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Re: News - Thursday, August 11, 2011
11-26 - Cornerstone and Intrepid report final results for Phase 1
Diamond drilling at the Gama prospect in Ecuador
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc.
("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) and Intrepid
Mines Limited (ASX-IAU)(TSX-IAU) today announced that they have
completed and received all assay results for the Phase 1
Diamonddrilling program on the Gama prospect, located in the northwestern part
of the Shyri property in southern Ecuador. Eleven (11) holes totaling
3,153 metres were drilled between March 6th and July 17th. Drill
progress proved relatively slow owing to the rugged topography and wet
conditions encountered during the annual rainy season. Assay results
for holes GAD-11-001 to GAD-11-005 were released on May 31, 2011, which
highlighted a gold-enriched porphyry intersection grading 0.71 g/t Au
over 45 metres in hole GAD-11-002. A summary of assay results for the
remaining six holes of the program, holes GAD-11-006 to GAD-11-011
inclusive, is provided below in Table 1.
Highlights:
- Hole GAD-11-011 intersected 26 metres at 0.45 g/t gold within a
porphyry environment.
"The Phase 1 scout drilling program at Gama has confirmed the large
size of this porphyry -- epithermal system, and two holes have
encountered broad zones of gold mineralization within the porphyry"
said Brooke Macdonald, Cornerstone's President. "The information
generated from this initial drill program will allow us to adjust and
refine our target models, and we look forward to planning the next work
phase along with our partner Intrepid".
Table 1: Summary of Gama Drill Results, Holes GAD-11-006 to GAD-11-011,
Phase 1 Program
Hole No. Target Elevation (masl) Length (m) From (m) To (m) Interval (m)* Au (g/t) Ag (g/t) Cu (ppm)** Mo (ppm)
GAD-11-006 C 3690 244.0 90.0 92.0 2.0 0.25
GAD-11-007 Ermita 3819 400.8 No significant values
Breccia
GAD-11-008 Epithermal 3859 361.2 No significant values
GAD-11-009 B 3737 277.4 5.0 191.0 186.0 78
including 22.0 24.0 2.0 0.13
30.0 35.0 5.0 0.18 104
43.0 46.0 3.0 241
67.0 72.0 5.0 0.10
108.0 116.0 8.0 681
GAD-11-010 B 3651 350.5 0.0 48.0 48.0 76
including 26.0 38.0 12.0 125
128.0 136.0 8.0 0.11%
GAD-11-011 B North 3498 256.0 144.0 170.0 26.0 0.45 111
including 158.0 160.0 2.0 1.73
* The reported intervals are core lengths. At present the true
thicknesses are uncertain due to the early stage of drilling.
** Copper reported in parts per million (ppm) except where indicated in
%.
"Intrepid is encouraged by these results. The porphyry system contains
anomalous copper and, in places, highly anomalous molybdenum, together
with local areas of gold enrichment. The assay results will be reviewed
in their geological context to establish vectors to better
mineralisation" said Malcolm Norris, EGM Exploration and New Business
at Intrepid Mines.
Gama Prospect
The Gama prospect is one of three recognized thus far on the Shyri
property, and comprises an extensive zone of high sulphidation (HS)
epithermal alteration measuring a minimum of 8.5 km by 3 km. The
alteration is strongly zoned and centered over two high level,
porphyry-type intrusions at the 3500 m to 3800 m elevations. Gama is
strategically located between the Quimsacocha 3.4 Moz HS epithermal
gold deposit 15 km to the east and the Chaucha porphyry copper deposit
(216 Mt at 0.4% Cu) 10 km to the west.
Phase 1 Drill Program
As previously announced on March 8th, 2011, Cornerstone and Intrepid
approved an 11 hole, 2,900 metre
Diamond drilling program designed to
test various targets defined on the basis of surface geochemistry (rock
and soil samples), detailed geology, magnetics and 3-D interpretation
of Induced Polarization (IP) geophysical data. The program is targeting
both HS epithermal gold-silver and porphyry copper-molybdenum-gold
mineralization over an area measuring approximately 3 km north-south by
2 km east-west. None of the Gama targets have been drill-tested
previously.
A map showing the location of targets and drill holes with respect to
gold-in-soil anomalies and interpreted faults is provided here:
http://cornerstoneresources.com/i/pdf/properties_GAMADDH0811.pdf.
Discussion
Hole GAD-11-006 was drilled to test target "C", a coincident
Ag-Au-Hg-Bi soil anomaly which lies 250-500 m east of a series of
north-northwest and north trending structures. Rock outcrops in the
target area display advanced argillic and argillic alteration, and
include silicified and vuggy hydrothermal breccias which have returned
multi-element anomalies and are suggestive of the structural roots of
an epithermal lithocap. The soil anomaly is coincident with a weak
induced polarization (IP) chargeability shoulder on the flank of a
strong IP chargeability anomaly to the west. The drill hole intersected
a thick sequence of crystal and lapilli tuffs showing weak argillic
alteration from surface to 210 m. A narrow interval from 90.0 to 92.0 m
returned anomalous gold grading 0.25 g/t Au over 2.0 m. From 210 m to
the bottom of the hole at 244 m, the volcanic sequence is moderately to
strongly silicified and contains up to 10% disseminated pyrite but
returned no anomalous gold or silver values.
Hole GAD-11-007 targeted the Ermita Breccia, a late hydrothermal
breccia that is interpreted to source a flat lying stratabound or
stratigraphically-controlled disseminated HS epithermal mineralized
zone at depth underneath the plateau. The Ermita breccia is located at
the intersection of two regional structures which trend east-northeast
and northwest, and which display linear magnetic lows interpreted to
represent hydrothermal alteration corridors. A 100 X 120 m
multi-element Au-Ag-As-Hg-Cu-Bi soil anomaly is present around the
breccia outcrop. The hole intersected a thick pile of flat-lying
andesitic and dacitic volcanoclastics and flows which form part of the
Plancharumi Formation and the upper part of the Saraguro Group. These
rocks show widespread weak argillic and propylitic alteration and
traces of syngenetic pyrite, but no significant gold or silver was
encountered.
Hole GAD-11-008 was designed to test for stratabound HS epithermal
mineralization similar to and approximately 500 m south of GAD-11-007.
The IP survey indicates resistivity and chargeability anomalies at
depth. This hole intersected similar weakly argillic altered
Plancharumi and Saraguro stratigraphy. An unmineralized hydrothermal
breccia was intersected between 285 and 292 m. The most altered and
mineralized portion of the hole was sampled, but no significant gold or
silver values were returned.
Holes GAD-11-009 and GAD-11-010 tested target "B", representing the
outer-upper fringes of a porphyry system characterized by a 2 km wide
annular subdued magnetic high cross-cut by a series of north-northwest
and northwest trending structures. A 1 km wide and annular Mo-in-soil
anomaly is centered on the magnetic feature and is broadly coincident
with a 1 km long linear Cu-in-soil anomaly. IP chargeability and
resistivity anomalies coincide with the Cu and Mo geochemical
anomalies. Hole GAD-11-009 intersected a microdiorite porphyry
cross-cut by numerous, metric size (0.3 to 3.0 m), hydrothermal
breccias. Advanced argillic alteration is present throughout most of
the hole, and potassic alteration is present at depth. Anomalous gold
(0.10 to 0.18 g/t Au) was intersected over 2 to 5 m widths. Molybdenum
is anomalous (> 100 ppm Mo) over similar intervals with a maximum of
681 ppm Mo over 8 m from 108 to 116 m. Hole GAD-11-010 intersected a
similar microdiorite porphyry cross-cut by numerous diorite dykes and
hydrothermal breccias which display advanced argillic alteration.
Mineralization is present in the form of disseminated pyrite (up to 10%
from 0 to 100m), as well as minor molybdenite, covellite and enargite
(0.1 to 0.3%). Anomalous molybdenum (12 m averaging 125 ppm Mo from 26
to 38 m) and copper (8 m averaging 0.1% Cu from 128 to 136 m) was
encountered.
GAD-11-011 was drilled approximately 200 m north of target B, and was
designed to test a strong IP chargeability anomaly within the
semi-regional circular magnetic anomaly centred on target B. This hole
intersected a microdiorite porphyry which is cross-cut by numerous
hydrothermal breccias in the upper 105 m of the hole. The distribution
of the alteration patterns (advanced argillic, weak potassic and some
sericitic and propylitic at depth) and vein types suggest that the hole
is located in the outer fringe of the central potassic zone of the
porphyry system. Pyrite is the most common sulphide throughout the hole
(up to 6%), and occurs as disseminations and as porphyry "B" and "D"
veins. Significant gold mineralization (26 m at 0.45 g/t Au) was
intersected in the microdiorite porphyry, associated with a highly
fractured (faulted) zone from 144 to 177 m. This intersection shows
geological similarities to the previously released 45 m at 0.71 g/t Au
and 0.18% Cu intercept in drill hole GAD-11-002.
Between March 6th and July 17th, eleven (11) holes totaling 3,153
metres were completed, which allowed for the testing and further
understanding of the multiple parts of the large porphyry-epithermal
system as well as providing key information on the alteration and
mineralization processes.
In late August, Cornerstone and Intrepid geologists will be jointly
carrying out a thorough review and interpretation of the Phase 1
results in advance of planning the next work phase.
Logging, sampling and assaying
All holes drilled by Cornerstone are collared using HTW core size (7.1
cm diameter) and then reduced to NTW size (5.6 cm diameter) down the
hole. Geotechnical measurements such as core recovery, fracturing, rock
quality designations (RQD's), hardness 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
Cornerstone's core logging facility in Cuenca, Ecuador. Half of the
core is delivered by Cornerstone employees for preparation at Acme
Analytical Laboratories (ACME) facility in Cuenca. Core 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). Prepared samples are then shipped to ACME in Vancouver,
Canada where samples are assayed for a multi-elements suite (ACME code
1E, 0.25g split, 4-acid digestion, ICP-ES finish). Gold is assayed
using a 30 g split, Fire Assay (FA) and AA or ICP-ES finish (ACME code
G601).
Quality assurance / Quality control (QA/QC)
The ACME preparation facility in Cuenca was audited by Cornerstone
prior to the start of the drilling program and ACME is an ISO 9001:2008
qualified assayer that performs and makes available internal assaying
controls. Duplicates, certified blanks and standards are systematically
used as part of Cornerstone's QA/QC program. Rejects, a 100 g pulp for
each core sample and the remaining half-core are stored in Cuenca for
future use and controls.
Qualified Person
Yvan Crepeau, M.Ba., P.Geo, President of Cornerstone Ecuador SA and a
qualified person in accordance with National Instrument 43-101, is
responsible for supervising the Gama drilling program and has reviewed
and approved the technical information contained in this news release.
Shyri Option Agreement
Intrepid Mines Limited ("Intrepid") is earning a 60% interest in the
Shyri gold-silver-copper property under an option agreement signed with
Cornerstone in January 2011. Under the terms of the Agreement, Intrepid
has the ability to earn an initial 60% interest in the property by
spending $US 6.0 million dollars over 5 years, with a firm commitment
of $US 1.0 million in the first year. Intrepid may earn an additional
20% in specific project areas up to 5,000 hectares each. Upon
designation of a Project Area, Intrepid will make a $US 750,000 private
placement in Cornerstone. To earn the additional interest, Intrepid
will complete a bankable feasibility study or incur expenditures of $US
20 million, whichever comes first, and make a cash payment to
Cornerstone of up to $US 5.0 million based on the gold equivalent
ounces in the mineral reserve. There is no limit to the number of
Project Areas Intrepid may designate within the property and each
'stand-alone' Project Area requires the same earn-in requirements (see
news release dated Oct 29, 2009). Cornerstone is the project operator,
and manages the exploration programs in close consultation and planning
with Intrepid.
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. 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:
www.cornerstoneresources.com or for investor, corporate or media
inquiries, please contact:
Investor Relations:
Email: communications@crigold.com
North America toll-free: 1 (877) 277-8377
Martti Kangas - Direct Line: 1 (647) 521-9261
Paul Benwell / Pat Kairns - Direct Line: 1 (514) 904-1333
Investors can access and join the following Cornerstone social media
channels:
Facebook (http://www.facebook.com/cornerstoneresourcesinc)
Twitter (http://twitter.com/Cornerstone_cgp)
YouTube channel (http://www.youtube.com/user/CornerstoneResource)
Flickr (http://www.flickr.com/photos/cornerstoneresources)
The link to recent CEO audio interviews is:
http://www.cornerstoneresources.com/s/Interviews.asp
The link to a recent Corporate presentation with narration is:
http://rblcommunications.com/resources/CGP/1/CGPmay2011.html
Cautionary Notice:
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 subsequent to 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,
Brooke Macdonald
President
Further information is available on the Cornerstone Web site at
www.cornerstoneresources.com; via e-mail at communications@crigold.com;
or toll free at 1-877-277-8377.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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Copyright (c) 2011 CORNERSTONE CAPITAL RESOURCES INC. (CGP) All rights
reserved. For more information visit our website at
http://www.cornerstoneresources.com/ or send
mailto:info@cornerstoneresources.com
Message sent on Thu Aug 11, 2011 at 5:15:00 AM Pacific Time
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