Cornerstone Capital Resources Inc.
TSX VENTURE : CGP

Cornerstone Capital Resources Inc.

September 12, 2005 16:01 ET

Cornerstone Provides Update on Ecuador Projects More Bonanza Grade Gold & Silver Encountered on Shyri

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Sept. 12, 2005) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) is pleased to provide an update on projects held by its wholly owned subsidiary, Cornerstone Ecuador S.A. ("Cornerstone"). Highlights include:

- Initiation of more intensive exploration on the Shyri Project;

- Acquisition of the Bella Maria Project;

- Reconnaissance field work on the Rinconada and Monterrey Projects; and

- Implementation of baseline environmental studies and community relations programs.

Shyri Project

Following up on earlier reconnaissance work, a more intensive exploration program has recently been initiated on the Shyri Project. The current program focuses on the Canaribamba area where several areas of epithermal gold and silver mineralization, locally with bonanza grades (up to 600 g/t Au and 885 g/t Ag), have been located (see news release dated May 31, 2005). The work includes a soil geochemical survey covering these prospects, an area approximately 3 km by 1.5 km, and an area underlain by altered diatreme breccia. Extensive prospecting, detailed geological mapping, PIMA analysis and trenching are also being conducted.

Preliminary prospecting to follow-up the bonanza-grade float mentioned above, has identified additional bonanza grade material in angular float over a minimum down-slope distance of 325 m. The best grades from grab samples include:



Sample Number Au g/t Ag g/t
15979 131.2 233.0
15983 213.7 608.0
15968 59.0 15.2


The Shyri Project straddles the Ganarin Belt, a 50 km long feature with volcanic centers and numerous epithermal gold-silver prospects. The 350 sq km property hosts potential for low and high sulphidation precious metal deposits in several target areas and is immediately adjacent to the Quimsacocha project where IAMGOLD Corporation has reported a series of drill intersections that indicate potential for a significant gold-silver-copper deposit. IAMGOLD has recently reported results indicating the Quimsacocha mineralization has favourable metallurgical characteristics. The company is expected to release an independent resource estimate late in the fall.

Bella Maria Project

The 10.4 sq km Bella Maria property is located approximately 50 km southeast of the city of Machala in southwestern Ecuador and is within the area of interest defined under the terms of the agreement between Cornerstone Ecuador S.A. and Sierra Minera (Sierramin) S.A. announced February 25, 2005. The property became available to Cornerstone on termination of an agreement between Sierramin and a third party.

The property is underlain by a series of granodiorites and quartz porphyries that intrude metamorphic rocks. Previous workers identified two zones of significant gold mineralization, approximately 2 km apart. One zone, in the south-central portion of the property, consists of a silica-sulphide breccia that has returned assays averaging 4.5 g/t Au over 40 m from continuous rock chip sampling, including 10.8 g/t Au over 16 m. The second zone occurs 2 km to the northwest and consists of stockwork veins from which grab samples assayed up to 10.8 g/t Au and chip samples returned assays up to 0.54 g/t Au over 6 m. The two zones are separated by an area of thick vegetation and poor exposure with many unexplained geochemical anomalies. Data on the property are being compiled in preparation for initiating further exploration.

Rinconada & Monterrey Projects

A reconnaissance prospecting and mapping program to resample previously documented mineral showings and to follow-up regional geochemical anomalies has been completed on the 32.5 sq km Rinconada Project and the 19.8 sq km Monterrey Project. The work confirmed the presence of several gold bearing mineralized zones at both projects and resulted in discovery of new mineralization. Both properties are located in southern Ecuador.

Highlights at Rinconada include chip sample assays of 13.0 g/t Au over 2.0 m (incl. 44.2 g/t Au over 0.5 m) and 8.3 g/t Au over 0.65 m from mineralization that consists of sulphide bearing quartz veins within shear zones cutting granites. Anomalous gold mineralization on the Rinconada property occurs over a distance of approximately 1.2 km.

Volcanogenic massive sulphide (VMS) type mineralization was also documented on the Rinconada property. A 0.6 m wide massive sulphide pod assayed 1.4 g/t Au, 89 g/t Ag and 1.89% Zn and an area of extensive quartz-sericite-pyrite alteration with numerous large blocks of Fe-oxide returned anomalous base and precious metals values. The Rinconada project lies approximately 95 km northeast of the Tambogrande massive sulphide deposits in Peru and is in a similar geological setting. As reported by Manhattan Minerals Corporation in 2004, Tambogrande includes the TG1 deposit , reported to contain 56 million tonnes at 1.6% Cu, 1% Zn, 0.5 g/t Au and 26 g/t Ag, plus a significant oxide cap (7.6 million tonnes at 3.6 g/t Au and 62 g/t Ag).

On the Monterrey property, chip samples from quartz veins and associated stockwork veins in argillically altered volcanics assayed up to 10.5 g/t Au and 30.5 g/t Ag over 0.5 m, 4.5 g/t Au and 34 g/t Ag over 0.7 m and 4.1 g/t Au and 110 g/t Ag over 1.0 m. Also, several new prospects with anomalous gold and silver values were discovered.

Environmental Studies & Community Relations

Environmental studies and community relations programs have been implemented in accordance with Ecuadorian legislative requirements for advance baseline environmental information and community consultations prior to more intensive exploration. To date, these programs have focused on the southern Shyri concessions, including the Canaribamba area, and are currently underway in the northern Shyri concessions (GAMA Zone), where significant high sulphidation type alteration and mineralization were encountered during reconnaissance exploration (see news release dated May 31, 2005). More detailed exploration will commence on the northern concessions on completion of the required environmental and community relations activities. Cornerstone is committed to conducting exploration in a socially and environmentally responsible manner that maximizes benefits for local residents.

All assayed 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 by Acme to their Vancouver laboratories 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 by implementation of procedures involving check assaying and insertion of previously prepared standards and blanks for each batch of 20 rock samples analyzed.

This press release was prepared by Mike Basha, P.Eng., P.Geo., Vice President of Exploration for Cornerstone and a Qualified Person as defined by National Instrument 43-101. Lawrence Winter, M.Sc., P.Geo. is the qualified person supervising field programs in Ecuador.

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.

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