Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

October 13, 2010 08:00 ET

Cornerstone and Thundermin Announce a 20% Increase in Inferred Mineral Resources for the Little Deer Copper Deposit, Springdale Area, Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Oct. 13, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (PINK SHEETS:CTNXF) (FRANKFURT:GWN) (BERLIN:GWN) and 50% joint venture partner Thundermin Resources Inc. ("Thundermin") (THR:TSX) are pleased to announce the results of an updated National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Little Deer Copper Deposit (the "Deposit") which is located approximately 10 km north of Springdale in north-central Newfoundland. The mineral resource estimate was completed by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") of Toronto, Ontario, Cornerstone's and Thundermin's independent resource estimate consultants.

Scott Wilson RPA estimates that the Deposit contains Indicated Mineral Resources of 1,150,500 tonnes at an average grade of 2.8% Cu and Inferred Mineral Resources of 2,335,500 tonnes at an average grade of 2.1% Cu (see Table 1 and Figures 1 and 2).

Table 1: Scott Wilson RPA Mineral Resource Estimate, September 30, 2010

Resource Classification/Zone Tonnes Cu %
Indicated Mineral Resources      
Little Deer Zone 1,150,500 2.8  
Inferred Mineral Resources      
Little Deer Zone 1,227,300 2.2  
Footwall Zone 1,108,200 1.9  
Total Inferred Resources 2,335,500 2.1  
1. CIM definitions were followed for Mineral Resources.   
2. Mineral Resources are estimated at a cut-off grade of 1.0% Cu. Tonnages are rounded.   
3. Mineral Resources are estimated using an average long-term copper price of $US 3.25 per pound and a $US/$CDN exchange rate of 0.90.   
4. A minimum mining width of 2.0 metres was used.   
5. No Mineral Reserves are present on the Little Deer property at this time.   

The updated Little Deer mineral resource estimate was prepared by Scott Wilson RPA using a database containing 113 current and historical drill holes, 91 (48,814 m) of which were drilled from surface between 1961 and July 2010 and 22 (3,008 m) of which were drilled from underground during 1968. Of the 91 surface holes, Cornerstone and Thundermin have drilled 35,742 m in 57 holes, including all wedge holes and hole deepenings.

The updated mineral resource estimate includes results from an additional 26 drill holes that were completed on the Deposit following the release of the initial mineral resource estimate on July 7, 2009.

To view Figure 1: Longitudinal View, please visit the following link:

To view Figure 2: Three Dimensional View, please visit the following link:

These holes include new holes from surface as well as wedge cuts and deepenings of pre-existing holes. Some of the 26 holes were infill holes designed to provide fresh core samples for on-going metallurgical test work at SGS Lakefield Research ("Lakefield"). The remaining holes were drilled to confirm the continuity of the mineralization between widely-spaced holes and to expand, mainly at depth, the mineral resources that had been outlined to date in the Deposit.

Based on diamond drilling results to date, the Deposit is now interpreted to consist of two main copper-bearing zones, the Little Deer Zone and the Footwall Zone with the Footwall Zone occurring mainly west of, and from 50 to 75 m below, the Little Deer Zone (see Figures 1 and 2). A number of additional copper-bearing zones have also been intersected in the footwall of these two zones by the drilling completed to date, but their extent and significance are unknown at the present time.

To date, the Deposit has been intersected over a strike length of approximately 1,050 m and to a vertical depth of approximately 1,000 m. The overall Deposit remains open along strike to the east and west, up dip and at depth and the potential exists for the discovery of additional mineral resources in all areas. Furthermore, the potential for additional mineralization is also believed to be high in the central gap between the Little Deer and Footwall Zones (see Figures 1 and 2).

Borehole Pulse EM geophysical surveys are being undertaken on 5 to 6 of the recently completed deep drill holes prior to the commencement of a new drill program on the Deposit. Information gained from these surveys will assist with targeting of new drill holes in these areas.

Qualified Persons

The updated mineral resource estimate was prepared by Mr. Reno Pressacco, M.Sc. (A), P.Geo., Senior Geologist for Scott Wilson RPA 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. A NI 43-101 compliant Letter Report entitled "Mineral Resource Update for the Little Deer Project" dated September 30, 2010 has been filed with Cornerstone and Thundermin and is available on each company's website. 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 Little Deer property for the purposes of NI 43-101. Mr. Hussey has also reviewed the contents of this news release for accuracy.


The Little Deer Copper Deposit is well situated to take advantage of Newfoundland's developed infrastructure. The Deposit is located approximately 16 km from the Trans Canada Highway and it is easily accessible by a 10 km network of paved and gravel roads north of Springdale, where there is an available skilled mining workforce. The site is approximately 8 km from a major power transmission grid and there is a plentiful supply of fresh water in the area. The historical Whalesback tailings impoundment site, which may offer opportunities for refurbishment and storage of additional tailings, is located only 1.2 km north of the Deposit. There is also reasonably good access to a deep water port for any future shipment of copper concentrates. The Duck Pond base metal concentrator, which is owned by Teck Resources Inc., is located approximately 165 km by paved and gravel road from the Little Deer site, 66 km of which is on a secondary paved road and 70 km of which is along the Trans Canada Highway.


Metallurgical test work on fresh core samples collected during the latest diamond drilling campaign is on-going and nearing completion at Lakefield. This work is focusing on expected copper recoveries, copper concentrate grades, reagent consumption, power usage for grinding and the environmental characteristics of any tailings products. Initial results suggest that a very simple metallurgical process will be required to recover the majority of the copper from the Little Deer sulphides. Final results from the metallurgical test work will be reported shortly.

Little Deer Joint Venture

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 Deposit and the terms of the agreement with Weyburn can be found in numerous news releases and on Cornerstone's and Thundermin's respective websites and on SEDAR.

Junior Exploration Assistance Program

Cornerstone and Thundermin would like to acknowledge the financial support received from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in carrying out a portion of their work on the Little Deer property.

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,

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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