Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

August 03, 2011 08:00 ET

Cornerstone Intersects 3.15 g/t Au Over 3.2 m on the El Strato Gold Property in Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Aug. 3, 2011) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announced today that it has completed a 1,160 metre, 10 hole diamond drilling program on the El Strato gold property in north-central Newfoundland. The program successfully intersected a new gold-bearing breccia zone grading 3.15 g/t Au over a core length of 3.2 m along the southwest portion of the Rocky Bottom trend (see Table 1 and Figure 1 for a summary of the results). This new mineralized zone is the widest drill intersection encountered on the property to date and is open in all directions.

Brooke Macdonald, President of Cornerstone, said "The discovery of a new gold-bearing zone grading 3.15 g/t Au over 3.2 m represents the first significantly wide gold intersection to date on the El Strato property, and confirms the potential for mineable widths. We are encouraged by these results and will be planning a follow-up exploration drilling program to further evaluate the extent of the gold mineralization."

The drilling program primarily tested near-surface anomalies generated by work completed in 2010 that included an Induced Polarization (IP) survey, soil geochemistry survey, prospecting and a follow-up mechanical trenching program. The IP survey identified the DD trend, a 1.25 km long IP chargeability anomaly and the Rocky Bottom trend, a 1.75 km long IP chargeability anomaly. Three holes (ES-11-20 to 22) tested the DD trend along 700 m of its strike length. Holes ES-11-20 & 21 encountered locally weakly anomalous gold values ranging from 5 to 220 ppb Au. Hole ES-11-22, the northernmost hole along the trend, intersected typically weakly anomalous gold values (5 – 112 ppb Au) including a high of 2.23 g/t Au over 0.3 m in mafic volcanic rocks with quartz-carbonate patches. Three holes (ES-11-23 to 25) were drilled along the Rocky Bottom trend and intersected significant gold grades. Hole ES-11-23 intersected 3.15 g/t Au over 3.2 m in a breccia and 14.23 g/t Au and 20.3 g/t Ag over 1.2 m in a narrow quartz vein that was drilled partially down dip. Hole ES-11-24 intersected 2.16 g/t Au over 1.6 m in a shear zone and hole ES-11-25 intersected 3.01 g/t Au over 0.8 m in a quartz-veined shear zone. A more detailed description of the DD and Rocky Bottom trends is provided in a news release dated October 4, 2010.

Hole ES-11-26 tested the Mega Vein, an approximately 8 m wide quartz vein exposed at surface. The hole intersected only weakly anomalous gold including 20 ppb Au over 0.9 m in a quartz vein. Hole ES-11-27 tested the Triple N showing, from which grab samples assayed up to 4.2 g/t Au. The hole intersected 2.28 g/t Au and 8.8 g/t Ag over 0.2 m and 1.16 g/t Au and 11.1 g/t Ag over 0.25 m in narrow zones of quartz veining.

The Arrowhead showing, a >1 m wide sub-cropping mineralized quartz vein that has returned values up to 54.3 g/t Au in grab samples, was tested by holes ES-11-28 and 29. Hole ES-11-28 intersected the Arrowhead quartz vein which returned 143 ppb Au over 0.4 m. Hole ES-11-29, collared 110 m to the southwest of ES-11-28, intersected 7.39 g/t Au over 0.8 m including the Arrowhead quartz vein which assayed 18.7 g/t Au and 8.4 g/t Ag over 0.3 m.

Gold intercepts noted above typically contain variable amounts of sulphide mineralization comprised of pyrite and/or sphalerite and/or galena and/or minor chalcopyrite. See website for additional information regarding the El Strato property (

To see Table 1: El Strato Drill Results follow this link:

Qualified Person

Brad Dyke, P.Geo., Project Geologist for Cornerstone, is the Qualified Person in accordance with National Instrument ("NI") 43-101 responsible for supervising the diamond drilling program on the El Strato property. Mr. Dyke has reviewed and approved the technical contents of this news release. All holes drilled by Cornerstone are BQTK in size. Photographic logging of all drill core was performed systematically prior to assaying. The core is logged and select sections, where appropriate, are sawn in half at a core logging facility in Springdale. Half of the core is submitted for analyses to Eastern Analytical Limited, an independent and qualified assayer located in Springdale, Newfoundland and the remaining half of the core is kept for future reference. Blanks, duplicates and standards are routinely used as part of the assay procedures.

Junior Exploration Assistance Program

Cornerstone would like to acknowledge financial support from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in carrying out the 2011 diamond drilling program on the El Strato property.

Other News:

Proceeds of $937,500 have been received from the exercise of the Company's remaining outstanding warrants. On June 24, 2011, the Company gave notice to warrant-holders that it was accelerating the expiry date as per the terms of the warrant agreement and all 4,687,500 warrants were exercised by the warrant-holders.

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, Chile, and Atlantic Canada, 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. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone's projects. Further information is available on Cornerstone's website:

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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 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

Further information is available on the Cornerstone Web site at; via e-mail at; 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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