Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

May 31, 2011 08:00 ET

Cornerstone and Intrepid Intersect Gold-Copper Porphyry at Gama Prospect in Ecuador

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 31, 2011) -Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN)(PINK SHEETS:CTNXF) and Intrepid Mines Limited (ASX-IAU)(TSX-IAU) today announced that they have completed the first 6 holes of the 11-hole (2,900 metres) Phase 1 diamond drilling program on the Gama prospect, located in the northwestern part of the Shyri property in southern Ecuador. Drilling commenced on March 6th, 2011 and is ongoing. A summary of assay results for holes GAD-11-001 to GAD-11-005, all containing mineralization, is provided below in Table 1.

Highlights:

  • Hole GAD-11-002 intersected 45 metres at 0.71 g/t gold and 0.18% copper within a broader zone of 101 metres at 0.41 g/t gold and 0.13% copper in a porphyry environment.
  • Drilling results to date have confirmed the porphyry – high sulphidation epithermal deposit model developed earlier, the very large size and strong intensity of the hydrothermal alteration system present at Gama, and the widespread distribution of gold and copper within the lower, porphyry part of the system.

"The geology encountered in the first part of this scout drilling program is very encouraging," said Brooke Macdonald, Cornerstone's President. "The size, intensity and complexity of the hydrothermal systems are confirmed. Gold and copper are present over large areas and occur in multiple rock units. A significant mineralized gold-copper zone was intersected in the porphyry in hole -002, and this zone is open in all directions. We are now moving north and east into the epithermal part of the system, and are hoping to receive good results from this primary target".

Table 1: Summary of Gama Drill Results, Phase 1 Program

Hole No.TargetElevation (masl)Length
(m)
From
(m)
To
(m)
Interval
(m)*
Au
(g/t)
Ag
(g/t)
Cu
(ppm)**
Mo (ppm)
GAD-11-001F3501231.044.0215.0Multiple 1 to 5 m wide intercepts of 0.1 to 0.2 g/t Au
126.0131.05.00.11%
136.0137.01.00.47762
215.0217.02.037.9
GAD-11-002F3448329.8125.0226.0101.00.410.13%
Including172.0217.045.00.710.18%
GAD-11-003E3410253.04.020.016.00.1388
88.0100.012.00.1534
GAD-11-004E3461187.516.042.026.00.1552
84.0159.075.00.26415
175.0187.4512.450.19331
GAD-11-005D3480261.598.0124.026.00.10
GAD-11-006C3690244.0Completed, assays pending
GAD-11-007Ermita Breccia3819In progress

* The reported intervals are core lengths. At present the true thicknesses are uncertain due to the early stage of drilling.

** Copper reported in parts per million (ppm) except where indicated in %.

"Intrepid is encouraged by these results from the first drilling program at Gama Prospect. They confirm the geological model and have delivered some positive assay results. These first 5 holes have provided an excellent start to discovering a potentially significant gold-copper system" said Malcolm Norris, EGM Exploration and New Business at Intrepid Mines.

Gama Prospect

The Gama prospect is one of three recognized thus far on the Shyri property, and comprises an extensive zone of high sulphidation (HS) epithermal alteration measuring a minimum of 8.5 km by 3 km. The alteration is strongly zoned and centered over two high level, porphyry-type intrusions at the 3500 m to 3800 m elevations. Gama is strategically located between the Quimsacocha 3.4 Moz HS epithermal gold deposit 15 km to the east and the Chaucha porphyry copper deposit (216 Mt at 0.4% Cu) 10 km to the west.

Phase 1 Drill Program

As previously announced on March 8th, 2011, Cornerstone and Intrepid have approved an 11 hole, 2,900 metre diamond drilling program which is testing various targets defined on the basis of surface geochemistry (rock and soil samples), detailed geology, magnetics and 3-D interpretation of Induced Polarization (IP) geophysical data. The program is targeting both HS epithermal gold-silver and porphyry copper-molybdenum-gold mineralization over an area measuring approximately 3 km north-south by 2 km east-west. None of the Gama targets have been drill-tested previously.

A map showing the location of targets and drill holes with respect to gold-in-soil anomalies and interpreted faults is provided here: http://www.cornerstoneresources.com/i/maps/properties_GAMADDH0511.jpg.

Discussion

The Phase 1 drilling program is designed to test the mineralization model developed for Gama through the integration of exploration datasets. Drilling of the 6 individual targets will allow for the testing and further understanding of the multiple parts of the large size porphyry-epithermal systems as well as identifying the possible controls for the alteration and mineralization. The knowledge and results developed from this program will be used for the planning of the next drilling phases.

For logistical reasons, the drill program was started in the southernmost part of the Gama prospect area and then moved north, and metallogenically upward, from the lower porphyry system to the upper HS epithermal system. So far, drilling has primarily tested porphyry targets in the interpreted lower part of the system.

Drill holes GAD-11-001 and -002 tested the deeper parts of a HS epithermal system at target "F", proximal to the porphyry environment as evidenced by substantial Mo anomalism in soils in the region and the proximity to a mapped microdiorite body. Hole GAD-11-001 intersected a 135 m thick package of andesitic lapilli tuffs showing strong advanced argillic alteration with anomalous arsenic and containing 1-2% pyrite. This volcanic unit is intruded by an extensive microdiorite intrusion at depth showing relict potassic alteration overprinted by advanced argillic and phyllic - argillic alteration. The entire hole is weakly anomalous in gold (>0.01 g/t Au with a maximum of 0.47 g/t Au over 1 m). Anomalous copper (400-1247 ppm Cu) occurs just above the contact zone between the intrusion and overlying tuffs within a sheared / faulted zone. Hole GAD-11-002 was drilled approximately 230 m north of hole GAD-11-001. It intersected microdiorite with relict potassic alteration overprinted by argillic and advanced argillic alteration similar to that encountered in hole GAD-11-001. A gold-copper mineralized zone was intersected from 172.0 to 217.0 m which graded 0.71 g/t Au and 0.18% Cu over 45.0 m, within a broader zone which graded 0.41 g/t Au and 0.13% Cu over 101 m from 125.0 to 226.0 m. The distribution of vein types (A, D, M) and metals, combined with the distribution of alteration patterns, strongly suggest that this mineralization is of porphyry affinity.

Drill holes GAD-11-003 and -004 were drilled on the same section at target "E", approximately 700 m north of target "F", and similarly tested the deeper parts of a HS epithermal system, close to a porphyry environment. The upper part of hole GAD-11-003 down to 165 m intersected a microdiorite that displays intense advanced argillic alteration. This microdiorite is cross-cut by numerous hydrothermal breccias that constitute up to 30% of the total rock mass, indicating possible proximity to hydrothermal conduits in this region. The microdiorite is anomalous in molybdenum, averaging 70 ppm Mo from surface to 175 m. The lower part of the hole from 165 m to 253 m (end of hole) comprises crystal tuffs. Hole GAD-11-004 drilled 200 m west of hole GAD-11-003, and intersected a thick sequence of crystal and ash tuffs showing moderate to strong advanced argillic alteration in the upper part of the drill hole, cross-cut by numerous hydrothermal breccias. Several of the hydrothermal breccias contain significant (up to 25%) pyrite. The number and pervasiveness of these breccias suggest that large volumes of volatiles have circulated through the sequence, consistent with the large scale of advanced argillic and argillic alteration zones at Gama. The tuff sequence has been intruded by diorite dykes in the lower part of the hole from 120 m to the end of hole. Molybdenum is enriched in the upper part of the hole, averaging 48 ppm Mo from 4 to 78 m.

Drill hole GAD-11-005 tested target "D", approximately 650 m north of holes GAD-11-003 and GAD-11--004. As for holes GAD-11-001 thru -004, this hole tested the outer-upper fringes of a porphyry system. It intersected a potassic relict altered diorite with advanced argillic and argillic overprint as in previous holes. Silica-alunite-pyrite rich hydrothermal breccias were intersected over 37, 9 and 17 m wide intervals from 168 to 250m depth. This hole intersected weakly anomalous gold (0.10 g/t Au over 26.0 m from 98.0 to 147.0 m) and copper.

Drill hole GAD-11-006 tested a silver-in-soil anomaly partially coincident with discrete mercury, gold and bismuth soil anomalies. Rock outcrops in the surrounding area suggest the possible presence of massive sulphide veins and breccia remnants, related to the structural roots of an epithermal lithocap. The soil anomaly is coincident with a weak IP chargeability anomaly. The drill hole intersected a thick sequence of crystal and lapilli tuffs showing weak argillic alteration from surface to 210 m. From 210 m to the end of the hole at 244 m, the volcanic sequence is moderately to strongly silicified and contains up to 10% disseminated pyrite. The drill hole has been sampled, and assay results are pending.

Drill hole GAD-11-007 is in progress. The hole is targeting the Ermita Breccia, a late hydrothermal breccia that is interpreted to source a flat lying stratabound or stratigraphy-controlled disseminated HS epithermal mineralized zone at depth underneath the plateau.

Logging, sampling and assaying

All holes drilled by Cornerstone are collared using HTW core size (7.1 cm diameter) and then reduced to NTW size (5.6 cm diameter) down the hole. Geotechnical measurements such as core recovery, fracturing, rock quality designations (RQD's), hardness and photographic logging are performed systematically prior to assaying. The core is logged, magnetic susceptibility measured and key alteration minerals identified using an on-site portable spectrometer. Core is then systematically sawed in half at Cornerstone's core logging facility in Cuenca, Ecuador. Half of the core is delivered by Cornerstone employees for preparation at Acme Analytical Laboratories (ACME) facility in Cuenca. Core samples are prepared crushing 1 kg to 80% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 0.075 mm (200 mesh) (ACME code R200-250). Prepared samples are then shipped to ACME in Vancouver, Canada where samples are assayed for a multi-elements suite (ACME code 1E, 0.25g split, 4-acid digestion, ICP-ES finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AA or ICP-ES finish (ACME code G601).

Quality assurance / Quality control (QA/QC)

The ACME preparation facility in Cuenca was audited by Cornerstone prior to the start of the drilling program and ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used as part of Cornerstone's QA/QC program. Rejects, a 100 g pulp for each core sample and the remaining half-core are stored in Cuenca for future use and controls.

Qualified Person

Yvan Crepeau, M.Ba., P.Geo, President of Cornerstone Ecuador SA and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the Gama drilling program and has reviewed and approved the technical information contained in this news release.

Shyri Option Agreement

Intrepid Mines Limited ("Intrepid") is earning a 60% interest in the Shyri gold-silver-copper property under an option agreement signed with Cornerstone in January 2011. Under the terms of the Agreement, Intrepid has the ability to earn an initial 60% interest in the property by spending $US 6.0 million dollars over 5 years, with a firm commitment of $US 1.0 million in the first year. Intrepid may earn an additional 20% in specific project areas up to 5,000 hectares each. Upon designation of a Project Area, Intrepid will make a $US 750,000 private placement in Cornerstone. To earn the additional interest, Intrepid will complete a bankable feasibility study or incur expenditures of $US 20 million, whichever comes first, and make a cash payment to Cornerstone of up to $US 5.0 million based on the gold equivalent ounces in the mineral reserve. There is no limit to the number of Project Areas Intrepid may designate within the property and each 'stand-alone' Project Area requires the same earn-in requirements (see news release dated Oct 29, 2009). Cornerstone is the project operator, and manages the exploration programs in close consultation and planning with Intrepid.

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, Ecuador and Chile, 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. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone's projects.

Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please contact the people listed below.

Investors can access and join the following Cornerstone social media channels:

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The link to recent CEO audio interviews is: http://www.cornerstoneresources.com/s/Interviews.asp

The link to a recent Corporate presentation with narration is: http://rblcommunications.com/resources/CGP/1/CGPmay2011.html

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 subsequent to 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

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.

Contact Information

  • Cornerstone Capital Resources Inc.
    Martti Kangas, Investor Relations
    (647) 521-9261
    North America Toll-Free: 1 (877) 277-8377

    Cornerstone Capital Resources Inc.
    Paul Benwell / Pat Kairns
    (514) 904-1333
    North America Toll-Free: 1 (877) 277-8377
    communications@crigold.com
    www.cornerstoneresources.com