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Re: News - Wednesday, July 18, 2012
12-14 - Cornerstone Announces Initial NI 43-101 Compliant Mineral
Resource Estimate for the Cape Ray Gold-Silver Project,
Newfoundland
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc.
("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announced today
an initial National Instrument 43-101 ("NI 43-101") compliant mineral
resource estimate for its 100% owned Cape Ray gold-silver project
located in southwestern Newfoundland. The mineral resource estimate was
prepared by Mercator Geological Services Limited ("Mercator") of
Dartmouth, Nova Scotia and was completed on two separate mineralized
zones: 1) the 51 Zone of the Cape Ray gold deposit ("51 Zone"); and 2)
the Windowglass Hill deposit ("Windowglass Hill") (see Table 1). The
estimate is based on three-dimensional block models developed for the
51 Zone and Windowglass Hill using Gemcom Surpac(r) 6.1.4 modeling
software and validated results of 26,480 metres of historical
Diamonddrilling in 197 holes completed between 1977 and 1996, plus 2,520
metres of
Diamond drilling in 28 holes completed by Cornerstone between
2004 and 2006.
Mineral resources for the 51 Zone and Windowglass Hill are reported,
respectively, on the basis of assumed underground (2.5 g/t gold
cut-off) and open pit (0.5 g/t gold cut-off) development potential.
Highlights:
- 51 Zone - Inferred resources of 530,000 tonnes grading 6.10 g/t Au
and 15.86 g/t Ag containing 103,943 ounces of gold and 270,253 ounces
of silver
- Windowglass Hill - Inferred resources of 1,810,000 tonnes grading
1.77 g/t Au and 11.28 g/t Ag containing 103,001 ounces of gold and
656,415 ounces of silver
- Mineralization is relatively shallow at a maximum of 270 metres
vertically below surface for the 51 Zone and 140 m for Windowglass Hill
- Opportunities exist to upgrade and expand the mineral resources
Brooke Macdonald, President & CEO of Cornerstone said "We are
encouraged by the results from this initial NI 43-101 mineral resource
estimate for the Cape Ray project. Mineralization was discovered at
Cape Ray more than 30 years ago, and a great deal of exploration work
was completed on the project, particularly during the 1980's. Because
all of this work was carried out in the context of much lower gold and
silver prices compared to today, we felt it was time to revisit the
project in order to complete new deposit modeling and a NI 43-101
compliant mineral resource estimate. The current estimate for the 51
Zone increases resources compared to historical non NI 43-101 estimates
and no previous resource estimate was carried out on Windowglass Hill.
In addition to the 51 Zone and Windowglass Hill, four significant
mineralized gold zones including two of which form the remainder of the
Cape Ray gold deposit, occur along a 15 km strike length. These other
zones are owned by a third party. We are actively seeking potential
joint venture partners to advance exploration and potential future
development on our property. The project location, shallow depth of
mineralization, anticipated high gold recoveries based on historical
metallurgical test work on the Cape Ray gold deposit, and opportunities
for upgrading and expanding the resources are all positives for the
project."
Table 1. Summary of Mineral Resources for the 51 Zone and Windowglass
Hill, Cape Ray Project (Mercator, July 16, 2012).
Deposit Resource Category Tonnes Gold Grade Silver Grade Contained Gold Contained Silver
(Cut-Off Grade) (Rounded) (g/t) (g/t) (oz) (oz)
51 Zone Inferred 530,000 6.10 15.86 103,943 270,253
(2.5 g/t Au)
Windowglass Hill Inferred 1,810,000 1.77 11.28 103,001 656,415
(0.5 g/t Au)
Notes:
1. Mineral resources are estimated in conformance with the Canadian
Institute of Mining, Metallurgy and Petroleum -- Standards on Mineral
Resources and Reserves -- Definitions and Guidelines, as referenced in
NI 43-101.
2. Reported mineral resources are considered to have reasonable
prospects of economic extraction based on comparison with comparable
deposits and a gold price of US$1,400 per ounce.
3. The block model for the 51 Zone is based on composited assay results
for 451 drill core samples from 69 separate drill holes falling within
deposit limits, and the Windowglass Hill block model is based on
composited results for 529 drill core samples from 40 separate drill
holes falling within deposit limits.
4. Block model grades were interpolated using inverse distance squared
(ID2) methodology and 1.5 metre down hole calculated composites for
gold and silver assay values.
5. Assay composites for the 51 Zone were capped at 30 g/t Au and 80 g/t
Ag, and those for Windowglass Hill were capped at 12 g/t Au and 80 g/t
Ag.
6. Block size for both the 51 Zone and Windowglass Hill is 2 m x 2 m x
2m with no sub-blocking.
7. Grade interpolations were fully constrained within grade shell
wireframe solids reflecting weighted average cut-off grades of 1.0 g/t
Au over 3 horizontal metres for the 51 Zone and 0.5 g/t Au over 3
vertical metres for Windowglass Hill.
8. A density value of 2.84 g/cm3 was used for the 51 Zone and a value
of 2.77 g/cm3 was used for Windowglass Hill.
9. The rounding of tonnes as required by NI 43-101 reporting guidelines
may result in apparent differences between tonnes, grade and contained
ounces.
10. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. This estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
11. The quantities and grades of reported inferred mineral resources
are uncertain in nature and further exploration may not result in their
upgrading to Indicated or Measured status.
The sensitivity of the resource estimate to cut-off grades for gold is
shown below in Table 2.
Table 2. Summary of Mineral Resources for the 51 Zone and Windowglass
Hill Showing Sensitivity to Various Cut-Off Grades for Gold, Cape Ray
Project (Mercator, July 16, 2012).
Deposit Resource Cut-Off Grade Tonnes Gold Grade Silver Grade Contained Gold Contained Silver
Category Gold (g/t) (Rounded) (g/t) (g/t) (oz) (oz)
51 Zone Inferred 1.0 790,000 4.67 12.48 118,614 316,981
Inferred 2.0 610,000 5.63 14.85 110,415 291,238
Inferred 2.5* 530,000 6.10 15.86 103,943 270,253
Inferred 3.0 470,000 6.58 16.91 99,429 255,524
Inferred 4.0 360,000 7.53 18.86 87,154 218,291
Inferred 5.0 280,000 8.41 20.45 75,709 184,095
Windowglass Hill Inferred 0.5* 1,810,000 1.77 11.28 103,001 656,415
Inferred 1.0 1,310,000 2.14 12.27 90,131 516,781
Inferred 1.5 870,000 2.60 14.74 72,725 412,295
Inferred 2.0 570,000 3.07 17.08 56,261 313,007
Inferred 3.0 210,000 4.16 18.51 28,087 124,973
Inferred 4.0 90,000 5.09 18.07 14,728 52,287
Inferred 5.0 40,000 6.14 17.88 7,896 22,994
* Resource Statement Cut-Off Grade
Qualified Persons
The mineral resource estimate has an effective date of July 16, 2012
and was prepared by Mr. Andrew Hilchey, P.Geo. of Mercator. Mr. Hilchey
is an Independent Qualified Person ("Q.P.") as defined under NI 43-101
and has reviewed and approved the contents of this news release. A NI
43-101 Technical Report in support of the resource estimate is
currently being prepared by Mercator and will be filed on SEDAR by
Cornerstone within 45 days of this news release.
Overall supervision of the Cape Ray project is by Terry Brace, P.Geo.,
Cornerstone's Vice President Exploration. Julie Labont�, P.Geo.,
Project Geologist for Cornerstone is the Q.P. responsible for project
management for the purposes of NI 43-101. Both Mr. Brace and Ms.
Labont� have reviewed and approved the contents of this news release.
About the Cape Ray Project
Cornerstone's Cape Ray property is located approximately 25 km
northeast of Port aux Basques in southwestern Newfoundland, and is
accessible from the Trans-Canada Highway by a 20 km seasonal gravel
road. The property consists of a single 183-claim mineral licence
(45.75 km2) and covers portions of a 22 km-long strike length of the
Cape Ray Fault Zone ("CRFZ"), a major crustal-scale tectonic suture.
Cornerstone holds a 100% interest in the Cape Ray property subject to a
1.75% net smelter return (NSR) royalty payable to a third party.
Cornerstone retains the right to repurchase a 1.0% NSR for $1 million,
leaving the third party with a 0.75% NSR.
The northeast-trending CRFZ marks a zone of highly strained rocks which
separates the Late Cambrian to Early Ordovician Cape Ray Igneous
Complex to the northwest (Dunnage Zone) from the Port aux Basques
Gneiss to the southeast (Gander Zone). The Late Ordovician to Middle
Devonian Windsor Point Group, a series of bimodal volcanics and
volcaniclastics with associated sedimentary rocks, lies between these
two units approximately along the trace of the CRFZ. Several pre- to
late-tectonic granitoid bodies intrude all these units.
The most significant mineralization along the CRFZ is the Cape Ray gold
deposit ("CRGD") which was discovered in the late 1970's by Rio Tinto
Canadian Exploration Ltd. ("Riocanex"). The CRGD consists of three
separate mineralized zones along a 1.75 km strike length, which from
southwest to northeast are the 51, 41 and 4 zones. Gold and silver
mineralization is associated with pyrite and base metal (Cu, Pb & Zn)
rich fault-fill quartz breccia veins within shear zones developed in
schists of the Windsor Point Group. At the Windowglass Hill deposit
located 2.75 km southwest of the 51 Zone, the Early Silurian
Windowglass Hill Granite hosts a series of extensional shallow-dipping
quartz veins with associated gold and silver mineralization. Elsewhere
along the CRFZ, significant gold mineralization occurs at the Big Pond
and Isle aux Morts prospects located 5.5 km southwest and 9 km
northeast respectively of the 51 Zone.
Cornerstone's Cape Ray property covers the 51 Zone and the Windowglass
Hill deposits. A third party holds the mineral rights to the 4 and 41
zones of the CRGD, as well as the Big Pond and Isle aux Morts
prospects.
Additional information on the Cape Ray project is available on
Cornerstone's website at:
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136411.
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. Commitments from
JV partners constitute significant validation of the strength of
Cornerstone's projects.
Cautionary Notice:
Certain statements contained in this press release may be considered as
forward-looking. Such forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially
from estimated or implied results. 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.
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
The link to a recent Corporate presentation is:
http://www.cornerstoneresources.com/i/pdf/Presentations_0412_CRICorporate.pdf
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 Wed Jul 18, 2012 at 5:15:00 AM Pacific Time
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