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Re: News - Tuesday, June 22, 2010
10-13 - Cornerstone provides exploration update on the El Strato
gold property in Newfoundland
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc.
(TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) reports that it has identified
new gold targets from its recent exploration programs on the El Strato
gold property located in north-central Newfoundland. The property
comprises 169 mineral claims (42.25 km2) which lie immediately east of
the Baie Verte Line, a major regional tectonic suture which, along with
subsidiary structures, is a classic environment for orogenic gold
deposits such as those of the Mother Lode gold district of California.
Overview
The El Strato property is underlain by Early Ordovician to Early
Silurian mafic volcanic rocks, and lesser felsic volcanic rocks,
sedimentary conglomerates and gabbroic intrusions all of which are
intruded in the eastern portion of the property by the Early Silurian
Burlington Granodiorite. The Micmac - Flat Water fault, a splay
structure of the Baie Verte Line, as well as a number of smaller faults
and shear zones, strike north-northeast through the property.
High grade gold mineralization was first discovered on the property by
Noranda Exploration Company, Limited ("Noranda") in the late 1980's
with discovery of the El Strato and Voodoo gold showings. The El Strato
showing consists of a narrow (less than or equal to 0.75 m wide) base
metal (Zn, Pb � Cu) rich quartz vein within silicified and pyritized
mafic volcanic rocks. Historical assay results at the El Strato showing
include up to 155.7 g/t Au in grab samples, 17.5 g/t Au over 0.55 m in
channel samples and 9.96 g/t Au over 0.3 m in drill core. The Voodoo
showing, located 830 m north-northeast of the El Strato showing,
consists of numerous angular base metal rich quartz vein boulders
ranging up to 2 m in diameter. Historical grab samples of the boulders
have returned from 0.4 to 105.2 g/t Au.
Diamond drill holes which
tested the area of the boulders have returned anomalous gold values
over narrow widths (e.g. 0.3 g/t Au over 1.1 m and 3.7 g/t Au over 0.6
m). However, the low base metal content and narrow width of the veins
encountered in drill holes indicate that these are not the bedrock
source of the high grade boulders. A gold grain study and geological
interpretations by Noranda indicated a possible source to the west
under Micmac Lake. Several additional high grade gold showings have
been discovered elsewhere on the property, with grab samples commonly
returning from 5 to 67 g/t Au.
Previous exploration programs in the southern portion of the El Strato
property have included induced polarization (IP) and soil geochemistry
surveys which successfully identified a number of north-northeast
striking IP chargeability anomalies, many of which have strong
coincident gold-in-soil geochemistry anomalies. Historical drill
testing of the anomalies (4,662 m in 31 holes) has met with some
success, with significant gold mineralization encountered over narrow
widths (best assay of 10.6 g/t Au over 1.13 m). However, drill testing
has been restricted to only shallow depths (generally less than or
equal to 100 m vertical) and has focused primarily within 1.9 km of a
more than 15 km favorable strike length. Furthermore, the presence
locally of larger veins (8 m wide Mega Vein) and broad zones of
silicified and sericitized rock indicate that potential exists for
larger mineralized vein and alteration systems.
Current Exploration Program and Plans
During the first half 2010, Cornerstone completed a 25.75 line km
dipole-dipole IP survey and a 631 sample, B-horizon soil geochemistry
survey southwest of the El Strato and Voodoo gold showings.
Cornerstone's geophysical consultant identified a total of fifty-one
shallow (generally less than or equal to 15 m vertical) IP
chargeability anomalies, most of which define two main IP anomaly
trends, informally referred to as the Rocky Bottom and DD trends. The
Rocky Bottom trend is 1.75 km long and has coincident gold-in-soil
anomalies over its entire strike length. The most pronounced anomalies
are at its southern end where thirteen soil samples exceeded 100 ppb Au
and the three highest returned 1,211 ppb, 1,453 ppb and 2,098 ppb Au.
The northern portion of the Rocky Bottom trend has been drill-tested by
a number of historical holes but the middle and southern 1.2 km of the
trend have been tested only by two short drill holes, which intersected
0.3 m and 0.7 m mineralized zones. The DD trend is a newly identified
1.25 km long IP chargeability anomaly which lies on a small peninsula
500 m west of the El Strato showing and 500 m southwest of the Voodoo
showing. Gold-in-soil values over this IP anomaly are not anomalous
with the exception of a single sample which returned 63 ppb Au. This
zone has not been previously trenched or drill tested.
Cornerstone is currently planning an early summer mechanical trenching
program, which will provide a surface test of up to eight selected
anomalies as well as aid in understanding the structural controls on
the mineralized quartz vein systems. Trenching will be followed by a
1,000 m drill program designed to test the highest priority targets.
Soil samples were prepared and analyzed at Eastern Analytical Ltd., an
independent and qualified analytical laboratory located in Springdale,
Newfoundland. Samples were dried and screened to -80 mesh, and were
analyzed for gold by fire assay with AA finish, and 30 additional
elements by aqua regia digestion and ICP-ES finish.
This press release was prepared by Terry Brace, P.Geo., Cornerstone's
VP Exploration and a Qualified Person in accordance with National
Instrument 43-101.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company
based in Mount Pearl, Newfoundland and 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:
Martti Kangas,
Investor Relations
North America toll-free: 1 (877) 277-8377
Direct Line: 1 (647) 521-9261
Email: communications@crigold.com
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 except where outcomes have varied materially from the original
statements.
On Behalf of the Board,
Colin B. McKenzie
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.
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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 Tue Jun 22, 2010 at 5:15:00 AM Pacific Time
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