Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

November 13, 2013 08:54 ET

Cornerstone Capital Resources Inc.: Cascabel Project Update-Alpala Prospect

Drill Hole CSD-13-002 Porphyry Copper-Gold Mineralization Extends at Depth

MOUNT PEARL, NEWFOUNDLAND--(Marketwired - Nov. 13, 2013) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (OTCBB:CTNXF) announces that assay results have been received for the lower portion of drill hole CSD-13-002 at the Alpala prospect within the Cascabel Project, the Company's copper-gold porphyry exploration project in northern Ecuador (refer Figure 1).

Highlights:

  • Assay results for the entire drill hole CSD-13-002 yield the following copper-gold intersections:
    • 18m @ 0.33% copper, 0.41 g/t gold (from 6m);
    • 292m @ 0.37% copper, 0.30 g/t gold (from 126m); including 42m @ 0.50% copper, 0.68 g/t gold (from 184m).
  • Copper-gold mineralization encountered to date is interpreted to lie within a high-level structural zone that taps a larger porphyry copper-gold system at depth.
  • Higher grade intervals included:
    • 10m @ 0.91% Cu, 0.41 g/t Au (from 130m)
    • 2m @ 2.58% Cu, 0.81 g/t Au (from 132m)
  • Hole CSD-13-004 terminated at a depth of 318.51m due to poor ground conditions.
  • Hole CSD-13-005 will test the porphyry target below Holes 1 and 2 and is due to commence within the next few days.
  • Assays for Hole CSD-13-003 are anticipated in 2 weeks.

References to figures and table related to the version of this release on the Company's website (www.cornerstoneresources.com) or visible in PDF format by clicking the link below:

http://www.cornerstoneresources.com/i/pdf/NR13-28Figures.pdf.

Drill Hole CSD-13-002 Assay Results

A second batch of assay results has been received for drill hole CSD-13-002. The hole was terminated at 547.42m depth in mineralization due to hole deviation caused by faulting in the deeper part of the hole and associated drilling difficulties.

The copper and gold intersections for the entire drill hole are outlined in Table 1 below. The new extended intersection further confirms and expands the known distribution of copper-gold mineralization below the zone of outcropping stock-work vein mineralization in Alpala Creek. Figure 3 shows a cross-section of gold and copper intersections in holes CSD-13-001 and CSD-13-002. Two main intersections were encountered in drill hole CSD-13-002:

  • A shallow intersection of 18m length grading 0.33% Cu, 0.41 g/t Au (from 6m depth).
  • A deeper intersection of 292m length grading 0.37% Cu, 0.30 g/t Au (from 126m depth).

The extensive mineralization within the hole (292m @ 0.37% copper and 0.30 g/t gold) is particularly encouraging, and it laterally expands the extent of mineralization on cross-section at Alpala Creek (refer Figure 3).

Hole IDFrom To Interval Cu (%)Au (g/t)Mo (ppm)
CSD-13-0026 24 18 metres 0.33 0.41 3.6
CSD-13-002126 418 292 metres 0.37 0.3 10.1
includes130 140 10 metres 0.91 0.44 6
includes184 226 42 metres 0.5 0.68 6.7

Table 1: Copper and gold intersections encountered in hole CSD-13-002.

Drill Holes CSD-13-003, CSD-13-004 and CSD-13-005

Drill Hole CSD-13-003 terminated at 751.33m (see separate NR dated 4 November 2013). Assay results are expected in 2 weeks.

Drill Hole CSD-13-004 was terminated at a depth of 318.51m due to poor ground conditions. CSD-13-004 was sited to test an area 300 metres vertically below the lower mineralized interval in Hole CSD-13-001 (Figure 3) but the hole was terminated at 318.51m due to poor ground conditions. A re-designed hole, CSD-13-005, will be collared at the same location as CSD-13-001 and drilled at a steeper angle of -85 degrees to test for the continuation of the high grade copper-gold mineralization intersected in the lower section of CSD-13-001 (Figure 2).

About Cascabel

SolGold Plc holds a 50% interest, and can earn up to an 85% interest, in Exploraciones Novomining S.A. ("ENSA"), the Ecuadorian subsidiary of Cornerstone that holds 100% the Cascabel concession.

The Cascabel project is located in north-western Ecuador in an under-explored northern section of the richly endowed Andean Copper Belt, 60 km northeast of the undeveloped NI 43-101 compliant inferred resource of 982 million tons at 0.89% Cu Junin copper project.

The Alpala Prospect exhibits surface mineralization and alteration patterns indicative of porphyry copper-gold systems and has a similar footprint to large porphyry systems around the world.

Brooke Macdonald, President of Cornerstone, commented, "This year we have re-focused Cornerstone exclusively on our Ecuadorean and Chilean projects, which we believe have the potential to deliver superior returns to our shareholders. Changes earlier this year to the Mining Law in Ecuador, to cap government royalties and to clarify that the windfall profits tax applies only after mine payback, have removed a large obstacle to investment in the mining sector. The potential geological endowment of Ecuador remains unknown due to under exploration but may be unparalleled."

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 and has reviewed and approved the information contained in this news release.

Logging, sampling and assaying

Hole CSD 13-002 was drilled using HTW and NTW core sizes (respectively 7.1 and 5.6 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 Cornerstone's core logging facility and half of the core is delivered by Cornerstone employees for preparation at Acme Analytical Laboratories (ACME) affiliate laboratory 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-element suite (ACME code 1E, 0.25g split, 4-acid digestion, ICP-ES finish). Over limit results for Ag (> 100 g/t), Cu, Pb and Zn (each one > 1%) are systematically re-assayed (ACME code 7 TD1 or 7 TD2, 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 affiliate 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 (1 control sample every 15 samples) as part of Cornerstone's QA/QC program. 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 mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in 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. 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 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

Further information is available on the Cornerstone Web site at www.cornerstoneresources.com; via e-mail at communications@crigold.com; or toll free at 1-877-277-8377.

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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