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Re: News - Thursday, February 09, 2012
12-03 - Cornerstone and Intrepid report results for Phase 2
Diamond drilling at the Gama prospect in Ecuador and provide
update on current exploration program
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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 2
Diamonddrilling program on the Gama prospect, located in the northwestern part
of the Shyri property in southern Ecuador. Two (2) holes totaling 1,126
metres were drilled between November 23rd and December 26th, 2011.
Results for Phase 1 drilling (holes GAD-11-001 to GAD-11-011) were
released on May 31st and August 11th, 2011, which highlighted
gold-enriched porphyry intersections grading 0.71 g/t Au over 45 metres
in hole GAD-11-002 and 0.45 g/t Au over 26 metres in hole GAD-11-011.
A description of the Phase 2 program and targets was announced on
November 28th, 2011.
Highlight:
- Hole GAD-11-013 intersected 22 metres at 0.17 g/t gold and 0.03% Cu
and some shorter intervals (4 to 10 metres) grading 0.11 to 0.17 g/t
gold
"The limited drilling completed so far on the Gama prospect has
confirmed our initial exploration model of a high-sulphidation
epithermal system centered on porphyry intrusions, but clearly more
work is required to better define drill targets in this very large and
complex system", said Brooke Macdonald, Cornerstone's President and
CEO. "The ongoing ground exploration surveys which include soil
geochemistry and detailed magnetic surveys are identifying new shallow
epithermal targets which will be our focus in the near-term. As well,
we expect to receive the environmental permits required to commence
drilling on the Vetas Grandes and Ca�aribamba prospects located on the
southern portion of the Shyri property by end of the first half of
2012."
"The results from Phase 2 at Gama confirm the existence of porphyry
intrusions and associated mineralization. The current round of soil
sampling and ground geophysics will provide further focus for renewed
exploration at Shyri", said Gary Snow, newly appointed EGM Exploration
and New Business at Intrepid Mines.
Table 1: Summary of Gama Drill Results, Holes GAD-11-012 and
GAD-11-013, Phase 2 Program
Hole No. Target Elevation (masl) Length (m) From (m) To (m) Interval (m)* Au (g/t) Ag (g/t) Cu (ppm) Zn (%)
GAD-11-012 NW of B 3419 612.3 4.0 8.0 4.0 0.2
14.0 16.0 2.0 0.1
168.0 170.0 2.0 0.50
GAD-11-013 F North 3476 513.6** 262.0 344.0 82.0 142
including 324.0 328.0 4.0 0.17 301
392.0 414.0 22.0 0.17 294
432.0 442.0 10.0 0.11 168
492.0 498.0 6.0 0.11 201
* The reported intervals are core lengths. At present the true
thicknesses are uncertain due to the early stage of drilling.
** Hole abandoned at this depth due to bad ground conditions.
Gama Prospect
The Gama prospect is one of four identified thus far on the Shyri
property, and comprises an extensive zone of high sulphidation (HS)
epithermal alteration measuring a minimum of 8.5 kilometres by 3
kilometres. The alteration is strongly zoned and centered over two
high level, porphyry-type intrusions at the 3,500 metre to 3,800 metre
elevations. Gama is located 15 kilometres to the west of Iamgold's
Quimsacocha HS epithermal gold deposit.
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_GAMADDH0212.pdf.
Discussion
Interpretation of the data from the Phase 1 drilling program suggests
that molybdenum, gold and copper mineralization was remobilized from a
deeper mineralized tonalitic porphyry source through fractures and
hydrothermal breccias. Alteration mineral mapping utilizing a portable
spectrometer indicates that hydrothermal temperatures are increasing at
depth towards the deep targets. The Phase 2 drilling program was
designed to test this inferred dioritic to tonalitic intrusion down to
a vertical depth of approximately 600 metres in areas where significant
gold and copper was intersected in previous holes.
Hole GAD-11-012 was drilled to the northwest of target B, 500 metres
southwest of hole GAD-11-011 which intersected 26 metres at 0.45 g/t
gold in a fractured diorite porphyry. Hole GAD-11-012 intersected a
very thick pile of andesitic tuffaceous units, presenting horizons of
lower temperature, propylitic and argillic alteration. No intrusive
phases were intersected in this hole, but the presence of some
fragments of porphyritic intrusive rocks cut by quartz-magnetite veins
support the proposed model for the mineralization. Pyrite is the main
sulphide encountered, and occurs as disseminations (0.2 to 4%) and
occasionally as fracture fillings and veinlets (up to 8%). Traces of
molybdenite associated with quartz-calcite (B type) veins were observed
from 514 to 598 metres. The distribution of alteration patterns and
sulphide phases suggest that hole GAD 11-012 tested the outer part of
the porphyry system. It is believed that the hole was drilled too far
to the west and that future holes should test the target further to the
east.
The upper part of hole GAD-11-013 intersected tuffaceous volcanic rocks
similar to those encountered in hole GAD-11-012, but intersected a
dioritic intrusive at depth from 416 metres to the end of the hole at
513.6 metres. Unfortunately the hole had to be abandoned at this depth
because of the highly fractured and faulted ground, impeding drilling
deeper. Most of the hole shows moderate to intense advanced argillic
alteration. The microdiorite intersected at depth shows some quartz
stockworks (up to 1%, A and B type veins). Gold mineralization is
generally associated with silicified horizons and quartz-pyrite
stockwork veinlets. Copper mineralization is associated with
disseminated enargite. The best mineralized interval returned 0.17 g/t
Au and 0.03% Cu over 22.0 metres from 392.0 to 414.0 metres, and is
hosted in altered volcanic rocks above the contact with the diorite
intrusive.
Development of new drilling targets at Gama prospect
Ongoing ground exploration programs at the Gama prospect have
identified several new drill targets. A soil geochemistry survey
completed in October 2011 defined five (5) high priority gold-copper
anomalous areas and these have been selected for infill soil sampling.
Three of the soil anomalies are related to the interpreted upper,
epithermal portion of the mineralized system. More than 2,000 soil
samples have been collected during the last two months, with assay
results pending.
A detailed, 731 line kilometre ground magnetic survey was initiated in
late January. A prospecting program is being carried out over
previously defined geochemical (soils and rocks) and geophysical
(induced polarization and magnetic) anomalies and altered areas are
currently being prospected and geologically mapped. A trenching program
will be initiated when all results have been compiled, and all
exploration data will be integrated into a 3D model to define and
prioritize new drill targets.
Environmental Impact Studies (EIS) at Vetas Grandes and Ca�aribamba
prospects
Field work related to the EISs for advanced exploration (drilling) at
the Vetas Grandes and Ca�aribamba prospects was completed in January.
Preliminary reports are expected to be available by the end of
February. A public consultation process will then be implemented to
inform the communities and integrate their suggestions and
recommendations into the final document to be submitted to the Ministry
of Environment (ME) for review and approval. Once approved by the ME,
an Environmental License will be granted on each prospect area. Water
permits applications for drilling have been made for both prospects. It
is estimated that these permits will be granted in the second quarter
of 2012.
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) and BTW
(4.2 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-element 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. 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
The link to a recent Corporate presentation is:
http://www.cornerstoneresources.com/i/pdf/Presentations_0112_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
Investors can also access Cornerstone on Twitter
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 and CEO
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) 2012 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 Feb 9, 2012 at 5:15:00 AM Pacific Time
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