Cascabel Exploration Update –
Exciting Mineralization Intersected at Aguinaga –
Alpala Deposit Extends Closer to Surface –
Alpala Northwest Growing
OTTAWA, March 26, 2018 (GLOBE NEWSWIRE) — Cornerstone Capital Resources Inc. (“Cornerstone” or “the Company”) (CGP.V) (GWN.F) (GWN.BE) (CTNXF) is pleased to announce the following update on the exploration program at its Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador, in which the Company has a 15% interest financed through to completion of a feasibility study.
Figures referred to in this news release can be seen in PDF format by accessing the version of this release on the Company’s website (www.cornerstoneresources.com) or by clicking on the link below:
- Aguinaga first drill hole (AGD-18-001) intersecting porphyry style quartz veining with chalcopyrite and bornite mineralization from 295.3m depth (drilling continues).
- Alpala drilling program discovering strongly mineralized extensions outside current inferred and indicated resource blocks along the southwestern margin of the Alpala Central Deposit.
- Infill drilling within Alpala Central high-grade core expected to increase high grade resource tonnage.
Cascabel is in northwestern Ecuador in an under-explored northern section of the Andean Copper Belt, 60 km northeast of the undeveloped inferred resource of 982 million tons at 0.89% Cu Llurimaga (formerly Junin) copper project1 (Figure 1).
Over 92,500m of drilling has been completed on the project. Currently, 12 drill rigs are active on site, with 11 Rigs drilling along the Alpala trend (Figure 2), and one drilling at the Aguinaga prospect (Figure 3). The Cascabel drill program for 2018 comprises over 120,000m of drilling that focuses on extending the Alpala Resource southwest, northwest and southeast, as well as further drill testing of the Aguinaga prospect.
Aguinaga Drilling Program
Drill hole 1 at Aguinaga is at a current depth of 358m, intersecting a quartz-diorite intrusion containing porphyry-style veins containing chalcopyrite and trace molybdenite and bornite mineralization from 295.3m depth as drilling continues (Figure 4). The abundance of porphyry-type quartz veins, visual estimations of volume-percent chalcopyrite and the chalcopyrite-pyrite ratio increase down-hole.
The quartz-diorite intrusion intersected is thought to represent the same intrusion that hosts the mineralization discovered at surface which returned open-ended rock-saw channel sample results of 9.0m @ 1.01% Cu, and 0.79 g/t Au (see Cornerstone news release 15-24 dated November 13, 2015).
Hydrothermal wall-rock alteration assemblages observed in Hole AGD-18-001, indicative of a mineralization system, have become increasingly high-temperature with depth, progressing from chlorite propylitic, through epidote-propylitic and actinolite-propylitic to potassic alteration at the current depth.
SolGold geologists interpret that drilling is advancing towards higher temperature parts of the Aguinaga porphyry system, and mineralization continues to increase with depth. Initial planned drill hole depth for AGD-18-001 is 1000m but may be extended, dependent on results.
Alpala Resource Additions
Assay results from the initial 53,616m of drilling at Alpala were incorporated into the Alpala maiden Mineral Resource Estimate (MRE) completed in December 2017 and announced on January 3, 2018. A further 38,884m of drilling has been completed since development of the MRE, and major resource growth is expected for the coming year.
Highlights of recent assay results expected to add to the MRE are summarized in (Table 1).
Further drilling intersections of copper sulphide mineralization from recently completed holes, awaiting assay results at Alpala, include:
- Hole 37 (Alpala NW): 960m (true width 384m) of copper sulphide mineralization from 1367m depth (assay results pending from 2028m to end of hole at 2547m).
- Hole 36-D1 (Alpala NW): 577m (true width 230m) (open at depth) of copper sulphide mineralization from 1646m depth.
- Hole 29-D5 (Alpala East): 205m (true width 82m) of copper sulphide mineralization from 1109m depth.
- Hole 42 (Alpala Central): 862m (true width 344m) of copper sulphide mineralization, including bornite, from 309m depth.
- Hole 43 (Alpala Central): 895m (true width 358m) of copper sulphide mineralization, including bornite, from 664m depth.
These intersections indicate extension of high grade mineralization outside current inferred and indicated resource blocks along the southwestern margin of Alpala Central, and current infill drilling within the Alpala Central high-grade core is expected to increase the high-grade resource tonnage (Figure 5).
The maiden MRE included high-grade resources of 70MMt of indicated resources at 1.1% Cu and 1.3 g/t Au (1.8% Cu equivalent) and 50MMt of inferred resources at 1.1% Cu and 1.3 g/t Au (1.8% Cu equivalent). An increase to the resource is expected over the coming year through further drilling, as indicated in Figure 5.
Mature Satellite Targets
SolGold has drill tested 7 of 15 copper-gold targets delineated within the 50km2concession(Figure 6), with the Alpala Porphyry Cluster being the primary focus to date. Untested satellite targets at Moran and Tandayama-America have matured to drill ready status with drill testing planned for 2018. Drill targeting studies are currently underway for satellite targets at Chinambicito, Alpala South, Parambas and Cristal, all expected to mature to drill ready status in 2018.
About the Cascabel Joint Venture with SolGold:
Exploraciones Novomining S.A. (“ENSA”), an Ecuadorean company owned by SolGold Plc and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold’s fully funding the project through to feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project. SolGold shall receive 90% of Cornerstone’s distribution of earnings or dividends from ENSA to which Cornerstone would otherwise be entitled until such time as the amounts so received equal the aggregate amount of expenditures incurred by SolGold that would have otherwise been payable by Cornerstone, plus interest thereon from the dates such expenditures were incurred at a rate per annum equal to LIBOR plus 2 per cent until such time as SolGold is fully reimbursed.
Logging, sampling, assaying and reporting
Holes referred to in this release were or are being drilled using HTW, NTW, NQ and BQ core sizes (respectively 7.1, 5.6, 4.8 and 3.7 cm diameter). Geotechnical measurements such as core recovery, fracturing, rock quality designations (RQD’s), specific gravity and photographic logging are performed systematically prior to assaying. The core is logged, magnetic susceptibility measured and key alteration minerals identified by experienced loggers and sometimes using an on-site portable spectrometer. Core is then sawed in half at the ENSA core logging facility, and half of the core is delivered by ENSA employees for preparation at ALS Minerals Laboratories (ALS) sample preparation facility in Quito. Core samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (ALS code CRU-31, SPL21 and PUL-32). Prepared samples are then shipped to ALS in Lima, Peru where samples are assayed for a multi-element suite (ALS code ME-MSP61, 1g split, 4-acid digestion, ICP-MS finish). Over limit results for Ag (> 100 g/t) and Cu, (> 1%) are systematically re-assayed (ALS code Ag-AA62, 4-acid digestion, AAS finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AA finish (ALS code Au-AA23).
Quality assurance / Quality control (QA/QC)
The ALS Laboratory is a qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used (1 control sample every 15-20 samples). Rejects, a 100 g pulp for each core sample and the remaining half-core are stored for future use and controls.
Yvan Crepeau, MBA, P.Geo., Cornerstone’s Vice President, Exploration and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Cascabel project for Cornerstone and has reviewed and approved the information contained in this news release.
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven ability to identify, acquire and advance properties of merit.
Further information is available on Cornerstone’s website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333
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This news release may contain ‘Forward-Looking Statements’ that involve risks and uncertainties, such as statements of Cornerstone’s plans, objectives, strategies, intentions and expectations. The words “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “expect,” “may,” “project,” “plan,” and similar expressions are intended to be among the statements that identify ‘Forward-Looking Statements.’ Although Cornerstone believes that its expectations reflected in these ‘Forward-Looking Statements’ are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views after the date of this news release. 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,
President and CEO
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1 0.4% Cu cut-off grade; Micon International Co. Ltd. Technical Report for Ascendant Exploration SA, August 20, 2004, pages 28 & 29. Mineralization identified at the Llurimaga copper project is not necessarily indicative of the mineralization on the Cascabel Property.