Cornerstone Capital Resources Inc.: Cascabel Exploration Update
June 13 2014 - 8:00AM
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 drilling program at the Alpala prospect within
the Company's Cascabel copper-gold porphyry joint venture exploration project in
northern Ecuador.
Highlights:
-- Drill hole CSD-14-007 ("Hole 7") has intersected visual copper sulphide
mineralization from 540.7 to 960 metres.
-- Hole 7 is still drilling and encountering copper sulphide mineralization
in potassic alteration including magnetite and stockwork quartz veining.
-- South East and North West targets are high priority areas that are
reinforced by the updated magnetic model and the intersection of copper
sulphides in Hole 7.
-- Preliminary metallurgical testwork strategy defined and laboratory
selected.
All reported intervals referred to in this news release are core lengths. At
present the true thicknesses are uncertain due to the early stage of drilling.
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/NR14-15Figures.pdf.
"We are very pleased with the visual intercepts from the upper part of hole CSD
14-007 and overall exploration results at Alpala", stated Cornerstone's
President & CEO, Brooke Macdonald. "The exploration model gradually being
refined indicates the potential for this target to host a significant porphyry
copper-gold deposit. The technical success to date on the Cascabel property
combined with the recent (May 31) public declarations by Ecuadorean President
Rafael Correa stating that Ecuador has failed so far in developing its mining
sector and that it will make in the next few months all necessary tax and
regulatory changes for the country to be competitive and to attract direct
foreign investment, is a very positive development both for the Cascabel joint
venture and for the 100%-owned Cornerstone properties we are currently
re-activating".
Hole CSD-14-007 ("Hole 7") Progress
Hole 7 is presently at a depth of 1079 metres and has intersected significant
intervals of visible copper sulphide mineralization over a near-vertical
interval of at least 418.70m, from 541.3m to 960m down hole. Visible
mineralization occurs in association with quartz stockwork veins within a
potassic-altered diorite intrusion. Mineralization that is continuing below 960m
down hole is currently being assessed in the field. Hole 7 is progressing
towards a strong modeled magnetic target in the Central Zone (Figure 1).
Drilling has progressed smoothly to date.
Hole 7 intersected argillic and phyllic altered volcaniclastics, dacite porphyry
intrusions and minor andesite from surface to 567.1m depth and then intersected
an extensive diorite intrusion from 567.10 metres to at least 960 metres depth.
This extensive diorite intrusion is potassic altered with local zones of
overprinting phyllic alteration. Quartz veins are observed in the upper part of
the hole between 13.7m and 355.3m within the wall rocks, and then reappear with
greater intensity from 528.4m to 960m and beyond. The quartz stockwork veins
coincide with the appearance of pervasive magnetite that typifies potassic
alteration, and also coincide with the appearance of visible copper sulphide
minerals that are dominated by chalcopyrite, bornite and chalcocite in
association with visible molybdenite.
Hole 7 will continue to be deepened to test the strongest part of the modeled
magnetic anomaly and the lower limit of visible copper sulphide mineralization
(Figure 1).
South East and North West Targets
The South East Target and the North West Target were further defined in the
second generation magnetic modeling (Figure 2). They are extensive, semi-annular
magnetic anomalies that directly underlie highly acidic alteration cores to the
lithocap at surface. Importantly, these two large magnetic targets are partly
contiguous with the magnetic anomaly in the Central Zone which has been
demonstrated by Hole 5 to be strongly mineralized (see NR 14-10 dated 24th March
2014 for results of Hole 5) and further supported by the Hole 7 intersection of
visible copper sulphides.
The discovery of extensive peripheral (low-grade) copper mineralization in Holes
3 and 6 provide robust additional encouragement that the magnetic cores of the
South East and (or) North West Targets are mineralized.
Hole 3 drilled above the South East Target was terminated due to hole collapse.
It intersected 747.33m grading 0.11% Cu with grades peaking near the bottom of
the hole at 0.23% Cu and 0.14 g/t Au over 128 metres.
In light of the recent 2nd Stage 3D magnetic inversion modeling that highlighted
the South East Target as a high priority for high-grade copper and gold
mineralization, the following comments from NR 13-26 dated November 4, 2013 and
NR 13-31 dated December 16, 2013 are worth re-iterating as they clarify the
potential significance of the South East Target:
NR - November 4, 2013: Hole 3 intersected increasing intensities of
porphyry-related quartz stockwork veining from surface (approx. 0.5 veins per
metre) to 713m depth (approx. 18 veins per metre). The eastward trend of
increasing stockwork veining is consistent with the hole drilling obliquely
through the marginal halo of a porphyry system whose centre may be located to
the northwest or southeast. Porphyry copper-gold-molybdenum deposits are
typically surrounded by haloes of lower grade mineralization (pyrite plus
chalcopyrite +/- traces of molybdenite and gold) that can extend hundreds of
metres and up to a kilometre from the centre of the porphyry deposit.
NR - December 16, 2013: The mineralization encountered throughout hole
CSD-13-003 is consistent with an extensive low-grade copper halo that typically
develops around the margins of large porphyry copper-gold systems. The assays
from hole CSD-13-003 confirm that mineralizing fluids have moved through
extensive volumes of rock at Alpala, further evidence for our confidence in the
potentially large size of the Alpala copper-gold porphyry system.
The Company continues to interpret the large South East Target as a mineralized
potentially high-grade copper-gold porphyry system, with Hole 3 skimming the
upper margin.
Hole 6 drilled adjacent to the North West Target and the Central Zone was
terminated following receipt of the updated 2nd stage magnetic model. It
intersected 821.50m grading 0.14 % Cu and 0.10 g/t Au with peak grades in the
lower half of the hole adjacent to the North West Target and Central Zone.
These vertically extensive halo intersections (747.33 metres long above the
South East Target and 821.50 metres long adjacent to the North West Target)
reflect copper-bearing fluids interacting with large volumes of rock, a feature
characteristic of large copper deposits.
The combination of two well mineralized holes within (i.e. Hole 5) or on the
margins (i.e. Hole 7) of the Central Zone magnetic high, and two peripheral
holes with long runs of low-grade halo copper mineralization above the South
East Target magnetic high (i.e. Hole 3) and adjacent to the North West Target
magnetic high (i.e. Hole 6), provides an increasingly solid understanding of the
likely geometry and locus of the Alpala porphyry system(s). The assay evidence
of high grades (Hole 5) and continued association of visible copper sulphide
mineralization with magnetic rocks in Hole 7 provide the Company confidence that
it can begin to build a significant resource at Alpala.
Preliminary Metallurgical Test-work Strategy
Preparation for preliminary metallurgical testwork on high-grade copper and gold
mineralization from Hole 5 has advanced significantly. The Metallurgical
Division of Inspectorate Exploration and Mining Services Ltd of Richmond,
British Colombia, Canada ("Inspectorate") has been selected to conduct the
initial testwork.
The proposal and quotation from Inspectorate has been approved and the intervals
for metallurgical testwork selected following acquisition of coarse reject
sample weights from the sample preparation laboratory that the Company uses in
Cuenca, Ecuador.
The next steps in the process is for the selected samples to be riffle split,
packaged and exported from Ecuador to Vancouver where the testwork will be
conducted.
The objective of this work is to conduct a preliminary metallurgical test
program, including hardness tests and flotation tests, to study the recovery of
copper and gold in three sample composites that have been selected to represent
the high-grade intersection in Hole 5. In summary, the scope of work comprises
sample preparation, head assays, test grinds, rougher flotation and cleaner
flotation. The selected composites are listed in Table 1 with further details of
the testwork listed in Table 2.
Table 1 - Metallurgical Composites
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Target Target Target Target
Interval Sub- Cu grade Au grade Mo grade Weight
Composite Comment (metres) Samples (%) (g/t) (ppm) (Kg)
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Composite Intermediate
2 Grade 936-982 24 0.67 0.58 5.89 71.16
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Composite
1 High Grade 804-850 24 1.04 0.94 1.00 72.00
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Composite Very High
3 Grade 1098-1144 24 1.84 2.31 3.44 70.91
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Table 2 - Metallurgical Testing Of Each Composite
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Test Details Comment
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Bond Mill Work Index Bico-Braun laboratory mill Hardness
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Test Grinds Three tests on each Develop a grind time versus
composite for varying P80 sizing curve
grinding times
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Rougher Flotation Scoping level flotation Products analyzed for Cu,
Kinetics tests on each composite at Au, S
3 grind sizes to establish
a grind versus recovery
basis
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Rougher Flotation Using optimum grind size Using various Ph and
Optimization and flotation times from reagent schemes
the Kinetic testing, 4
additional rougher tests to
be conducted
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Cleaner Flotation Using the optimum grind and Products analyzed for Cu,
rougher kinetics Au, S
parameters, a 3 stage
cleaner circuit test with
and without regrind
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Size by Assay Rougher scavenger tailings Each fraction assayed for
Analysis to be screened to 7 size Cu, Au, S to calculate
fractions and undergo metal and mineral
screen by assay distribution.
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Mineralogy Particle Mineral Mineral composition and
Association Study (PMA) deportment, associations,
using QEMSCAN liberation characteristics,
(if required) effect of primary grind,
and size elemental mineral
analysis.
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The results of the preliminary metallurgy testwork on Hole 5 are anticipated
during the September quarter.
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 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 inferred resource of 982 million tons at 0.89% Cu Junin copper
project. (Mineralization identified at the Cu Junin copper project is not
necessarily indicative of the mineralization on the Cascabel Property).
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.
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