Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

November 04, 2013 08:00 ET

Cornerstone Capital Resources Inc.: Drill Hole CSD-13-003 Intersects Long Runs of Visual Copper Sulphide and Molybdenum

MOUNT PEARL, NEWFOUNDLAND--(Marketwired - Nov. 4, 2013) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP)(OTCBB:CTNXF)(FRANKFURT:GWN)(BERLIN:GWN) announces visual observations from drill hole CSD-13-003 at the Alpala prospect within the Cascabel Project, the Company's copper-gold porphyry exploration project in northern Ecuador (refer Figure 1). Assays from this third drill hole have not yet been received.

Highlights:

  • Drill hole CSD-13-003 intersects 579m of visual copper-molybdenum mineralization from 111m to 690m.
  • Newly discovered, variable molybdenum mineralization intersected in CSD-13-003 from 283 to 635m.
  • Porphyry mineralization and quartz stockwork vein intensity increases down-hole in CSD-13-003 towards the interpreted porphyry core.
  • Drill Hole CSD-13-003 terminated at 751.33m.
  • Drill Hole CSD-13-004 commenced drilling on October 29th.
  • Assays expected for top 252 m of Hole CSD-13-002 within days.
  • Current drill program extended from the current 5-hole 2500 m program to a proposed 11 holes for a total of 6600 m.
  • 3.9 square kilometre magnetic complex at Alpala identified with 5 main magnetic apophyses or broad cupolas coincident with Cu-Mo +/- Au soil anomalies.
  • A 12 square kilometre ground-based 3D Induced Polarisation (IP) survey over the broader Alpala region is planned to further define the margins of the porphyry system and high-grade cores.
  • Project fully funded to complete the proposed 11-hole drill program.

References to figures and tables 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/NR13-26Figures.pdf.

"Brooke Macdonald, Cornerstone's President & CEO, said: "The large size and intensity of the hydrothermal porphyry system(s) and associated copper and gold mineralization are being confirmed by drilling at significant depth. Gold and copper are present over large areas and occur in multiple rock units. The information generated so far allows us to adjust and refine our target models, and to define new exciting targets to be tested over the 3 by 1.5 km Alpala magnetic complex. Alpala is the most advanced but only one of the multiple porphyry targets developed on this 50 km² property."

Alpala Porphyry Copper-Gold Prospect

The Alpala prospect comprises porphyry copper-gold mineralization outcropping in erosional gullies along the Alpala drainage system, where surface trenching has identified mineralized sheeted and stockwork quartz veins bearing the copper sulphide minerals chalcocite, covellite, bornite and chalcopyrite and associated gold mineralization. The area of out-cropping porphyry copper-gold mineralization at Alpala lies beneath a 2.5 km by 1.7 km zone of intense acid alteration at higher elevations on the northwest and southeast margins of the Alpala drainage system. This zone of acid alteration defines a 'lithocap' (a capping zone of acid clay and silica hydrothermal alteration that typically forms at shallow levels overlying porphyry copper-gold deposits). The lithocap is centred over a regional magnetic-high anomaly which defines the broader extent of the Alpala target, and is associated with widespread geochemical anomalism (copper, gold, molybdenum) in soil and rock chip samples.

Cornerstone and its partner SolGold Plc propose to expand the current 5 hole, 2500 m diamond drilling program to a total of 11 holes comprising an extra 6 holes for an additional 4100 m for a total of 6600 m. The expanded program is designed to test extensions to the porphyry copper-gold mineralization encountered in hole CSD-13-001 and to identify other centers of copper-gold mineralization within the magnetic complex.

Drill Hole CSD-13-003 Intersects Long Runs of Porphyry Copper-Molybdenum Mineralization

Drill hole CSD-13-003 was collared south of holes CSD-13-001 and CSD-13-002 (Figure 4) and drilled at 60 degrees inclination towards 110 degrees azimuth to test a broad and variable magnetic anomaly that lies east of the area of trenching at Alpala. The hole was terminated at 751.33 m depth.

Hole CSD-13-003 intersected long runs of weak but very persistent chalcopyrite and molybdenite mineralization, with visible chalcopyrite encountered from 76 m to 751.33 m (end-of-hole). Visible chalcopyrite was more pronounced at 590 m to 690 m down hole. Visible molybdenite was most visual from 283 m to 635 m.

The hole also intersected increasing intensities of porphyry-related quartz stockwork veining from surface (~0.5 veins per metre) to 713m depth (~18 veins per metre). The eastward trend of increasing stockwork veining is consistent with the hole drilling obliquely through the marginal halo of a porphyry system whose centre may be located to the northwest or southeast. Porphyry copper-gold-molybdenum deposits are typically surrounded by haloes of lower grade mineralization (pyrite plus chalcopyrite +/- traces of molybdenite and gold) that can extend hundreds of metres and up to a kilometre from the centre of the porphyry deposit.

Cornerstone and SolGold are encouraged by the increasing intensity of molybdenum mineralization and increased vein density close to the centre of the porphyry system at Alpala.

Hole CSD-13-004 In Progress

Drill hole CSD-13-004 commenced drilling on October 29th and was at a depth of 259 m as of November 3rd. Drill hole CSD-13-004 is sited east of holes CSD-13-001 and CSD-13-002 (Figure 4) and is being drilled towards azimuth 225 degrees, at an inclination of 75 degrees and a target depth of 600 m.

The hole is sited to test approximately 300 m below the copper and gold intersection in hole CSD-13-001 (302 m grading 0.39 % Cu, 0.48 g/t Au; including higher grade intervals of 100 m @ 0.65% Cu, 1.0 g/t Au and 58 m @ 0.96% Cu and 1.67 g/t Au).

Assay results for drill hole CSD-13-002 are still awaited and expected within a few days.

Targeting and Forward Drilling Program

Magnetic data at Alpala has been reinterpreted at differing magnetic intensities, and numerous high quality targets have been defined which will be tested in the on-going drill program at Alpala (Figure 5). There are at least 5 magnetic targets within the 3.9 km² magnetic complex that will be tested.

The enlarged drill program is designed to test at least 5 highly prospective copper-gold-molybdenum porphyry targets over a much broader 3.9 km² region of the Alpala magnetic complex. The area covered by the current drilling to date (holes CSD-13-001 to 004) is small in comparison to the extent of the 4.3 km² argillic (clay-rich) alteration in the lithocap (Figure 6) and the extent of the geochemical soil (gold, molybdenum and copper) and magnetic anomalies (Figures 5 and 6).

Holes CSD-13-005 and CSD-13-006 will test the northern and northwestern extension of copper-gold mineralization at Alpala (Figure 4) while CSD-13-007 will better test the magnetic anomaly east of holes CSD-13-001 to 003 (Figure 6).

An updated conceptual model of the Alpala magnetic complex and porphyry targets is shown in figure 7 and photographs of the copper and molybdenum mineralization present in hole CSD -13-003 in figures 2 and 3.

12 Km² Regional 3D Induced Polarization (IP) Electrical Survey Planned

Cornerstone and SolGold are presently planning a ground-based 3D induced polarization (IP) survey over the broader Alpala region. The area planned for surveying covers approximately 3.7 km by 3.2 km, and surveying will commence once a suitable geophysical contractor has been identified. The IP survey will allow to map the distribution of sulphides within the extensive lithocap, and allow better discrimination of drill targets.

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 tonnes 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.

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 13-003 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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