Cornerstone Capital Resources Inc.
TSX VENTURE : CGP

Cornerstone Capital Resources Inc.

March 24, 2006 08:00 ET

Cornerstone Announces Joint Venture for Garland Nickel Property, Voisey's Bay Area, Labrador

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - March 24, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) ("Cornerstone") is pleased to announce the signing of an earn-in/joint venture agreement with Celtic Minerals Ltd. ("Celtic") (TSX VENTURE:CME) for Cornerstone's Garland nickel property, located 30 km southeast of the Voisey's Bay mine.

The agreement gives Celtic the right to earn a 51% interest in the property by spending $3 million on exploration over four years. The first year's $500,000 expenditure is a firm commitment and includes costs associated with completion of an airborne Gravity Gradiometry survey, as previously agreed between Inco Limited and Cornerstone (Cornerstone news release dated January 9, 2006). The agreement also calls for Celtic to make cash payments totaling $450,000 to Cornerstone over four years. The first payment of $50,000 was made on signing of the agreement. Celtic will be operator during the earn-in period.

The schedule of required cumulative expenditures for Celtic to earn its 51% interest is as follows:

- $500,000 by the first anniversary of signing the agreement

- $1,000,000 by the second anniversary

- $2,000,000 by the third anniversary

- $3,000,000 by the fourth anniversary

On Celtic earning a 51% interest, a Joint Venture will be formed whereby both parties will have the right to maintain their respective interests by funding their respective shares of exploration costs. Either party may dilute its interest, based on exploration expenditures, and if a party's interest falls to 10% or less, its interest will convert to a 2% NSR.

As described in a previous Cornerstone release (Cornerstone news release dated September 28, 2005), the 53 km2 Garland property covers the on-strike extensions of a series of AMT anomalies detected by an Inco audio-magnetotelluric (AMT) survey completed in 2001 (http://www.cornerstoneresources.com/files/map_amt.jpg). The anomalies are defined as a series of zones of higher conductivity interpreted to lie at a depth greater than 800 m. Reports filed by Inco with the Government of Newfoundland & Labrador indicate the area surrounding the AMT anomalies is locally underlain by troctolitic rocks considered favorable for hosting Voisey's Bay style nickel sulphide mineralization. Cornerstone acquired the claims to cover portions of these anomalies and their inferred on-strike extensions.

Cornerstone is pleased to be advancing its portfolio of properties in Labrador through joint ventures and continues to pursue joint ventures on the remainder of its significant property holdings in the district. Cornerstone's land position in the Voisey's Bay district is second in size only to Inco's. Exploration in Labrador for Voisey's Bay style nickel deposits is a corporate priority and Cornerstone expects to continue to generate projects of merit in the region.

Cornerstone is focused on generating and advancing exploration projects that have the potential to yield outstanding returns to the company and its shareholders. The company's business model is based on developing those projects mainly through joint ventures. Partnering with other exploration and mining companies gives Cornerstone access to its partners' financial and technical resources, thereby reducing the need to seek financing from capital markets. The fact that JV partners are willing to expend their resources on Cornerstone's projects constitutes a significant and encouraging endorsement.

With eight JV projects in Canada and Ecuador, Cornerstone anticipates a very strong year in terms of JV expenditures and drilling activity.

Paul Moore, M.Sc., P.Geo., Chief Geologist for Cornerstone, is the Qualified Person, as per National Instrument 43-101, responsible for the information in this news release.

On behalf of the Board of Directors

Glen McKay, President

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

Contact Information

  • Cornerstone Capital Resources Inc.
    Glen McKay
    President
    Toll Free: 1-877-277-8377
    or
    Cornerstone Capital Resources Inc.
    Mike Basha
    VP Exploration
    Toll Free: 1-877-277-8377
    or
    Cornerstone Capital Resources Inc.
    Paul Moore
    Chief Geologist
    Toll Free: 1-877-277-8377
    or
    Cornerstone Capital Resources Inc.
    Rosanne Williams
    Manager Corporate Communications
    Toll Free: 1-877-277-8377
    Email: communications@crigold.com
    or
    Cornerstone Capital Resources Inc.
    109 Clyde Avenue
    Mount Pearl, NL A1N 4R9
    (709) 745-8377 or Toll Free: 1-877-277-8377
    Email: info@cornerstoneresources.com
    Website: www.cornerstoneresources.com