Cornerstone Capital JV intersects copper at Cascabel
CASCABEL EXPLORATION UPDATE HOLES 18, 19 AND 20R
Cornerstone Capital Resources Inc. (CGP-TSX.V) has provided the following project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador, in which the company has a 15-per-cent interest financed through to completion of a feasibility study. SolGold Plc is funding 100% of the exploration at Cascabel and is the operator of the project.
Figures, table 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:
HIGHLIGHTS: Drill Hole CSD-16-019 (« Hole 19 ») intersects 835m of copper mineralization (estimated true width (1) of 560m) from 325.6m to current depth 1161.50m, including a more intensely mineralized section from 545.9m.
Bornite (a copper rich sulphide mineral containing 63% copper) and molybdenite are present in the mineralized section of Hole 19.
Bornite mineralization mapped at surface, and in Hole 19 to date, support the existence of Hematite Hill, Alpala Southeast, and Cristal as high priority targets over 750m of strike extension southeast of Alpala Central.
Preparations for drill rigs 4 and 5 continue ahead of drill testing the zone southeast of Alpala.
Hole 18 encountered intense veining and mineralization over 665m from 903.9m to 1568.9m, and continues at 2144.8m depth, testing the lower levels and southwestern side of the Alpala system.
Hole 20R entered brecciated (fragmented) porphyry style copper mineralization at 905.4m, approximately 200m higher than predicted, supporting the existence of widening and shallowing of the mineralized zone on the east and northeast sides of Alpala Central. Mineralization continues to current depth of 1050.0m.
(1) Estimates have been made in defining true widths due to insufficient drilling in the outer limits of the currently known extension of the Alpala deposit and drill results not having yet been assayed and interpreted. These estimates may change as more drilling is completed and results continue to be processed.
The Cascabel Project is located within the gold-rich northern section of the prolific Andean Copper belt renowned as the production base for nearly half of the world’s copper (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). SolGold holds an 85% interest in ENSA (Exploraciones Novomining S.A.) which holds the Cascabel concession.
Fourteen different targets have been defined at Cascabel and only one of these, the Alpala Deposit has been drilled to date. The deposit at Alpala continues to grow with each new drill hole. Drilling has focussed on defining the geometry of the Alpala deposit, which is open in all directions. Over 27,000m of drilling has been completed to date (Figure 3).
Planned drilling for the coming quarter focuses on expansion of the Alpala deposit as well as testing of the south easterly extensions of the greater Alpala system, at Hematite Hill and Alpala Southeast. (Figure 4).
Examples of selected mineralization in drill core intersected recently in Holes 18, 19 and 20R show copper mineralization being encountered (Figures 5, 6, 7).
Planned Drill Rig Deployment
Solgold is continuing to deploy multiple drilling rigs at Cascabel. Currently there are three operational rigs at the project and upgraded infrastructure and services will enable the deployment of two additional rigs in the next two months. Rig 1 (current) will continue testing the upward extensions of the Alpala Central deposit. Rig 2 (current) will relocate southeast of Alpala Central to the Hematite Hill area. Rig 3 (current) will continue testing the deepest portion of the Alpala Central deposit, below known mineralization. Rig 4 (proposed) is scheduled to commence in February 2017 an extensive multi-hole directional drilling program on the Alpala Deposit in February 2017. Rig 5 (proposed) is scheduled to commence in March 2017 testing of the Alpala South area, approximately 1km southeast of the current drilling area at Alpala.
Solgold plans to have 7 drilling rigs active on the project by the end of October 2017.
Planned drilling over the coming quarter is shown in Figure 8, and priority target areas along the Alpala southwesterly trend are shown in long-section view in Figure 9.
Independent Technical report on the Cascabel Project under National Instrument 43-101 and accompanying documents by SRK Exploration Pty Ltd are in preparation.
SolGold Plc owns 85% of the equity of Exploraciones Novomining S.A. (« ENSA »), an Ecuadorean company that holds 100% of the Cascabel concession in northern Ecuador. Cornerstone owns the remaining 15% of ENSA. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project. Cornerstone’s 15% interest is financed through completion of a feasibility study.
Cascabel is located 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 Aguinaga targets. SolGold has completed over 27,000m of drilling and expended over USD 35M on the program, corporate costs and investments into Cornerstone. Intense diamond drilling is planned for the next 12 months with multiple drill rigs.
The Alpala deposit is open at depth and in the upper extensions, as well as to the north, north-east, south-east and south-west. The mineralized zone at Alpala and Moran is closely modelled by magnetic signatures and currently encompasses over 10Bt of magnetic rock expected to be mineralized with copper and gold.
SolGold is focussing on extending the dimensions of Alpala before completing a resource statement and drill testing the other key targets within the Cascabel concession at Alpala Southeast, Aguinaga, Trivino, Moran, Alpala Northwest, Hematite Hill, Cristal, Parambas, Carmen, Tandayama-America and Chinambicito. SolGold is planning further metallurgical testing and completion of a conceptual early stage mine and plant design and a scoping study (which may not be the equivalent of a National Instrument 43-101 Preliminary Economic Assessment) for an economic development at Cascabel. SolGold is investigating both high tonnage / low-medium grade open cut and underground block caving operations, and a high grade / low tonnage underground development.
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 and assaying
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 LAC y Asociados ISO 9001-2008 certified sample preparation facility in Cuenca. Core samples are prepared crushing to 70% passing 2 mm (10 mesh), splitting 250 g and pulverizing to 85% passing 75 microns (200 mesh) (MSA code PRP-910). Prepared samples are then shipped to MS Analytical Services (MSA), an ISO 9001-2008 laboratory in Langley, BC, Canada where samples are assayed for a multi-element suite (MSA code IMS-230, 0.2g split, 4-acid digestion, ICP-AES/MS finish). Over limit results for Cu (>1%) are systematically re-assayed (MSA code ICF-6Cu, 0.2 g, 4-acid digestion, ICP-AES finish). Gold is assayed using a 30 g split, Fire Assay (FA) and AAS finish (MSA code FAS 111). Over limit results for Au (>10 g/t) are systematically re-assayed (MSA code FAS-415, FA, 30g., gravimetric finish).
Drill hole intercepts from the Cascabel Property 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 0.89, determined using copper price of US$2.20/pound and gold price of US$1350/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 of the holes has not been calculated by SolGold. Low-grade intersections, where applicable, are expressed as average true widths (utilizing the « B-vein > 0.5% » shell orientations). High-grade intersections are better constrained for holes 1, 5, 8 and 9, and these intersections are also expressed as average true widths (utilizing the « B-veins > 20% » shell orientations).
Quality assurance / Quality control (QA/QC)
The MSA Analytical 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) as part of Cornerstone’s QA/QC program. Rejects, a 100 g pulp for each core sample and the remaining half-core are stored for future use and controls.