Thursday's report on the drilling on the Little Deer Copper project,
located in the Green Bay mining district in central Newfoundland, was
very positive news. See
When we formed the Little Deer JV, of particular interest was the
potential to outline new copper resources in the area immediately
beneath the old mine workings extending from approximately 250 m to a
minimum of 600 m below surface and extending from L14000 E to L13400 E,
a distance of 600 m. The drilling to date has successfully demonstrated
this potential. We expect results from the ongoing directional drilling
to be available regularly over the next few weeks and months. We are
excited also about the untested targets identified by the geophysical
survey conducted on the property.
For some background information, the Little Deer copper deposit was
discovered in 1952 by Falconbridge Nickel Mines Limited. Copper ore was
mined from the Little Deer deposit during two campaigns in the 1970's.
The first extraction was conducted by British Newfoundland Exploration
Company ("BRINEX") from 1970 to 1972. Access to the deposit was
achieved via a 1,144 m long drift on the 244 m level from the adjacent
Whalesback Mine, which lies north of the Little Deer deposit on Mineral
License 12196M. BRINEX ceased mining operations at Little Deer in 1972
with the closure of the Whalesback Mine. In 1973, Green Bay Mining
Company ("Green Bay") leased the property and mined the Little Deer
deposit via a 329 m decline. Green
Bay ceased mining operations in 1974
due to low copper prices. Reserves at the cessation of mining were
quoted as 210,200 tonnes grading 1.53% Cu above the 245 m level (Kean,
B. F., Evans, D. T. W., and Jenner, G. A., Report 95-2, Department of
Natural Resources, Government of Newfoundland and Labrador, 1995).
These reserves are not NI 43-101 compliant as they are historical in
nature and therefore should not be relied upon. An independent
qualified person has not audited or classified this historical reserve
as current reserves.
An historic exploration program was undertaken on the Little Deer
property from 1998 to 2000 by Mutapa Gold Corp. ("Mutapa"). Their
consisted of geological mapping, surface and borehole geophysical
surveys and 6,815 metres of diamond drilling. Mutapa's 12 drill holes,
together with other historic BRINEX drill holes, indicate that there is
the potential to outline a significant resource of economic grade
copper mineralization below and along strike from the areas of the
Little Deer deposit that were mined previously.
(see Table 1 and Figure 2:
Recently we've announced a couple of new properties, a Potash property
in NL, and a Uranium property in New Brunswick. See
http://www.cornerstoneresources.com/s/NewsReleases.asp. There are other
potentially significant properties that we are working on that will be
announced in due course. We are also in discussion with potential JV
partners on several of our properties.
On May 14th we announced a $3M non brokered private placement
financing. ( See http://www.cornerstoneresources.com/s/NewsReleases.asp
) We have received a number of expressions of interest by phone and by
email. Any who would like to receive more information on the financing
may do so by contacting our VP Finance, David Lovey's, at
email@example.com or 1-877-277-8377 or our President & CEO, Colin
McKenzie at firstname.lastname@example.org or 1-877-277-8377.
The enthusiasm that was generated over our Shyri project in Ecuador
reflects the perception that CGP had indeed discovered a potentially
significant project in Ecuador. That project is just one of several
that we had generated, some not yet publicly announced. While things
are still unclear as to the outcome of the mining mandate and the new
mining law we are hopeful that we will be able to recommence
exploration on our various projects of merit there.
It is still a waiting game in Ecuador but during the moratorium we have
stepped up ongoing efforts to identify / acquire projects of merit in
other areas of South America. With the co-operation of our joint
venture partners in Ecuador we have maintained our key personnel and
ensured that our operational platform there is ready to go when
conditions are right. In the meantime we are hopeful that during this
period we will be able to use our Ecuador base to launch new projects
of merit in other jurisdictions.
Our website states: "Cornerstone Capital Resources Inc. has a strong
and dedicated technical team who are focused on generating new projects
that have great potential for discovery. Cornerstone leverages its own
exploration funding through joint venture and strategic partnerships,
providing shareholders with potential for success at lower risk.
Cornerstone has a diversified portfolio of gold, silver, copper,
nickel, VMS, and uranium properties in Canada and Ecuador."
There is quite a difference between a mining company and an exploration
company. As an explorer, Cornerstone looks to mining companies to earn
into our projects by funding the early stage exploration and then, if
such work is successful, by taking over management of the project to
apply its technical skills, human resources and financial strengths to
move the project through to production. Cornerstone will continue to
focus on project generation, following the JV model. While we look
forward to the day when Cornerstone will be an equity participant in
one or several mines, we do not foresee at this time Cornerstone
becoming a mine operator. We would leave that responsibility to our
partners who have all the necessary technical, human and financial
abilities to advance a discovery through to mine production.
Using OPM (other partner's money) to explore mitigates the significant
downside risks and allows us to share in potential rewards that come
with discoveries that are developed into mines. Significantly, most of
our projects are in politically stable, mining friendly jurisdictions.
We are active in four distinctly different regions; Labrador, the
Island of Newfoundland, New Brunswick and Ecuador and are working to
develop projects in a fifth region. We are building project portfolios
in each of these high potential regions and we encourage investors and
shareholders to take a closer look at them.
Glen H. McKay, Chairman
Cornerstone Capital Resources Inc.
Excellence in Mineral Exploration
"People, Process, Projects"
TSXV - "CGP" / OTC - "CTNXF"
F - "GWN" / B - "GWN"
Toll Free 1-877-277-8377
Copyright (c) 2008 CORNERSTONE CAPITAL RESOURCES INC. (CGP) All rights
reserved. For more information visit our website at
http://www.cornerstoneresources.com/ or send
Message sent on Tue May 20, 2008 at 4:00:00 AM Pacific Time