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Re: News - Tuesday, July 07, 2009
09-14 - Cornerstone and Thundermin Announce NI 43-101 Mineral
Resources for the Little Deer Copper Deposit, Newfoundland
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Toronto, Ontario, July 7, 2009 - Cornerstone Resources Inc.
("Cornerstone") (CGP:TSX-V) and 50% joint venture partner Thundermin
Resources Inc. ("Thundermin") (THR:TSX) announce the results of a
National Instrument 43-101 ("NI43-101") compliant mineral resource
estimate for the Little Deer copper deposit (the "Deposit") located
approximately 10 km north of Springdale in north-central Newfoundland.
The mineral resource estimate was completed by Micon International
Limited ("Micon") of Toronto, Ontario, Cornerstone's and Thundermin's
independent resource estimate consultant.
Micon has estimated that the Deposit contains Indicated Resources of
1,087,000 tonnes at an average grade of 2.9% Cu and an Inferred
Resource of 1,950,000 tonnes at an average grade of 2.3% Cu (see Table
1 and Figure 1).
Table 1: Micon Mineral Resource Estimate, Effective July 7, 2009
Resource Classification Tonnes (t) Copper Grade (%)
Indicated 1,087,000 2.9
Inferred 1,950,000 2.3
"We are very pleased with this initial mineral resource estimate for
Little Deer," stated Colin McKenzie, Cornerstone's President and CEO.
"We fully expect that with additional drilling we will be able to
re-classify the inferred resources as well as expand the overall
resources."
Notes on Estimation Assumptions:
1. Assaying of drill core since 2007 by Thundermin and Cornerstone
suggests that the reported mineral resource may contain from 0.02% to
0.03% cobalt. However, a reliable estimate of the overall cobalt grade
for the reported mineral resource is not possible at the present time
as cobalt was not consistently assayed on historical drill core.
2. An average dry bulk density of 3.06 tonnes per m�, as determined
from direct measurements from drill core, has been used for the tonnage
estimate.
3. In order not to distort the estimated grade of the Deposit with the
influence of extremely high grade copper samples, four copper assays
from two historical drill holes have been capped at 11.0% Cu. This
capping of high copper grades reduces the overall estimated grade of
the Indicated Resource by 0.03% Cu.
4. A copper price of USD $2.17/lb (being the 27 month London Metal
Exchange forward price as at June 1, 2009) and an exchange rate
(USD/CAD) of 1.1 : 1 was used for the mineral resource estimate (copper
price of CAD $2.39/lb).
5. A cut-off grade of 1.25% Cu was used to construct a domain model of
the copper mineralization on cross sections spaced 50 m apart (+/-25 m
viewing windows).
6. The grade of the mineral resource estimate was determined using the
ordinary kriging method.
7. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing or other relevant issues.
8. The quantity and grade of reported Inferred Resources in this
estimation are conceptual in nature and there has been insufficient
exploration to define these Inferred Resources as an Indicated or
Measured Mineral Resource. It is uncertain if further exploration will
result in the upgrading of the Inferred Resources into an Indicated or
Measured Mineral Resource category.
Figure 1: Longitudinal View, Little Deer Copper Deposit Looking NNW,
after Micon, July 7, 2009. (Green -- Indicated Resources; Blue --
Inferred Resources).
http://www.cornerstoneresources.com/i/maps/NewsRelease_LD_09-14.jpg
The Little Deer mineral resource estimate was calculated using a
database containing 85 current and historical drill holes, 63 (30,800
m) of which were drilled from surface between 1961 and 2009 and 22
(3,008 m) of which were drilled from underground during 1968. The
database includes all of the holes drilled by Cornerstone and
Thundermin up to and including holes LD-09-22 and LD-08-16A, the
results of which were released on June 16, 2009.
The mineral resource estimate was prepared by Mr. Reno Pressacco,
M.Sc.(A), P. Geo, Senior Geologist for Micon of Toronto, Ontario. Mr.
Pressacco is an independent Qualified Person in accordance with
NI43-101. Mr. Pressacco has reviewed the contents of this news release
for accuracy. A NI43-101 compliant Technical Report for the mineral
resource estimate is currently being prepared by Micon and will be
filed on SEDAR within 45 days. Mr. Andrew Hussey, P. Geo, Project
Geologist and Lands Manager, Cornerstone Resources Inc., is the
qualified person responsible for supervising the drilling program on
the property for the purposes of NI43-101. Mr. Hussey has also reviewed
the contents of this news release for accuracy.
The Deposit is well situated to take advantage of Newfoundland's
developed infrastructure. The Deposit is located approximately 16 km
from the Trans Canada Highway and it is easily accessible by a 10 km
network of paved and gravel roads north of Springdale, where there is
an available skilled mining workforce. The site is approximately 8 km
from a major power transmission grid and there is a plentiful supply of
fresh water in the area. The Whalesback tailings impoundment site,
which could be used to store additional tailings, is located only 1,200
m north of the Deposit. There is also reasonably good access to a deep
water port for any future shipment of copper concentrates. The Duck
Pond base metal concentrator, which is owned by Teck Resources Inc., is
located approximately 165 km by paved and gravel road from the Little
Deer site, 66 km of which is on a secondary paved road and 70 km of
which is along the Trans Canada Highway.
To date, the Little Deer copper deposit has been intersected over a
strike length of approximately 1,050 m and to a vertical depth of
approximately 895 m. The Deposit remains open to the east, west and at
depth and the potential for discovery of additional mineral resources
is believed to be high (see Figure 1).
Diamond drilling on the Deposit is on-going and it is expected that two
new holes, designed to expand the reported initial mineral resource
estimate, will be completed as part of the $900,000 exploration program
outlined for the first half of 2009. Results from these holes will be
released once they have been completed and assays are received.
Thundermin, the operator, and Cornerstone have the option, on a 50/50
basis to earn a 100% interest in the Little Deer copper deposit and
adjacent property from Weyburn Investments Ltd. Thundermin, under its
joint venture agreement with Cornerstone, 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 Little
Deer copper deposit and the terms of the agreement with Weyburn can be
found in news releases dated May 1, June 21, July 9, October 30,
December 11, 2007 and January 24, April 9, May 15, June 6, June 17,
July 25, November 26, 2008 and February 25, May 12 and June 16, 2009
and on Cornerstone's and Thundermin's respective websites and on SEDAR.
Thundermin and Cornerstone would like to acknowledge the financial
support received from the Junior Exploration Assistance (JEA) Program
of the Province of Newfoundland and Labrador in carrying out a portion
of their work on the Little Deer property.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company
based in Mount Pearl, Newfoundland & Labrador, Canada, with a
diversified portfolio of projects in Canada and Ecuador 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.
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 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.
On Behalf of the Board,
Colin B. McKenzie
President & 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) 2009 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 Tue Jul 7, 2009 at 5:15:00 AM Pacific Time
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