Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

March 29, 2011 08:00 ET

Cornerstone Announces Diamond Drilling Results on the Red Cliff Copper Property in Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - March 29, 2011) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) today announced the results of a diamond drilling program carried out in late 2010 on its Red Cliff copper property by Vale Exploration Canada Inc. ("VEC"), a wholly- owned subsidiary of Vale S.A. (NYSE: VALE and VALE.P; BM&F BOVESPA: Vale3 and Vale5; Euronext Paris: Vale3 and Vale5) ("Vale"). As previously announced (see news release dated May 04, 2010), VEC has the option to acquire a 60% interest in Cornerstone's Red Cliff and Deer Harbour properties which are located on the Bonavista Peninsula in eastern Newfoundland. VEC is the operator of the exploration programs during the option period in consultation with Cornerstone. The properties are targeting sediment-hosted stratiform copper (SSC) deposits similar to those of the prolific Central African Copperbelt, also of Late Neoproterozoic age.

The drilling program consisted of 6 holes (RC-10-01 thru RC-10-06) totaling 870 m. A 7th hole (RC-10- 07) was started but abandoned at only 8 m due to a lack of available water. Drilling was carried out in three separate areas of the Red Cliff property: i) East of Swibbs Cove Pond (3 holes); ii) East of Duntara (1 hole); and iii) North of Duntara (3 holes). Drill hole locations are shown in Figure 1 (see: and a summary of results is provided below in Table 1.

Table 1. Summary of Diamond Drilling Results, Red Cliff property (VEC - Q4 2010)

Location (UTM
NAD 27, Zone 22) Elevation Dip Azimuth Length Results /
Hole ID Easting Northing (m) (degrees) (degrees) (m) Remarks
RC-10-01 320947 5384140 122 -70 225 251.0 No

RC-10-02 320341 5386161 83 -60 270 71.0 No

RC-10-03 320540 5385647 120 -60 270 68.0 No

RC-10-04 324564 5385860 88 -70 135 77.0 No

RC-10-05 326617 5384880 88 -70 235 239.0 No

RC-10-06 325752 5386926 96 -70 170 164.0 Low-grade
120.0 -
149.9 m:
0.12% Cu
over 29.9 m
0.27% Cu
over 10.9 m
(137.0 -
147.9 m).
assay of
1.38% Cu
and 8.4 g/t
Ag over 1.0
m from
RC-10-07 325093 5386196 99 -70 170 8.0 Hole
in red beds
at only 8.0


Total 878.0

All holes were targeting and successfully intersected the favourable reduced grey bed horizons. However, with the exception of hole RC-10-06 located north of the Blue Point prospect, none of the holes encountered significant copper mineralization. Hole RC-10-06 intersected low grade copper grading 0.27% Cu over 10.9 m (137.0 - 147.9 m) within a broader zone grading 0.12% Cu over 29.9 m (120.0 - 149.9 m). A single 1.0 m sample from 137.0 - 138.0 m returned a maximum assay of 1.38% Cu and 8.4 g/t Ag.

During the next several weeks, consulting geologist Dr. Jon Thorson and expert on SSC deposits will be reviewing the Red Cliff drill core with VEC and Cornerstone geologists in order to help guide future exploration work.

This press release was prepared by Terry Brace, P.Geo., Cornerstone's VP Exploration and a Qualified Person (QP) in accordance with National Instrument (NI) 43-101. Exploration work on the Red Cliff project was carried out under the supervision of Cameron Bowie, P.Geo., VEC's Principal Geologist for North American Exploration and a QP in accordance with NI 43-101.

All drill holes are NQ in size. The core is logged and photographed and the mineralized sections, where appropriate, are sawn in half at a core logging facility in Port Rexton, NL. Half of the core is submitted to Eastern Analytical Limited in Springdale, NL for sample preparation, and the pulps are sent to the ALS Chemex laboratory in Sudbury, ON. All samples are analyzed using four acid digestion and 33-element geochemical ICP-AES technique. Any samples exceeding the geochemical ICP-AES upper detection limit are re-analyzed using four acid digestion and ICP-AES technique designed for low grade mineralized materials. The remaining half of the core is kept for future reference. Blanks, duplicates and standards are used as part of the assay procedure according to Vale's QA/QC protocols.

Other News

In other news, Cornerstone announces that it has signed a definitive agreement to acquire 100% of the shares of Santa Barbara Copper and Gold S.A. ("SBCG"), a wholly owned Ecuadorian subsidiary of Santa Barbara Resources Limited (TSX-V: SBL). The key assets of SBCG are the La Encrucijada and Cascabel gold and silver projects. The terms of the agreement and a description of the two projects are contained in Cornerstone's February 17, 2011 news release:

Also in other news, during the first quarter of 2011, 14,481,276 warrants have been exercised by warrant-holders, providing cash proceeds to the Company of $2.6 million.

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.

About VEC

Vale is the second largest metals and mining company in the world, one of the 30 largest publicly traded companies in the world and the largest private sector company in Latin America. Vale has a market capitalization of around US$ 165 billion, with approximately 500,000 shareholders from all continents. 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.

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.

Further information is available on Cornerstone's website:

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

Facebook (

Twitter (

YouTube channel (

Flickr (

The link to a recent CEO video interview is:

The link to recent CEO audio interviews is:

The link to a recent Corporate presentation with narration is:

On Behalf of the Board,

H. 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