August 30, 2011
Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announced today preliminary results for the ongoing exploration program at the La Fortuna copper-silver project located in the Valparaíso Region of central Chile, approximately 100 km north of Santiago. A map showing the location of the La Fortuna project, as well as geology and exploration results may be viewed at cornerstoneresources.com
Seven prospective mineralized zones distributed over a large area (18 km2) identified to date
Of 163 rock samples collected during mapping and prospecting, 34 (19%) returned > 0.5% Cu, including 24 (14%) which returned > 1.0% Cu; 18 (10%) returned > 30 g/t Ag, including 5 (3%) which returned > 100 g/t Ag
Trench TH1 returned 19.5 m at 1.34% Cu and 58.0 g/t Ag
78% of copper is soluble in samples (49) which returned > 0.5% Cu
200 line km ground magnetic survey completed; Induced Polarization survey planned
Project located immediately adjacent to the Cerro Negro copper-silver mine and mill with connecting road infrastructure
Brooke Macdonald, Cornerstone's President commented: "We are very pleased with the results obtained so far at La Fortuna. In only a few months our geologists have identified significant mineralized zones distributed over an extensive area. Ground magnetic and induced polarization geophysical surveys will help to locate the stratigraphic horizons where we believe sulfide replacement and manto-type mineralization occur at depth. There are already some obvious drill targets, and with further trenching and data integration, new targets will be developed."
Significant copper and silver assay results have been obtained in the northern two-thirds of the property, with seven prospective mineralized zones identified over a large area of approximately 18 km2. Higher-grade mineralization is concentrated in, but not restricted to, veins that are typically 1 to 2 m wide but occasionally up to 4 m. Mineralization is also present as disseminations in fracture/shear zones and at the outer contact zone of intrusive rocks, over significant widths (up to 19.5 m in trench TH1, see assay results below). The structural zones are up to 50 m wide, and there is normally a correlation between Cu and Ag contents.
A total of 163 rock samples (representative chip samples) were assayed during the prospecting work. Of these, 63 samples returned > 0.1% Cu, including 34 samples which returned > 0.5% Cu and 24 samples which returned > 1% Cu. Eighteen (18) samples returned > 30 g/t Ag, including 5 samples which returned > 100 g/t Ag. Eight (8) samples are gold anomalous (>0.1 g/t Au), including 3 samples which returned > 0.5 g/t Au.
Including channel samples (160) from the trenching program, forty-nine (49) samples which returned > 0.5% total copper (1.78% Cu arithmetical average) were re-assayed for soluble copper (1.43% Cu arithmetical average). These results indicate that 78% of the copper is soluble.
The La Fortuna property covers an area of approximately 2,900 hectares, measuring 10 km north-south by 3 km east-west. The project is favourably located in an established mining district at relatively low elevations (1200 to 1800 m above sea level), and is easily accessed by existing roads. The property is partly contiguous with the Cerro Negro copper (silver) mine, a manto-type deposit immediately to the west which combines open pit and underground operations and produces copper cathodes via heap leach SX-EW and copper-silver concentrates via flotation. The El Bronce epithermal gold-silver district is located 30 km to the north. The region is sparsely populated, and has a hot and dry climate which is well-suited for leaching operations. Many surface mineral occurrences have been worked by small scale miners in the past but no drilling has ever been carried out at La Fortuna.
An exploration program began in April with reconnaissance geological mapping, prospecting and rock sampling. During this initial work phase, geological units were defined, a structural study performed, and altered and mineralized zones were mapped and sampled. Following the reconnaissance work, data was integrated and prospective areas defined for follow-up. Detailed mapping and hand-trenching were then initiated and this work is ongoing. Eleven (11) trenches totaling 532.7 meters were dug and channel sampled. A total of 427 rock samples (167 rock chips from prospecting and 260 trench channel samples) have been collected so far on the project. Assay results are still pending for the last 105 samples. A ground magnetic survey in excess of 200 line km was recently completed by consulting firm, Santiago-based, Argali Geofisica E.I.R.L. in the northern 2/3 portion of the property. This geophysical data is currently being processed and will be used to support the geological interpretation and to define the most prospective areas to carry out an Induced Polarization (I.P.) survey in the coming months. Further trenching and detailed geological mapping are planned in areas where anomalous Cu-Ag-Au results have been obtained thus far.
Eleven (11) trenches were dug in the Guayacan (3), Loma Verde (1), Loma Verde Sur (3), Quebrada Honda (1), Vizcachas (3) and Enjalmao (1) areas for a total of 532.7 m. Assay results from trenches TH1 to TH7 shown below in Table 1 indicate that mineralization is not restricted to the veins and could extend significantly, as disseminations, into the wall rocks.
Table 1. La Fortuna Trenching Results.
TrenchZoneLength (m)# SamplesInterval (m)*Cu (%)Ag (g/t)
TH3Vizcachas21.810No Significant Values
TH5BEnjalmao9.04No Significant Values
TH6Loma Verde Sur83.64218.00.08
TH7Loma Verde Sur62.83210.80.6017.6
TH8Loma Verde Sur117.958Assay Results Pending
TH9Guayacan41.520Assay Results Pending
TH10Guayacan34.817Assay Results Pending
TH11Guayacan10.55Assay Results Pending
* The reported copper and silver intervals are apparent thicknesses due to the early nature of the exploration program.
The trenching program is ongoing and will be extended to areas where veins, structures and disseminated mineralization were found during prospecting work and that have not yet been properly evaluated.
Sampling and assaying
All samples are delivered by Cornerstone employees for preparation at Acme Analytical Laboratories (OTCPK:ACME
) facility in Santiago, Chile. Rock samples are prepared crushing 1 kg to 80% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 0.075 mm (200 mesh) (ACME code R200-250). Gold is assayed in Chile, using a 30 g split, Fire Assay (FA
) and AA or ICP-ES finish (ACME code G601).
A 100g-plup is shipped to ACME in Vancouver, Canada where samples are assayed for a multi-element suite (ACME code 1DX2, 15g split, Aqua Regia digestion, ICP-ES finish). All samples with results > 100 g/t Ag, >10,000 ppm Cu, Pb or Zn are systematically and quantitatively re-assayed (ACME code 7AR, Aqua Regia Digestion, ICP-ES finish). All samples with results > 5,000 ppm Cu total are systematically re-assayed to determine leachable copper (ACME code G9, Citric acid leach, Cu, 1 g/100 mL, AAS finish).
Quality assurance / Quality control (QA/QC)
ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Certified blanks and standards are systematically used as part of Cornerstone's QA/QC program. One of them was inserted every 20 samples at La Fortuna.
Yvan Crepeau, M.Ba., P.Geo., General Manager of Minera Cornerstone Chile Limitada (OTC:MCCL
) and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the La Fortuna project and has reviewed and approved the information contained in this news release.
La Fortuna option agreement
Cornerstone, through its wholly-owned subsidiary, MCCL, has entered into an agreement with a Chilean individual to acquire the La Fortuna property. The agreement gives Cornerstone the right to acquire an undivided 100% interest in the La Fortuna property by incurring exploration expenditures of C$3.0 million and making cash payments totalling C$600,000 over a 4-year period. Requirements to maintain the agreement through the first year include a cash payment of C$100,000 and exploration expenditures of C$500,000. The acquisition is subject to a 1.5% Net Smelter Royalty ("NSR"), and to advance payments of the NSR on each anniversary following the date the option is exercised. Cornerstone has a right of first refusal to purchase the NSR if the holder decides to sell it.
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Ecuador, Chile, and Atlantic Canada, 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. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone's projects. Further information is available on Cornerstone's website: cornerstoneresources.com
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This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," 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 sedar.com
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On Behalf of the Board,