Cornerstone Capital Resources Inc.
TSX VENTURE : CGP
OTC Bulletin Board : CTNXF

Cornerstone Capital Resources Inc.

May 31, 2005 15:39 ET

Cornerstone Encounters Bonanza Grade Gold & Silver on Ecuador Project

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - May 31, 2005) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (OTCBB:CTNXF) ("Cornerstone") is pleased to report that further reconnaissance exploration has identified additional zones of gold mineralization, locally with bonanza grades, on its Shyri Project in southern Ecuador.

The Shyri property straddles the Ganarin Belt, a 50 km long belt featuring volcanic centers and numerous epithermal gold-silver prospects. The property covers approximately 500 sq km and is immediately adjacent to IAMGOLD's Quimsacocha project where the company has drill intersections assaying up to 9.5 g/t Au and 46.7 g/t Ag over 101 m, and 61.9 g/t Au and 66 g/t Ag over 28 m (IAMGOLD News Releases dated Jan 26, 2005 and April 15, 2005).

Cornerstone previously reported initial results from reconnaissance prospecting and sampling of the Shyri property (see News Release of May 13, 2005). Results reported from prospects in the Canaribamba area of the property included chip sample values of 21.7 g/t Au and 73.6 g/t Ag over 0.4 m, and 7.2 g/t Au and 156 g/t Ag over 0.6 m and grab samples values up to 30.9 g/t Au from low-sulphidation style veins and vein stockworks within altered diatreme breccia. Additional results received since that update have identified further areas of gold-bearing, epithermal style vein/stockwork systems in the Canaribamba area plus several new vein prospects and significant advanced argillic and quartz-alunite epithermal style alteration systems elsewhere on the property.

- Canaribamba: This is the area of the fabled Spanish Colonial era gold mines. Chip sampling of altered diatreme breccia, approximately 150 m south of the Pinglio Prospect (see May 13, 2005 news release), returned assay values up to 46.6 g/t Au and 19.1 g/t Ag over 0.4 m. Also, an area 300 m by 200 m underlain by extensive hot-spring sinter float and quartz vein boulders was discovered approximately 1.2 km south of Pinglio. Grab samples of these blocks returned values to 600.0 g/t Au and 885.0 g/t Ag, and 18.3 g/t Au and 9.9 g/t Ag. Five areas of veins, vein stockworks and altered diatreme breccia have been outlined over a north-south oriented, 2200 m by 900 m area. The veins typically trend N-S or NNW-SSE, are up to 1.1 m wide, and have significant clay alteration along the vein margins. Textures indicate that the highest levels of an epithermal gold bearing system are preserved on the Shyri property. Based on preliminary mapping, the system appears to be hosted within the margins of a diatreme complex more than 6 sq km in area that cuts an extensively argillic altered volcanic/intrusive sequence. The alteration and mineralization style is consistent with low-sulphidation epithermal vein systems. The El Penon deposit in Chile (3.8 million ozs Au and 63 million ozs Ag - Warren et al, 2004) is considered a world-class example of this deposit type.

- Tasqui Area: An extensive area of silicic and advanced argillic alteration was discovered approximately 10 km northwest of Canaribamba. Samples of locally derived angular rock float have returned assays up to 7.4 g/t Au and more than 100 g/t Ag (precise Ag assays pending).

- Wilson Vein: Initial grab samples of a 4 m wide quartz vein exposed over a distance of 600 m, located approximately 5 km northwest of Canaribamba, returned assay values to 2.6 g/t Au and more than 100 g/t Ag (precise Ag assays pending).

- Quartz-Alunite/Vuggy Silica Alteration Zones: Two significant alteration zones were discovered on parts of the Shyri property marginal to the northern boundaries of IAMGOLD's Quimsacocha property. The alteration zones cover areas of approximately 3 km by 5 km and 1.0 by 1.5 km and consist of advanced argillic alteration, massive and vuggy silica and quartz-alunite alteration. Preliminary sampling returned only weakly anomalous values from one of the zones and the second returned assay values from vuggy silica up to 0.7 g/t Au and 14.9 g/t Ag.

Cornerstone's initial reconnaissance program has successfully demonstrated the presence of widespread gold mineralization across the Shyri Property as well as bonanza grades locally. The occurrence of wide zones of quartz-alunite alteration and vuggy silica is also extremely encouraging, as this type of alteration is associated with gold mineralization at Quimsacocha. The presence of calderas, flow-dome and diatreme complexes and the vein textures and alteration suggest that mineralizing systems appear to be more or less preserved on the Shyri property and imply an environment prospective for a range of gold deposit types.

All samples were collected by Cornerstone personnel, sealed on the property and shipped to Acme Laboratories in Cuenca, Ecuador, where they were prepared for analysis. Pulps were shipped to Vancouver for analysis of gold by one assay ton fire assay and multi-element ICP analysis. Samples containing silver greater than the upper limit for the ICP technique (100 g/t Ag) were re-analyzed using atomic absorption spectrophotometry. Quality control was maintained throughout the program by implementation of procedures involving check assaying and insertion of previously prepared standards for each batch of 20 rock samples analyzed.

The Qualified Person for these projects, as per the definition in National Instrument 43-101, is Mike Basha, P.Eng., P.Geo., Exploration Manager for Cornerstone.

Cornerstone crews are currently conducting reconnaissance prospecting and sampling on the Monterrey and Rinconada concessions, also in southern Ecuador. Results are expected in four to six weeks and will be reported when available.

On Behalf of the Board of Directors

Glen H. McKay, President

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

Contact Information