Pre-Feasibility Study Update - Alpala Project, Cascabel Concession, Ecuador
September 30 2020 - 8:00AM
Cornerstone Capital Resources Inc. (“Cornerstone” or “the
Company”) (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN)
(OTC:CTNXF) is pleased to announce the following update on
the status of the Pre-feasibility Study (PFS) on the Alpala Project
at its Cascabel copper-gold porphyry joint venture project in
northern Ecuador in which Cornerstone has a 15%
interest1 financed through to completion of a feasibility
study plus 7.6% of the shares of joint venture partner and project
operator SolGold Plc, for a total direct and indirect interest in
Cascabel of 21.4%.
SolGold planned a fast delivery of a PFS for
completion at the end of Q3 2020. The PFS work program has advanced
over the last 18 months, however, the COVID restrictions have
limited physical access to site. This has resulted in critical
geotechnical data not being available as required to meet the study
plan and schedule as originally contemplated. SolGold has been
working to recover lost time as a result of restrictions and is now
in a position to update the market in respect of the schedule to
completion.
The PFS is well advanced, and the Company
provides the following details with regard to status and completion
plans:
- Updated Mineral
Resource Estimate (MRE#3) that forms the basis of the PFS study is
complete and was announced on April 7, 2020. There have been no
changes to MRE#3.
- Geotechnical
sampling and testing together with geotechnical domain
identification and modelling have represented a significant source
of delays and have impacted reliant activities in interpretation
and mine planning and extraction models. Collection of the
necessary data has now been completed.
- Geotechnical
numerical modelling is in the final stages with fragmentation,
caveability and stability inputs ready to be fed into the draft PFS
mine model and design.
- The
hydrogeological model is currently being finalized with the final
layout of mine infrastructure (finalization of ventilation design)
required to complete the study.
- Mine design is
currently being completed and work is focussed on finalizing the
development and mining production schedules including the planned
underground infrastructure.
- Detailed
metallurgy appraisal to a PFS standard is being finalized.
- Process plant
design (including equipment selection) and its location and layout
are also in the process of being finalized with the final input
being the mine production schedule.
- Planned tailings
storage facility locations considered for the study are in the
process of being finalized. The outstanding input required is the
plant production schedule that is used in tailings deposition
modelling which allows completion of the tailing’s storage facility
design. This will be available for inclusion in the PFS once the
production schedule is finalized.
- Pipeline routes
are being evaluated for the concentrate from Cascabel site to the
planned port facility. Pipeline infrastructure options for the PFS
will be finalized for the PFS when the plant production schedule is
complete.
- Port storage,
dewatering and ship loading designs are being finalized for
inclusion in the PFS.
- Environment and
community studies are close to completion.
- Market studies
are close to completion.
Work is currently focused on the mine and plant
production schedules to allow finalization of tailings and
concentrate production. This will allow CAPEX and OPEX numbers to
be finalized. These are critical items that are required to
complete the economic analysis.
All efforts are concentrated on completing the
outstanding items. A detailed review process will be undertaken to
ultimately deliver a confident economic model.
SolGold is focused on delivery of all draft
input from the studies referred to above as soon as possible.
Following a review and revision period, financial modelling will be
undertaken in order to complete the PFS as soon as possible.
Qualified Person
Information in this report relating to technical
disclosure is based on data reviewed and approved by Mr. Jason Ward
((CP) B.Sc. Geol.), the Chief Geologist of project operator
SolGold. Mr. Ward is a Fellow of the Australasian Institute of
Mining and Metallurgy, holds the designation FAusIMM (CP), has in
excess of 20 years’ experience in mineral exploration and is a
Qualified Person in accordance with National Instrument 43-101.
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 for Cornerstone and has
reviewed and approved the information contained in this news
release.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral
exploration company with a diversified portfolio of projects in
Ecuador and Chile, including the Cascabel gold-enriched copper
porphyry joint venture in northwest Ecuador. Cornerstone has a
21.4% direct and indirect interest in Cascabel comprised of (i) a
direct 15% interest in the project financed through to completion
of a feasibility study and repayable at Libor plus 2% out of 90% of
its share of the earnings or dividends from an operation at
Cascabel, plus (ii) an indirect interest comprised of 7.6% of the
shares of joint venture partner and project operator SolGold Plc.
Exploraciones Novomining S.A. (“ENSA”), an Ecuadoran company owned
by SolGold and Cornerstone, holds 100% of the Cascabel concession.
Subject to the satisfaction of certain conditions, including
SolGold’s fully funding the project through to feasibility, SolGold
Plc will own 85% of the equity of ENSA and Cornerstone will own the
remaining 15% of ENSA.
Further information is available on
Cornerstone’s website: www.cornerstoneresources.com and on
Twitter. For investor, corporate or media inquiries, please contact
ir@cornerstoneresources.ca, or:
Investor Relations: Mario Drolet; Email: Mario@mi3.ca; Tel.
(514) 904-1333
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Cautionary Notice:This news
release may contain ‘Forward-Looking Statements’ that involve risks
and uncertainties, such as statements of Cornerstone’s beliefs,
plans, objectives, strategies, intentions and expectations. The
words “potential,” “anticipate,” “forecast,” “believe,” “estimate,”
“intend”, “trends”, “indicate”, “expect,” “may,” “should,” “could”,
“project,” “plan,” or the negative or other variations of these
words 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 after 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 MacdonaldPresident and CEO
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.
1 See “About Cornerstone” below.
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