Cornerstone Authorized to Recommence Exploration at Flagship Shyri Property in Ecuador
|Marketwire.com - Jan 4, 2011
MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Jan. 4, 2011) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announced today that the Company has been authorized by the Ministry of Non-Renewable Natural Resources - Ministerio de Recursos Naturales No Renovables (MRNNR) to restart all exploration activities, including diamond drilling, in Loma Quinuas and Aguarongos, two of its three wholly-owned Gama prospect concessions in Ecuador. Additionally the Company reports that, in accordance with the new mining law and applicable regulations, it has been granted title to these mining concessions for 25 years from the date of issue, with options to renew for additional periods of 25 years.
"We are very pleased to be the first exploration company to receive full authorization from MRNNR under the new mining legislation in Ecuador," said Yvan Crepeau, President, Cornerstone Ecuador S.A. (CESA). "We have worked diligently in co-operation with MRNNR, the Ministry of Environment (ME) and the Government of Ecuador since the mining moratorium was imposed in April of 2008 to achieve this important milestone. We have great confidence in the mineral potential of Ecuador and we look forward to advancing our Gama prospect and our other highly prospective properties to create significant shareholder value for investors who have patiently supported the Company."
CESA has received all the substituted mining titles for its concessions in Ecuador and, to date, the Gama Project has obtained all the authorizations and permits required by Ecuadorean law. Approval to resume work on the other wholly owned Gama prospect concession, Gama Norte, is expected in the near future. CESA has maintained key staff in Ecuador during the mining moratorium and is well-positioned to re-activate exploration programs.
The GAMA Prospect
The Gama prospect comprises an extensive, sub-horizontal high sulphidation alteration system occurring over a minimum area of 8.5 km by 3 km within the Aguarongos concession. The strongly zoned alteration system occurs between the 3500 m to 3800 m elevations and is centered over two high level, porphyry-type intrusions. Cornerstone has completed extensive geological, geochemical and geophysical (magnetic and IP) surveys over the prospect and has outlined several high priority targets which will be the focus of the initial drilling program, details of which will be announced in the next few days. Iamgold's 3.4 million ounce Quimsacocha gold deposit occurs at similar elevations approximately 12 km southeast of Gama.
A post-mineralization, auriferous hydrothermal breccia zone at Gama, the Ermitas breccia, contains a variety of altered and mineralized fragments in a sulphide matrix. The breccia, which contains abundant silica-pyrite-enargite clasts, has returned values up to 3.8 g/t Au, 67 g/t Ag and 0.1% Cu over 1.4 m in channel samples from limited outcroppings. It is interpreted that the mineralized fragments within the breccia represent gold mineralization at depth that has been carried to the surface with the ascent of hydrothermal fluids (Press Release dated July 31, 2006 – available at SEDAR: http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00013027).
On October 29, 2009 Cornerstone and Intrepid Mines Ltd. (TSX-IAU) (ASX-IAU) announced that they had signed a binding letter of intent (LOI) outlining the terms of an option/joint venture arrangement for Cornerstone's Shyri property in southern Ecuador which includes the Gama, Vetas Grandes and Canaribamba prospects. Cornerstone and Intrepid are preparing the final terms and conditions of the earn-in and joint venture and expect to conclude a Definitive Agreement in the near future.
In a related event, Cornerstone, through its subsidiary Cornerstone Ecuador, S.A. (CESA), has served notice of the limited lifting of force majeure to Sierramin Minera SA, the original vendor of the Shyri concession. The terms of that agreement provided for payment of advance royalties to Sierramin on a certain schedule following the completion of the 100% earn-in by Cornerstone, which was announced in January 2008. These payments and other obligations were suspended during force majeure but will now resume according to the terms of the agreement.
Other Ecuador Properties
Concessions in Cornerstone's other project areas (Shyri (7), Macara (1), Monterrey (2) and Bella Maria (1)) are at an early stage of exploration. Reconnaissance work is currently ongoing on Macara in partnership with Newmont. Preliminary environmental assessments were prepared for the Vetas Grandes and Canaribamba prospects on the Shyri property in 2007 but will need to be updated according to new criteria, publicized and submitted to the ME. Authorizations to restart exploration activities on these other concessions will be announced as they are received.
The Sierramin agreement also gave Cornerstone rights to a detailed regional geochemical database comprised of over 5000 heavy mineral, BLEG, sand, silt and rock samples collected over approximately 5,500 km2 of southern Ecuador. The database had been generated in the mid to late 1990's at a cost of approximately US$1.6 million but has seen little follow-up. Cornerstone will be working to attract a partner to form a regional exploration alliance to explore the area using the database as a guide.
During the past two years CESA's team has been actively examining exploration opportunities in other mining friendly South American jurisdictions. Currently we have reached agreement on two such opportunities and upon the successful conclusion of the earn-in agreements the full details will be announced.
This press release was approved by Colin B. McKenzie, P.Geo., a Cornerstone Director and a Qualified Person in accordance with National Instrument 43-101.
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 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.
Investors can access and join the following Cornerstone social media channels:
YouTube channel (http://www.youtube.com/user/CornerstoneResource)
The direct links to recent CEO interviews are:
January 4th, 2011
November 10th, 2010
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.
On Behalf of the Board,
Glen H. McKay, 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.
For more information, please contact
Cornerstone Capital Resources Inc.
Martti Kangas, Investor Relations
North America toll-free: 1 (877) 277-8377
Direct Line: 1 (647) 521-9261
Cornerstone Capital Resources Inc.
Paul Benwell / Pat Kairns
Direct Line: 1 (514) 904-1333
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- Posted: 2011-01-04 08:22:38
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