Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

July 27, 2015 08:00 ET

Cornerstone Capital Resources Inc.: Hole 12 at Cascabel Intersects Mineralized Diorite Porphyry 2nd Rig Mobilized to Site

MOUNT PEARL, NEWFOUNDLAND AND LABRADOR--(Marketwired - July 27, 2015) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP)(OTCBB:CTNXF)(FRANKFURT:GWN)(BERLIN:GWN) announces the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador, in which the Company has a 15% interest financed through to completion of a feasibility study.

HIGHLIGHTS:

  • Hole 12 intersects shallow visible copper sulphide (chalcopyrite-bornite) mineralization from 88.4m to current depth of 246.9m *
  • Mineralized diorite porphyry intersected at 233.8m, several hundred metres shallower than previously expected. Diorite occurs at a similar depth in Hole 1 (CSD-13-001).
  • Extensions to surface mineralization and shallow resource potential realized through recent mapping, trenching and rock-saw channel sampling programs.
  • Mobilization of 2nd Rig to site, with exploration drilling planned to test other porphyry centres within the greater Cascabel porphyry cluster.

* Core length; true width of the mineralized zone cannot be determined from the information currently available.

References to figures, photographs 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/NR15-16Figures.pdf.

FURTHER INFORMATION:

Hole CSD-15-012 ("Hole 12") continues, and on July 23rd the hole was at a depth of 246.9 metres.

Hole 12 is being drilled at an azimuth of 210 degrees and an inclination of ‐87 degrees from a position 95m to the southeast of the CSD-13-005 ("Hole 5") drill site, targeting extensions of high grade porphyry copper and gold mineralization encountered in Holes 1 and 5.

Visible chalcopyrite, bornite and magnetite veining encountered in Hole 12 from 88.4m highlight the potential for significant southeasterly extension of the mineralized system at Alpala Central. The true width of this zone is not clear at this stage.

The presence of "B" type quartz veining with Bornite "C" type sulphide veining, in conjunction with magnetite veining and within the characteristically poorly mineralized San Juan de Lacas Volcanics bodes extremely well for the continued intersection of significant copper and gold mineralization at shallow depths in the southeastern quarter of the Alpala Central zone.

Sheeted and stockwork surface mineralization trending NW-SE in outcrop at surface has been traced over a 140m strike length to date, and the increasing potential for a shallow copper and gold resource in conjunction with deeper high grade targets at Alpala Central further enhance the scale and potential economic value of the Cascabel project.

Rock saw channel sampling perpendicular to the northwest trend of mineralization along Alpala Creek returned true widths of 33.3m @ 0.65% Cu, and 1.02 g/t Au, including 18.3m @ 0.78% Cu and 1.61g/t Au in Trench 5.

Trenching at the northwestern limit of exposed surface mineralization returned 53.9m (true width 26m) @ 0.32% Cu, and 1.38 g/t Au, including 15.6m (true width 7.5m) @ 0.77 % Cu, and 0.56 g/t Au from Trench 56A, which crosses the northwest mineralization trend at an oblique angle.

Drill hole CSD-13-001 ("Hole 1") has tested the central portion of this zone of shallow prospectivity with results in the top 300m from surface which include 100m @ 0.65% Cu, and 1.00g/t Au from 222m, including 58m @ 0.96% Cu and 1.67g/t Au from 226m, as previously disclosed in Cornerstone news release 13-25 dated October 16, 2013: http://www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=607907.

Recent discovery of extensions of surface mineralization, around 80m southeast of Alpala Creek, reveals outcropping porphyry stockwork veining in the most southeasterly trench. All new trench sites are currently being cleared for rock saw channel sampling.

Mobilisation of a second drill rig (Rig 2) continues, with transportation of over 2000m of drill rods to site. This rig is planned to commence setup on site at Alpala North West around August 7th 2015.

The Alpala North West drill target lies around 400m northwest of Alpala Central along the Alpala Structural Corridor, where an interpreted porphyry centre lays co-incident with the "T1" geophysical target. The "T1" target is characterised by coincident MVI magnetic and MT conductivity models, surrounded by an annular IP chargeability halo. This target area is also characterised by the limit of manganese < 100 ppm in soil, inferred to be related to strong phyllic / argillic alteration, as well as a north west trending zone of pyrophyllite from soil spectral work. This type of spatial relationship between geophysical, geochemical and spectral data is shown by many other globally significant porphyry systems.

Location plans showing near surface drill hole results and surface rock saw channel results for copper and gold respectively are shown in Figures 1 and 2. An example of recently discovered porphyry stockwork veining in the most southeasterly trench is shown in Figure 3. Examples of mineralization encountered in Hole 12 to date are shown in Figure 4. Rig 2 planned location and target are shown in Figure 5.

About Cascabel

SolGold Plc owns 85% of the equity of Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean registered company that holds 100% of the Cascabel concession in northern Ecuador. Cornerstone owns the remaining 15% of ENSA, which also holds the rights to the La Encrucijada gold-silver project. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project with Cornerstone Ecuador S.A. providing some exploration and administrative services. Cornerstone's 15% interest is financed through completion of a feasibility study.

Cascabel 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 inferred resource of 982 million tons at 0.89% Cu 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 Junin 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 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, 0.25 g 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 partnerships. Commitments from 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

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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