Cornerstone Capital Resources Inc.

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Cornerstone Capital Resources Inc.

March 24, 2014 09:01 ET

Cornerstone Capital Resources Inc.: Cascabel Project Update

Hole 6 Progresses towards Target, Visual Copper Sulphides

Contract Signed for IP Survey

MOUNT PEARL, NEWFOUNDLAND--(Marketwired - March 24, 2014) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP)(OTCBB:CTNXF)(FRANKFURT:GWN)(BERLIN:GWN) is pleased to provide the following update on the Cascabel copper-gold porphyry exploration project in northern Ecuador.

Highlights:

  • Hole 6 progressing well and advances on its target.
  • Contract signed with Quantec Geoscience for a Deep-Earth Imaging Orion 3D IP survey at Cascabel.
  • Assays for final 40 metres of Hole 5 received.

References to figures 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/NR14-10Figures.pdf

Drill Hole CSD-14-006

The Stage 2 drill program at Alpala commenced on March 3rd with the drilling of hole CSD-14-006 (Hole 6). As of March 23rd, Hole 6 was at a depth of 547 metres and progressing towards a magnetic target that is modelled at around 630 metres depth (Figure 1).

Hole 5 encountered particularly high grade porphyry copper-gold mineralization from a depth of 658m down hole, coinciding with a modelled magnetic susceptibility shell with a magnetic intensity of 0.02066 SI units. This same 3D magnetic iso-surface is plotted on a cross-section passing through Hole 6, located about 320m north of Hole 5 (Figure 1). The geophysical model predicts rocks at around 630m depth in Hole 6 to have a magnetic signature equivalent to those encountered in Hole 5 where they are potassic-altered and associated with high-grade copper and gold mineralization.

Hole 6 is presently encountering visible and increasing chalcopyrite mineralization in the interval from 471m to 547m, the current depth of the hole (see Plate 1).

IP Contract

ENSA, the Ecuadorian registered company which holds the Cascabel tenement and in which SolGold has earned 85% equity, has signed a contract with an international geophysical company Quantec Geoscience, to conduct a distributed array 3DIP-MT (3D Induced Polarization and Magneto-Telluric) survey using their highly acclaimed deep-earth imaging Orion electrical geophysical system.

While conventional IP systems typically see to depths of around 400m at best, the Orion system can read IP effects to potential depths of 800m and beyond, and can read resistivity data to potential depths of 2 kilometres and beyond using magneto-telluric measurements.

The Orion system is a very sophisticated survey technique and will be used to map sulphide distribution, contrasting geological units and alteration zones across the entire recognized extent of the lithocap and underlying porphyry system at Alpala.

The use of the Orion system will provide a quantum leap in data density over conventional IP systems that are the industry norm.

Quantec are in the final stages of organizing shipment of the survey equipment from Canada while ENSA completes the pre-survey gridding that is required prior to commencement of the survey.

Drill Hole CSD-13-005

Final assays have been received for the interval 1330 metres to 1370 metres (final depth of Hole 5). Logging results from Hole 5 drill core suggest that the hole has drilled out through the southwest margin of the potassic zone and into propylitic altered rocks on the margin of the porphyry system at around 1318m depth. Copper grades however do extend beyond this contact, with elevated copper over 0.1% extending to the end of hole at 1370m depth.

The result of the drill hole intersecting marginal propylitic alteration in the lowermost 52m further re-enforces our model that the Alpala porphyry system is associated with the magnetic rocks of the Alpala Magnetic Complex which lie in the sectors north, northeast, east and southeast of Hole 5.

Table 1 lists the final and complete set of copper and gold intersections for hole CSD-13-005.

The bulked intersection is 1346m grading 0.61% Cu and 0.53 g/t Au (from 24m depth).

The most significant high-grade intersections include:

688m grading 0.92% Cu and 0.90 g/t Au (from 658m depth)

568m grading 1.01% Cu and 1.02 g/t Au (from 778m depth)

Hole ID Depth
From
Depth
To
Intersection
(m)
Cu
(%)
Au
(g/t)
Comments
CSD-13-005 24 1370 1346m 0.61 0.53
Incls 24 420 396m 0.32 0.17
Incls 436 658 222m 0.26 0.11
Incls 658 1346 688m 0.92 0.90
Incls 778 1346 568m 1.01 1.02
Incls 1330 1370 40m 0.25 0.13 Extension Assays
Incls 1052 1310 258m 1.27 1.40 High Grade
Incls 1096 1146 50m 1.80 2.26 High Grade

About Cascabel

SolGold has exercised its right to increase its ownership of ENSA from 50% to 85%. ENSA is an Ecuadorean registered company, which holds 100% of the Cascabel concession in northern Ecuador. Cornerstone hold the remaining 15% of ENSA.

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.

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

Holes referred to in this release were or are being drilled using HTW, NTW and NQ core sizes (respectively 7.1, 5.6 and 4.8 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. For investor, corporate or media inquiries, please contact:
Investor Relations:
Email: ir@cornerstoneresources.ca
North America toll-free: 1 (877) 277-8377

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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

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