Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

February 03, 2010 08:00 ET

Cornerstone and Thundermin Announce a $1.5 Million Drilling Program on the Little Deer Copper Property, Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Feb. 3, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) and 50% joint venture partner Thundermin Resources Inc. ("Thundermin") (THR:TSX) announce that a $Cdn 1,500,000 diamond drilling program, comprising approximately 11,000 m of drilling in 15 holes and employing two drills, has commenced on the Little Deer copper deposit ("Deposit") located approximately 10 km north of Springdale in north-central Newfoundland. It is anticipated that the current program will be completed by July 2010.

The primary purpose of this drill program is to increase the mineral resource outlined to date in the Deposit to a total of five to six million tonnes and to obtain samples of unweathered copper mineralization for metallurgical testing at SGS Lakefield Research Limited. The locations of the targets for the holes to be drilled in the current program are presented on the attached longitudinal section (see Figure 1 – ( The extension of the current resource is conceptual in nature and it is uncertain if further exploration will result in an expansion of the mineral resources.

A planned 11 holes, consisting of new holes from surface and wedge-cuts from both the new and existing holes, will be drilled on 100 m centres below the known mineralization over a strike length of approximately 800 m. Two holes will be drilled in the area of previous holes LD-98-07D and LD-08-15 which intersected significant thicknesses of high grade copper mineralization. These holes are expected to provide sufficient unweathered material for initial metallurgical testing and will also provide additional information on the extent of the thick copper mineralization intersected in this area. One hole will be drilled in the western end of the Deposit to provide additional information on the continuity, thickness and grades of the copper mineralization intersected previously in holes LD-08-10A, LD-08-16, LD-08-16A and LD-09-23. One hole is also planned to fill in a large data gap in the central portion of the Deposit.

On July 7, 2009, Cornerstone and Thundermin announced that Micon International Limited ("Micon") of Toronto, Ontario, the joint venture's independent resource estimate consultant, estimated that the Deposit contains indicated resources of 1,087,000 tonnes at an average grade of 2.9% Cu and inferred resources of 1,950,000 tonnes at an average grade of 2.3% Cu. Micon has updated the resource domain models using assay data from holes LD-09-23, LD-09-24, LD-09-25, and LD-09-25A, results of which were released on August 27, 2009, and assay data from holes LD-09-28 and LD-09-30, results of which are set out below in Table 1. The updated domain models were created by employing updated copper prices and exchange rates when compared to the parameters that were used in preparing the initial resource estimate and which were disclosed by Cornerstone and Thundermin in releases issued on July 7, 2009. The updated domain models incorporating the new results increase the inferred resources by 150,000 tonnes to 2,100,000 tonnes at 2.3% Cu, a similar grade to the current inferred mineral resource. This increase is conceptual in nature and it is uncertain whether further exploration will result in an expansion of the mineral resources.

Table 1: Little Deer Drill Results (2009)^

Hole No. East (m) North (m) Dip
From (m) To (m) Interval (m)* Cu (%)
LD-08-09B 13,090 4,597 -70.5 343.8 717.9 718.7 0.8 5.5
          921.4 921.8 0.4 5.6
          930.2 958.0 27.8 1.2
incl.         930.2 939.6 9.4 1.2
and         944.5 957.0 12.5 1.6
incl.         946.3 951.6 5.3 2.3
LD-09-28 13,138 4,634 -62.9 313.5 584.3 587.8 3.5 2.0
incl.         638.2 642.2 4.0 2.2
LD-09-30 13,399 4,513 -67.0 311.9 687.4 691.0 3.6 2.2
incl. 13,090 4,597 -70.5 343.8 687.4 688.1 0.7 5.8
and         690.5 691.0 0.5 7.2
          700.2 700.8 0.6 5.5
          716.0 717.7 1.7 2.0

^ - all holes completed during 2009 are shown on Figure 1. Only the above three holes of the 5 surface holes, 1 wedge hole and 1 hole deepening completed in the second half, 2009 program contain significant mineralization
B - Wedge hole
* - Reported intervals are core lengths. The true thicknesses of the various copper intersections are highly variable due to the stringer nature of the mineralization. Management, however, believes that the true thicknesses average approximately 70%-75% of core lengths.

3-D modeling by Crone Geophysics & Exploration Ltd. ("Crone") of borehole Pulse EM geophysical surveys that were conducted in holes LD-08-16A, LD-09-23 and LD-09-21 suggested the presence of a substantial conductive plate lying east of hole LD-08-16A and below holes LD-09-23 and LD-09-21. Hole LD-08-09B, a wedge cut from hole LD-08-09 that was targeted to intersect this interpreted conductive plate, intersected a thick section of copper-bearing sulphides that assayed 1.2 % Cu over a core length of 27.8 m, including 1.2% Cu over 9.4 m and 1.6% Cu over 12.5 m, including 2.3% Cu over 5.3 m. The intersection in hole LD-08-09B occurs approximately 250 m east of a similar intersection in hole LD-08-16A and approximately 150 m below and west of hole LD-09-21 that assayed 2.1% Cu over 6.3 m.

Micon has not included the results from hole LD-08-09B in their updated mineral resource domain models as the intersection is deemed to be too far from adjacent holes to ensure continuity without additional follow-up drilling. Micon, however, has prepared a three-dimensional model using all available data around this hole. The modeling suggests that there is potential for an additional 900,000 to 1,100,000 tonnes of similar grade to mineralization in LD-08-09B. Five new holes will target this area in the current drill program; however, this target is conceptual in nature and it is uncertain if further exploration will discover additional mineral resources in this area 3-D modeling by Crone of borehole Pulse EM geophysical surveys conducted in holes LD-09-20, LD-07-03 and LD-99-10 indicates the existence of a similar conductive plate lying at depth in the eastern portion of the Deposit below holes LD-07-02, LD-09-20, LD-09-25 and LD-09-25A. There is good potential to expand the overall tonnage in this area of the Deposit and six new holes will target this area during the current drill program.

Little Deer Gold

A prospecting program undertaken in 2004 over claims held 100% by Thundermin and Cornerstone led to the discovery of high grade gold in float and outcrop over a 1.5 km long, southwest trending area located 800 m from the southwest end of the Deposit. Eleven of fifteen grab samples collected over this area returned gold values ranging from 0.3 to 22.7 g/t Au with the five highest samples assaying 22.7, 21.7, 19.6, 10.9 and 10.4 g/t Au. Limited prospecting last fall confirmed the high grade boulders but did not locate the mineralization in bedrock. Several lines of reconnaissance Induced Polarization geophysical survey will be completed over this area after freeze-up in order to help define a drill target for the source of this high grade gold mineralization.

Qualified Persons

The updated mineral resource domain models were prepared by Mr. Reno Pressacco, M.Sc.(A), P.Geo., Senior Geologist for Micon of Toronto, Ontario. Mr. Pressacco is an independent Qualified Person ("Q.P.") in accordance with NI 43-101. Mr. Pressacco has reviewed the contents of this news release for accuracy. Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager, Cornerstone Resources Inc., is the Q.P. responsible for supervising the drilling program on the property for the purposes of NI 43-101. Mr. Hussey has also reviewed the contents of this news release for accuracy. All holes drilled by Cornerstone and Thundermin are NQ in size. Specific gravity measurements, rock quality designations and photographic logging of significant mineralized intersections are performed systematically prior to assaying. The core is logged and the mineralized sections, where appropriate, are sawn in half at a core logging facility in Springdale. Half of the core is submitted for analyses to Eastern Analytical Limited, an independent and qualified assayer located in Springdale, and the remaining half of the core is kept for future reference. Blanks, duplicates and standards are routinely used as part of the assay procedures.

About the Little Deer JV

Cornerstone and Thundermin, the operator, have the option on a 50/50 basis to earn a 100% interest in the Little Deer copper deposit and adjacent property from Weyburn Investments Ltd. Thundermin, under its joint venture agreement with Cornerstone, has the right to increase its interest in the Little Deer property to 75% by completing a feasibility study and by arranging 100% of the necessary bank financing required to place the property into commercial production. Details on the Little Deer copper deposit and the terms of the agreement with Weyburn can be found in news releases dated May 1, June 21, July 9, October 30, December 11, 2007 and January 24, April 9, May 15, June 6, June 17, July 25, November 26, 2008 and February 25, May 12, June 16, July 7, July 16, August 20 and 27, 2009 and on Cornerstone's and Thundermin's respective websites and on SEDAR.

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:

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 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,

Colin B. McKenzie, 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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