Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

August 29, 2007 08:00 ET

Cornerstone Partners With Phelps Dodge Corporation of Canada, Limited to Explore for Copper in New Brunswick

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Aug. 29, 2007) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) today announced a Joint Venture/Earn-in Agreement with Phelps Dodge Corporation of Canada, Limited ("Phelps Dodge"), a wholly owned subsidiary of Freeport-McMoRan Copper & Gold Inc., to explore for sediment-hosted, stratiform copper (SSC) deposits in the Maritimes Sedimentary Basin of southeastern New Brunswick.

Cornerstone generated an exploration program for copper in New Brunswick in mid-2006 and subsequently staked 282 claims (45.12 sq km) in two licences approximately 60 km apart covering two significant SSC-type copper prospects. The more northerly licence includes the past-producing Dorchester Copper Mine and its northern strike extension. The Dorchester deposit is reported to host a historic resource of 6 million tonnes of low-grade copper, including zones of 2-10% Cu. The second licence, some 60 km southwest from Dorchester, covers the Goshen Copper Prospect, which is reported to host 25,000 tonnes of 2.25% Cu. (Note: These resource figures, reported on the New Brunswick Department of Natural Resources website, are not National Instrument 43-101 compliant.). CVRD-Inco recently staked a large claim position between these two licences. (A map showing the properties is available on the Cornerstone Web site at

This initiative is an extension of Cornerstone's previous work in the Codroy Sedimentary Basin of Southwestern Newfoundland, where a joint venture was also undertaken with Phelps Dodge (See Press release dated August 25, 2005).

The sedimentary basins of southeast New Brunswick currently produce natural gas, oil, salt and potash. The basins all indicate a geologic environment that is potentially favourable to the development of SSC mineralization. The last drilling for copper mineralization in the Dorchester Mine area was completed in the late 1970s. Understanding of the controls of SSC-type mineralization and the regional geological setting of south-eastern New Brunswick has improved vastly since that time.

The Earn-in Agreement will be structured in two phases during the 4 year Earn-in Period. During Phase I (Year 1), the work will consist of mapping and prospecting focused on defining drill targets along the Dorchester Mine horizon, north of the historic mine, and at the Goshen Prospect. In this first phase, Phelps Dodge will make cash payments to Cornerstone of US$25,000 and the two companies will jointly fund a US$175,000 exploration program to which Phelps Dodge will contribute US$100,000 (57%) and Cornerstone US$75,000 (43%). On completion of Phase I, Phelps Dodge may elect to enter into Phase II, whereby it can earn a 51% interest in the property by spending US$3 million on exploration and making cash payments to Cornerstone totaling US$225,000 over three years. Upon earn-in, Cornerstone may elect to participate at 49% or give Phelps Dodge the option, under certain conditions, to increase its interest to 75%.

Cornerstone gratefully acknowledges a CDN$40,000 grant from the New Brunswick Department of Natural Resources, under their Junior Mining Assistance Program (JMAP), to conduct exploration on the Dorchester Property.

Copper and silver are the metals of primary interest in the project, but the work will also document results pertaining to other metals, such as uranium and gold, for which the area may also be prospective. The Phase I work program is currently under way. Cornerstone will be the project operator during the earn-in period.

Cornerstone's President and CEO, Glen H. McKay, commented: "Expanding into New Brunswick further demonstrates Cornerstone's ability to generate exploration projects and attract respected joint venture partners, such as Phelps Dodge, to advance the projects. This is the third joint venture agreement that Cornerstone has entered into with Phelps Dodge to explore for SSC-type deposits, since 1999."

The New Brunswick project is in addition to currently active projects in the Voisey's Bay Nickel area and the Michelin Basin (uranium) in Labrador; the Central Mineral VMS belt, the Green Bay copper mining district, the Deer Lake basin (uranium) and the Burin Peninsula gold project in Newfoundland and gold and VMS projects in Ecuador.

Cornerstone Capital Resources Inc. is a mineral exploration company with 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. Cornerstone's current and past joint venture partners include Agnico Eagle, Celtic, Cash Minerals, Candente, Coastport, Cogitore, Falconbridge, Inmet, Kermode, Mountain Lake, Moydow, Noranda, Phelps Dodge, and Thundermin.

This press release was prepared by Bruce Mitton, PGeo, Exploration Manager Canada for Cornerstone and a Qualified Person as per National Instrument 43-101.

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.

Contact Information