Cornerstone Capital Resources Inc.: Cascabel Exploration Update
May 20 2014 - 10:31AM
Marketwired Canada
Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX
VENTURE:CGP)(FRANKFURT:GWN)(BERLIN:GWN)(OTCBB:CTNXF) announces the following
project update for the Stage 2 drill program at the Alpala prospect within the
Cascabel Project at the Company's copper-gold porphyry joint venture exploration
project in northern Ecuador.
Highlights:
-- Hole 6 assays received. Extensive halo mineralization encountered over
821.5 metres;
-- Drilling underway with hole CSD-14-007 in the Central Zone;
-- Extension of IP survey over the Aguinaga Porphyry Cu-Au target in
planning stage;
-- Further magnetic modeling to be performed on Aguinaga target; and
-- Objective to define future drill sites at Aguinaga.
Brooke Macdonald, Cornerstone's President & CEO said: "Our understanding of the
setting of mineralization on the Alpala target is increasing on a steady basis
and the exploration model is being refined with powerful geophysical tools and
detailed work by our geologists. Investors hoping that the Hole 6 assays would
have been as spectacular as the Hole 5 assays (which included 672m grading 0.93%
Cu and 0.91 g/t Au (from 658m), see news release dated May 2, 2014) should not
be discouraged. The very extensive and continuous low-grade copper
mineralization encountered over 821.5m in Hole 6 strongly supports our model and
interpretations that Alpala hosts a major high-grade porphyry copper-gold system
that has been intersected in Hole 5. We are still in the early days of exploring
the Alpala target, and it will take several more drill holes to begin to
understand the extent of this target."
References to figures related to the version of this release on the Company's
website (www.cornerstoneresources.com) or visible in PDF format by clicking the
link below:
http://www.cornerstoneresources.com/i/pdf/NR14-14Figures.pdf.
Hole CSD-14-006 Assay Results
Assay results for drill hole CSD-14-006 (Hole 6) have been received. Hole 6 was
sited to test the continuation of porphyry copper-gold mineralization
approximately 283m north-northeast of Hole 5 in the area of a modeled magnetic
high. The drill hole encountered increasing alteration with depth, and was
extended to 1401.5 metres to provide a definitive intersection of the magnetic
rocks down hole.
Very extensive low-grade copper mineralization was encountered through long
intervals in Hole 6. Table 1 lists the intersections from Hole 6 whilst Figure 1
shows the copper-grade histogram down hole. The best bulked intersection was:
821.5m grading 0.14% copper and 0.10 g/t gold from 580 metres depth.
Higher grade intervals included 198m grading 0.20% Cu and 0.15 g/t Au from 808m
depth.
Table 1 - Intersections from hole CSD-14-006 at the Alpala Prospect.
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Interval
Hole ID Depth From Depth To (m) Cu_% Au_g/t
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CSD-14-006 580 1401.5 821.5m 0.14 0.10
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Incls 702 1038 336m 0.18 0.12
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Incls 1080 1401.5 321.5m 0.14 0.10
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Shallower intervals 184 226 42m 0.11 0.07
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282 374 92m 0.13 0.05
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Intervals greater than
0.2% Cu 808 1006 198m 0.20 0.15
----------------------------------------------------------------------------
Incls 924 952 28m 0.29 0.23
----------------------------------------------------------------------------
Incls 940 952 12m 0.32 0.27
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1136 1182 46m 0.27 0.35
----------------------------------------------------------------------------
Incls 1168 1174 6m 0.49 2.10
----------------------------------------------------------------------------
(i) The reported intervals are core lengths. At present the true thicknesses are
uncertain due to the early stage of drilling.
The extensive intersection of 821.5m grading 0.14% Cu and 0.10 g/t Au (Figure 1)
coincides with increasing magnetic susceptibility measurements from drill core
(Figure 2). The bulk intersection also correlates with the magnetic domain in
the expanded magnetic model. This expanded inversion model was finalized and
available for interpretation when Hole 6 was at a depth of 1401.5m (Figure 3).
The extensive halo-grade copper intersection in Hole 6 coincides with the
northeast-shallowing extension of a much deeper and stronger magnetic anomaly
that plunges westward and which is intimately associated with high grade copper
and gold mineralization encountered in Hole 5 (Figure 3). The vertically
extensive but low-grade halo mineralization in Hole 6 occurring in association
with modestly magnetic rocks strongly supports the expanded magnetic model and
re-enforces the concept of a higher-grade target (Central Zone) occurring at
depth to the west of Holes 5 and 6.
The presence of extensive and continuous low-grade copper mineralization in Hole
6 (over 821.5m) strongly supports our model and interpretations that Alpala
hosts a major high-grade porphyry copper-gold system that has been intersected
in Hole 5.
The area to the northwest of Hole 5 and southwest of Hole 6 is currently being
tested with drill hole CSD-14-007.
Hole 7 Progress
Drill hole CSD-14-007 (Hole 7) is presently at a depth of 436.06m and drilling
towards the magnetic target in the Central Zone (Figure 4). Drilling is
progressing smoothly.
Update on the Aguinaga Porphyry Target
The Company is preparing to conduct geophysical, geochemical and geological work
programs over the Aguinaga porphyry target which lies 3 kilometres
north-northeast of Alpala (Figure 5).
The Aguinaga target comprises a series of coincident copper, gold and molybdenum
soil anomalies at elevations up to 1702m above sea-level that coincide with a
discrete magnetic high (Figures 6, 7 and 8). The lithology in the area comprises
diorite intrusions with high temperature propylitic alteration and local areas
of potassic and argillic alteration.
An initial unconstrained inversion model of this magnetic anomaly (optimized for
the uppermost 600 metres) reveals it extends below 800m and above 1350m
elevation and is centered under the coincident soil anomalies. At approximately
700 metres below surface the modeled magnetic high is 750m by 800m in lateral
dimension and is surrounded by an approximately 1.7-kilometre wide annulus of
magnetite-destructive alteration. This magnetic signature (a central magnetic
high with a surrounding magnetic low) is typical of some buried porphyry
copper-gold systems where the potassic zone is preserved at depth and is
surrounded by magnetite-destructive phyllic alteration.
There are few outcrops over the Aguinaga area due to deep weathering. Sporadic
float of altered diorite are observed in the region. Of seven float samples and
one outcrop sample from low elevations on the western flank of the prospect
area, four samples of float yielded anomalous and encouraging gold values
ranging between 0.106 g/t and 0.378 g/t.
The attractiveness of this target for the Company is the spatial coincidence of
the geochemical anomalies that overlie a discreet magnetic anomaly in an area
dominated by diorite intrusions, all important ingredients for a rich porphyry
copper-gold system.
Quantec Geoscience, the geophysical contractor who will be conducting the 3D IP
survey over Alpala, has been requested to design a grid to enable a 3D Orion IP
survey to be conducted over the Aguinaga target following completion of the
Alpala survey. Gridding of the Aguinaga area will commence within the next two
weeks.
Soil sampling will also be conducted over the eastern half of the Aguinaga
target to extend the existing copper, gold and molybdenum soil anomalies, and
the prospect will be mapped in greater detail. The principal aim of these
activities is to define drill targets at Aguinaga during the September quarter.
3D Inversion Magnetic Modeling to be Completed
Further magnetic 3D inversion modeling is planned for the Aguinaga target (by
Moore Geophysics) using newly developed modeling algorithms that are currently
available. This additional modeling will be undertaken to further refine the
geometry of the magnetic anomaly at Aguinaga in the lead-up to drill targeting.
About Cascabel
SolGold Plc owns 85% of the equity of Exploraciones Novomining S.A. ("ENSA"), an
Ecuadorean registered company that holds 100% of the Cascabel concession in
northern Ecuador. Cornerstone owns the remaining 15% of ENSA, which also holds
the rights to the La Encrucijada gold-silver project. SolGold is funding 100% of
the exploration at Cascabel and is the operator of the project with Cornerstone
Ecuador S.A. providing some exploration and administrative services.
Cornerstone's 15% interest is financed through completion of a bankable
feasibility study.
Cascabel is located in north-western Ecuador in an under-explored northern
section of the richly endowed Andean Copper Belt, 60 km northeast of the
undeveloped NI 43-101 compliant inferred resource of 982 million tons at 0.89%
Cu Junin copper project.
Qualified Person:
Yvan Crepeau, MBA, P.Geo., Cornerstone's Vice President, Exploration and a
qualified person in accordance with National Instrument 43-101, is responsible
for supervising the exploration program at the Cascabel project and has reviewed
and approved the information contained in this news release.
Logging, sampling and assaying
Holes referred to in this release were or are being drilled using HTW, NTW and
NQ core sizes (respectively 7.1, 5.6 and 4.8 cm diameter). Geotechnical
measurements such as core recovery, fracturing, rock quality designations
(RQD's), specific density and photographic logging are performed systematically
prior to assaying. The core is logged, magnetic susceptibility measured and key
alteration minerals identified using an on-site portable spectrometer. Core is
then sawed in half at Cornerstone's core logging facility and half of the core
is delivered by Cornerstone employees for preparation at Acme Analytical
Laboratories (ACME) affiliate laboratory in Cuenca. Core samples are prepared
crushing 1 kg to 80% passing 2 mm (10 mesh), splitting 250 g and pulverizing to
85% passing 0.075 mm (200 mesh) (ACME code R200-250). Prepared samples are then
shipped to ACME in Vancouver, Canada where samples are assayed for a
multi-element suite (ACME code 1E, 0.25g split, 4-acid digestion, ICP-ES
finish). Over limit results for Ag (greater than 100 g/t), Cu, Pb and Zn (each
one greater than 1%) are systematically re-assayed (ACME code 7 TD1 or 7 TD2,
4-acid digestion, ICP-ES finish). Gold is assayed using a 30 g split, Fire Assay
(FA) and AA or ICP-ES finish (ACME code G601).
Quality assurance / Quality control (QA/QC)
The ACME affiliate preparation facility in Cuenca was audited by Cornerstone
prior to the start of the drilling program and ACME is an ISO 9001:2008
qualified assayer that performs and makes available internal assaying controls.
Duplicates, certified blanks and standards are systematically used (1 control
sample every 15 samples) as part of Cornerstone's QA/QC program. Rejects, a 100
g pulp for each core sample and the remaining half-core are stored for future
use and controls.
In Other News - Cornerstone Retains Investor Relations Advisor
Cornerstone announces that it has retained Chris Temple, owner of National
Investor Publishing and Editor of The National Investor newsletter, to perform
certain publishing, consulting, marketing and public awareness services.
National Investor Publishing will, in this arrangement, be publishing general
market commentary/reports as well as a specific informational report on
Cornerstone Capital Resources. Both will be made available via various news and
investment-related web sites, mailing lists and portals as a means to increase
market awareness of Cornerstone. Additionally, National Investor Publishing
expects that these services will result in additional subscribers to The
National Investor newsletter. Cornerstone's consideration to National Investor
Publishing will be a one-time fee of U.S.$4,000, which will go to the cost of
preparing the specific informational report on Cornerstone as well as to the
cost of mailing list rentals and placement in other fashions on selected web
sites and portals. It is presently expected that the duration of this effort
will be approximately four months.
National Investor Publishing is a sole proprietorship owned by Chris Temple, and
located in Lake Villa, Illinois, U.S.A. It owns and publishes an economic and
investment-oriented newsletter known as The National Investor, which has been in
operation since 1996. National Investor Publishing, The National Investor
newsletter and Chris Temple are not employed otherwise by, and do not have any
ownership interest in, Cornerstone. None of the parties presently own any
interest in Cornerstone, nor will any be purchased or otherwise obtained
directly or indirectly by them as a part of or during this relationship.
About Cornerstone:
Cornerstone Capital Resources Inc. is a well-funded mineral exploration company
based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified
portfolio of projects in Ecuador and Chile, 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.
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 and on Twitter.
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 and CEO
Further information is available on the Cornerstone Web site at
www.cornerstoneresources.com; via e-mail at communications@crigold.com; 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
For investor, corporate or media inquiries, please contact:
Cornerstone Capital Resources Inc.
Investor Relations:
North America toll-free: 1 (877) 277-8377
ir@cornerstoneresources.ca
www.cornerstoneresources.com