Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

May 04, 2010 08:00 ET

Cornerstone Options Sediment-Hosted Stratiform Copper Projects in Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 4, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announces that it has signed an option agreement with Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Vale S.A. (NYSE-VALE) ("VALE"), respecting its Red Cliff and Deer Harbour copper properties in eastern Newfoundland. VEC will make an initial payment of C$25,000 and has committed to a minimum first year expenditure of C$165,000. Thereafter, VEC may elect to make further cash payments totaling C$75,000 over the first two years of the option and incur additional exploration expenditures totaling C$2,850,000 over three years in order to earn a 60% interest in the properties. The parties will then form a joint venture to further explore and develop mineral resources on the properties, with each party contributing to approved exploration programs as per their interest. VEC will operate the exploration programs during the option period in consultation with Cornerstone.

"We are extremely pleased to be working with Vale on these copper projects," said Colin McKenzie, Cornerstone's President & CEO. "Cornerstone has been exploring for copper in this area since the company's inception, and VEC's recent interest through its own claim staking and optioning of our properties confirms our view of the potential of this environment to host significant copper deposits".

The Red Cliff and Deer Harbour properties are located on the Bonavista Peninsula in eastern Newfoundland, approximately 270 road km west of St. John's. Collectively the properties comprise 181 mineral claims (45.25 km2) with potential for sediment-hosted stratiform copper (SSC) deposits.

SSC mineralization on the Bonavista Peninsula was first recognized by Cornerstone in late 1999 occurring in red and grey bed sequences of the Late Neoproterozioic Crown Hill Formation. Exploration work carried out on the Red Cliff property between 2000 and 2005 included geological mapping and prospecting, detailed stratigraphic and petrographic studies, geochemistry and geophysical surveys, and diamond drilling (9 holes totaling 1,596 m). This work resulted in the discovery of a number of new copper showings, the most significant being the Blue Point prospect in the northeast part of the property. Continuous chip sampling across the reduced mineralized zone and portions of the lower and upper red beds at Blue Point returned 0.54% Cu and 7.2 g/t Ag over 25.5 m, including 0.93% Cu and 13.02 g/t Ag over 13.5 m. In 2001 and 2002, the southwest strike extension of the Blue Point zone was drill tested, with two holes intersecting significant copper grades including 0.8% Cu and 7.7 g/t Ag over 9.69 m in hole RC-01-01 and 1.0% Cu and 12.1 g/t Ag over 14.25m in hole RC-01-02. Although other holes encountered narrower and weaker mineralized zones, the drilling confirmed very good continuity and thickness (30-37m) in the favourable reduced units which have been tested only over 3.5 km of their approximately 20 km total strike length.

The Deer Harbour claims located approximately 65 km south of Red Cliff cover a number of SSC copper showings hosted in similar reduced members of the Crown Hill Formation. Outcrop grab samples from the copper showings generally return between 0.1 and 1.6% Cu. The showings have received only limited prospecting, and none have been drill-tested.

Dr. Jon Thorson, Cornerstone's consulting geologist and expert on SSC deposits, sees many favourable comparisons between the Red Cliff area and the prolific Central African Copperbelt, also of Late Neoproterozoic age. Given the existing level of exploration, Cornerstone feels the area continues to hold good potential for discovery of a significant SSC deposit.

This press release was prepared by Terry Brace, P.Geo., Cornerstone's VP Exploration and a Qualified Person in accordance with National Instrument 43-101.

About Cornerstone

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.

About VEC

VEC is a wholly-owned subsidiary of VALE, the world's second largest mining company by market capitalization with its headquarters in Brazil. VALE is committed to the pursuit of sustainable growth by operating with respect for the natural environment and being an ethically and socially responsible company.

Further information is available on Cornerstone's website: or for investor, corporate or media inquiries, please see contact information.

Cautionary Notice:

Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. 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,

Colin B. McKenzie, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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