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Re: Corporate Update - Friday, April 16, 2010
Author: Colin McKenzie
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Cornerstone Corporate Update, Q1 - 2010:
Certain statements contained in this investor update 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.
Dear Shareholders and Subscribers:
Ecuador
You may have seen the March 25th reports of the announcement by
Ecuador's newly-appointed Vice Minister of Mines, Luis Bustamente, at
Ecuador's mining exposition that 12 companies would receive permission
to resume exploration work. The answer to the obvious question is:
Yes, Cornerstone is one of the 12. The follow-up of question of When,
remains unclear however. While we have received a water permit in
support of a drill program on Shyri, we still lack two final approvals
-- one from the Ministry of Environment for our Environmental
Management Plans and a second from the Ministry of Communities. For
the first, we have submitted all required documentation and it has
passed internal scrutiny within the ministry. We just await a sign-off
from the Vice Minister. The Ministry of Communities approval requires
a project socialization process (i.e. community meetings) which is
being carried out by the government. For that one, we are queued up
with the other companies as the government schedules the information
sessions.
Despite the regulatory delays we are very pleased that Newmont has
agreed to continue with the Macar� strategic alliance in southern
Ecuador. Under the terms of the alliance, Cornerstone completed
expenditures of $1.0 M late last year by carrying out reconnaissance
geological and geochemical surveys throughout the 2000 km2 area of
influence (AOI). Newmont was very impressed with the results of those
surveys and has agreed to enter Phase II of the agreement in which they
will spend $2.7M over 4 years to earn a 51% interest in any properties
within the AOI. Newmont also agreed to spend $300,000 this year despite
the fact that we still require final approvals to work on the
Bellavista concession and the lack of a clear process by which new
concessions can be acquired. Cornerstone will continue as project
manager for the alliance which we see as a great vote of confidence
from Newmont that we can provide technically sound, value-added service
for them in Ecuador.
We are also continuing planning with Intrepid Mines (TSX -- IAU) for
the launch of the Shyri exploration program under the terms of our
recent option agreement. Intrepid has already met the initial
financial conditions of the Shyri earn-in which required them to make
of $500,000 private placement in Cornerstone at a 20% premium to market
($0.21/share) and a cash payment of $250,000. Once final approvals are
in place Intrepid will spend $1.0 M in exploration, including drilling
at Gama, using Cornerstone's services as project manager. We expect to
have the definitive option agreement in place in the near future but in
the meantime we are operating under the binding term sheet signed with
Intrepid on October 29, 2009.
Little Deer Copper
Cornerstone and partner Thundermin resumed drilling at Little Deer in
early February after approving a planned $1.5 M, 11,000 m program
designed to increase the mineral resource inventory of the deposit.
As noted in our news release this week, we are continuing to intersect
strong copper mineralization over mineable widths in the deeper regions
of the deposit. Hole deepenings in the current program have discovered
the existence of a northern lens of mineralization not previously
tested. For example, deepening hole LD-00-12, which previously
intersected 3.8% Cu over 10.7 m, found a second zone of 4.5% Cu over
3.1 m. Holes 31 and 16B both intersected thick sections of the main
zone at about 700 m below surface. Hole 03A on the east side of the
deposit was a disappointment because it stopped short of the target due
to drilling problems. However, the extensive alteration and low grade
mineralization in the hole are a strong indication that the deposit
continues in this area.
The current program is utilizing two drills and is about 45% through
the approved program.
We also completed an induced polarization (IP) geophysical survey this
quarter in the area of high grade gold boulders to the southwest of the
Little Deer deposit. While the results are still being evaluated by
our geophysical consultant, targets generated by the survey will be
tested during the current drill program.
El Strato Gold
Cornerstone maintains a portfolio of gold properties in Newfoundland
that warrant further exploration. Over the past two months we have
taken advantage of winter ice to conduct geophysical surveys over the
strike extension of high grade gold mineralization which occurs along
the shores of Micmac Lake in west-central Newfoundland. The surveys
have identified a strongly anomalous trend under the lake and
immediately south of the El Strato gold showing on a small island in
the lake. Once all data are interpreted a drill program is planned for
the area this summer.
New Joint Ventures
In keeping with our business model of generating opportunities for
joint venture we have recently brought in a new partner in Labrador.
Rare Earth Metals Inc. has optioned our Letitia Lake claims in the
Central Mineral Belt and are committed to spend at least $50,000 on
Cornerstone's claims this year as part of their regional assessment of
the area for its rare earth metal potential. Cornerstone also received
payments of $10,000 and 20,000 shares of Rare Earth Metals.
Cornerstone is also in advanced negotiations on properties in
Newfoundland and New Brunswick and expects to announce new joint
ventures in the near future. This is a validation of our strategy of
acquiring good potential geological environments through low cost
staking and developing targets with which to attract new partners.
Best regards.
Colin
Colin B McKenzie,
President & CEO
Cornerstone Capital Resources Inc.
Excellence in Mineral Exploration
"People, Process, Projects"
TSXV - "CGP" / OTC - "CTNXF"
F - "GWN" / B - "GWN"
Email: mckenzie@crigold.com
www.cornerstoneresources.com
Toll Free 1-877-277-8377
Fax 1-709-747-1183
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Copyright (c) 2010 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 Fri Apr 16, 2010 at 7:15:00 AM Pacific Time
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Cornerstone Capital Resources Inc
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DEVELOPMENT STAGE |
CODE : CGP.V |
ISIN : CA21922J2083 |
CUSIP : 21922J208 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cornerstone is a exploration company based in Canada. Cornerstone develops uranium in Canada, and holds various exploration projects in Canada, in Chile and in Ecuador. Its main asset in development is AILLIK in Canada and its main exploration properties are CHALEUR, ANAKTALIK, AUCOIN, LABRADOR TROUGH, VOISEY'S BAY PROPERTY, DEER LAKE PROJECT, DORCHESTER, GOSHEN, EL STRATO, LONG LAKE, NOTAKWANON LAKE, TRUE GRIT, CAPE RAY, COLCHESTER, CODROY PROJECT, LONG HARBOUR, OKAK, GARLAND, KAUK, KONRAD, NOEL PAUL'S BROOK, BOBBY'S POND, LITTLE DEER, CONEY ARM and INDIAN ARM in Canada, MACARA, BELLA MARIA, MONTERREY and SIERRAMIN in Ecuador and LA FORTUNA CHILE in Chile. Cornerstone is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 1.2 billions as of today (US$ 934.1 millions, € 818.3 millions). Its stock quote reached its lowest recent point on March 04, 2016 at CA$ 0.02, and its highest recent level on September 18, 2020 at CA$ 6.53. Cornerstone has 299 560 000 shares outstanding. |