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Re: Thursday, November 08, 2007
Cornerstone Monthly Review
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Dear Shareholder or Subscriber,
We are very pleased to report on progress on our advanced and
generative projects. In addition to JV funded drilling projects
Cornerstone and/or its partners have been active on other JV projects
and several new, generative projects.
Ecuador:
We start off this month in the South. After months of uncertainty we
are very pleased that there appears to be a basis for confidence that
the situation is improving and will continue on that path for the
mining and exploration sector in Ecuador. You may find the article at
http://www.ecuadorminingnews.com/news.php?id=68 of interest. In it
President Correa is reported to have said, "Yes to mining, but with the
adequate controls, with the adequate community consultations,
respecting the community, the environment and the state," This
indicates that if these four points are fulfilled, mining will be
welcomed in Ecuador. Another article on the subject can be found at
http://www.easybourse.com/Website/dynamic/News.php?NewsID=335540
This is very good news for companies such as Cornerstone. We have
worked hard to perform beyond compliance in all these areas and we
believe that we are recognized within Ecuador for having done so. We
won't be surprised if events in the country, such as protests by
anti-mining groups or project delays, cause further negative press but
the consistent message from relevant government authorities are that
mining development, in company with other forms of economic
development, is welcome as long as it is carried out in an appropriate
manner. We are confident that our projects will meet or exceed those
standards and controls.
Shyri Gold project in Ecuador which is under JV with Coastport Capital.
-- A 15,000 m drill program has been planned and will commence upon
receipt of drill permits. Cornerstone has initiated and is progressing
through the process required to obtain drill permits and we will issue
a News Release when they are obtained. (Location -- contiguous with
Iamgold's Quimsacocha gold project in Ecuador, which hosts 3.4 million
oz. gold)
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136203
La Plata VMS project in Ecuador which, until recently was under JV with
Coastport. Cornerstone has the right to earn a 51% interest in La Plata
by issuing US$125,000 and a number of Cornerstone shares to a value of
US$125,000. -- A field program designed to further assess several
untested coincident geophysical and geochemical anomalies was completed
this summer. A positive report by Cornerstone's VMS consultant, Dr. Jim
Franklin, based on the work of Bruce Mitton, Cornerstone's Exploration
Manager for Canada, is under consideration. If a decision to reactivate
the drilling program is made, the timing of the resumption of the
remaining 4,585 m from the Phase Two 8,000 m program will be subject to
equipment availability. We are also entertaining expressions of
interest from four potential JV partners. (Location -- Macuchi
Zn-Cu-Pb-Au-Ag Mining District in Ecuador)
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136199
Macara Gold project in Ecuador. -- Upon execution of the definitive
agreement, Newmont, http://www.newmont.com/en/index.asp, will do a $1M
private placement in Cornerstone priced at a premium to market. These
funds will be spent on a Phase I program evaluating a large prospective
area of Southern Ecuador for gold. If they elect to go into Phase II
they then can earn 51% by spending $3M over 4 years on any projects
that Cornerstone identifies within the Macara project area that meets
their bar. Cornerstone will have access to Newmont technologies that
have proven mine-finding capabilities. (Location -- Southern Ecuador
extending to the Peru border)
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136201. This
map will also help you to see the Macara project geographically in
relation to other projects in Ecuador.
We are very pleased with this deal for these reasons:
1. By choosing to partner with Cornerstone it's an endorsement of
Cornerstone in Ecuador. Cornerstone is their partner of choice.
2. It's an endorsement of Cornerstone's technical abilities to generate
high quality early stage exploration projects.
3. It suggests they are impressed with Cornerstone's operating
capabilities in Ecuador. This is significant because Cornerstone has
been there only since 2005.
4. It's an endorsement of the technical merits of the Macara project.
5. The $1M financing with a 20% premium (it will be done at approx
$0.83) is an endorsement of Cornerstone corporately, and what
Cornerstone has in the pipeline, especially upcoming drilling on the
Shyri gold project which is in Ecuador and near to Iamgold's
Quimsacocha project.
6. It's an endorsement of Ecuador's mineral potential.
7. It's a positive statement about the political risk and the future of
mining in Ecuador.
8. They are the first major producer to enter Ecuador in this cycle and
they are doing it with Cornerstone.
In addition to work on the these projects, Cornerstone has initiated
work programs on several 100% owned properties in Ecuador, including
the Caymatan Gold-Silver project, aimed at advancing the properties to
the joint venture stage. We are also active acquiring other projects of
merit, which will be reported on in due course.
.. Cornerstone has concession holdings in southern Ecuador comprising
more than 130,000 ha. In addition, we have a database comprising more
than 5000 BLEG, sand, silt, HM, samples covering over 550,000 ha in
several areas considered highly prospective for epithermal and porphyry
deposits. The database was instrumental in generating our Shyri and
Macara projects. We are in the process of developing a comprehensive
regional program to use these data to develop new projects.
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136195
Newfoundland:
Bobby's Pond VMS project in Newfoundland which is under JV with
Mountain Lake Resources (MLR). -- On July 26th Mountain Lake Resources
Inc. (TSX-V: MOA) announced that it had encountered widespread base
metals in two of the three holes completed on the Cornerstone claims.
Targeting for additional drill holes will be determined once the
results of the downhole Pulse EM survey, which is soon to commence,
have been received. Mountain Lake have stated that for the remainder of
this year, attention will be focused on field programs to generate
targets for drill testing on the Cornerstone Option to the northeast of
Mountain Lake's 100% owned mining lease. We are very pleased with the
results from this, our first drill program this season.
http://www.cornerstoneresources.com/s/NewsReleases.asp (Location --
Buchan's Zn-Cu-Pb-Au-Ag Mining District in Newfoundland)
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136409
Little Deer Copper Deposit in Newfoundland which is under JV with
Thundermin Resources (the third JV between Cornerstone and Thundermin).
-- On October 31st the first results were announced. Significantly,
three of the five holes hit the target with encouraging results. The
other two holes deviated and missed the target zone. Future drilling
may include re testing of the zone not encountered in the two deviated
holes. (Location -- Green Bay Cu-Au Mining District in Newfoundland).
The LDJV partners feel that the Little Deer deposit has potential to be
expanded and we look forward to receiving additional assay results from
ongoing drilling. (See
http://www.cornerstoneresources.com/s/NewsReleases.asp &
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=183644)
Garland Lake Nickel project in Labrador which is under JV with Celtic
Minerals. -- On August 22nd Celtic announced that a 750 m two-hole
drill program had commenced. News of the program will be released as
it made available by Celtic. (Location -- Voisey's Bay Ni-Cu-Co Mining
District in Labrador)
http://www.cornerstoneresources.com/s/Labrador.asp?ReportID=136483
Deer Lake Uranium: The airborne radiometric survey that Cornerstone is
funding on the Deer Lake Uranium project has been completed. We will
issue a news release upon receipt of the full interpretation of the
results. The Deer Lake Uranium project consists of 798 map-staked
claims covering 199.5 km2 of the Carboniferous-aged Deer Lake Basin.
The basin is part of the much larger Maritime Basin which underlies
parts of Western Newfoundland and extends through Nova Scotia, Prince
Edward Island and New Brunswick.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=168321
Burin Gold Projects: A significant new early-stage gold-copper
exploration program was completed this field season on the Burin
Peninsula and we are awaiting all assay results from the lab. The
focus of this initiative is a 100 km long belt where limited historical
work identified three large gold bearing alteration systems, each of
which covers an area greater than 10 km2. These prospects occur within
a geological environment that is geologically equivalent to the terrane
which hosts the 1.6 million ounce (now mined) Hope Brook Gold Deposit.
The primary targets are epithermal-style gold-silver and porphyry-style
gold-copper mineralization. Early results are encouraging.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=182453
Long Lake VMS: In our May 7th release we noted with regard to the Long
Lake project which is under JV with Cogitore: "The (2006) drilling
returned broad intersections of altered and mineralized felsic
volcanics including several narrow sulphide stringers that gave assays
up to 3.2% Zn over 0.2 m. The partners are planning to soon conduct a
down-hole EM survey." Further drilling will be determined by the
results of that the down-hole survey. The survey has been contracted
and equipment is now available.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136422
Labrador:
Aillik Uranium:
Cash Minerals has advised us that the airborne survey was completed but
the interpretation is not yet done. They have had to postpone the
ground geophysical work until early next year due to weather. We are
quietly excited about the potential of this property, and are looking
forward to 2008 and a drill program on this highly prospective
property. (Location -- Michelin basin in Labrador contiguous with
Aurora's Michelin project).
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=168321
Nickel Projects: The summer work programs have been completed and we
will report on them when the results are available.
http://www.cornerstoneresources.com/s/Labrador.asp?ReportID=136436
New Brunswick:
Dorchester and Goshen Copper: On August 29 we announced a new agreement
with Phelps Dodge Corporation of Canada, Limited (the third JV between
Cornerstone and Phelps) to explore for copper in New Brunswick, on the
Dorchester and Goshen projects.
http://www.cornerstoneresources.com/s/NewsReleases.asp This is the
third time that Cornerstone has entered into an exploration agreement
with Phelps Dodge, now a subsidiary of Freeport McMoRan Copper & Gold
Inc., and we are very pleased to be working with them again, especially
on our first JV project in New Brunswick. For more information go to
http://www.cornerstoneresources.com/s/Newbrunswick.asp?ReportID=171723
Dorchester Copper Project The field program conducted this season has
increased the understanding of the geology of this property. A soil
geochemistry survey was completed over the favorable horizon that
extends 7km northward from the past producing Copper mine. We are
awaiting these geochemistry results from the lab.
Goshen Copper Project Similar to the Dorchester property, this summers
field work on the Goshen Copper Project has increased the understanding
of the project's geology and mineral potential. Additional field work
is planned for this month.
Elgin Uranium: Cornerstone will be commencing field exploration
programs shortly on the Elgin Uranium project to investigate the source
of the historic airborne radiometric anomaly.
Commentary:
On November 2nd Cornerstone announced the appointment of Ian Slater as
Director and had made changes to the Management and Boards of
Cornerstone Ecuador SA (CESA) and La Plata Minerales SA (LPSA). These
are very positive developments for your company. Ian is President and
CEO of Fortress Minerals Corp, a Lundin Group company. He brings with
him a wealth of experience that will strengthen the Board and we expect
that a closer relationship with the Lundin Group will be beneficial.
On the same date we announced that Mr. Yvan Crepeau had been named a
Director and President of CESA and LPSA, and Mr. C�sar Zumarraga had
been appointed Vice President of each in addition to his duties as
Director. Mr. David Loveys (our CFO, Director and VP Finance) is
appointed a Director of CESA and LPSA, joining Mr. Zumarraga and Ms.
Mar�a Antonieta Loza Laspina to make up the Board of Directors of each
company. We are positioning CESA to operate as an Ecuadorian full
fledged operating entity and have attracted the talent necessary to
achieve that goal.
In all jurisdictions in which we operate we have acquired an excellent
portfolio of projects and the people with the talent and the partners
with the resources to move them forward. My personal expectation is
that during 2008 Cornerstone will see drilling conducted on several of
its projects in all four jurisdictions.
We continue to be very active in discussions with and hosting property
visits by potential JV partners in all four areas in which we are
operating. We expect to be in a position to announce additional
agreements within the next several weeks.
For further information on all Cornerstone projects please visit
http://www.cornerstoneresources.com/s/Projects.asp.
Market Awareness:
We participated as an exhibiter in the 2007 New Orleans Investment
Conference on October 21-25, and as an invited exhibiter in the Casey
Research Crisis & Opportunity Summit on October 26 & 27 in Denver,
Colorado. From October 31 -- November 3 we attended and presented at
the annual CIMM held in St. John's, Newfoundland and Labrador. Renmark
Financial also facilitated road shows in Quebec City, Sherbrook,
Montreal and Laval during October and early November.
On November 18 & 19 we will be participating in the San Francisco Hard
Assets Conference.
For those who like to keep updated on trading statistics, for the ten
month period January through October 2007 a total of 35,477,978
Cornerstone shares traded at an average price of $0.71. During October
a total of 4,211,355 Cornerstone shares traded at an average price of
$0.74
As usual your comments, suggestions and inquiries are very welcome.
Best regards.
Glen
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Copyright (c) 2007 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 Thu Nov 8, 2007 at 6:00:00 AM Pacific Time
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