Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

May 07, 2007 16:00 ET

Cornerstone Plans to Drill 26,000 Metres on Five Projects in Canada and Ecuador

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - May 7, 2007) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) today announced record exploration activity for 2007, including an estimated 26,000 metres of drilling on five projects. Detailed planning of the drill programs is underway in consultation with the company's joint venture partners.

Cornerstone anticipates total exploration expenditures for 2007 of approximately $12 Million CDN, about 88% of which will be contributed by the company's joint venture partners. Cornerstone currently has a treasury position of approximately $6.0 million.

JV Projects to be drilled:

Shyri Gold - Ecuador - Shyri concessions, collectively a 450 km2 area under option to Coastport Capital Inc: 15,000 metres. The proposed diamond drill program, to occur over a 12 month period, is expected to start following receipt of drill permits. Public consultations on the drill permit applications are underway in compliance with Ecuadorian law. Upon receipt of the permits, drilling will commence to test targets defined at the Gama, Canaribamba and Vetas Grandes prospects. Work to date on these concessions indicates potential for intermediate and high sulphidation precious metal deposits in several target areas as well as potential for porphyry-style mineralization. The Shyri concessions straddle the Ganarin Belt and are immediately adjacent to IAMGold Corporation's Quimsacocha high sulphidation gold project. The Ganarin Belt is a 50 km long feature with several volcanic centres, related intrusives and numerous epithermal gold-silver prospects. Quimsacocha is the most advanced project in the Ganarin Belt. IAMGOLD first announced significant drill intersections at Quimsacocha in December 2004 and in September 2006 they reported an indicated resource of 3.4 million ounces of gold in the deposit (IAMGold Corporation press release, 27 September 2006).

La Plata VMS - Ecuador - under Option to Coastport Capital Inc: 4,585 metres. Nine drill holes have been completed to date in Phase II drilling, comprising 3,415 m of a proposed 8,000 m drill program on the La Mina, Guatuza and San Pablo targets. Drilling was suspended in February 2007 to permit further data review and field assessments. The La Plata property hosts gold-rich, VMS mineralization including the La Mina deposit that comprises two lenses extending from near surface to 300 m in depth on the eastern flank of a fold. The lenses, which are approximately 100 m apart, include drilled intersections from limited historical exploration drilling such as 11.4 m grading 14.5 g/t Au, 103.6 g/t Ag, 9.35% Cu and 3.9% Zn. On June 22, 2006 Cornerstone announced results from Phase I drilling that included drill hole LP-06-01 which intersected 8.9 m of massive sulphide averaging 31.61 g/t Au, 289.39 g/t Ag, 18.16% Zn, 5.86% Cu and 1.61% Pb over 8.90 m core length, including 5.2 m averaging 51.11 g/t Au, 243.47 g/t Ag, 17.58% Zn, 4.88% Cu and 1.77% Pb.

Garland Nickel - Labrador - under option to Celtic Minerals: 750 metres (minimum). Cornerstone and joint venture partner Celtic Minerals completed an airborne gravity gradiometry survey over the project in 2006, part of an AGG survey of a larger area conducted in cooperation with CVRD Inco. The AGG survey was undertaken to detect high density zones (gravity highs) possibly reflective of underlying troctolitic rocks similar to those which host the nearby Voisey's Bay deposit. The survey identified a series of gravity anomalies including an east-west elongated gravity high measuring 1.5 km x 2.5 km on the northern claim block, and a 3 km x 2 km anomaly on the southern claim block that straddles the joint venture's southern boundary with CVRD Inco claims. Magnetotelluric (MT) surveys over the two gravity anomalies have also been completed. Drilling is expected in late Q3 or early Q4.

Bobby's Pond VMS - Newfoundland - under option to Mountain Lake: 750 metres. Bobby's Pond consists of 62 claims (15.5 km2) partially surrounding Mountain Lake Resources' Bobby's Pond deposit, formerly owned by Inco Limited, located 20 km west of Aur Resources' Duck Pond mine. Cornerstone's claims cover the potential northeast and southwest strike projections of the deposit's host geology.

Little Deer VMS - Newfoundland - under JV (the "LDJV") with Thundermin: 5,000 metres. The Little Deer property, located 10 km north of Springdale, NL, covers the past-producing Whalesback and Little Deer copper deposits plus the Duck Pond Zn-Au showing and other base metal and gold occurrences. Historic exploration work at the Little Deer deposit indicates potential to outline a significant resource of economic grade copper mineralization below and along strike from the area of the Little Deer deposit that was previously mined. Four holes, drilled between 1998 and 2000, each intersected significant copper mineralization over mineable widths for a distance of approximately 450 m on the -550 m elevation, which include drill intersections of 9.6 m grading 4.3% Cu. Preparation work for the minimum $850,000 commitment to be spent on exploration within the first two years has commenced. A 5000 m drill program is expected to begin in the 3rd Quarter.

Other JV Projects:

Aillik Uranium - Labrador - under option to Cash Minerals: The Aillik property comprises 162 claims (40.5 km2) adjoining Aurora Energy Resources' holdings in the Central Mineral Belt (CMB), an emerging uranium district. The 2007 exploration program at Aillik includes a firm commitment by Cash to conduct a detailed geophysical survey. Radiometric geophysical surveys have proven to be highly effective in uranium exploration, including the CMB. The Aillik property is interpreted by the Geological Survey of Newfoundland and Labrador to be underlain by the same, or similar, package of rocks that hosts the Michelin and Jacques Lake deposits, as well as the White Bear Lake and Otter Lake uranium systems. The Aillik property lies on trend and immediately east of the Otter Lake uranium system and its associated radiometric anomaly. Occurring in similar geological formations, immediately along trend from a known uraniferous system makes Aillik highly prospective for the discovery of new uranium mineralization. Any anomalies detected by the survey are expected to be drill tested in 2007, subject to equipment availability.

Long Lake VMS - Newfoundland - under option to Cogitore: The Long Lake project consists of 69 claims covering an area of 17.25 km2. The project is located less than 60 km southwest of Aur's Duck Pond mine, which was put in production last year. The 2006 drill program tested a 1.2 km long geophysical conductor associated with a broadly coincident base metal-in-till geochemical anomaly. The drilling returned broad intersections of altered and mineralized felsic volcanics including several narrow sulphide stringers that gave assays up to 3.2% Zn over 0.2 m. The partners are planning to conduct a down-hole EM survey, subject to equipment availability.

Coney Arm Gold - Newfoundland - under JV with Kermode: The Coney Arm property consists of 12 claims covering an area of 3 km2 located in western Newfoundland. The property is part of a broader Kermode project targeting Carlin-type, sediment-hosted gold mineralization. A current drill program on Kermode's adjoining property is moving in the direction of the Coney Arm property.

Other Projects:

Cornerstone has also initiated work programs on several 100% wholly owned properties aimed at advancing the properties to the joint venture stage. Included is work on:

- The Caymatan Gold-Silver and Rinconada Gold Projects in Ecuador.

- The recently announced Elgin Uranium-Copper Project in New Brunswick.

- The Burin Gold Project on the island of Newfoundland. Cornerstone is earning a 100% interest in the claims optioned from a local prospector and has a 100% ownership of the claims recently staked.

- The Deer Lake Uranium Project in western Newfoundland will be surveyed by airborne radiometrics.

- The Codroy Project, also in Newfoundland and underlain by similar geology to the Deer Lake project, is being evaluated for its uranium potential.

For further information on these and other Cornerstone projects please visit

Glen McKay, President & CEO, stated: "The exploration that we will conduct this year on these highly prospective properties, together with the risk sharing nature of our joint venture approach to exploration and our strong treasury position, gives Cornerstone's shareholders exposure to the considerable upside potential of the largest and most varied exploration program that the company has ever undertaken. The program will grow further if discussions underway with potential JV partners on several other projects are successful. The commitments from our partners, who are expected to contribute approximately $10.5 million in 2007, are clear validation of our approach to exploration in regions of high potential such as Newfoundland and Labrador, New Brunswick and Ecuador."

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland & 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. 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 Mike Basha, PEng, PGeo, and Vice-President of Exploration for Cornerstone and a Qualified Person as defined by 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.

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