MOUNT PEARL, NEWFOUNDLAND--(Marketwired - Jul 3, 2014) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP)(CTNXF)(GWN.F)(GWN.BE) announces that it has further amended the Miocene (Chile) Property Agreement (see news releases dated February 22, 2011 and May 8, 2014), to reduce the $5 million in required exploration expenditures to $2.5 million. The Miocene Project can be viewed on the Cornerstone web site at http://www.cornerstoneresources.com/s/Chile.asp?ReportID=450381.
Under the amended Agreement dated June 27, 2014, Cornerstone now has the right to acquire an undivided 100% interest in any concessions acquired using a proprietary database within the Miocene Project area in return for the following consideration (all references to $ are to Canadian $):
| On or before |
Cash |
Securities |
Exploration or Other Work Commitments |
| April 28, 2012 (Paid) |
$20,000 |
Common Shares valued at $20,000 |
Nil |
| April 28, 2013 |
Nil (deferred) |
Nil (deferred) |
Nil |
| April 28, 2014 (Paid) |
$20,000 |
Common Shares valued at $20,000 |
Nil |
| April 28, 2015 |
$30,000 |
Common Shares valued at $30,000 |
$250,000 |
| April 28, 2016 |
$60,000 |
Common Shares valued at $60,000 |
$250,000 |
| April 28, 2017 |
$120,000 |
Common Shares valued at $120,000 |
$500,000 |
| April 28, 2018 |
Nil |
Nil |
$750,000 |
| April 28, 2019 |
Nil |
Nil |
$750,000 |
The acquisition is subject to a 2.0% Net Smelter Royalty ("NSR"), one-half (1.0%) of which can be purchased by Cornerstone at any time for $1,000,000.
So far, mineral concession applications covering a total of 14,111 hectares (141.1 km2) have been filed which encompass highly prospective ground within the Miocene Project area. Cornerstone has already incurred almost $700,000 in qualified exploration expenditures on the Miocene Project and after the work planned for later this year is completed (see below) will have spent over $1 million, satisfying the exploration work commitment through April 28, 2017. The Company is continuing to seek a partner to help advance exploration on this exciting early-stage project.
The Miocene Project
The Miocene Project, held by Cornerstone's Chilean subsidiary Minera Cornerstone Chile Limitada (MCCL), is located in the Regions of Atacama and Antofagasta of northern Chile, and is targeting epithermal gold-silver and porphyry gold-copper deposits along the interpreted northern extension of the Maricunga magmatic belt which hosts several world-class gold deposits.
A regional exploration program was completed on the Miocene Project during the first half of 2012. Alteration mapping using Aster (Advanced Spaceborne Thermal Emission and Reflection Radiometer) satellite imagery, combined with historical airborne magnetic survey data and regional geological and structural data, was used to define prospective areas for ground follow up. Reconnaissance geological mapping at a scale of 1:25,000, rock sampling and widely spaced soil sampling (2,000 m by 500 m and 1,000 m by 250 m) were carried out over a large area of 70,000 hectares (70 km2) covering exposed and altered bedrock and adjacent soil and gravel-covered pampas. Soil samples were analyzed utilizing a combination of analytical techniques designed to detect deep and/or buried mineralization. Geological mapping and spectrometry work better defined the alteration zones (type, size and distribution) that were identified by the Aster satellite imagery. Geochemical anomalies were defined for base metals, precious metals and pathfinder elements associated with porphyry gold-copper and epithermal gold-silver styles of mineralization.
Some of the Miocene concessions lie adjacent to Mirasol Resources Ltd.'s newly discovered epithermal high sulphidation Titan and Atlas prospects, where significant gold and silver assay results have been outlined by trenching and reverse circulation drilling. Cornerstone holds a strong land position in this part of the Miocene Belt including approximately 14,000 hectares in the same district. The Company is encouraged by early results from Mirasol's Titan and Atlas projects, which serve to support the conceptual model utilized in acquiring the Miocene concessions.
The Company will re-commence exploration in November 2014 at Miocene (during the Austral summer). Work planned includes detailed satellite imagery, a 4-5 months field program to complete prospecting work, systematic rock and soil sampling over prospective geology/alteration followed by trenching and ground geophysical surveys where appropriate, to define drill targets.
Qualified Person:
Yvan Crepeau, MBA, P.Geo., Cornerstone's Vice President, Exploration and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Miocene Project and has reviewed and approved the information contained in this news release.
About Cornerstone:
Cornerstone Capital Resources Inc. is a well-funded mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in 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.
Further information is available on Cornerstone's website: www.cornerstoneresources.com and 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
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.