Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

October 14, 2005 08:00 ET

Cornerstone Advances Ecuador Gold Projects

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Oct. 14, 2005) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) ("Cornerstone") is pleased to report continued positive results from projects of its wholly owned subsidiary, Cornerstone Ecuador S.A., on the Shyri concessions in southern Ecuador.

The Shyri concessions, collectively over 350 sq km in area, straddle the Ganarin Belt, a 50 km long feature with volcanic centers, related intrusives and numerous epithermal gold-silver prospects. The properties have potential for low and high sulphidation precious metal deposits in several target areas and are immediately adjacent to the Quimsacocha project where IAMGOLD Corporation has reported a series of high-grade drill intersections that indicate potential for a significant gold-silver-copper deposit. IAMGOLD is expected to release an independent resource estimate for the Quimsacocha Project late in October.

The initial Shyri acquisition consisted of one concession approximately 26.25 sq km in area. An additional nine concessions totaling approximately 330 sq km were subsequently acquired. Reconnaissance exploration work was initiated in April, 2005 and has resulted in the discovery of numerous targets in four project areas referred to as the Canaribamba, Gran Muralla, GAMA and Yanasacha Projects.

Readers are referred to the links, and, for regional and detailed maps.


This 103.5 sq km project, in the southern portion of the Shyri concessions, is centered on the Shyri Diatreme, a 4.0 km by 1.0 km intrusive pipe complex which hosts four main gold-silver prospects. A 3.5 km by 1.5 km grid has been established over these prospects and the diatreme. Soil geochemical, magnetometer and IP geophysical surveys are underway.

An unpublished report by Richard Sillitoe in 1992 on behalf of Cogema identified the Shyri diatreme as having significant potential for discovery of epithermal gold-silver mineralization but his recommendations were not followed up at the time. Diatreme complexes are often intimately associated with significant epithermal gold-silver deposits. World class examples include the Veladero Deposit in Argentina and the Alto Chicama deposit in Peru.

Pinglio Prospect

This prospect consists of a quartz stockwork vein system which, based on surficial artisanal workings consisting of forty-two hand-dug tunnels, extends 350 m by 200 m horizontally and 150 m vertically. The stockwork is comprised of an anastomosing network of 1 cm to 20 cm wide quartz veins within the argillically altered margin of the diatreme. Preliminary chip samples collected from artisanal workings have assayed up to 57.3 g/t Au over 0.1 m, 46.6 g/t Au over 0.4 m and 27.6 g/t Au over 0.2 m. Detailed trenching, mapping and sampling are underway to determine the overall grade and extent of the zone.

Alberto Prospect

This prospect consists of a 0.5 to 1.5 m wide quartz vein exposed by hand trenching over horizontal and vertical distances of 50 m. Channel and chip samples from trenches assayed up to 21.6 g/t Au and 74 g/t Ag over 0.4 m, 7.2 g/t Au and 156 g/t Ag over 0.6 m, and 5.3 g/t Au and 32 g/t Ag over 1.0 m. Trenching has been limited by steep topography and thick soil cover.

Gringo Prospect

This prospect consists of widespread argillic alteration cut by a series of narrow, sheeted, high-grade quartz veins. Channel samples of altered diatreme material have assayed up to 8.1 g/t Au over 2.0 m, and 2.4 g/t Au and 22.5 g/t Ag over 4.4 m. The latter includes 4.4 g/t Au and 50 g/t Ag over 1.0 m. Abundant bonanza grade quartz vein float and boulders have been sampled over a distance of approximately 400 m but have yet to be sourced to bedrock. Several samples from this float train have assayed from 28.7 g/t Au to 600 g/t Au and up to 885 g/t Ag. The area is covered by thick soil cover and trenching is ongoing.

Ramos Potreros

This prospect consists of several quartz veins assaying up to 27.7 g/t Au and 1243 g/t Ag. Trenching is underway.


This 107.75 sq km project is in the central portion of the Shyri concessions immediately southwest and contiguous with Iamgold's Quimsacocha Project. This project has two main prospects.

Vetas Grandes Prospect

Here, several large 3.0 m to 7.0 m wide veins and quartz vein/vein breccia/stockwork form a swarm striking east-northeast over a distance of 1.4 km. Systematic sampling of these veins has been undertaken. Channel sample results received to date range up to 4.01 g/t Au and 443 g/t Ag over 2.0 m and 3.03 g/t Au and 278 g/t Ag over 1.6 m, and 7.7 g/t Au and 859 g/t Ag over 1.0 m. The veins also have elevated mercury (Hg), selenium (Se) and tellurium (Te) and display diagnostic textures indicative of a high level epithermal system.

Tasqui Prospect

This prospect consists of a 2.0 to 7.0 m wide magmatic-hydrothermal vein breccia which has been traced over a distance of 440 m. This was originally discovered by float prospecting (reported in a press release dated May 31) that has just recently been traced to outcrop. Detailed sampling is currently underway. Samples collected in the initial prospecting assayed 7.4 g/t Au and 725 g/t Ag, and 3.8 g/t Au and 27 g/t Ag.


The GAMA and Yanasacha Projects respectively cover 94.5 sq km and 37.75 sq km along the northwestern and northeastern boundaries of Iamgold's Quimsacocha Project. Initial environmental studies and community relations programs required under Ecuadorian law have been completed and more intensive exploration is underway in follow-up to earlier reconnaissance work.

The main focus of the GAMA Project is a minimum 3.0 km by 5.0 km advanced argillic alteration system with widespread massive and vuggy silica and quartz-alunite alteration. The Yanasacha Project targets an advanced argillic alteration system with locally massive and vuggy silica and quartz-alunite alteration that is evident over an area of at least 1.5 km by 2.5 km. Preliminary sampling of the vuggy silica at GAMA and Yanasacha assayed up to 600 and 1,000 ppb Au, respectively. Detailed mapping, prospecting and sampling are underway.

All assayed samples were collected by Cornerstone personnel, sealed on the property and shipped to Acme Laboratories in Cuenca, Ecuador, where they were prepared for analysis. Pulps were shipped by Acme to their Vancouver laboratories for analysis of gold by one assay ton fire assay and multi-element ICP analysis. Samples containing silver greater than the upper limit for the ICP technique (100 g/t Ag) were re-analyzed using atomic absorption spectrophotometry. Quality control was maintained by implementation of procedures involving check assaying and insertion of previously prepared standards and blanks for each batch of 20 rock samples analyzed.

This press release was prepared by Mike Basha, P.Eng., P.Geo., Vice President of Exploration for Cornerstone and a Qualified Person as defined by National Instrument 43-101. George Smith, M.Sc. P.Geol., and Lawrence Winter, M.Sc., P.Geo., are the qualified persons supervising field programs in Ecuador.

On Behalf of the Board of Directors
Glen H. McKay, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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