Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

March 02, 2005 11:27 ET

Cornerstone Provides Update on Central Newfoundland VMS Properties; Falconbridge to Conduct Further Work on Konrad


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CORNERSTONE CAPITAL RESOURCES INC.

TSX VENTURE SYMBOL: CGP

MARCH 2, 2005 - 11:27 ET

Cornerstone Provides Update on Central Newfoundland
VMS Properties; Falconbridge to Conduct Further Work
on Konrad

CALGARY, ALBERTA--(CCNMatthews - March 2, 2005) - Cornerstone Capital
Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) is pleased to provide
an update on its volcanogenic massive sulphide (VMS) projects in central
Newfoundland in the context of recent developments in this exploration
district. These developments include Aur Resources' decision to develop
its Duck Pond VMS project (Aur Resources press release, December 14,
2004) and Messina Minerals recently announced additional and potentially
significant intersections from their Boomerang Project VMS discovery
(Messina Minerals press release, February 28, 2005).

Cornerstone has long been aware of the potential of this district and is
well positioned to add shareholder value through its portfolio of
central Newfoundland VMS projects which include newly acquired
properties as well as active projects already under joint venture to
respected industry partners. Each of Cornerstone's properties is
controlled 100% by Cornerstone without underlying back-in rights or
royalties. In keeping with its exploration business approach,
Cornerstone is actively seeking joint venture partners for those
properties not already under an existing joint venture.

Victoria Project

In December 2004, Cornerstone acquired a 100% interest in 46 claims
(11.5 km2) located 8 km southwest of Messina's Boomerang discovery and
contiguous with Messina's property. In-house compilation of previous
exploration supports the interpretation that the property covers the on
strike extension of geology surrounding Messina's discovery as
demonstrated by existing industry airborne geophysical datasets. Review
of this data has also identified several weak isolated conductive
anomalies of similar character to that detected over the discovery.
Cornerstone's compilation to date suggests no drilling has previously
been conducted on the Victoria property. A field program is being
planned.

Bobbys Pond Project

As reported in December, Cornerstone recently acquired a 100% interest
in 90 claims (22.5 km2) partly surrounding Inco Limited's Bobbys Pond
deposit and located approximately 20 km west of Aur's Duck Pond deposit.
The Bobbys Pond VMS deposit is reported to contain a resource of 1.2
million tonnes of 1.06% Cu, 0.71% Pb, 6.91% Zn, 16.8 g/t Ag and 0.20 g/t
Au (based on a cut off grade of 2.5% combined Cu-Pb-Zn, calculated to
300 m depth INCO, 1993; not NI 43-101 compliant). Based on recent
in-house compilation of historical data, Cornerstone's claims cover
several kilometres of the northeast and southwest on strike extensions
of the deposit's host volcanic rocks. Extensive zones of VMS-style
alteration, multiple base metal sulphide occurrences, and isolated
airborne electromagnetic anomalies provide targets for follow-up
exploration. Compilation is ongoing and a field program is being planned.

Noel Paul's Brook Project - Cornerstone Inmet/Woodruff JV

Located approximately 10 km south of Aur's Duck Pond deposit, this
property includes 137 claims (34.25 km2) surrounding and adjacent to a
property which hosts the Haven Steady VMS prospect where previous
explorers reported intersections of up to 0.83% Cu, 1.27% Pb, 6.19% Zn,
4.93 g/t Ag and 1.78 g/t Au over 3.0 m. The Cornerstone property covers
the under explored southwest and northeast strike extensions to the host
stratigraphy, including mineralized and altered felsic volcanics akin to
those which host the Haven Steady prospect.

This property is under option to Inmet Mining and partner Woodruff
Capital who retain rights to earn a 60% interest in the claims by
spending CDN$1,500,000 on exploration and making cash payments to
Cornerstone totaling CDN$100,000 over five years. Cornerstone has
received the required option payment of CDN$15,000 due February 15,
2005; renewing the option for 2005. Results from the 2004 program,
including ground geophysical surveys are currently under review.

Long Lake Project

The Long Lake project is located less than 60 km southwest of Aur's Duck
Pond project. Cornerstone's 33-claim (8.25 km2) property covers
favourable felsic volcanics and sediments akin to those which host the
Long Lake deposit, discovered in 1994. This deposit comprises a
high-grade, massive sulphide resource of 560,000 tonnes averaging 16.0%
Zn, 2.2% Cu, 1.3% Pb, 38 g/t Ag and 0.9 g/t Au (Noranda, 1998; not NI
43-101 compliant).

Cornerstone's Long Lake project is located approximately 10 km southwest
of the Long Lake deposit and covers an isolated airborne electromagnetic
conductor, approximately 1 km long, associated with an adjacent
silica-sericite-pyrite alteration zone hosted by prospective felsic
volcanics. A till geochemical survey was recently completed by
Cornerstone in February and results include detection of a broadly
coincident, open ended, base metal in till anomaly with metal values
ranging up to 366 ppm Cu, 174 ppm Pb and 542 ppm Zn. Analyses were
performed by Eastern Analytical Limited of Springdale, Newfoundland
using a 30 element ICP procedure. Cornerstone is encouraged by these
results and is considering further work to test the anomaly.

In other news, Cornerstone has been advised by Falconbridge Limited that
a field program will be conducted on the Konrad Option during the coming
summer. Details of the program are being worked out; however, the
purpose of the program will be to complete ground follow-up of
conductors detected by 2004 MegaTEM airborne surveys.

Cornerstone is a well-funded junior exploration company with projects
targeting base and precious metals throughout Newfoundland and Labrador
and in Ecuador. A significant achievement in 2004 was the addition of
Falconbridge as a joint venture and strategic partner on the Konrad
Project and the company's regional nickel exploration program,
respectively, in Labrador. Cornerstone's current and past joint venture
partners include Agnico Eagle, Candente, Falconbridge, Inmet/Woodruff,
Kermode, Moydow, Noranda, Phelps Dodge, and Thundermin.

The Qualified Person for these projects and the contents of this
release, as per the definition in National Instrument 43-101, is Paul
Moore, M.Sc., P. Geo., and Chief Geologist for Cornerstone. Resources
referred to within this release are historical in nature, predate, and
are non-compliant with National Instrument 43-101. Neither Cornerstone
nor the Qualified Person has undertaken an independent investigation of
the resource estimates or independently analyzed the results of the
previous exploration work in order to verify the classification of these
resources as resource or reserve. The historical estimates should
therefore not be relied upon. Cornerstone believes these historical
estimates provide a conceptual indication of the exploration potential
of the properties discussed above.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cornerstone Capital Resources Inc.
    Glen H. McKay
    President
    (709) 745-8377 or Toll Free: (877) 277-8377
    Email: investor@crigold.com
    Website: www.cornerstoneresources.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.