Cornerstone to Start Diamond Drilling at Flagship Shyri
Gold-Copper Property in Ecuador
=======================================================================
Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. (TSXV-CGP)
(F-GWN) (B-GWN) (OTC-CTNXF) announced today that it has concluded a
Definitive Agreement with its joint venture partner that will allow
diamond drilling to commence immediately on the Gama Prospect, located
in the NW portion of the Company's flagship Shyri
Gold-Copper Project
in southern Ecuador.
The Shyri Project is the subject of an Option
Agreement with partner
Intrepid Mines Ltd. ("Intrepid") (ASX-IAU, TSXV-IAU). As previously
announced (see news release dated Oct 29, 2009), Intrepid has the
option to acquire an initial 60% interest in Cornerstone's Shyri
Project which is located in central Ecuador, approximately 350km south
of Quito and 150km north of the border with Peru. Under the terms of
the Agreement, Intrepid has the ability to earn an initial 60% interest
in the Shyri property by spending $US 6.0 million
dollars over 5 years,
with a firm commitment of $US 1.0 million in the first year.
"We have consistently told shareholders that both Cornerstone and
Intrepid would move quickly to a drilling program once approval was
received from the Ecuadorian government," said Glen H. McKay, President
& CEO, Cornerstone Capital Resources Inc. "The Agreement formalizes
our
intention to aggressively explore this highly prospective property. We
expect to release results from the program on a consistent and timely
basis."
Cornerstone is the operator of the exploration program. Technical teams
from Cornerstone and Intrepid have worked closely together to define
the current suite of drill targets and to plan the ongoing regional
exploration program within the broader Shyri Project
area.
Drill Program
Cornerstone and Intrepid have approved a Phase one 2,900 metre
diamond
drilling program comprising 11 holes over various targets defined on
the basis of surface geochemistry, detailed geology, magnetics, and 3-D
interpretation of Induced Polarization (IP) geophysical data.
The drill-hole program will target both high sulphidation
gold systems,
comparable to the nearby 3.4Moz Quimsacocha gold
deposit, and porphyry
copper-gold systems. The targets have not been previously drilled.
The drill program will test 7 targets over an area of 3 x 2 kilometers.
.. Target B is a coincident surface copper-gold-molybdenum geochemical
anomaly with a well-defined annular magnetic signature, and IP
chargeability and resistivity anomalies. The target model is a porphyry
system with areas of high sulphidation overprint;
.. Target C is a coincident silver-gold-mercury geochemical anomaly
possibly representing a high level epithermal system;
.. Target D is a coincident surface copper-gold-molybdenum geochemical
anomaly and IP chargeability anomaly that may represent a porphyry
system;
.. Target E is a coincident surface copper-gold-molybdenum geochemical
anomaly, IP chargeability anomaly, and geology that may represent the
upper zones of a porphyry system;
.. Target F is a coincident surface copper-gold-molybdenum geochemical
anomaly with encouraging geology suggesting a porphyry environment. The
IP geophysical coverage does not extend over this southern-most target
area;
.. One initial drill hole is proposed to test the mineralised
Ermita
Breccia. Rock chips returned up to 5.7g/t gold from
the breccia that is
interpreted to source a high sulphidation system at
depth.
.. One drill hole has been planned to test an interpreted flat lying
high sulphidation system approximately 500m to the
south of the Ermita
Breccia.
The approved exploration program includes scope to test other targets
that may emerge as a consequence of the results obtained during the
planned drilling, including geophysical targets that are located to the
north of Target B.
To view a map showing gold in soil anomalies and the location of drill
holes and target designation please go to link
http://www.cornerstoneresources.com/i/maps/properties_GAMADDH0111.jpg
This press release was approved by Colin B. McKenzie, P.Geo.,
a
Cornerstone Director and a Qualified Person in accordance with National
Instrument 43-101. Exploration work on the Shyri
project is being
carried out under the supervision of Yvan Crepeau, Geologist, MBA,
CESA's Country Manager, Ecuador.
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.
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
Investors can access and join the following Cornerstone social media
channels:
Facebook
(http://www.facebook.com/pages/Cornerstone-Resources-Inc/152481978112151)
Twitter (http://twitter.com/Cornerstone_cgp)
YouTube channel (http://www.youtube.com/user/CornerstoneResource)
Flickr
(http://www.flickr.com/photos/cornerstoneresources)
The direct links to recent CEO interviews are:
January 4th, 2011 -
http://www.rblcommunications.com/webcasts/CGP04jan11/CGP04jan11.html
November 10th, 2010 - http://www.rblcommunications.com/webcasts/CGPnov122010/CGPnov122010.html
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.
On Behalf of the Board,
Glen H. McKay
President & 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.