Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

October 04, 2010 17:00 ET

Cornerstone Reports Trenching Results on the El Strato Gold Property in Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Oct. 4, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (PINK SHEETS:CTNXF) (FRANKFURT:GWN) (BERLIN:GWN) reports that it has recently completed a 575 metre mechanical trenching program on the El Strato gold property located in north-central Newfoundland. Results include the identification of a new 55 m wide iron carbonate alteration zone with quartz veining, channel sample assays up to 0.6 g/t Au over 4.0 m and grab sample assays up to 23.6 g/t Au.

The El Strato gold property lies immediately east of the Baie Verte Line, a major regional tectonic suture and a classic environment for orogenic gold deposits such as those of the Mother Lode gold district of California. The property hosts several high-grade gold occurrences in outcrop as well as abundant large (> 1 m in diameter) unsourced mineralized quartz boulders. These occurrences have returned assay results ranging from 5 ppb Au to 155.7 g/t Au in grab samples, 17.5 g/t Au over 0.55 m in channel samples and 10.6 g/t Au over 1.13 m in drill core. Also, there are numerous gold-in-soil anomalies (15 ppb Au to 2.5 g/t Au) which are commonly coincident with Induced Polarization (IP) chargeability anomalies with strike lengths of up to 1.75 km.

Trenching Results and Diamond Drilling Plans

During July and August 2010, a mechanical trenching program was completed to test selected coincident IP chargeability and gold-in-soil anomalies generated from the previous winter's surveys (see news release dated June 22, 2010). A total of 8 trenches, ranging in length from 20 to 90 m, were excavated for a total of 575 m of trenching, resulting in approximately 50% bedrock exposure.

Highlights include a 55 m wide zone of iron carbonate alteration and quartz veining. The intensity of the iron carbonate alteration is variable but predominantly strong, and quartz veins are typically narrow (<1 cm to max. 40 cm), show multiple orientations and contain traces of pyrite, chalcopyrite and galena. Assay results for this alteration zone are locally weakly anomalous in gold with channel samples assaying up to 0.3 g/t Au over 1.0 m and grab samples assaying from 5 ppb Au to 1.4 g/t Au. This alteration zone sits at the southwestern end of the 1.25 km long DD IP trend, which is characterized by high chargeability and high resistivity. The newly discovered alteration zone demonstrates the potential for economically significant widths and is also located up ice from the Voodoo quartz boulders which assayed from 0.4 to 105.2 g/t Au in grab samples. The alteration zone remains open to the east and is in contact with an unaltered conglomerate unit to the west. Two additional trenches were excavated along strike to the northeast, but trenching was hampered by thick overburden and swampy ground conditions with limited bedrock exposure.

Other significant results from the trenching program include sampling from the Rocky Bottom IP trend, a 1.75 km long IP anomaly which returned a channel sample assay of 0.6 g/t Au over 4.0 m from a shear zone and a grab sample assay of 23.6 g/t Au from a 3 cm wide boudinaged mineralized quartz vein. Additional trenching and sampling of other coincident gold-in-soil and IP chargeability anomalies returned grab sample assays ranging from 5 ppb Au to 10.0 g/t Au from narrow centimeter wide mineralized quartz veins.

A fall prospecting program is planned to follow up on several coincident IP and gold-in-soil anomalies that have not yet been ground checked. The planned 1,000 m diamond drilling program has been deferred until early winter 2011 in order to allow easier access and the ability to drill from setups that would not otherwise be available prior to freeze-up. Currently drilling is planned to test the 55 m wide alteration zone on the DD IP trend and other IP anomalies along strike, the Arrowhead gold showing which is a >1 m wide subcropping mineralized quartz vein that has returned from 14 ppb Au to 54.3 g/t Au in grab samples, as well as other targets as warranted. Final drill hole locations will be selected later this fall following receipt of the prospecting results.

Rock samples were prepared and analyzed at Eastern Analytical Ltd., an independent and qualified analytical laboratory located in Springdale, Newfoundland. Gold was determined by fire assay and a suite of 30 additional elements by Inductively Coupled Plasma Spectrometry (ICP). A control standard and blank were inserted with each batch of 20 samples to ensure quality control. 

Cornerstone would like to acknowledge the financial assistance received from the Government of Newfoundland and Labrador under the Junior Exploration Assistance ("JEA") program. This funding aided Cornerstone in carrying out a portion of the exploration work on the El Strato property.

This press release was prepared by Brad Dyke, P.Geo., Project Geologist for Cornerstone who is responsible for overseeing the exploration work and is a Qualified Person in accordance with National Instrument 43-101.

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 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.

Cautionary Notice:

Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. 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,

Glen H. McKay, President & 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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