Apr 2 2013
Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") today provided an update on the Company's strategy in 2013 and the status of key exploration projects in Ecuador, Chile and Canada. Maps showing the location of the properties referred to in this news release can be viewed at www.cornerstoneresources.com.
STRATEGY FOR 2013
As a consequence of the challenging market for raising equity financing for junior mineral explorers, the Board and management of the Company have been implementing a range of rationalization and cost saving initiatives, including the elimination of several technical positions in Canada and Ecuador, a further reduction in salaries, investor relations and travel expenses, and a reduction in the overall administrative costs of running the Company.
The focus of the Company in 2013 will be primarily on its projects in Ecuador, and on the Miocene project in Chile. Our business model remains that of a prospect generator, and we will continue to seek partner funding to advance our properties while retaining a minority interest.
Brooke Macdonald, President of Cornerstone, commented, "This past year has been a difficult one for Cornerstone and its shareholders. However, we have taken a wide range of measures to significantly reduce our cash burn rate and exploration is on-going on partner funded projects such as the Cascabel copper-gold project in Ecuador and the Cape Ray gold-silver project in Newfoundland. Drill testing of high priority targets is expected on both of these projects in 2013, and we are continuing to aggressively seek joint venture partners to fund exploration on our wholly-owned projects in Ecuador and Chile."
ECUADOR
Cascabel and La Encrucijada (subject to an option agreement with SolGold plc)
On March 25th, 2013, the Company and partner SolGold plc announced the results of follow-up channel sampling at the Alpala prospect at Cornerstone's Cascabel copper-gold property in northern Ecuador, which is the subject of an option agreement with SolGold plc, including trench TH56A grading 1.16 g/t Au and 0.34% Cu over 56.93 metres.
La Encrucijada is part of the same option agreement with SolGold plc. Prospecting work carried out by the Company during 2012 confirmed results from previous property owners, which indicates good potential for significant shallow epithermal gold-silver mineralization and porphyry gold-copper mineralization at depth. Recent work has provided a much better understanding of the alteration and mineralization processes and their controls. The work also increased the size of the Alumbre prospect and discovered the new Potrerillos high-sulphidation epithermal alteration zone. Three altered and mineralized zones are present on the property. Many anomalous float samples, stream sediment anomalies and soil anomalies (precious and base metals, epithermal pathfinders) still require follow up and offer potential for new discoveries.
Shyri (Vetas Grandes, 100% Cornerstone, available for option)
Following Intrepid Mines Limited's decision to terminate the Shyri option agreement, which was announced on December 14th, 2012, the Company conducted a thorough review of exploration results at the Gama prospect and contacted several potential partners in an attempt to fund the considerable cost of the annual concession renewal fees (>$300,000) and further exploration programs on the Shyri concessions. At the end of this process, no interested partners or purchasers were identified, as a result of which the Company decided to abandon the concessions constituting the Gama and Yanasacha prospects, and allow the Cañaribamba prospect to be reacquired by the prospector from whom it was originally optioned. Parts of Cañaribamba have been invaded by illegal artisanal miners, which would have greatly complicated our ability to permit it for drilling.
The Company has, however, renewed the 100% owned "Shyri NW" concession, the site of the Vetas Grandes prospect, which we believe has the potential to host a significant epithermal style gold-silver deposit. The Company is continuing to seek environmental approvals required to commence Phase 1 drilling at Vetas Grandes, as well to locate a suitable partner to earn an interest in the property in return for funding that drilling.
Caña Brava (100% Cornerstone, available for option)
On December 20th, 2012, the Company announced results from prospecting and geological mapping surveys carried out on its 100% owned Caña Brava property located in south-central Ecuador. The surveys have identified two large high-sulphidation epithermal gold-silver zones defined by extensive hydrothermal breccia and silicic ribs developed within an advanced argillic alteration lithocap. The West Zone (Caña Brava Breccia) is developed over a 2.5 km by up to 2.0 km area and is coincident with a 3 km by 1 km multi-element soil geochemistry anomaly. The East Zone shows a similar HS system measuring 1.75 km by 1.0 km, which is open in most directions. A porphyry gold-copper target has also been identified beneath the Caña Brava Breccia. The Company is actively seeking a partner to fund more advanced exploration programs on the property.
Bella Maria (100% Cornerstone, available for option)
On May 11th, 2012, the Company announced that it has received authorization to resume activities on the Bella Maria project and provided a summary of results for exploration work carried out prior to the April 2008 Mining Moratorium. Initial results indicate that the property has excellent potential for hosting significant gold and copper mineralization. Stream sediment samples collected across the property are exceptionally anomalous in gold, and a large coincident gold- and copper-in-soil anomaly accompanied by porphyry style mineralization has been identified in the central part of the property. Four mineralized prospects have been identified. The Company is actively seeking a partner to fund an aggressive exploration program on the property.
Macara (JV with Newmont Ventures Limited)
The Macara project located in southernmost Ecuador is subject to a strategic alliance between the Company and Newmont Ventures Limited, a subsidiary of Newmont Mining Corporation. Force majeure has been in effect since April 2008, and will remain so until an Environmental License is issued by the Ministry of Environment for the 1,452 hectare Bellavista concession. Exploration on the large (2,500 km2) surrounding Area of Interest (AOI) covered by the alliance is suspended until such time as the Ministry of Non-Renewable Natural Resources opens the area for new mineral concession applications.
CHILE
Miocene (100% Cornerstone, available for option)
A regional exploration program was completed on the Miocene project during the first half of 2012. Alteration mapping using Aster (Advanced Spaceborne Thermal Emission and Reflection Radiometer) satellite imagery, combined with historical airborne magnetic survey data and regional geological and structural data, was used to define prospective areas for ground follow up. Reconnaissance geological mapping at a scale of 1:25,000, rock sampling and widely spaced soil sampling (2,000 m by 500 m and 1,000 m by 250 m) were carried out over a large area of 70,000 hectares (70 km²) covering exposed and altered bedrock and adjacent soil and gravel-covered pampas. Soil samples were analyzed utilizing a combination of analytical techniques designed to detect deep and/or buried mineralization. Geological mapping and spectrometry work better defined the alteration zones (type, size and distribution) that were identified by the Aster satellite imagery. Geochemical anomalies were defined for base metals, precious metals and pathfinder elements associated with porphyry gold-copper and epithermal gold- silver styles of mineralization.
One of the Miocene concessions lies adjacent to Mirasol Resources Ltd.'s (TSXV-MRZ) Titan project, where recent trench channel sampling has returned anomalous gold of 194 m at 0.41 g/t gold and higher grade intervals including 31 m at 1.36 g/t gold and 10 m at 2.13 g/t gold. Mirasol interprets the newly discovered mineralization as a high-sulphidation epithermal gold system sitting above a postulated mineralized intrusion at depth. Recently completed ground geophysical surveys comprising high resolution magnetics and induced polarization support the aforementioned deposit model(s). Cornerstone holds a strong land position in this part of the Miocene Belt (>31,000 hectares), including approximately 16,000 hectares in the same district than the Titan project.
The Company is encouraged by early results from Mirasol's Titan project, which serve to support the conceptual model utilized in acquiring the Miocene concessions. The company is continuing to seek a partner to help advance exploration on this exciting early-stage project.
CANADA
Little Deer
Planned infill diamond drilling at the Little Deer copper deposit by the Company and 50% partner Thundermin Resources Inc. remains on hold until financing becomes available on acceptable terms. The drilling is designed to upgrade the Inferred Resources to the Indicated Resource category in order that a pre-feasibility study can be undertaken on the deposit.
Cape Ray
The Company and Benton Resources Inc. signed a definitive option agreement respecting the Cape Ray gold-silver project on December 19th, 2012. Under the terms of the agreement, Benton has the ability to earn an initial 70% interest in the property by spending CAN$2 million on exploration, and making payments of CAN$125,000 and 155,000 shares over 4 years. Benton can earn an additional 5% (taking their interest to 75%) by incurring an additional CAN$1 million in exploration expenditures at its sole election but such election must be made within a period not exceeding 18 months from the date that Benton's interest vests at 70%. Exploration results on Cape Ray were summarized in the Company's news release dated January 31, 2013.
Other News
The Company's Vice President Exploration, Terry Brace, has accepted a position effective April 1, 2013 with a major mining company. The Company wishes to thank Mr. Brace for his considerable contributions to the Company over the past 5 years, and wishes him well in his future endeavours.
About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada, 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.
Qualified Person(s)
The technical information contained in this news release has been reviewed and approved by Yvan Crepeau, P.Geo., President of Cornerstone Ecuador S.A. and Minera Cornerstone Chile Limitada (Ecuadorian and Chilean projects), a qualified person in accordance with National Instrument 43-101.
Source: http://www.cornerstoneresources.com/