Cornerstone CEO Letter
To those of you who held on to your shares in CGP through the past
three years, we thank you for your patience and confidence. To those of
you who may be returning or to new investors, we welcome you.
We've been through a very challenging time since 2007 when the winds of
political change were strengthening in Ecuador. The moratorium imposed
on exploration and mining in Ecuador in April 2008 followed by the
worldwide meltdown in capital markets created a perfect storm that
tested our tenacity to the limit. Our commitment to realize significant
returns for our shareholders along with pure determination and careful
management helped your company persevere, and the continued support of
our JV partners underscored the high potential of our exploration
We were very pleased to put that difficult period behind us with our
January 4th announcement that we had received the long awaited approval
to proceed with advanced exploration of the Gama prospect on our Shyri
property in southern Ecuador. We expect drilling to commence early to
During 2006 and 2007 there was heightened anticipation about our Shyri
property. Several mining analysts and letter writers who had visited it
were of the opinion that all three prospects on the Shyri
Gama, Vetas Grandes and Ca�aribamba - were high priority targets.
Ongoing work completed there up until the Mining Moratorium added
positively to the database.
Based on the geological potential of that project alone, many analysts
and letterwriters were recommending CGP before the
traded as high as $0.89 at that time. One should keep in mind that the
price of gold in 2007 was about 50% of what it is today. Also your
company has many more 'irons in the fire' than it did in 2007.
To view comments by Dr. Jeffery W. Hedenquist on the Shyri property or
to view other information about the Shyri property
and its various high
potential targets, please visit
We hope to receive the required permits on our other Shyri
and additional projects in the next few weeks. Concessions covering
Cornerstone's other project areas - Shyri (7), Macara (1), Monterrey
(2) and Bella Maria (1) - are all at an early stage of exploration.
In addition to the JV with Intrepid Mines on our Shyri
reconnaissance work is currently ongoing on the Macara
Ecuador in partnership with Newmont Ventures Ltd. Over the past two
years our team has also been actively reviewing exploration
opportunities in other mining friendly South American jurisdictions. We
have reached agreements on two such opportunities and we will announce
the full details on the successful conclusion of the formal earn-in
We also have Option, JV and Alliance partnerships on five of our
projects in Atlantic Canada: 1) Thundermin Resources
Inc. on the Little
Deer Copper Project; 2) Altius Resources Inc. on the
Copper Project; 3) Vale Exploration Canada Limited on the Red Cliff --
Deer Harbour Copper Project on the Bonavista Peninsula; 4) Rare Earth
Metals Inc. on the Letitia Lake rare earth element
(REE) project in
central Labrador; and 5) Great Western Minerals Group Ltd on the
Chaleur REE project in northern New Brunswick. Cornerstone's
experienced team of geologists is also continuing to advance our
various wholly-owned properties elsewhere in Atlantic Canada.
We're particularly excited about the Little Deer JV Copper Project
located in the Green Bay Mining District of Newfoundland. Over the past
three years we've completed approximately 36,000 metres
drilling in 57 holes. In October we announced that an updated NI
43-101 compliant mineral resource estimate had been completed by Scott
Wilson RPA, with estimated Indicated Resources of 1,150,500 t at an
average grade of 2.8% Cu within the Little Deer Zone and additional
Inferred Resources of 1,227,300 t at an average grade of 2.2% Cu within
the Little Deer Zone and 1,108,200 t at an average grade of 1.9% Cu
within the Footwall Zone. Also in October, we announced excellent
metallurgical results from scoping level test work undertaken at SGS
Lakefield Research Limited. These tests indicate that a saleable, high
grade copper concentrate grading over 28% copper with over 97% recovery
and free of any deleterious elements can be produced from the Little
Deer Deposit. In December, we commenced a new 12,000 to 13,000 m
drilling program designed to expand the mineral resources. The initial
results announced in our January 20th news release support our belief
that the identified shallower mineralization has the potential to help
build the resource to the 5,000,000 tonne level we've
since we started drilling in 2007. Copper prices are forecast to remain
high in the short- to medium-term, and this combined with potential for
a high-quality product bodes well for this project.
We continue to be 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. We have great
confidence in our projects and we look forward to advancing them to
create significant shareholder value for investors who have patiently
supported the Company.
To keep updated on news from Cornerstone please ensure that you are
subscribed to our email alerts by updating your profile at
http://www.cornerstoneresources.com/s/SendMessage.asp. We also
encourage you to take the time to familiarize yourself with our other
projects and our people by visiting our website.
As usual your comments, suggestions and inquiries are very welcome.
Glen H. McKay
Executive Vice -- Chairman, President & CEO
Cornerstone Capital Resources Inc.
Excellence in Mineral Exploration
"People, Process, Projects"
TSXV - "CGP" / OTC - "CTNXF"
F - "GWN" / B - "GWN"