Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
MOUNT PEARL, NEWFOUNDLAND–(Marketwire – Sept. 13, 2011) – Cornerstone Capital Resources Inc. (“Cornerstone”) (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announced today the results of initial exploration work carried out on its 100%-owned Cascabel project in northern Ecuador. The project is located approximately 120 km north of Quito and 20 km south of the Colombian border. Access is very good via a paved road from the provincial capital city of Ibarra to San Lorenzo city, on the Pacific coast, and secondary gravel roads to the central part of the 50 km2 property. Maps showing the geology and exploration results of this program may be viewed at http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=478495.
Highlights
Assay results for the 179 rock samples (grabs and representative rock chips) collected shows that precious and base metals are anomalous over most of the area:
Free gold has been identified by panning in most of the streams of the area (49 pan concentrates out of 64 show the presence of gold) with higher amounts of gold grains (10-30) concentrated in the headwaters of the Rio Parambas, Rio Cachaco and Rio Cristal. Some of the streams have not yet been surveyed and/or followed up.
“We are very pleased with these encouraging initial results on the Cascabel project obtained after only a few weeks of field work”, said Brooke Macdonald, Cornerstone’s President. “We are just starting our work programs on this property and already we’re seeing potential for significant porphyry copper and gold mineralization similar to the new porphyry discoveries in neighbouring Colombia”.
Regional geology and mineralization
The Cascabel area is underlain by Upper Cretaceous sedimentary rocks which are overlain by Oligocene to Miocene andesitic flows and breccias. These units are intruded by Miocene age batholiths and stocks of granodiorite and diorite. Major regional structures in the area strike northeast. One such structure, the Apuela regional fault, transects the southeast part of the Cascabel property. Several mineral prospects, part of the same geological belt, have been identified in the Cascabel district: the Chical (Au-Ag) and Rio Amarillo (Au-Ag-Cu) epithermal prospects located 12 km to the northwest and 12 km to the south of the property respectively. Cascabel is located upstream from an extensive alluvial gold district, Playa de Oro, located 50 km to the west. The Junin porphyry copper-molybdenum deposit (undeveloped National Instrument 43-101 compliant inferred resource of 982 Mt @ 0.89% Cu, 0.04% Mo and 1.9 g/t Ag) lies 65 km to the southwest.
Exploration program and results
The primary objective of the initial exploration work was to follow up and find the source(s) of multi-element (gold-copper-lead-zinc) stream sediment anomalies defined in previous surveys (Belgium Mission 1980-1984, British Geological Survey 1998-2000 and a proprietary stream sediment geochemical survey). Most of the current work was focused in the central part (20 km²) of the property. One hundred and seventy nine (179) rock samples (53 floats and 126 outcrops) were collected during the reconnaissance geological mapping (scale 1: 25,000) and prospecting program, and a total of 64 stream sediment samples were collected and pan concentrated to identify the number, size and shape of visible gold grains and other precious metals.
Reconnaissance mapping confirmed that andesitic volcanic rocks and flysch-type sediments are intruded by a diorite porphyry stock which is exposed at lower elevations along the Rio Parambas. Porphyry-style alteration and mineralization is associated with the intrusion, with a central potassic-altered core and peripheral, east-west trending, phyllic-argillic alteration zones up to 4 km long by 0.5 to 1 km wide to the south. The phyllic-argilllic alteration affects the diorite, as well as the volcanic and sedimentary units. A series of northeast and northwest striking conjugate faults were mapped and interpreted from satellite imagery. North-northeast and north-northwest striking secondary structures are also present throughout the area, and appear to control part of the mineralization.
Anomalous gold, silver, copper, lead and zinc are distributed over an extensive area (> 10 km2) in the central part of the property and preliminary information indicates a rough metal zonation. Gold and copper mineralization is associated with the central potassic zone of the diorite porphyry, as well as NE-NNE and NW-NNW trending structures and the phyllic-argillic zones developed within volcanic and sedimentary rock units. Copper is present as disseminated chalcopyrite, covellite and malachite in the porphyry and as higher grade concentrations, associated with the peripheral structural system. Silver, lead and zinc mineralization appears to be peripheral to the central potassic zone, associated with the same NE-NNE and NW-NNW structures. The higher grade precious and base metals assay results (> 1 g/t Au, > 30 g/t Ag, > 1% Cu and/or > 1% Zn) are generally related to sub-metre (0.2 to 1.0 m), NE-NNE and NW-NNW oriented, brecciated massive sulphide veins, silicified zones and quartz veins.
Planned future work includes the completion of prospecting and reconnaissance mapping which will cover the entire property, follow up on the stream sediment anomalies, ridges and spurs soil sampling to define the limits of the mineralized systems and prioritization of target areas to initiate detailed exploration surveys.
Assaying, Quality assurance / Quality control (QA/QC)
Rock samples were delivered by Cornerstone employees to and prepared by the ACME preparation laboratory in Cuenca (ACME code R200-250), and assayed by the ACME-Vancouver laboratory (www.acmelab.com) for gold (ACME code G601, F.A., 30 g.) and multi-elements (ACME code 1DX2, Aqua Regia, ICP-MS finish). All over limits results for precious and base metals were systematically re-assayed (ACME codes G6Gr and 7TD).
ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Certified blanks and standards are systematically inserted with samples as part of Cornerstone’s QA/QC program.
Qualified Person
Yvan Crepeau, MBa., P.Geo, President of Cornerstone Ecuador S.A. (“CESA”) and a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this new release.
Purchase agreement
During the first quarter of 2011, Cornerstone acquired a 100% interest in Santa Barbara Copper & Gold (“SBCG”) and all its assets in Ecuador, including the Cascabel and La Encrucijada properties, for a cash payment of $20,000 and a 2% Net Smelter Return (“NSR”) royalty on any future mineral production on each property. Cornerstone retains the right to purchase one-half (1%) of the NSR for $1,000,000 within 3 months following completion of a feasibility study, and the remaining one-half (1%) NSR for $3,000,000 within 3 months following a production decision.
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 Ecuador, Chile, and Atlantic Canada, 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. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone’s projects. Further information is available on Cornerstone’s website:www.cornerstoneresources.com.
Investors can access and join the following Cornerstone social media channels:
Facebook (http://www.facebook.com/cornerstoneresourcesinc)
Twitter (http://twitter.com/Cornerstone_cgp)
YouTube channel (http://www.youtube.com/user/CornerstoneResource)
Flickr (http://www.flickr.com/photos/cornerstoneresources)
The link to a recent Corporate presentation is: http://www.cornerstoneresources.com/i/pdf/Presentations_0711_CRICorporate.pdf
The link to a virtual tour of drilling at the Gama prospect, Shyri concession in Ecuador is: http://www.youtube.com/watch?v=Ne8XSfgLwIM
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 www.sedar.com. 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,
Brooke Macdonald, President
Further information is available on the Cornerstone Web site at www.cornerstoneresources.com; via e-mail at[email protected]; or toll free at 1-877-277-8377.
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.
