Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

February 14, 2017 08:30 ET

Cornerstone Capital Resources Inc.: Cascabel Exploration Update Hole 19 assays - 1132 metres (true width 500 m) grading 0.50% Cu and 0.33% Au from 268 metres

OTTAWA, ONTARIO--(Marketwired - Feb. 14, 2017) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (OTCBB:CTNXF) announces the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador.

Figures, table and photographs referred to in this news release can be seen in PDF format by accessing the version of this release on the Company's website (www.cornerstoneresources.com) or by clicking on the link below:

http://www.cornerstoneresources.com/i/pdf/NR17-04Figures.pdf.

HIGHLIGHTS:

  • Drill Hole 19 returned a broad mineralized zone of 1132m grading 0.50 % copper and 0.33 g/t gold (0.80% CuEq(1)) from 268m depth, across an interpreted true width(2) of approximately 500m to date (further assays to come), at the growing Alpala deposit.
  • This long intersection includes 802m grading 0.63 % copper and 0.43 g/t gold (1.02% CuEq) from 572m depth, or 516m grading 0.75 % copper and 0.50 g/t gold (1.20% CuEq) from 838m, across true widths of approximately 360m and 230m respectively.
  • The Hole 19 assay results reflect intersections significantly richer in Bornite, (a copper rich sulphide mineral containing approximately 63% copper) than in previous drill holes, representing the southernmost and shallowest high grade mineralization discovered at Alpala to date
  • Drilling focus moving to Hematite Hill, towards Alpala Southeast, where strong bornite mineralization and high temperature advanced argillic alteration are mapped at surface.
  • Hole 20R is continuing at 1342.4m.
  • Holes 21 & 22 entering increasingly strong mineralization at 750.4m and 702.2m respectively.
  • Two additional rigs to mobilize in February, increasing to seven drill rigs by years' end.

FURTHER INFORMATION:

The Cascabel Project is located within the gold-rich northern section of the prolific Andean Copper belt renowned as the production base for nearly half of the world's copper (Figure 1). The project area hosts mineralization of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte, in northwestern Ecuador just west of the City of Ibarra, approximately 3 hours drive north of Quito and close to water, power supply and Pacific Ports (Figure 2).

Fourteen individual targets have been defined at Cascabel and only one of these, the Alpala Deposit, has been drilled to date (Figure 3). The deposit at Alpala continues to grow with each new drill hole. Drilling continues to focus on defining the geometry of the growing Alpala deposit, which is open in virtually all directions. Over 29,000m of drilling has been completed to date (Figure 4).

Drill Hole CSD-16-019 ("Hole 19") was terminated at a depth of 1632.52m, on January 20, 2017. Assay results from 0m to 1400m have been received for this hole, with results for the last 232.52m from 1400m to end of hole pending.

Hole 19 was drilled designed to test the trend and tenor of mineralization approximately 150m above holes 12 and 16 and was drilled in the direction of 211 degrees true north at a declination of -80 Degrees.

Hole 19 is the most southerly of the drill holes at Alpala and the increased presence of bornite (a copper rich mineral containing 63% copper) in comparison to other holes at Alpala, endorses Solgold's south easterly extension targets.

Hole 19 intersected a relatively bornite rich mineralization in a high grade 516m long interval from 838m to 1354m, and represents the southernmost and shallowest high grade intersection discovered at Alpala to date. Hole 19 exemplifies the growing potential for increasingly shallower intersections in high grade bornite rich mineralization at the Alpala deposit.

The mineralization intersected in Hole 19 remains open to the southeast, where relatively strong bornite mineralization and high temperature advanced argillic alteration are mapped at surface. Hole 19 is interpreted to have drilled into a late stage lower grade "intra-mineral" dyke from approximately 1343.3m depth.

Highlights from the assay results received from Hole 19 are shown below in Table 1.

Cascabel Project - Drill Hole Intersections
Hole ID Depth
From
Depth
To
Interval
(m)
True
Width
(m)
Cu
%
Au
g/t
Cu.Eq
%
Cut-off
Grade
Comments
CSD-16-019 268 1400 1132 500 0.50 0.33 0.80 0.10 bulk halo - open at bottom - waiting on results from 1400-EOH
572 1374 802 360 0.63 0.43 1.02 na hand selected samples
572 662 90 40 0.57 0.53 1.04 0.50 upper zone - separated from lower zone by volcanics
838 1354 516 230 0.75 0.50 1.20 0.50 lower zone
*Data Aggregation Method: Intercepts reported using copper equivalent cutoff grades of 0.1,0.2,0.3,0.5,0.7,1.0 and 1.5% with up to 10m internal dilution, excluding bridging to a single sample. Minimum intersection length 6m. Gold Conversion Factor of 0.89 calculated from a copper price of US$2.20/lb and a gold price US$1350/oz.
*The true widths of downhole interval lengths are estimated to be approximately 25% to 45%.

Table 1: Drilling Results from Hole 19 (CSD-16-019) at Alpala.

The results of all holes drilled and assayed to date can be seen in the Table in the Figures.

The confirmation of shallow relatively bornite rich mineralization in Hole 19 bodes well for the extension of the deposit to the southeast, where relatively strong bornite mineralization and high temperature advanced argillic alteration are mapped at surface, covering a further 750m of strike, or double the existing strike of the Alpala zone (Figure 5).

At Alpala, higher portions of the system appear rich in bornite (Image 1), while deeper portions of the known system are rich in chalcopyrite (Image 2).

The Solgold geology team believe the highest grade and deepest portion of the copper-gold system at Alpala has not yet been discovered by drilling. A high grade bornite-chalcopyrite-rich zone is believed to exist at the core of the Alpala mineralized system and it is being targeted in future drilling programs, aimed at defining both the shallowing and southeastern extents of the growing Alpala Deposit as well as revealing the prognosed high grade bornite-chalcopyrite rich heart of the system.

Drilling with Rig 1 continues with Hole 22, which is at a current depth of 702.2m, and intersecting increasing copper sulphide mineralization from 253.8m (Image 3). Hole 22 is testing for shallower extensions above recent high grade mineralization encountered in Hole 19.

Rig 2 was moved to Hematite Hill drill site for Hole 21, which is at a current depth of 750.4m, and also intersecting increasing copper sulphide mineralization from 685.2m (Image 4). Hole 21 is testing the southeast extensions of the Alpala deposit. The high-grade core of the Alpala deposit is open southeast and below Hole 16, which returned 856 metres grading at 0.80 % copper and 1.04 g/t gold.

Rig 3 continues deepening Hole 20R, which is at a current depth of 1342.4m, having intersected strongly mineralized clasts of mineralized porphyry, hosted within hydrothermal breccia (Image 5). Technical drilling challenges have delayed the recent advance of this hole. Drilling rates are, however, expected to improve in the near future.

SolGold is awaiting the arrival of two additional man portable rigs within the next month to focus on defining the extent of the Alpala system, prior to completion of an optimized maiden resource statement, as part of an increase in drilling activities to seven rigs by years' end, facilitating the drill testing of other targets including the promising Triviño, Tandayama /America and Aguiñaga targets.

About Cascabel:

Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company owned by SolGold Plc and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold's fully funding the project through to feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. SolGold Plc is funding 100% of the exploration at Cascabel and is the operator of the project.

Cascabel is located in northwestern Ecuador in an under-explored northern section of the Andean Copper Belt, 60 km northeast of the undeveloped inferred resource of 982 million tons at 0.89% Cu Llurimaga (formerly Junin) copper project (0.4% Cu cut-off grade; Micon International Co. Ltd. Technical Report for Ascendant Exploration SA, August 20, 2004, pages 28 & 29). Mineralization identified at the Llurimaga copper project is not necessarily indicative of the mineralization on the Cascabel Property.

Qualified Person:

Yvan Crepeau, MBA, P.Geo., Cornerstone's Vice President, Exploration and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Cascabel project for Cornerstone and has reviewed and approved the information contained in this news release.

Logging, sampling and assaying

Holes referred to in this release were or are being drilled using HTW, NTW, NQ and BQ core sizes (respectively 7.1, 5.6, 4.8 and 3.7 cm diameter). Geotechnical measurements such as core recovery, fracturing, rock quality designations (RQD's), specific density 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 sawed in half at the ENSA core logging facility, and half of the core is delivered by ENSA employees for preparation at LAC y Asociados ISO 9001-2008 certified sample preparation facility in Cuenca. Core samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (MSA code PRP-910). Prepared samples are then shipped to MS Analytical Services (MSA), an ISO 9001-2008 laboratory in Langley, BC, Canada where samples are assayed for a multi-element suite (MSA code IMS-230, 0.2g split, 4-acid digestion, ICP-AES/MS finish). Over limit results for Cu (>1%) are systematically re-assayed (MSA code ICF-6Cu, 0.2 g, 4-acid digestion, ICP-AES finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AAS finish (MSA code FAS 111). Over limit results for Au (>10 g/t) are systematically re-assayed (MSA code FAS-415, FA, 30g., gravimetric finish).

Drill hole intercepts from the Cascabel Property are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.89, determined using copper price of US$2.20/pound and gold price of US$1350/ounce. Copper equivalent calculation assumes 100% recoveries of copper and gold.

All reported drill core intervals from the Cascabel Property are core lengths, unless otherwise indicated. At present the true thicknesses of all of the holes has not been calculated by SolGold. Low-grade intersections, where applicable, are expressed as average true widths (utilizing the "B-vein > 0.5%" shell orientations). High-grade intersections are better constrained for holes 1, 5, 8 and 9, and these intersections are also expressed as average true widths (utilizing the "B-veins > 20%" shell orientations).

Quality assurance / Quality control (QA/QC)

The MSA Analytical Laboratory is a qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used (1 control sample every 15-20 samples). Rejects, a 100 g pulp for each core sample and the remaining half-core are stored for future use and controls.

About Cornerstone:

Cornerstone Capital Resources Inc. is a well funded mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven 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 partnerships.

Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter.

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 and 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.

(1) Copper Equivalent (CuEq) calculated using a gold conversion factor of 0.89, with copper price of US$2.20/lb and gold price of US$1,350/oz.

(2) The true widths of downhole interval lengths are estimated to be approximately 25% to 45%. Estimates have been made in defining true widths due to insufficient drilling in the outer limits of the currently known extension of the Alpala deposit and drill results not having been fully interpreted. These estimates may change as more drilling is completed and results continue to be processed.

Contact Information

  • Investor, corporate or media inquiries:
    Investor Relations
    Mario Drolet
    (514) 904-1333
    Mario@mi3.ca