Cornerstone Capital Resources Inc.
PINK SHEETS : CTNXF
TSX VENTURE : CGP
FRANKFURT : GWN
BERLIN : GWN

Cornerstone Capital Resources Inc.

February 01, 2011 08:00 ET

Cornerstone Defers Planned Winter Drilling Program on the El Strato Gold Property in Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Feb. 1, 2011) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announced today its decision to defer the planned winter diamond drilling program on the El Strato gold property in north-central Newfoundland until this coming summer. Unseasonably mild temperatures this winter have resulted in a lack of suitable lake ice thickness and ground freeze-up conditions, thus making access difficult. Cornerstone will commence the drilling program in early summer as soon as ground conditions are suitable to allow access.

The planned diamond drilling program comprises 1,000 m in approximately 8 to 10 holes, which will primarily test anomalies generated by work completed in 2010 that included an Induced Polarization (IP) survey, soil geochemistry survey, prospecting and a follow-up trenching program. The IP survey identified the Rocky Bottom trend, a 1.75 km long IP chargeability anomaly, and the DD trend, a 1.25 km long IP chargeability anomaly. The Rocky Bottom trend contains anomalous gold-in-soil over its entire strike length with some soil samples assaying 1,211 ppb, 1,453 ppb and 2,098 ppb Au in the southwest. The DD trend contains a single gold-in-soil anomaly but recent trenching in the area identified a thick till layer which has most likely impeded the mobility of gold from the underlying bedrock. Trenching along the DD trend indentified a 55 m wide zone of iron carbonate alteration and quartz veining with assay results of 0.3 g/t Au over 1.0 m from channel samples and 1.4 g/t Au from grab sampling. This alteration zone sits at the southwestern end of this newly discovered trend with no previous drilling. Other drill targets, developed from trenching and prospecting during 2010, include 0.6 g/t Au over 4.0 m from channel sampling and 61.7 g/t Au from grab sampling.

Additional drill targets to be evaluated are the Arrowhead gold showing which is a greater than 1 m wide sub-cropping mineralized quartz vein that has returned values of 54.3 g/t Au in grab samples, the plunge extent of the 8.0 m wide Mega Vein and 4.2 g/t Au from grab sampling on the Triple N trench.

Historical assay results include 239.6 g/t Au (grab sample) and 17.5 g/t Au over 0.55 m (channel sample) from the El Strato showing and 79.1 g/t Au (grab sample) and 12.0 g/t Au over 0.5 m (channel sample) from the Voodoo showing. Some other significant grab sample assay results are 105.3 g/t Au, 72.0 g/t Au, 71.6 g/t Au, 70.9 g/t Au and 67.1 g/t Au. Previous drilling campaigns have only tested to a typical vertical depth of 100 m and have intersected mineralized quartz veins and alteration zones assaying 10.6 g/t Au over 1.13 m, 4.7 g/t Au over 0.9 m, 7.4 g/t Au over 0.45 m, 11.2 g/t Au over 0.3 m, 3.6 g/t Au over 0.67 m, 2.1 g/t over 1.41 m, 338 ppb Au over 7.1 m and 143 ppb Au over 17.55 m.

Cornerstone would like to acknowledge the financial assistance received from the Government of Newfoundland and Labrador under the Junior Exploration Assistance (JEA) program. This funding has aided Cornerstone in carrying out a portion of the exploration work on the El Strato property.

This press release was prepared by Brad Dyke, P.Geo., Project Geologist for Cornerstone who is responsible for overseeing the exploration work and is a Qualified Person in accordance with National Instrument 43-101.

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 Canada and Ecuador 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.

Other News

Cornerstone is pleased to report that it has received in excess of $500,000 cash to date from warrant exercises as a result of the Company's notice to warrant holders earlier in January 2011. The final date for exercise of these warrants is March 7, 2011. The total potential proceeds to Cornerstone's treasury if all warrants are exercised is $1,800,000.

Cautionary Notice:

Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. 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.

Further information on the El Strato project is available on Cornerstone's website at www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136417.

Investors can access and join the following Cornerstone social media channels:

Facebook (http://www.facebook.com/pages/Cornerstone-Resources-Inc/152481978112151)

Twitter (http://twitter.com/Cornerstone_cgp)

YouTube channel (http://www.youtube.com/user/CornerstoneResource)

Flickr (http://www.flickr.com/photos/cornerstoneresources)

The direct links to recent CEO interviews are:

January 21st, 2011

http://rblcommunications.com/webcasts/CGP20Jan2011/CGPvocm20Jan2011.html

January 4th, 2011

http://www.rblcommunications.com/webcasts/CGP04jan11/CGP04jan11.html

November 10th, 2010

http://www.rblcommunications.com/webcasts/CGPnov122010/CGPnov122010.html

On Behalf of the Board,

Glen H. McKay, President & 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.

Contact Information

  • Cornerstone Capital Resources Inc.
    Martti Kangas - Investor Relations
    North America toll-free: 1 (877) 277-8377
    Direct Line: 1 (647) 521-9261
    communications@crigold.com
    or
    Cornerstone Capital Resources Inc.
    Paul Benwell / Pat Kairns
    Direct Line: 1 (514) 904-1333
    www.cornerstoneresources.com