Feb 23 2011
Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announces it has signed an agreement to explore the Miocene gold-silver-copper project located in the Regions of Atacama and Antofagasta of northern Chile, approximately 200 kilometres southeast of the port city of Antofagasta.
The Miocene project covers a large area of 14,770 km2, measuring approximately 75 km wide x 185 km long. It is underlain by the same Miocene and Pliocene volcanic sequences that host the world class gold deposits in the Maricunga and El Indio magmatic belts to the south.
World class gold deposits occur in north-central Chile in two principal magmatic belts, Maricunga and El Indio, associated with high level Miocene volcanic to sub-volcanic centers. These magmatic belts extend north-south through eastern Chile near the border with Argentina and host numerous porphyry gold-copper and epithermal gold-silver deposits. In the Maricunga belt, mineralization is associated with porphyries of two sets of radiometric ages (24-22 Ma and 16-10 Ma). Several of these porphyries have a superposition (or telescoping) of high sulphidation epithermal systems. This belt contains a number of undeveloped advanced stage projects and two producing gold mines - Kinross Gold's (TSX-K, NYSE-KGC) Maricunga and La Coipa open pit mines. Recently, Andina Minerals (TSXV-ADM) announced completion of a positive pre-feasibility study on its Volcan gold project, which contains proven and probable mineral reserves of 6.6 million ounces of gold. Deposits within the El Indio belt to the south are hosted within complex, fault–controlled vein systems but also within breccias orebodies. Hydrothermal alteration systems are both structurally and lithologically controlled.
The known gold deposits in the Maricunga belt abruptly terminate north of the La Coipa mine and the projected northward trend of the gold belts are dominated by extensive covered areas. The Eocene – Oligocene magmatic arc and Domeyko fault system is located west of and parallel to the gold belts, extending northward through La Escondida copper mine, suggesting the continuation of the gold belts to the north under cover. This presents an opportunity for explorers to discover gold deposits below post-mineralization cover.
A review of Landsat and ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer) data shows areas of exposed and altered bedrock adjacent to the large pampas covering the projected gold belt. Strongly elevated base metal values occur in stream silt samples adjacent to these covered areas, further highlighting the possibility that undiscovered deposits may exist below the cover sequence. Initial targeting of areas for staking and follow-up exploration programs are based on airborne magnetic surveys to identify structures and locate precursor plutons that are associated with the development of volcanic centers. Large soil geochemistry surveys will be carried out over the selected target areas utilizing analytical techniques designed to detect buried mineralization. In addition, regional prospecting and stream silt surveys will be carried out along the projected extent of the gold belts to define new targets for follow-up.
"We are very pleased to announce our second international venture and our first project in Chile", said Glen H. McKay, Cornerstone's President & CEO. "For the past two years, we have been carefully reviewing opportunities throughout South America. Chile is a politically stable and mining-friendly country that offers tremendous exploration potential. We are extremely excited about the Miocene project acquisition, and look forward to initiating exploration programs in this area of northern Chile. Based on our interpretation of the technical information, we feel strongly that the same rocks which host world class gold deposits further south extend northwards under cover onto the Miocene project area. Our immediate goal is to advance the project to the drill-ready stage for potential joint venture participation. In addition to Miocene, Cornerstone expects to announce a second Chilean project acquisition in the very near future."
Cornerstone, through its wholly-owned subsidiary, Minera Cornerstone Chile Limitada (MCCL), has entered into an agreement to acquire exclusive rights to a proprietary database covering the Miocene project area, and has already utilized the information to apply for mineral concessions to explore several prospective areas. So far, mineral concession applications covering a total of 46,500 hectares (465 km2) have been filed which encompass highly prospective ground within the Miocene project area. The agreement gives Cornerstone the right to acquire an undivided 100% interest in any concessions acquired using the database within the Miocene project by incurring exploration expenditures of C$5.0 million and making cash payments of C$250,000 and issuing shares of Cornerstone valued at C$250,000 over a 5-year period. Requirements to maintain the agreement through the first year include a cash payment of C$20,000, issuance of shares of Cornerstone valued at C$20,000 and exploration expenditures of C$500,000. The acquisition is subject to a 2.0% Net Smelter Royalty ("NSR"), one-half (1.0%) of which can be purchased by Cornerstone at any time for C$1,000,000.
Yvan Crepeau, M.Ba., P.Geo, President of MCCL and a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this news release.
Source: Cornerstone Capital Resources Inc.