Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

November 14, 2006 08:00 ET

Cornerstone Commences 8000m Drilling Program at La Plata

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Nov. 14, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FWB:GWN) (BERLIN:GWN) announces that an 8000 m Phase II drilling program has commenced at the La Plata gold-rich copper-zinc massive sulphide project in Ecuador. The program will follow-up on the positive drilling results of the Phase I drilling program, and test a number of high priority geophysical targets. Phase II targets are described in detail below.

La Mina

The La Mina deposit (840,459 tons grading 4.8 g/t Au, 54.4 g/t Ag, 4.1% Zn, 4.2% Cu and 0.7% Pb; Historical Resource Estimate, Cambior, 1998(1)) was tested down-plunge to the south during Phase I drilling. High grade mineralization was encountered in two of three holes drilled at La Mina ( Hole LP-06-01 yielded assays of 31.73 g/t Au, 289.39 g/t Ag, 18.16% Zn, 5.86% Cu and 1.61% Pb over 8.9 m including 5.2 m averaging 51.11 g/t Au, 243.47 g/t Ag, 17.58% Zn, 4.88% Cu and 1.77% Pb. Hole LP-06-02 returned 8.2 g/t Au, 62.5 g/t Ag, 16.99% Zn, 1.65% Cu and 2.32% Pb over 9.5 m. These 2 holes are 65 m and 41 m step-outs to the south and west of the La Mina deposit, respectively. The mineralization remains open to the south-southeast and west. The Phase II drill program will test for further extensions of La Mina mineralization to the south-southeast, west, and north.

(1) Note: Resources referred to within this release are not compliant with the requirements of National Instrument 43-101. Cornerstone has not undertaken an independent investigation of the resource estimates nor independently analyzed the results of the previous exploration work in order to verify the classification of these resources. The historical estimates, therefore, should not be relied upon.


The Guatuza prospect is located 175-225 m north of La Mina. The primary target is a 200 m long, shallow IP chargeability anomaly coinciding with the favourable target horizon which hosts La Mina. The geophysical anomaly is also associated with strong surface alteration and elevated gold-copper-zinc geochemistry. Phase I drill hole LP-06-06 intersected two massive sulphide intervals between 89.9 m and 110.95 m in depth. The upper massive sulphide assayed 1.0 g/t Au and 7.0 % Cu over 6.8 m core length while the lower zone assayed 1.0 g/t Au, 3.2% Zn and 3.6% Cu over 6.6 m, including 1.7 g/t Au, 23 g/t Ag, 3.75% Zn and 6.9% Cu over 2.6 m. These intersections represent a new, near-surface massive sulphide discovery at La Plata. Hole LP-06-07 was drilled to test the down-dip extension of LP-06-06 and encountered two narrow massive sulphide intervals, separated by an 8 m wide barren felsic dyke. These intersections are 40 m down-dip of the intersections in LP-06-06. The upper zone assayed 1.1 g/t Au, 14 g/t Ag, 1.6% Zn and 1% Cu over 1.0 m while the lower zone assayed 2.4 g/t Au, 21 g/t Ag, 6.9% Zn and 0.6% Cu over 0.15 m. ( Preliminary borehole PEM geophysical results indicate a strong PEM off-hole anomaly. This represents a high priority target which will be tested during the Phase II drilling campaign.

San Pablo-San Pablo West

The San Pablo prospect is located approximately 1.2 km north of La Mina. During Phase I, LP-06-08 was drilled to test a moderate-strong IP chargeability anomaly associated with the favourable target horizon and strong surface rock and soil geochemistry. Moderate to strong silicification plus disseminated and minor stringer pyrite-chalcopyrite-sphalerite mineralization were encountered throughout the entire 387.9 m hole depth but the best assay was 1.45% Zn over 1.5 m. Further work conducted subsequent to the Phase I drilling, however, detected a strong IP chargeability anomaly with a coincident PEM conductor approximately 500 m north-northwest of LP-06-08. This San Pablo West anomaly is the strongest IP chargeability anomaly of the entire survey. The chargeability anomaly is interpreted to extend to over 200 m in depth and is over 500 m in strike length. Preliminary surface PEM results indicate a moderate response associated with the IP chargeability anomaly at depth. San Pablo West represents a high priority target in the Phase II drill program.

Other Targets

Three other priority geophysical-geochemical targets, San Pablo South, Bella Vista and El Diablo, will also be drill-tested during this drill program.

This press release was prepared by Mike Basha, PEng, PGeo, Cornerstone's Vice President Exploration and a Qualified Person as per the definition in National Instrument 43-101. Bolivar Reza, Ing, is supervising the field program. George Smith, MSc, is Exploration Manager for Cornerstone in Ecuador.

Coastport Capital Inc. (TSX VENTURE:CPP) (FWB:C1J) has an option to earn a 70% interest in the La Plata property by meeting all of Cornerstone's obligations to a 3rd party through to mine financing, by issuing Coastport shares to Cornerstone representing 10% of its fully diluted share capitalization, and by granting Cornerstone a 2% net smelter return royalty (NSR) in the project. Coastport also has the right to earn a 100% interest in Cornerstone's Shyri Project in Ecuador by spending US$8 million on exploration, paying Cornerstone US$490,000 cash, issuing shares equivalent to US$490,000 over 4 years, and, to fully vest, by issuing to Cornerstone 40% of its fully diluted share capitalization.

On Behalf of the Board,

Glen H. McKay, President & CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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