Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

March 03, 2014 09:21 ET

Cornerstone Drills 0.95% Cu and 0.96 g/t Au over 136 Metres from 1194m to 1330m in Hole 5, Further Extending High Grade Copper-Gold Zone at Cascabel

MOUNT PEARL, NEWFOUNDLAND--(Marketwired - March 3, 2014) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP) (OTCBB:CTNXF) (FRANKFURT:GWN) (BERLIN:GWN) announces the following project update for the Stage 1 drill program at the Alpala prospect within the Cascabel Project at the Company's copper-gold porphyry joint venture exploration project in northern Ecuador.

Highlights:

  • Copper gold assays for Hole 5 received with following high grade extension:

    0.95 % Cu and 0.96 g/t Au from 1194 m to 1330m.
  • Incorporating previous assay results reported February 27th, more extensive intersections at Alpala include the following grade or length upgrades:

    672m grading 0.93 % Cu and 0.91 g/t Au (from 658m).
    552m grading 1.03% Cu and 1.05 g/t Au (from 778m).
    258m grading 1.27% Cu and 1.40 g/t Au (from 1052m).
  • The length of hole interval assayed so far from 24m to 1330m depth yielded 1306m grading 0.62% Cu and 0.54 g/t Au.
  • Drill rig has been mobilized to Drill site 6 and commencement of drilling is expected shortly.
  • Hole 6 is located approximately 300m north northwest of Hole 5 to target extension of the copper-gold discovery in Hole 5.
  • Remaining Hole 5 assays from 1330m to 1370m expected within 14 days.

Brooke Macdonald, Cornerstone's President & CEO said: "Hole CSD 13-005 continues to deliver high copper and gold assay results over long intervals at Cascabel. When exploring for porphyry type mineralization our attention is naturally focused on copper results but gold mineralization is very significant at Alpala, accounting for 35-40% of the overall economic value of the intercepts and would be a sweetener to any operation. Geological interpretation to date and magnetic data suggest that hole #5 may be located just on the edge of the core of the mineralized porphyry probably located to the northeast. Hole #6 will test this interpretation and should be exciting. Cornerstone has been saying for a long time now that Ecuador, due to under-exploration and its location in the middle of the Andean Cordillera, is one of the few places in the world where you can find outcropping mineral deposits of this potential size and grade. We are excited about talking with other potential partners concerning our three 100% owned Ecuadorean properties, Vetas Grandes, Bella Maria, and Caña Brava."

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/NR14-07Figures.pdf.

Drill Hole CSD-13-005

Hole CSD-13-005 at the Alpala porphyry prospect was sited to test the western flank of the 4km2 Alpala Magnetic Complex at depth beneath drill holes 1 and 2. Holes 1 and 2 had intersected long runs of copper and gold mineralization associated with porphyry copper-gold quartz stockwork and sheeted veins at the Alpala prospect. Copper and gold assay results to a depth of 869.68m in Hole 5 were reported on January 14th and to a depth of 1194m on February 27th.

Assay results from the interval 1194m to 1330m have been received, with the remaining assays from 1330m to 1370m expected within 14 days.

The newly assayed interval lies within the transitional potassic alteration zone (magnetite-chlorite alteration) developed within a diorite, and continues to exhibit porphyry strong copper-gold stockwork vein mineralization and copper sulphides dominated by chalcopyrite. This zonation is following classic and predictable porphyry characteristics.

The newly assayed interval from 1194m to 1330m yielded an intersection of 136m grading 0.95 % Cu and 0.96 g/t Au (Table 1). Bulking previously reported assays with this new result, the following highly significant intersections are generated:

1306m grading 0.62% Cu and 0.54 g/t Au (from 24m);
672m grading 0.93% Cu and 0.91 g/t Au (from 658m);
552m grading 1.03% Cu and 1.05 g/t Au (from 778m); and
an even higher grade interval of 258m grading 1.27% Cu and 1.40 g/t Au from 1052m depth.
Table 1 lists the key intersections to date from Hole 5, while figures 1 and 2 show the intersections on cross-section and graph. Figure 3 shows the location of the hole on the western margin of the Alpala Magnetic Complex.
Hole ID Depth From Depth To Intersection
(m
) Cu (% ) Au (g/t ) Comments
CSD-13-005 24 1330 1306m 0.62 0.54 Open at Depth
Incls 24 420 396m 0.32 0.17
Incls 436 658 222m 0.26 0.11
Incls 658 1330 672m 0.93 0.91 Open at Depth
Incls 778 1330 552m 1.03 1.05 Open at Depth
Incls 1194 1330 136m 0.95 0.96 Extension Assays
Incls 1052 1310 258m 1.27 1.40 High Grade
Incls 1096 1146 50m 1.80 2.26 High Grade

Table 1 - Intersections from hole CSD-13-005 at the Alpala Prospect.

Recent detailed logging of alteration zones in Hole 5 has refined the interpretation of alteration zonation (Figure 1).

Hole 6 Mobilization

Mobilization of the drill rig from Hole 5 to Hole 6 is near completion, with drilling anticipated to commence shortly. The drill site for Hole 6 is located 320m northwest of Hole 5 (Figure 3). Hole 6 is sited to test the north-ward extension of porphyry mineralization that has been discovered in Holes 1, 2 and 5 at Alpala, in an area of strong and coincident molybdenum (Mo) and gold (Au) soil anomalism that lie along structural strike from Hole 5. Hole 6 will also test the Alpala Magnetic Complex at depth by drilling northeast-ward, orthogonally into the flank of the Alpala regional magnetic high.

Figures 1 and 2 show the intersections on cross-section graph while Figure 3 illustrates the gold-rich nature of the intersections in Hole 5 at Alpala relative to other large South American porphyry copper-gold deposits.

About Cascabel

As recently announced, SolGold has exercised its right to increase its ownership of Exploraciones Novomining S.A. ("ENSA") from 50% to 85%. ENSA is an Ecuadorean registered company which holds 100% of the Cascabel concession in northern Ecuador. Cornerstone will hold the remaining 15% of ENSA, which also holds the rights to the La Encrucijada gold-silver project.

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.

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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