Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN) (OTC:CTNXF) announces the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador.
Figures 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 23R (Rig 1) assay results:
- 1030m @ 1.16 % copper equivalent (CuEQ) ¹ (0.59 % Cu, 0.90 g/t Au) from 490m, including:
- 770m @ 1.44 % CuEq (0.71 % Cu, 1.16 g/t Au) from 540m;
- 474m @ 1.88 % CuEq (0.89 % Cu, 1.57 g/t Au) from 830m; and
- 216m @ 3.08 % CuEq (1.29 % Cu, 2.84 g/t Au) from 970m.
- 1030m @ 1.16 % copper equivalent (CuEQ) ¹ (0.59 % Cu, 0.90 g/t Au) from 490m, including:
- Mineralization occurs in a strongly veined quartz diorite intrusive phase, believed to represent the causative mineralized porphyry at Alpala.
- Strong mineralized veining cuts the drill core axis at a high angle (Figure 2) suggesting potential for lateral extensions and true thickness of approximately 80%.
- Current drill holes 23R-D1 (Rig 1), 24-D1 (Rig 3), 26 (Rig 4), and 27 (Rig 2) are in progress with all holes intersecting increasingly mineralized diorite porphyry.
- Hole 23R-D1 is testing the mineralization in Hole 23R (this report) to the north-east, and at depth.
Note ¹: Gold Conversion Factor of 0.63 calculated from a copper price of US$3.00/lb and a gold price US$1300/oz.
The Alpala deposit continues to grow with each new drill hole. Over 39,000m of drilling have been completed to date along the greater Alpala trend. Current drilling focuses on defining the geometry of the growing porphyry copper-gold deposit at Alpala, which is open in virtually all directions, as drill testing to date has not yet defined the extents of the Alpala deposit (Figure 1).
Hole 23R (Rig 1) assay results returned 1030m grading 1.16 % copper equivalent (0.59 % copper and 0.90 g/t gold) from 492.0m depth.
Hole 23R tested the eastern and depth extensions of the Alpala deposit to the east and northeast of drill hole 16, which returned 856m grading 0.80% Cu, 1.04 g/t Au (1.41 % CuEq at that time) (see Cornerstone news release 16-09 dated April 29, 2016) and leaves a large portion of the high-grade core at Alpala open to the east.
Selected examples of mineralization and copper and gold grades encountered in Hole 23R are shown in Figure 2. Intersections achieved in drill hole 23R are detailed at selected cut-off grades in Table 1.
|Hole ID||Depth From||Depth To||Interval||Cu (%)||Au (g/t)||Cu.Eq (%)||True Width (m)|
* Data Aggregation Method
- Intercepts reported with up to 10m internal dilution. (Excluding bridging to a single sample)
- Intercepts selected using Cu equivalent cutoff grades of 0.10, 0.20, 0.30, 0.50, 0.70, 1.0 and 1.50
*** Gold Conversion factor of 0.63 calculated from copper price US$3.00/lb and gold price US$1300/oz.
Table 1: Drill Hole 23R copper and gold intersections.
The high-grade intervals within Hole 23R are typified by high gold grades up to 5.68 g/t gold. The occurrence of Unidirectional Solidification Texture (UST) crystals, rimmed by magnetite, at the inner margins of the early quartz-diorite porphyry source intrusion at Alpala, indicate the oxidized nature of the fluids, and have facilitated the very high gold (and copper) grades. Selected examples of high grade mineralization encountered in the source intrusion along Hole 23R are shown in Figure 3.
SolGold geologists believe a number of the targets at Alpala may coalesce. The long high grade intersection achieved in Hole 23R lies open to the east and northeast. This may coalesce deeper extensions associated with the high grade panel of intense bornite mineralization intersected last month in Hole 25, which is interpreted to represent the cupola of a previously unknown high-grade quartz diorite apophysis that lies immediately east of the Alpala deposit (Figure 4).
Current drill holes 23R-D1 (Rig 1), 24-D1 (Rig 3), 26 (Rig 4), and 27 (Rig 2) are in progress with all holes intersecting mineralized diorite porphyry. The locations and progress of current drill holes are shown in Figure 1.
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 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.
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 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 the holes has not been calculated by SolGold. True width of down hole intersections are variable, estimated by SolGold to be approximately 25-50% of the core length in genral and to be 80% in this part of the deposit.
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.
Cornerstone Capital Resources Inc. is a well-funded mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven ability to identify, acquire and advance properties of merit.
Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333
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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 www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views after the date of this news release. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
President and CEO
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