Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

June 22, 2010 08:00 ET

Cornerstone Provides Exploration Update on the El Strato Gold Property in Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - June 22, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (PINK SHEETS:CTNXF) (FRANKFURT:GWN) (BERLIN:GWN) reports that it has identified new gold targets from its recent exploration programs on the El Strato gold property located in north-central Newfoundland. The property comprises 169 mineral claims (42.25 km2) which lie immediately east of the Baie Verte Line, a major regional tectonic suture which, along with subsidiary structures, is a classic environment for orogenic gold deposits such as those of the Mother Lode gold district of California.


The El Strato property is underlain by Early Ordovician to Early Silurian mafic volcanic rocks, and lesser felsic volcanic rocks, sedimentary conglomerates and gabbroic intrusions all of which are intruded in the eastern portion of the property by the Early Silurian Burlington Granodiorite. The Micmac - Flat Water fault, a splay structure of the Baie Verte Line, as well as a number of smaller faults and shear zones, strike north-northeast through the property.

High grade gold mineralization was first discovered on the property by Noranda Exploration Company, Limited ("Noranda") in the late 1980's with discovery of the El Strato and Voodoo gold showings. The El Strato showing consists of a narrow (£ 0.75 m wide) base metal (Zn, Pb ± Cu) rich quartz vein within silicified and pyritized mafic volcanic rocks. Historical assay results at the El Strato showing include up to 155.7 g/t Au in grab samples, 17.5 g/t Au over 0.55 m in channel samples and 9.96 g/t Au over 0.3 m in drill core. The Voodoo showing, located 830 m north-northeast of the El Strato showing, consists of numerous angular base metal rich quartz vein boulders ranging up to 2 m in diameter. Historical grab samples of the boulders have returned from 0.4 to 105.2 g/t Au. Diamond drill holes which tested the area of the boulders have returned anomalous gold values over narrow widths (e.g. 0.3 g/t Au over 1.1 m and 3.7 g/t Au over 0.6 m). However, the low base metal content and narrow width of the veins encountered in drill holes indicate that these are not the bedrock source of the high grade boulders. A gold grain study and geological interpretations by Noranda indicated a possible source to the west under Micmac Lake. Several additional high grade gold showings have been discovered elsewhere on the property, with grab samples commonly returning from 5 to 67 g/t Au.

Previous exploration programs in the southern portion of the El Strato property have included induced polarization (IP) and soil geochemistry surveys which successfully identified a number of north-northeast striking IP chargeability anomalies, many of which have strong coincident gold-in-soil geochemistry anomalies. Historical drill testing of the anomalies (4,662 m in 31 holes) has met with some success, with significant gold mineralization encountered over narrow widths (best assay of 10.6 g/t Au over 1.13 m). However, drill testing has been restricted to only shallow depths (generally £ 100 m vertical) and has focused primarily within 1.9 km of a more than 15 km favorable strike length. Furthermore, the presence locally of larger veins (8 m wide Mega Vein) and broad zones of silicified and sericitized rock indicate that potential exists for larger mineralized vein and alteration systems.

Current Exploration Program and Plans

During the first half 2010, Cornerstone completed a 25.75 line km dipole-dipole IP survey and a 631 sample, B-horizon soil geochemistry survey southwest of the El Strato and Voodoo gold showings. Cornerstone's geophysical consultant identified a total of fifty-one shallow (generally £ 15 m vertical) IP chargeability anomalies, most of which define two main IP anomaly trends, informally referred to as the Rocky Bottom and DD trends. The Rocky Bottom trend is 1.75 km long and has coincident gold-in-soil anomalies over its entire strike length. The most pronounced anomalies are at its southern end where thirteen soil samples exceeded 100 ppb Au and the three highest returned 1,211 ppb, 1,453 ppb and 2,098 ppb Au. The northern portion of the Rocky Bottom trend has been drill-tested by a number of historical holes but the middle and southern 1.2 km of the trend have been tested only by two short drill holes, which intersected 0.3 m and 0.7 m mineralized zones. The DD trend is a newly identified 1.25 km long IP chargeability anomaly which lies on a small peninsula 500 m west of the El Strato showing and 500 m southwest of the Voodoo showing. Gold-in-soil values over this IP anomaly are not anomalous with the exception of a single sample which returned 63 ppb Au. This zone has not been previously trenched or drill tested.

Cornerstone is currently planning an early summer mechanical trenching program, which will provide a surface test of up to eight selected anomalies as well as aid in understanding the structural controls on the mineralized quartz vein systems. Trenching will be followed by a 1,000 m drill program designed to test the highest priority targets.

Soil samples were prepared and analyzed at Eastern Analytical Ltd., an independent and qualified analytical laboratory located in Springdale, Newfoundland. Samples were dried and screened to -80 mesh, and were analyzed for gold by fire assay with AA finish, and 30 additional elements by aqua regia digestion and ICP-ES finish.

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.

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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