass, indicating a very low level of dilution of these concentrates by non-sulphide minerals.
None of the measured deleterious elements such as arsenic, bismuth, cadmium, chlorine, fluorine, mercury, selenium, tellurium, or uranium, were present at levels that typically are of concern; most measured at only trace levels. Similarly, Only trace amounts of magnesium and total organic carbon (TOC) were measured in the Alpala concentrates. This suggests little to no presence of typically hydrophobic non-sulphide gangue minerals. Very low levels of lead and zinc measured indicate little to no galena or sphalerite content in the concentrates.
It is expected that there will be strong demand for the concentrate from South East Asian, North and South American, European and a limited number of Chinese smelters seeking to optimize their economics with a premium quality concentrate such as Alpala.
Deleterious elements are low for a copper concentrate which will enhance the ability to market the Alpala concentrate, including the potential to achieve market leading payability. Alpala concentrate will allow smelters to consume greater quantities of complex material for which smelters receive a penalty payment, therefore optimising a smelter's revenue without adversely affecting the smelter's overall feed grade.
Appointment of Bluequest Resources AG (BQR)
BQR is a specialist advisor on commercial and logistical matters for concentrate marketing. The firm brings a wealth of experience to SolGold, in developing marketing and logistics plans for early stage, late stage and operating assets.
Its personnel have been responsible for assisting companies in the marketing and transportation of concentrates from a number of world-class assets in recent years, including Timok (Nevsun), Fruta del Norte (Lundin Gold), Khoemacau (Cupric Canyon), Quebradona (Anglogold Ashanti) and Minesa (Mubadala).
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.
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 gravity and photographic logging are performed systematically prior to assaying. The core is logged, magnetic susceptibility measured and key alteration minerals identified by experienced loggers and sometimes 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).
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
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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
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1 See Cornerstone news releases dated May 20, 2019 (PEA results) and June 28, 2019 (Sedar filing of NI 43-101 Technical Report for the PEA).
2 Comminution refers to the reduction of solid materials from one average particle size to a smaller average particle size, by crushing, grinding, cutting, vibrating, or other processes.