Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

February 22, 2012 08:00 ET

Cornerstone Reports Further Trenching Results at La Fortuna Copper-Silver Project, Chile

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Feb. 22, 2012) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (OTCBB:CTNXF) today announced the sampling results of eight additional trenches and provided an update on the ongoing exploration program being carried out at the La Fortuna copper-silver project located in the Valparaíso Region of central Chile, approximately 100 km north of Santiago. Results from initial trenching and a general description of the exploration program were released on August 30, 2011, and included 1.34% copper and 58.0 g/t silver over 19.5 metres in trench TH1. A map showing the location of the La Fortuna project, as well as geology and updated exploration results can be viewed at http://www.cornerstoneresources.com/s/Chile.asp?ReportID=450379.

Highlights

  • Trench TH8: 117.9 m grading 0.19% Cu and 9.4 g/t Ag, including 52.4 m grading 0.33% Cu and 16.9 g/t Ag
  • Trench TH12: 28.1 m grading 0.16% Cu and 1.9 g/t Ag
  • Trench TH14A: 7.7 m grading 0.36% Cu and 11.6 g/t Ag
  • Trench TH14B: 25.5 m grading 0.19% Cu and 6.2 g/t Ag

"Results from trenches TH8 to TH14B confirm that the potential for copper and silver mineralization is widespread over the La Fortuna property. Results from trench TH8 are particularly interesting as they confirm the potential for breccias, a porous unit, to host disseminated copper and silver mineralization over significant widths", commented Brooke Macdonald, Cornerstone's President and CEO. "Our geologists believe that this breccia may be located on the same stratigraphic horizon as the breccias hosting copper and silver mineralization at the neighbouring Cerro Negro mine. This hypothesis will have to be tested but La Fortuna continues to deliver very encouraging results, and we expect to have several promising drill targets defined in the coming weeks".

Exploration program

The La Fortuna property covers an area of approximately 2,900 hectares, measuring 10 km north-south by 3 km east-west. The project is favourably located in an established mining district at relatively low elevations (1200 to 1800 m above sea level), and is easily accessed by existing roads. The property is partly contiguous with the Cerro Negro copper-silver mine, a manto-type deposit immediately to the west which combines open pit and underground operations and produces copper cathodes via heap leach SX-EW and copper-silver concentrates via flotation. The El Bronce epithermal gold-silver district is located 30 km to the north. The region is sparsely populated, and has a hot and dry climate which is well-suited for leaching operations. Many surface mineral occurrences have been worked by small scale miners in the past but no drilling has ever been carried out at La Fortuna.

Significant copper and silver assay results were obtained in 2011 in the northern two-thirds of the property, defining seven prospective mineralized zones over a large area of approximately 18 km². Higher-grade mineralization is concentrated in, but not restricted to, veins that are typically 1 to 2 m wide but occasionally up to 4 m, emplaced within wider (up to 50 m) fault zones, often intruded by andesitic porphyry dykes. A structural analysis defined two main structural trends, with the most prominent orientation at N45 to N70 degrees and a second set, striking N320 degrees. Mineralization is also present as disseminations in fractures and shear zones within halos to the structures and within breccias over significant widths (up to 117.9. m in trench TH8, see assay results below). Information collected thus far suggests that mineralizing fluids migrated along steeply dipping structures and metals were deposited within the structure and wall rocks and within geochemically receptive, sub-horizontal, geological horizons and higher porosity, brecciated rocks. The presence of intrusive rocks (stocks, dykes, etc.) appears to be an important controlling factor for the deposition of mineralization.

The surface exploration program initiated in April 2011 is now well advanced. Prospecting work was carried out over the entire property and more detailed ground exploration surveys focused on the northern two-thirds of the property. This latter work included geological and structural mapping, a 217 line kilometre ground magnetic survey and a 39.8 line kilometre, deep penetrating (400 meters), Induced Polarization (IP) survey. A total of 168 rock samples were collected during the prospection and geological mapping program. Nineteen (19) trenches totaling 710.1 metres were dug and channel sampled (348 samples). Data from the IP survey has just been received and is currently being assessed. All the data generated on the project is currently being integrated into a 3D model to define drill targets. Additional trenches are required to test mineralized structures and IP and magnetic anomalies.

Trenching

Results from trenches TH1 to TH7 were released on August 30, 2011 with TH1 returning 19.5 m at 1.34% Cu and 58.0 g/t Ag. Table 1 below provides assay results for trenches TH8 thru TH14B; results for trenches TH15A, TH15B and TH15C are pending.

Table 1. La Fortuna Trenching Results.

TRENCH ZONE LENGTH (m) # SAMPLES INTERVAL(m)* Cu (%) Ag (g/t)
TH8 LOMA VERDE SUR 117.9 58 117.9 0.19 9.4
including 8 0.08 2.2
and 52.4 0.33 16.9
and 17.2 0.09 6.0
and 20.3 0.09 4.6
TH9 GUAYACAN 41.5 20 4.0 0.34
5.5 0.12
TH10 GUAYACAN 34.8 17 No significant values
TH11 GUAYACAN 10.5 5 2.2 0.51 4.8
TH12 QDA. HONDA 28.1 14 28.1 0.16 1.9
TH13 QDA. HONDA 53.8 27 2 0.17 1.3
TH14A LOMA VERDE 7.7 4 7.7 0.36 11.6
TH14B LOMA VERDE 26.3 13 26.3 0.18 6.0
TH15A QDA. HONDA 52.0 25 Assay results pending
TH15B QDA. HONDA 5.5 2 Assay results pending
TH15C QDA. HONDA 4.0 2 Assay results pending
382.1 187

* The reported copper and silver intervals are apparent thicknesses due to the early nature of the exploration program.

Discussion

The most significant assay results have been obtained from trenches TH8, TH12, TH14A and TH14B. Results for TH8 are particularly significant in the sense that the extensive breccia unit mapped on that part of the property appears to be geologically correlative with the brecciated geological horizon ("Diablo" breccia) hosting the main copper-silver mineralization at the neighbouring Cerro Negro mine. Copper-silver mineralization in TH12 is associated with a contact between the sub-volcanic andesitic rock and the volcano-sedimentary sequence. These results confirm our preliminary interpretation that the faulted intrusive-host rock contact zone is prospective and should be drill tested. Trenches TH14A and TH14B were dug to test a northeast oriented structure located at approximately the same stratigraphic level as trench TH8. Results from these two trenches confirm the prospectivity of the breccia horizon. Mineralization in the Guayacan area (trenches TH9, TH10 and TH11) appears to be restricted to the structures with only minor disseminated mineralization in the wall rocks.

Sampling and assaying

All samples are delivered by Cornerstone employees for preparation at Acme Analytical Laboratories (ACME) facility in Santiago, Chile. Rock samples are prepared crushing 1 kg to 80% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 0.075 mm (200 mesh) (ACME code R200-250). Gold is assayed in Chile, using a 30 g split, Fire Assay (FA) and AA or ICP-ES finish (ACME code G601). A 100g-plup is shipped to ACME in Vancouver, Canada where samples are assayed for a multi-element suite (ACME code 1DX2, 15g split, Aqua Regia digestion, ICP-ES finish). All samples with results > 100 g/t Ag, >10,000 ppm Cu, Pb or Zn are systematically and quantitatively re-assayed (ACME code 7AR, Aqua Regia Digestion, ICP-ES finish). All samples with results > 5,000 ppm Cu total are systematically re-assayed to determine leachable copper (ACME code G9, Citric acid leach, Cu, 1 g/100 mL, AAS finish).

Quality assurance / Quality control (QA/QC)

ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Certified blanks and standards are systematically used as part of Cornerstone's QA/QC program. One of them was inserted every 20 samples at La Fortuna.

Qualified Person

Yvan Crepeau, M.Ba., P.Geo., General Manager of Minera Cornerstone Chile Limitada (MCCL) and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the La Fortuna project and has reviewed and approved the information contained in this news release.

La Fortuna option agreement

Cornerstone, through its wholly-owned subsidiary, MCCL, has entered into an agreement with a Chilean individual to acquire the La Fortuna property. The agreement gives Cornerstone the right to acquire an undivided 100% interest in the La Fortuna property by incurring exploration expenditures of C$3.0 million and making cash payments totalling C$600,000 over a 4-year period. Requirements to maintain the agreement through the first year include a cash payment of C$100,000 and exploration expenditures of C$500,000. The acquisition is subject to a 1.5% Net Smelter Royalty ("NSR"), and to advance payments of the NSR on each anniversary following the date the option is exercised. Cornerstone has a right of first refusal to purchase the NSR if the holder decides to sell it.

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 Canada, Ecuador and Chile, 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: www.cornerstoneresources.com.

The link to a recent Corporate presentation is:

http://www.cornerstoneresources.com/i/pdf/Presentations_0112_CRICorporate.pdf

The link to a virtual tour of drilling at the Gama prospect, Shyri concession in Ecuador is: http://www.youtube.com/watch?v=Ne8XSfgLwIM

Investors can also access Cornerstone on Twitter

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 www.sedar.com. 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 and CEO

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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