Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

January 20, 2011 08:00 ET

Cornerstone and Thundermin Intersect High Grade Copper Mineralization Assaying 5.0% Copper Over 16.5 m in the Upper Portion of the Little Deer Copper Deposit, Newfoundland

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Jan. 20, 2011) - 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 they have intersected high grade copper mineralization assaying 13.4% Cu over 0.5 m, 4.6% Cu over 4.2 m and 5.0% Cu over 16.5 m, including intervals of 6.1% Cu over 5.1 m and 9.2% Cu over 5.5 m within hole LD-10-39 which was drilled in the upper portion of the Little Deer Copper Deposit ("Deposit") (see Table 1 and Figure 1: The Deposit is located approximately 10 km north of Springdale in north-central Newfoundland.

Table 1: Little Deer Drill Results (2010)

Hole No. East North Dip Az From To Interval Cu
(m) (m) (degrees) (degrees) (m) (m) (m)(1) (%)
LD-10-39 14,057 4,459 -37.1 321.6 208.6 209.1 0.5 13.4
and 213.9 218.1 4.2 4.6
and 233.9 250.4 16.5 5.0
incl. 233.9 239.0 5.1 6.1
incl. 244.9 250.4 5.5 9.2
LD-10-40 14,057 4,459 -35.8 315.0 294.5 295.2 0.7 2.4
LD-10-41 14,057 4,459 -36.1 335.1 Assays awaited

Notes: (1) The reported copper intersections approach true thickness.

A $1,600,000 diamond drilling program, comprising approximately 12,000 to 13,000 m of drilling in 16 to 20 holes and employing two drills, commenced on the Deposit on December 1, 2010. The primary purpose of this drill program is to increase the estimated mineral resources outlined to date in the Deposit to the five to six million tonne range. The potential increase of the current mineral resources is conceptual in nature and it is uncertain whether further exploration drilling will result in an expansion of this mineral resource.

The current drill program will focus on three main areas: 1) above the -250 m elevation where historical drilling suggests that there is good potential for outlining high grade resources above the area where Cornerstone and Thundermin have focused their drilling to date and have established a National Instrument 43-101 ("NI 43-101") compliant resource for the Deposit (approx. above the 800 foot level drift from the Whalesback Mine as shown on Figure 1); 2) along strike both east and west of the limits of the currently outlined mineral resource between the -650 m and the -250 m elevations where the boundaries of the Deposit have not been defined to date; and 3) at depth below the -650 m elevation where a preliminary interpretation of the results from borehole Pulse electromagnetic surveys suggest that there is potential for the discovery of additional copper mineralization. The Deposit has been outlined by drilling over a strike length of 1,050 m and to a vertical depth of 1,000 m. Note that Figure 1 presented here only covers the upper portion of the Deposit (see the longitudinal section accompanying the news release dated July 29, 2010 for a view of the complete Deposit). Details on the Deposit can be found in numerous Cornerstone and Thundermin news releases dated between May 1, 2007 and November 30, 2010 which are on each company's website and on SEDAR.

A compilation of historical surface and underground diamond drilling information obtained from the archives of the Newfoundland and Labrador Department of Natural Resources, dating from the 1960's to the early 1970's and, some of which was not previously available, has recently been completed. Drill logs and assay information for a total of 47 surface and 86 underground holes were recovered as shown on Figure 1 and listed in Table 2 at the end of this release. Six surface and 28 underground holes lie outside of the area of drill indicated mineralization shown on Figure 1. The assay results for seven of the underground holes were included in a news release dated February 25, 2009 but this data was not incorporated in any resource estimates as the drill logs for these holes were not previously available.

Figure 1 shows the areas in the upper portion of the Deposit that were mined out, as well as the areas that were developed but not mined out, by British Newfoundland Exploration Company from 1966 to 1972 and Green Bay Mining Company from 1972 to 1974. All known mine workings and the upper limit of the current NI 43-101 mineral resource estimate are also shown on Figure 1.

Three holes of the current drill program totaling 966 m were completed in December prior to the seasonal shutdown (see Figure 1). These three holes were drilled to confirm the presence of high grade copper mineralization known to exist in the upper portion of the Deposit (see Figure 1 and Table 2). Hole LD-10-39, which intersected high grade massive, semi-massive and stringer chalcopyrite-pyrite-pyrrhotite mineralization over significant widths (see Table 1), was drilled to confirm the copper mineralization in historical surface hole LD-62-78 which intersected 2.9% Cu over 60.1 m, including intervals of 5.9% Cu over 7.9 m, 5.3% Cu over 15.5 m and 3.1% Cu over 11.6 m (see Table 2). Hole LD-10-40, which was drilled approximately 35 m west of LD-10-39, intersected minor copper mineralization comprising 2.4% Cu over 0.7 m. Hole LD-10-41 (assays pending) was drilled approximately 50 m east of hole LD-10-39. The current drill program will recommence shortly with two drills and will be completed by June 30, 2011.

A preliminary interpretation of the recovered drill log and assay data suggests that there is potential to add from 500,000 to 650,000 t of copper mineralization, excluding the areas that were mined on two occasions from 1966 to 1974, with grades similar to that already estimated for the Little Deer Zone above the area of the mineral resources outlined to date (see Figure 1 and Table 2). The potential addition of these mineral resources to the total mineral resource estimate for the Deposit is conceptual in nature and will need to be confirmed by an independent Qualified Person ("Q.P").

Glen McKay, Cornerstone's President and CEO commented "The recently compiled historical diamond drill information has provided us with a better understanding of the potential in the shallower eastern portion of the Deposit, as well as an improved understanding of the historical underground infrastructure. We continue to be pleased with drilling results and will be busy with two drill rigs operating in the first half of the year, following our continued goal of increasing the mineral resources".

Mineral Resource Estimate

On October 13, 2010, Cornerstone and Thundermin announced that an updated NI 43-101 compliant mineral resource estimate had been completed by Scott Wilson RPA under the supervision of Mr. Reno Pressacco, M.Sc. (A), P.Geo., Senior Geologist for Scott Wilson RPA and an independent Q.P. in accordance with NI 43-101. Scott Wilson RPA estimated that the Deposit contains Indicated Resources of 1,150,500 t at an average grade of 2.8% Cu within the Little Deer Zone and additional Inferred Resources of 1,227,300 t at an average grade of 2.2% Cu within the Little Deer Zone and 1,108,200 t at an average grade of 1.9% Cu within the Footwall Zone. A NI 43-101 compliant Letter Report entitled "Mineral Resource Update for the Little Deer Project" dated September 30, 2010, to support the updated mineral resource estimate, is available on Cornerstone's and Thundermin's websites.


On October 19, 2010, excellent metallurgical results from scoping level test work on core samples from the Deposit were announced. This work, which was undertaken at SGS Lakefield Research Limited ("Lakefield") of Lakefield, Ontario, indicates that a saleable, high grade copper concentrate grading over 28% copper with over 97% recovery and free of any deleterious elements can be produced from the Deposit. The use of a simple rougher-cleaner flowsheet, a common xanthate collector, pH control with lime and a relatively course primary grind for copper liberation from mineralization of medium hardness suggest that the operating costs should fall into the low range for any metallurgical plant constructed to treat the Little Deer copper mineralization.

Qualified Person

Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager, Cornerstone Resources Inc., is the Q.P. responsible for supervising the drilling program and the compilation of all of the historical data on the Deposit 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.

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.

Other News

Cornerstone announces that it is notifying all participants in the June 2010 financing who hold warrants that the expiry date will be advanced to March 7, 2011 and any warrants not exercised by that date will expire. The total of potential proceeds to Cornerstone's treasury if all warrants are exercised is $1.8M.

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.

Further information is available on Cornerstone's website: or for investor, corporate or media inquiries, please see contact information.

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January 4th, 2011

November 10th, 2010

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

To view Table 2: Little Deer - Historical Surface and Underground Drill Results, see the link below:

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.

Contact Information

  • Cornerstone Capital Resources Inc.
    Martti Kangas
    Investor Relations
    Direct Line: 1 (647) 521-9261
    North America toll-free: 1 (877) 277-8377
    Cornerstone Capital Resources Inc.
    Paul Benwell / Pat Kairns
    Investor Relations
    Direct Line: 1 (514) 904-1333
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    Cornerstone Capital Resources Inc.