Cascabel Exploration Update – Hole 24 at Alpala SE intersects copper sulphide mineralization, extending length of the Alpala Deposit by 570m
OTTAWA, ONTARIO–(Marketwired – Apr 13, 2017) – Cornerstone Capital Resources Inc. (« Cornerstone » or « the Company ») (TSX VENTURE:CGP)(GWN.BE)(GWN.BE)(CTNXF) announces the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador.
Figures and photographs 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:
- Hole 23R intersects mineralized volcanic and fragmented (breccia) rocks, with increasing chalcopyrite and molybdenum mineralization. Hole 23R, at a current depth of 579.1m, is planned to intersect untested mineralization from approximately 700m depth to approximately 1800m below surface and has a planned hole depth of at least 2000m.
- Hole 24, Alpala Southeast, at a current depth of 868.7m, is intersecting chalcopyrite mineralization and multi-directional porphyry style quartz-chalcopyrite-bornite veining. Copper sulphide mineralization, with low pyrite content, below 738.9m, indicates probable proximity to the core of the Greater Alpala Porphyry System.
- Hole 24 extends the Alpala Deposit by 570m southeast of Hole 23R and extends the known length of the mineralized corridor at Alpala to approximately 1200m from Hole 13 in the northwest, inferring a length of 1300m.
- Hole 25, Hematite Hill, at a current depth of 847.0m, is intersecting multi-directional stockwork veining with chalcopyrite and bornite mineralization from 772.2m depth.
- Hole 25 extends the Alpala Deposit approximately 250m to the southeast of Hole 23R.
- Bornite mineralization with magnetite and potassic alteration in Holes 24 and 25 indicate probable proximity to the high temperature core of the Alpala system and are consistent with the 3D Magnetic model at Cascabel.
- Fourth man-portable rig being mobilized to site ahead of the arrival of Rigs 5, 6 and 7 over the coming two quarters.
- Drill testing to expand to high priority targets at Alpala East, Alpala West, Carmen, Triviño and Aguiñaga by mid-year.
The Cascabel Project is located within the gold-rich northern section of the Andean Copper belt (Figure 1). The project area hosts mineralization of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte, in northwestern Ecuador just west of the City of Ibarra, approximately 3 hours’ drive north of Quito and close to water, power supply and Pacific Ports (Figure 2).
Fifteen individual targets have been defined at Cascabel. SolGold has successfully drill tested three of the fifteen targets, being Alpala Central, Alpala Northwest, and Hematite Hill. Drill testing of a fourth target, at Alpala Southeast is currently under way (Hole 24) (Figure 3). Current drilling focuses on defining the geometry of the growing Alpala deposit, which is open in virtually all directions. Over 34,000m of drilling has been completed to date, and the arrival of Rigs 4, 5, 6 and 7 over the coming two quarters will see drill testing expanding to Alpala East, Alpala West, Triviño and Aguiñaga by mid-year. The drilling program expands towards eight drilling rigs by year end, which will also see drill testing of the Tandayama-America prospect. (Figure 4).
Hole 23 (CSD-17-023) at Alpala Northeast was abandoned at 159.0m depth after drilling contractors experienced technical difficulties downhole, and was redrilled as Hole 23R (CSD-16-023R) which continues drilling near vertical at a current depth of 579.1m testing approximately 125m below and in between Holes 12 and 16. To date, Hole 23R has intersected hydrothermal breccia and strong phyllic alteration, with the presence of clasts of mineralized porphyry within the breccia. Hole 23R is being drilled sub-vertical to intersect deep untested pockets of mineralization up to 1800m below surface and has a planned hole depth of approximately 2000m. Position of Hole 23R is shown in cross-section A-A’ in Figure 5. Mineralization is increasing with depth in Hole 23R.
Hole 24 (CSD-17-024) continues drilling at Alpala Southeast, at a current depth of 868.7m testing approximately 570m to southeast of Hole 23R. Hole 24 confirms the extension of the known mineralized corridor at Alpala to approximately 1300m from Hole 13 in the northwest. Drill core from Hole 24 below 738.9m shows strong chalcopyrite and bornite mineralization with significant magnetite, and low pyrite content, indicating probable proximity to the predicted copper and gold rich core of the greater Alpala Porphyry System.
Hole 24 lies approximately 100m north of Malte Creek, where chalcopyrite and bornite mineralization was noted in surface geological mapping. The Alpala Southeast prospect area is characterised by coincident Molybdenum and Copper/Zinc soil geochemical highs, as well as intense and advanced argillic alteration identified from soil auger chip spectral analysis. High dickite and pyrophyllite clay content, mark high temperatures of formation typical of that surrounding a porphyry core. Surface indications are being confirmed by drilling. Hole 24 has a planned hole depth of at least 2000m. Selected examples of mineralization encountered in Hole 24 are shown in Figure 6.
Hole 25 (CSD-17-025), at Hematite Hill, is intersecting multi-directional stockwork veining with chalcopyrite and bornite mineralization from 772.2m depth to the current depth of 847.0m. Hole 25 has a planned hole depth of at least 2000m. Selected examples of mineralization encountered in Hole 25 are shown in Figure 7.
Solgold has completed the ground magnetic survey over Cascabel, and preparations are being finalized to commence a detailed Orion-Spartan 3D IP survey across most of the concession (Figure 8). Processing of this improved magnetic data is underway and this work will not only augment the existing geophysical targets at Alpala and Aguiñaga, but further investigate the promising Tandayama-America anomaly and other satellite targets on the property. Following analysis of these datasets, Solgold will further refine drill targets along the Alpala cluster, as well as those at Moran, Aguinaga, and Tandayama-America. A ‘LIDAR’© topographic control survey is being planned for commencement mid-year.
The presence of magnetite with chalcopyrite and bornite with potassic alteration endorses the predictive nature of the 3D Magnetic model at Cascabel. The magnetic bodies at Alpala, Moran and Aguiñaga envelope represent approximately 15 billion tonnes of untested magnetic rock.
Upgrade and expansion of site facilities are well underway at Cascabel as the project continues to expand towards 7 rigs by October and 10 rigs next year. The geology team have yet to define the extents of the Alpala porphyry system, and the deposit remains open in most directions, continuing to grow with each new drill hole. An aggressive drill program, producing approximately 90,000m of diamond drill core per annum from early 2018 is planned to delineate the system limits along the greater Alpala trend prior to a maiden resource statement, and to test the other multiple targets within the concession. An increasing understanding of the deposit is now leading to much larger step-outs in drilling as Solgold directs its program towards the copper and gold at a predicted large and rich heart of the Alpala system.
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 Plc is funding 100% of the exploration at Cascabel and is the operator of the project.
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 project (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.
To date SolGold has completed geological mapping and soil sampling over 25 km2, along with and an additional 9km2 of Induced Polarisation and 14km2 Magnetotelluric « Orion » surveys over the Alpala cluster and Aguiñaga targets. SolGold has completed 34,000m of drilling and expended over USD 4M on the program, corporate costs and investments into Cornerstone. Diamond drilling is planned for the next 12 months with multiple drill rigs.
The Company is currently planning further metallurgical testing and completion of an independent Pre-Feasibility Study at Cascabel (which may or may not be the equivalent of a National Instrument 43-101/CIM definition standards Pre-Feasibility Study). SolGold is investigating both high tonnage open cut and underground block caving operations, as well as a high grade / low tonnage initial underground development towards the economic development of the copper gold deposit/s at Cascabel.
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.
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 density and photographic logging are performed systematically prior to assaying. The core is logged, magnetic susceptibility measured and key alteration minerals identified 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).
Drill hole intercepts are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.63, determined using an updated copper price of USD3.00/pound and an updated gold price of USD1300/ounce. Copper equivalent calculation assumes 100% recoveries of copper and gold.
All reported drill core intervals from the Cascabel Property are core lengths, unless otherwise indicated. At present the true thicknesses of all the holes has not been calculated by SolGold. True width of down hole intersections is estimated by SolGold to be approximately 25-50% of the core length.
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.
Cornerstone Capital Resources Inc. is a well-funded 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. The company’s business model is based on generating exploration projects whose subsequent development is funded primarily through partnerships.
Further information is available on Cornerstone’s website: www.cornerstoneresources.com and on Twitter.
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On Behalf of the Board,
President and CEO
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