Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") announces the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador.
Figures, table and photographs referred to in this news release can be seen in PDF format by accessing the version of this release on the Company's website (www.cornerstoneresources.com) or by clicking on the link below:
- Hole 21 at Hematite Hill, intersecting copper sulphide mineralization from 685m including chalcopyrite andbornite mineralization from 844m to current downhole depth of 1187.2m.
- Hole 21 extends Alpala deposit a further 200m southeast of previous Hole 16 (856m grading 0.80% copper and 1.04g/t gold), and will test up to 2300m depth for the longest encountered vertical extent at Alpala to date.
- Hole 22 at Alpala, intersecting copper sulphide mineralization from 253m to its current downhole depth of 1128.2m, including strong bornite mineralization at approximately 960m depth.
- Hole 22 extends the Alpala Deposit 130m above previous Hole 19 intersection (802m grading 0.63 % copper, and 0.43g/t gold).
- Multi-directional and sub-horizontal veins indicate potential to increase the width of Alpala.
- A third man-portable rig arrives at site this week, and a fourth within 4 weeks.
- Two additional track mounted rigs to be mobilized to site over the coming 8 weeks.
The Cascabel Project is located within the gold-rich northern section of the prolific Andean Copper belt renowned as the production base for nearly half of the world's copper (Figure 1). The project area hosts mineralization of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte, in northwestern Ecuador just west of the City of Ibarra, approximately 3 hours drive north of Quito and close to water, power supply and Pacific Ports (Figure 2).
Fourteen individual targets have been defined at Cascabel and only one of these, the Alpala Deposit, has been drilled to date (Figure 3). The deposit at Alpala continues to grow with each new drill hole. Drilling continues to focus on defining the geometry of the growing Alpala deposit, which is open in virtually all directions. Over 29,600m of drilling has been completed to date, as an aggressive drilling program ramps up towards seven drilling rigs by year end. (Figure 4).
Hole 21 (Rig#2) is being drilled towards azimuth 240 degrees at -82 degrees inclination, testing approximately 200m along strike to the southeast of Hole 16 (856m @ 0.80% Cu, 1.04g/t Au). Thus far, Hole 21 has intersected moderate to intense copper sulphide mineralization from around 685m depth to current depth of 1187.2m. Multi-directional quartz -chalcopyrite ±magnetite veining occupies up to a maximum of 45% of the total rock volume in Hole 21 to date. Strong bornite mineralization was encountered at 1175m depth.
Hole 22 (Rig#1) is being drilled to towards azimuth 211 degrees at -73 degrees inclination, testing approximately 130m above Hole 19 from the same drill site. Hole 22 has intersected copper sulphide mineralization from 253m depth to its current depth of 1128.2m including very strong bornite mineralization around 960m depth. Multi-directional quartz -chalcopyrite ±bornite veining occupies up to a maximum of 23% of the total rock volume in Hole 22 to date.
Select examples of mineralization highlighting multi vein directions, intensity, bornite and chalcopyrite mineralization encountered in Holes 21 and 22 to date are provided in Figures 5 and 6. Sub-horizontal veining in both holes suggests potential for significant width extensions of the deposit.
Hole 20R (Rig#3) is currently suspended at 1342.4m depth following reassessment of the deep drilling strategy and selection of directional drilling techniques. The discovery of strongly mineralized porphyry clasts within hydrothermal breccia encountered in Hole 20R, further substantiates the potential for lateral extensions of the mineralized zone. Project operator SolGold will also implement a program of long holes from lower declinations across the deposit from lateral drill pad locations to test deep extension as indicated in Figure 4.
SolGold is expediting additional drill rigs into the Alpala area with a view to defining the system limits prior to a maiden resource statement.
Upgrade and expansion of site facilities are well underway at Cascabel as the project continues ramping up towards drill testing with 7 drill rigs by year end.
SURFACE MAPPING AND GEOPHYSICS
Solgold is currently progressing a ground magnetic survey, to be followed by a detailed Orion-Spartan 3D IP survey, and a Lidar topographic control survey across the majority of the licence (Figure 7). This work will not only augment the existing geophysical targets at Alpala and Aguiñaga, but further investigate the promising Tandayama-America anomaly and other satellite targets on the property. Following analysis of these datasets, Solgold expects to drill test Aguiñaga, and Tandayama-America prospects, as well as the Moran and Triviño targets on the northern edge of the Alpala system.
Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company owned by SolGold Plc 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. SolGold Plc is funding 100% of the exploration at Cascabel and is the operator of the project.
Cascabel is located in northwestern Ecuador in an under-explored northern section of the Andean Copper Belt, 60 km northeast of the undeveloped inferred resource of 982 million tons at 0.89% Cu Llurimaga (formerly Junin) copper project (0.4% Cu cut-off grade; Micon International Co. Ltd. Technical Report for Ascendant Exploration SA, August 20, 2004, pages 28 & 29). Mineralization identified at the Llurimaga copper project is not necessarily indicative of the mineralization on the Cascabel Property.
To date SolGold has completed geological mapping and soil sampling over 25 km2, along with and an additional 9km2 of Induced Polarisation and 14km2 Magnetotelluric "Orion" surveys over the Alpala cluster and Aguinaga targets. SolGold has completed 29,000m of drilling and expended over USD 39M on the program, corporate costs and investments into Cornerstone. Diamond drilling is planned for the next 12 months with multiple drill rigs.
The Alpala deposit is open at depth and in the upper extensions, as well as to the north, north-east, south-east and south-west. The mineralized zone at Alpala and Moran is closely modelled by magnetic signatures and currently encompasses over 10Bt of magnetic rock expected to be mineralized with copper and gold.
SolGold is focussing on extending the dimensions of Alpala before completing a resource statement and drill testing the other key targets within the Cascabel concession at Alpala Southeast, Aguiñaga, Triviño, Moran, Alpala Northwest, Hematite Hill, Cristal, Parambas, Carmen, Tandayama-America and Chinambicito. SolGold is planning further metallurgical testing and completion of a conceptual early stage mine and plant design and a scoping study (which may not be the equivalent of a National Instrument 43-101 Preliminary Economic Assessment) for an economic development at Cascabel. SolGold is investigating both high tonnage / low-medium grade open cut and underground block caving operations, and a high grade / low tonnage underground development.
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.
Logging, sampling and assaying
Holes referred to in this release were or are being drilled using HTW, NTW, NQ and BQ core sizes (respectively 7.1, 5.6, 4.8 and 3.7 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 the ENSA core logging facility, and half of the core is delivered by ENSA employees for preparation at LAC y Asociados ISO 9001-2008 certified sample preparation facility in Cuenca. Core samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (MSA code PRP-910). Prepared samples are then shipped to MS Analytical Services (MSA), an ISO 9001-2008 laboratory in Langley, BC, Canada where samples are assayed for a multi-element suite (MSA code IMS-230, 0.2g split, 4-acid digestion, ICP-AES/MS finish). Over limit results for Cu (>1%) are systematically re-assayed (MSA code ICF-6Cu, 0.2 g, 4-acid digestion, ICP-AES finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AAS finish (MSA code FAS 111). Over limit results for Au (>10 g/t) are systematically re-assayed (MSA code FAS-415, FA, 30g., gravimetric finish).
Drill hole intercepts from the Cascabel Property are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.89, determined using copper price of US$2.20/pound and gold price of US$1350/ounce. Copper equivalent calculation assumes 100% recoveries of copper and gold.
All reported drill core intervals from the Cascabel Property are core lengths, unless otherwise indicated. At present the true thicknesses of all of the holes has not been calculated by SolGold. Low-grade intersections, where applicable, are expressed as average true widths (utilizing the "B-vein > 0.5%" shell orientations). High-grade intersections are better constrained for holes 1, 5, 8 and 9, and these intersections are also expressed as average true widths (utilizing the "B-veins > 20%" shell orientations).
Quality assurance / Quality control (QA/QC)
The MSA Analytical Laboratory is a qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used (1 control sample every 15-20 samples). Rejects, a 100 g pulp for each core sample and the remaining half-core are stored for future use and controls.