Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (OTCBB:CTNXF) announces the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador.
Figures 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 19 final results return:
- 1344m @ 0.44 % copper and 0.28 g/t gold from 268m (0.62% CuEQ at 0.10% CuEq cut-off, true width: 484m), including:
- 980m @ 0.55 % copper and 0.36 g/t gold from 514m (0.78% CuEq at 0.30% CuEq cut-off, true width: 353m), and
- 552m @ 0.68 % copper and 0.45 g/t gold from 822m (0.96% CuEq at 0.5% CuEq cut-off, true width: 199m).
- Hole 20R intersects strongly mineralized porphyry clasts within hydrothermal breccia returning open ended intersection of:
- 498.4m @ 0.20% copper and 0.15 g/t gold from 844m (0.29% CuEq at 0.10% CuEq cut-off, true width: 130m), including:
- 126.0m @ 0.27 % copper and 0.32 g/t gold from 1136m (0.47% CuEq at 0.30% CuEq cut-off, true width: 33m), and
- 44.0m @ 0.27 % copper and 0.58 g/t gold from 1202m (0.64% CuEq at 0.50% CuEq cut-off, true width: 11m).
- Hole 21 intersects copper sulphide mineralization from around 685m to 1610m depth. Assay results for Hole 21 are expected in late April 2017.
- Hole 22 intersects copper sulphide mineralization from 253m to approximately 1150m depth. Assay results for Hole 22 are expected early in April 2017.
- Hole 23R intersects hydrothermal breccia and strong phyllic alteration, with the presence of mineralized porphyry clasts in parts of the breccia. Hole 23R, at a current depth of 277.0m, is planned to intersect deep untested pockets of mineralization up to 1800m below surface and has a planned hole depth of at least 2000m.
- Hole 24 continues drilling at Alpala Southeast, at a current depth of 552.0m testing some 570m to the southeast of Hole 23R. Hole 24 is planned to extend the known mineralized corridor at Alpala to some 1150m from Hole 13 in the northwest.
- Hole 25 continues drilling at Hematite Hill, at a current depth of 377.7m testing some 250m to the southeast of Hole 23R. To date Hole 25 has intersected hydrothermal breccia with strong phyllic alteration and trace chalcopyrite mineralization, and has a planned hole depth of 2000m.
- A 4th man-portable rig will arrive at site early in April 2017. Arrival of Rigs 4, 5, 6 and 7 over the coming two quarters will also see drill testing expanding to Alpala East, Alpala West, Carmen, Triviño and Aguiñaga by mid-year.
The Cascabel Project is located within the gold-rich northern section of the Andean Copper belt (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).
Fifteen individual targets have been defined at Cascabel. SolGold, the operator of the Project, has successfully drill tested three of the fifteen targets, being Alpala Central, Alpala Northwest, and Hematite Hill. Drill testing of a fourth target, at Alpala Southeast is currently under way (Hole 24) (Figure 3). The deposit at Alpala continues to grow with each new drill hole. Current drilling focusses on defining the geometry of the growing Alpala deposit, which is open in virtually all directions. Over 33,000m of drilling has been completed to date, and the arrival of Rigs 4, 5, 6 and 7 over the coming two quarters will see drill testing expanding to Alpala East, Alpala West, Triviño and Aguiñaga by mid-year. The drilling program ramps up towards eight drilling rigs by year end, which will also see drill testing of the Tandayama-America prospect. (Figure 4).
Hole 19 results were previously reported on February 14, 2017 up to a depth of 1400m. Final results received for the remainder of the hole from 1400m to end of hole at 1632.52m returned final updated results of:
- 1344m @ 0.44 % copper and 0.28 g/t gold from 268m (0.62% CuEq at 0.10% CuEq cut-off grade, true width: 484m), including
- 980m @ 0.55 % copper and 0.36 g/t gold from 514m (0.78% CuEq at 0.30% CuEq cut-off grade, true width: 353m), and
- 552m @ 0.68 % copper and 0.45 g/t gold from 822m (0.96% CuEq at 0.5% CuEq cut-off grade, true width: 199m).
Note: Drill hole intercepts and Copper Equivalent (CuEQ) calculations are defined in the Logging, sampling, assaying and reporting section of this news release.
Very long broad halo intersections of well over a kilometre like this encountered in Hole 19 are very common at Alpala and hold exploration significance, as they confirm the very robust nature of the mineralizing system being defined, and support the strong geochemical and spectral alteration footprint of the growing Alpala deposit. The position of Hole 19 is shown in cross-section B-B' in Figure 8.
Hole 20 (CSD-16-020) was abandoned at 157.0m depth after drilling contractors experienced technical difficulties downhole. This hole was re-drilled as Hole 20R (CSD-16-020R) which reached a depth of 1342.4m before it was suspended on February 28, 2017 for reassessment of the deep directional diamond drilling strategy. Solgold has since appointed an accomplished directional drilling contractor for this task in the coming program. Directional core drilling allows controlled deviation of the borehole path and/or multiple branches from a parent hole, saving the cost, effort and uncertainty involved in multiple single holes. Hole 20R has been preserved with casing remaining in the hole and re-entry is planned to test for the source of strongly mineralized porphyry clasts encountered within hydrothermal breccia. Hole 20R to date has returned an open-ended intersection of:
- 498.4m @ 0.20% copper and 0.15 g/t gold from 844m (0.29% CuEq at 0.10% CuEq cut-off grade, true width: 130m), including
- 110.0m @ 0.28 % copper and 0.34 g/t gold from 1136m (0.47% CuEq at 0.30% CuEq cut-off grade, true width: 33m), and
- 44.0m @ 0.27 % copper and 0.58 g/t gold from 1202m (0.64% CuEq at 0.50% CuEq cut-off grade, true width: 11m).
These results encountered in Hole 20R, occur approximately 200m outside of and to the northeast of the previously known limit of mineralization, which may indicate the possibility of significant extensions of the deposit to the east and northeast. The position of Hole 20R is shown in cross-section A-A' in Figure 5. A selected example of mineralized porphyry clasts encountered are shown in Figure 6.
Hole 21 (CSD-17-021), situated approximately 250m along strike to the southeast of Holes 16 (856m @ 0.80% Cu, 1.04g/t Au) and 23R, and was completed to a depth of 1619.2m on 17 March 2017. Assay results for Hole 21 are expected late April 2107. Selected examples of mineralization encountered in Hole 21 are shown in Figure 7.
Hole 22 (CSD-17-022) was completed to a depth of 1311.2m on 5th March 2017 testing approximately 130m above Hole 19 from the same drill site. Hole 22 intersected copper sulphide mineralization from 253m to approximately 1150m depth. Multi-directional quartz - chalcopyrite ±bornite veining is present in some parts of the hole. Assay results for Hole 22 are expected in early April 2017. The position of Hole 22 is shown in cross-section B-B' in Figure 8. Selected examples of mineralization encountered in this hole are shown in Figure 9.
Hole 23 (CSD-17-023) at Alpala Northeast was abandoned at 159.0m depth after drilling contractors experienced technical difficulties downhole, and was redrilled as Hole 23R (CSD-16-023R) which continues drilling at a current depth of 277.0m testing approximately 125m below and in between Holes 12 and 16. To date Hole 23R has intersected hydrothermal breccia and phyllic alteration, with the presence of mineralized porphyry clasts in parts of the breccia. Hole 23R is being drilled sub-vertical to intersect deep untested pockets of mineralization up to 1800m below surface and has a planned hole depth of some 2000m. Position of Hole 23R is shown in cross-section in Figure 8.
Hole 24 (CSD-17-024) continues drilling at Alpala Southeast, at a current depth of 552.0m testing some 570m to southeast of Hole 23R. To date Hole 24 has intersected pyrite and trace chalcopyrite mineralization. Hole 24 lies around 100m north of the Malte Creek system, where chalcopyrite and bornite mineralization was noted in surface geological mapping. The Alpala Southeast prospect area is characterized by coincident Molybdenum and Copper/Zinc soil geochemical highs, as well as intense and advanced argillic alteration identified from soil auger chip spectral analysis with high dickite and pyrophyllite clay content, marking high temperatures of formation. Hole 24 is planned to extend the mineralized corridor at Alpala to some 1150m from Hole 13 in the northwest. Hole 24 has to date intersected pyrite and trace chalcopyrite mineralization and has a planned hole depth of at least 2000m.
Hole 25 (CSD-17-025) continues drilling at Hematite Hill at a current depth of 377.7m, and is being drilled sub-vertical to test for deep pockets of mineralization some 250m to the southeast of Hole 23R. To date Hole 25 has intersected phyllic alteration with trace chalcopyrite mineralization and has a planned hole depth of some 2000m.
Solgold is currently nearing completion of a ground magnetic survey, to be followed by a detailed Orion-Spartan 3D IP survey, and a Lidar topographic control survey across most of the licence area (Figure 10). Progress to date on the ground magnetics survey has reached 85%, ahead of commencement of the 3D IP survey planned for mid-April 2017. 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 will further refine drill targets along the Alpala cluster, as well as those at Moran, Aguiñaga, and Tandayama-America.
Upgrade and expansion of site facilities are well underway at Cascabel as the project continues ramping up. The geology team have yet to define the extent of the Alpala porphyry system, and the deposit remains open in most directions, continuing to grow with each new drill hole. An aggressive drill program, ramping up to ten core-rigs producing around 90,000m of core per annum from early 2018, to delineate the system limits along the greater Alpala trend prior to a maiden resource statement. An increasing understanding of the deposit is now leading to much larger step-outs in drilling as Solgold vectors towards the copper and gold at the large-rich heart 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 Aguiñaga targets. SolGold has completed 33,000m of drilling and expended over USD 4M on the program, corporate costs and investments into Cornerstone. Diamond drilling is planned for the next 12 months with multiple drill rigs.
The Company is currently planning further metallurgical testing and completion of an independant Pre-Feasibility Study at Cascabel (which may or may not be the equivalent of a National Instrument 43-101/CIM definition standards Pre-Feasibility Study). SolGold is investigating both high tonnage open cut and underground block caving operations, as well as a high grade / low tonnage initial underground development towards the economic development of the copper gold deposit/s at Cascabel.
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, assaying and reporting
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 at ALS Minerals Laboratories (ALS) sample preparation facility in Quito. Core samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (ALS code CRU-31, SPL21 and PUL-32). Prepared samples are then shipped to ALS in Lima, Peru where samples are assayed for a multi-element suite (ALS code ME-MSP61, 1g split, 4-acid digestion, ICP-MS finish). Over limit results for Ag (> 100 g/t) and Cu, ( > 1%) are systematically re-assayed (ALS code Ag-AA62, 4-acid digestion, AAS finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AA finish (ALS code Au-AA23).
Drill hole intercepts 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 0.63, determined using an updated copper price of USD3.00/pound and an updated gold price of USD1300/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. True width of down hole intersections are estimated by SolGold to be approximately 25-50% of the core length.
Quality assurance / Quality control (QA/QC)
The ALS 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.