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Press Releases - Tuesday, May 15, 2007
07-11 - Mountain Lake signs JV Agreement and Commences Drill
Program on Cornerstone Property adjacent to Bobby's Pond
Zinc-Copper Deposit in Central Newfoundland
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. (TSXV-CGP)
(OTC-CTNXF) (F-GWN) (B-GWN) today announced that Mountain Lake
Resources Inc. (TSXV-MOA) will commence drilling on Cornerstone's 100%
owned Bobby's Pond claims in Central Newfoundland. The announcement
follows finalization and signing of an option and joint venture
agreement between the two companies. The Cornerstone property
comprises 62 claims extending both northeast and southwards from
Mountain Lake's 2.4 sq km Bobby's Pond mining
lease where ongoing
drilling is defining a significant zinc-copper-volcanogenic massive
sulphide (VMS) deposit.
On February 7, 2007, Mountain Lake reported the results of a January
2007 mineral resource estimate update that increased the NI43-101
compliant resources in the Bobby's Pond deposit to a total of 1,340,000
tonnes (Indicated and Inferred), consisting of 860,000 tonnes in the
Indicated category grading 0.93% Cu, 6.30% Zn, 0.53% Pb,
20.0 g/t Ag,
and 0.24 g/t Au, and 480,000 tonnes in the Inferred category grading
1.07% Cu, 6.36% Zn, 0.38% Pb, 15.0 g/t Ag, and 0.18
g/t Au.
Mountain Lake plans to drill three holes totaling 750
metres on the
Cornerstone claims, with the drill program commencing immediately.
Cornerstone's Bobby's Pond claims host VMS-style alteration and
disseminated and stringer zinc-copper mineral occurrences identified in
widely spaced INCO drill holes completed in the late 1980's. The INCO
drill holes encountered mineralization similar to that situated
immediately adjacent to the Bobby's Pond deposit. Go to
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136409
for a map of the property.
The option agreement gives Mountain
Lake the right to earn a
51%
interest in Cornerstone's claims by spending $2.75 million on
exploration over five years. The first year's $150,000 expenditure is
a firm commitment and includes completion of a diamond drilling
program. The agreement also calls for Mountain Lake
to issue 200,000
common shares to Cornerstone over five years, including 25,000 to be
issued on the acceptance of the agreement by the TSX Venture Exchange.
With an active exploration program already underway on its Bobby's Pond
mining lease, Mountain
Lake will be operator of
the joint venture
during the earn-in period.
When Mountain Lake earns a 51% interest, a Joint
Venture will be formed
whereby each party will have the right to maintain its respective
interest by funding its share of exploration costs. The agreement also
gives Mountain Lake the right, subject to certain
conditions, to
increase its interest to 75%. Either party may dilute its interest,
based on exploration expenditures. If either party's interest falls to
10% or less, its interest will convert to a 2% NSR, which is subject to
buy-out provisions.
Bobby's Pond is one of a number of active projects in the Buchan's area
of Central Newfoundland known for its base and
precious metal-rich VMS
deposits, most notably the renowned and historic Buchan's deposits
themselves. The Bobby's Pond project is located 25 km to the west of
Aur Resources' Duck Pond deposit, which is in
commercial production,
and 50 km
northeast of Messina Minerals' Tulks South property,
the site
of their 2004 Boomerang and subsequent discoveries.
Mr. Jamie Meyer, PGeo, of Mountain Lake Resources, is
the Qualified
Person on the Bobby's Pond project. He has reviewed and verified the
contents of this news release.
Cornerstone Capital Resources Inc. is a mineral exploration company
based in Mount Pearl, Newfoundland
& Labrador, Canada, with
a
diversified portfolio of projects in Canada
and Ecuador.
The company's
business model is based on generating exploration projects whose
subsequent development is funded primarily through joint venture
partnerships. In addition to Mountain Lake Resources, Cornerstone's
current and past joint venture partners include Agnico
Eagle, Celtic,
Cash Minerals, Candente, Coastport,
Cogitore, Falconbridge, Inmet,
Kermode, Moydow, Noranda,
Phelps Dodge, and Thundermin.
On Behalf of the Board,
Glen H. McKay
President & CEO
Further information is available on the Cornerstone Web site at
www.cornerstoneresources.com; via e-mail at communications@crigold.com;
or toll free at 1-877-277-8377.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
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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 Tue May 15, 2007 at 5:00:00 AM Pacific Time
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