Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

September 28, 2005 08:05 ET

New Cornerstone Projects in the Voisey's Bay Nickel Camp

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Sept. 28, 2005) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) is pleased to announce that it has acquired four additional projects in the Voisey's Bay region of north-central Labrador. The properties are prospective for Voisey's Bay style Ni-Cu-Co magmatic sulphide deposits. The acquisition of these properties, which totals approximately 100 km2 in area, increases Cornerstone's gross land position in the Voisey's Bay region to 570 km2, second only to Inco Limited, including the holdings of its wholly owned subsidiary Voisey's Bay Nickel Company Limited. Inco expanded their land position to 2,278 km2 late last month, staking an additional 1,721 km2 south of Voisey's Bay.

Cornerstone's newly acquired properties were selected after compilation of available previous work and field work completed over the past three months. The properties include claims in the Garland Lake area, immediately adjacent to Inco's Garland Lake property, 30 km southeast of the Voisey's Bay mine. The Garland Lake area has been highlighted in recent statements from Inco representatives as a priority area for further exploration outside the Voisey's Bay mine property.

Each of Cornerstone's new projects is controlled 100% by Cornerstone Resources Inc., a wholly owned subsidiary of Cornerstone Capital Resources Inc. In addition to field work carried out on the newly acquired properties, Cornerstone and Konrad joint venture partner Falconbridge Limited have recently completed a limited field program on the Konrad Project, 30 km west of the Voisey's Bay mine. Highlights for each of the newly acquired projects as well as an update on the Konrad Joint Venture are provided below. A map showing the relative locations of each of the properties with respect to Voisey's Bay is provided at the following link:

Garland - 100% Cornerstone

The 53 km2 Garland property consists of three licences covering the on-strike extensions of a series of AMT anomalies detected by an Inco Audio-magnetotelluric (AMT) survey completed in 2001 ( The anomalies are defined as a series of zones of higher conductivity interpreted to lie at a depth greater than 800 m. Reports filed by Inco with the Government of Newfoundland & Labrador indicate that the area surrounding the AMT anomalies is locally underlain by troctolitic rocks considered favourable for hosting Voisey's Bay style Ni sulphide mineralization. Cornerstone acquired its claims to cover the untested AMT anomalies and their inferred on-strike extensions.

Notakwanon - 100% Cornerstone

Located 90 km southwest of the Voisey's Bay mine, this 20 km2 property covers a 3.5 x 7 km body of olivine gabbro. Cornerstone considers the body to be highly prospective, as discrete bodies of olivine gabbro are particularly rare in the region and include troctolite and olivine gabbro at Voisey's Bay. The results of previous exploration work on the intrusive body are being compiled as the first step in evaluating the potential of the property.

Kauk - 100% Cornerstone

This 9 km2 property is located 80 km northwest of Voisey's Bay and covers a discrete body of troctolite mapped by the Geological Survey of Newfoundland & Labrador. The troctolite body, which has a minimal surface exposure of 1 km2, has not been systematically explored, although parts of it were included in separate properties explored by three junior companies in the rush that immediately followed the discovery of the Voisey's Bay deposits in 1994. As with the Notakwanon project, discrete bodies of troctolitic to olivine gabbroic rocks are considered rare in the region but are recognized to be an essential host rock to Voisey's Bay style mineralization.

Okak - 100% Cornerstone

Located 100 km north of the Voisey's Bay mine, the 18 km2 Okak property covers several showings of Ni-bearing magmatic sulphides hosted by anorthosite and other mafic rocks with the sulphides interpreted to be potentially related to an unsourced intrusive body that may occur at depth. Troctolitic rocks are reported to have been mapped on the property by previous explorers in close proximity to the sulphide showings. Results from work completed by previous explorers include assays up to 1.98% Ni, 1.03% Cu, 0.16% Co over 2.28 m including 2.03% Ni, 1.05% Cu and 0.17% Co over 0.57 m from a drilled intersection of semi-massive to massive sulphides at a vertical depth of less than 20 m below surface. Mineralization of this type was intersected by the previous workers at shallow depths over an area measuring more than 150 m along trend. Both the depth and strike potential of the mineralization are considered excellent.

Konrad - Cornerstone / Falconbridge JV

In July, together with joint venture partner Falconbridge Limited, Cornerstone undertook a limited program of ground follow-up of conductive anomalies detected by a MegaTEM survey completed over the entire 470 km2 property in 2004. Results of this work suggest the anomalies reviewed were associated with conductive sulphide-bearing gneisses and not magmatic sulphides within the prospective olivine gabbro.

It is Cornerstone's intention to seek joint venture partners for all of its available Ni properties in Labrador, while maintaining a focus on identifying additional target areas through ongoing compilation and field work.

Paul Moore, M.Sc., P.Geo., Chief Geologist for Cornerstone, is the Qualified Person, as per National Instrument 43-101, responsible for the information in this news release. Assay results referred to are historical in nature, but are believed to be representative having been completed by Bondar Clegg in 1996 using the Atomic Absorption assay method employing a multi-acid digestion of samples comprised of sawed BQ (36.5 mm diameter) drill cores.

Cornerstone Capital Resources Inc. is a mineral exploration company based in Newfoundland & Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador. Cornerstone's current and past joint venture partners include Agnico Eagle, Candente, Falconbridge, Inmet/Woodruff, Kermode, Moydow, Noranda, Phelps Dodge, and Thundermin.

On Behalf of the Board of Directors

Glen H. McKay, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information