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Re: News - Thursday, October 20, 2011
11-34 - Cornerstone and Thundermin Identify Encouraging New
Tonnage Potential at the Past-Producing Whalesback Copper Mine,
Springdale Area, Newfoundland
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc.
("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) and 50% joint
venture partner Thundermin Resources Inc. ("Thundermin") (TSX-THR)
announce that a recently completed digital compilation of historical
Diamond drill hole assay data from the 100% owned, past-producing,
Whalesback Copper Mine suggests that there is excellent potential for
establishing additional copper resources on the Whalesback property
below and to the west of the areas mined by British Newfoundland
Exploration Company ("BRINEX") between 1965 and 1972 (see Figure 1 --
http://www.cornerstoneresources.com/i/pdf/NR11-34Figure1.pdf and Table
1 -- http://www.cornerstoneresources.com/i/pdf/NR11-34-Table1.pdf).
The Whalesback Copper Mine is located approximately 10 km north of
Springdale in north-central Newfoundland and approximately 800 m north
of the 100% owned Little Deer Copper Deposit where Cornerstone and
Thundermin have outlined significant copper resources since June 2007
(see below). The two deposits are connected on the 800 foot (244 m)
level by an approximately 800 m long drift and both deposits possess
underground infrastructure that may be of use in any future mining
operations (see Figure 2 --
http://www.cornerstoneresources.com/i/pdf/NR11-34Figure2.pdf).
Additional information on the Little Deer Copper Deposit is available
in numerous news releases issued between May 1, 2007 and August 31,
2011 and on Cornerstone's and Thundermin's respective websites and on
SEDAR.
Whalesback Copper Mine and Property
Diamond drill logs and assay data for 60 surface and 242 underground
holes from the Whalesback Copper Mine were recovered from the archives
of the Newfoundland and Labrador Department of Natural Resources in St.
John's. Drill hole numbers and pierce points for 107 holes drilled in
the mineralized zone below and to the west of the areas mined by BRINEX
are shown on Figure 1. The corresponding assay results and assay
widths, most of which approach true width, are presented in Table 1.
Twenty four of the historical holes had copper intersections grading >
2.0% Cu, 49 had copper intersections grading between 1.0% and 2.0% Cu
and 33 had copper intersections grading < 1.0% Cu. Only one of the
historical holes did not intersect significant copper mineralization.
Significant results from the historical drill holes include 4.5% Cu
over 6.1 m, 4.0% Cu over 3.4 m, 3.2% Cu over 5.5 m, 3.0% Cu over 4.3 m,
2.9% Cu over 8.4 m, 2.9% Cu over 6.1 m, 2.6% Cu over 4.6 m, 2.5% Cu
over 5.3 m and 2.4% Cu over 9.1 m (see Table 1). Underground hole 11-11
is the deepest hole drilled to date on the Whalesback Deposit. This
hole, which intersected 1.7% Cu over 8.4 m at a vertical depth of
approximately 565 m, has never been followed up with additional
drilling.
H. Brooke Macdonald, President of Cornerstone said "We are very
encouraged by results of the compilation of historical Whalesback Mine
data. At this point the situation is reminiscent of Little Deer four
years ago when we recognized the potential to significantly expand the
copper resources, particularly at depth, around the former Little Deer
Mine. Our drilling at Little Deer has confirmed that potential, and
we're optimistic we can duplicate that success at the Whalesback Mine.
Historically both mines have operated as a single unit, and
identification of new copper resources at Whalesback will have a
significant positive impact on project economics and an eventual
production decision".
Table 1: Whalesback - Historical Surface and Underground Drill Results
For Table 1 please see
http://www.cornerstoneresources.com/i/pdf/NR11-34-Table1.pdf
The sulphide mineralization within the Whalesback Copper Mine consists
predominantly of disseminated, stringer, semi-massive and massive
pyrite-chalcopyrite-pyrrhotite within altered mafic volcanic rocks
similar to that encountered within the adjacent Little Deer Copper
Deposit. The historical drill hole data presented in Figure 1 and Table
1 demonstrates that there are existing copper resources already defined
beneath and to the west of the area mined previously by BRINEX. In
addition, the data suggests that there is excellent potential to
further expand these resources with additional
Diamond drilling at
relatively shallow depths. The adjacent Little Deer Copper Deposit is
known to occur over a strike length of 1,050 m and to persist to a
vertical depth of at least 1,000 m whereas the deepest intersection at
Whalesback is at a vertical depth of approximately 565 m. It is
believed that the copper mineralization at Whalesback could also
continue further along strike to the west and to depth and cover an
area at least comparable in size to the Little Deer Copper Deposit.
Cornerstone and Thundermin intend to undertake 3,800 m of
Diamonddrilling in 9 holes on the Whalesback property commencing this fall.
The purpose of this work is to confirm the historical results and to
expand the copper resources to the west and at depth below the areas
mined previously by BRINEX. The discovery of additional economic grade
copper resources at relatively shallow depths in this area of the
Whalesback property could be extremely important to an eventual
decision to place the Little Deer Copper Deposit into commercial
production.
The potential for establishing additional resources on the Whalesback
property is conceptual in nature and it is uncertain whether further
Diamond drilling will be successful in defining additional resources of
economic grade copper mineralization on the property.
Mineral Resources - Little Deer Copper Deposit
On June 22, 2011, Cornerstone and Thundermin reported a National
Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for
the Deposit comprising Indicated Resources of 1,911,000 tonnes at an
average grade of 2.37% Cu (99.8 million pounds of copper) and Inferred
Resources of 3,748,000 tonnes at an average grade of 2.13% Cu (175.9
million pounds of copper). The mineral resource estimate was prepared
under the supervision of Mr. Eugene J. Puritch, P. Eng., President of
P&E Mining Consultants Inc. of Brampton, Ontario. Mr. Puritch is an
independent Qualified Person ("Q.P.") in accordance with NI 43-101.
Qualified Person
Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager,
Cornerstone Resources Inc., is the Q.P. responsible for the compilation
of all of the historical data on the Whalesback Copper Mine for the
purposes of NI 43-101. Mr. Hussey has also reviewed the contents of
this news release for accuracy.
Little Deer Joint Venture
Under the terms of its joint venture agreement with Cornerstone,
Thundermin has the right to increase its interest in the Little Deer
property to 75% by completing a feasibility study and by arranging 100%
of the necessary bank financing required to place the property into
commercial production. Details on the Deposit and the terms of the
agreement with Cornerstone can be found in numerous news releases
between May 1, 2007 and June 22, 2011 and on Cornerstone's and
Thundermin's respective websites and on SEDAR.
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 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: www.cornerstoneresources.com.
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 a recent Corporate presentation is:
http://www.cornerstoneresources.com/i/pdf/Presentations_0711_CRICorporate.pdf
The link to a virtual tour of drilling at the Gama prospect, Shyri
concession in Ecuador is:
http://www.youtube.com/watch?v=Ne8XSfgLwIM
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 Oct 20, 2011 at 5:15:00 AM Pacific Time
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