OTTAWA, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Cornerstone Capital Resources Inc. (“Cornerstone” or “the Company”) (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) that new contracts have been signed for the completion of the airborne magnetic and radiometric regional survey on its Espejo, Playa Rica and Rio Magdalena Blocks, parts of the ENAMI EP-Cornerstone Joint Venture agreement, in Northwest Ecuador, in the vicinity of the Company’s Cascabel joint venture project and the Llurimagua joint venture between CODELCO and ENAMI.
A location map of the ENAMI-CESA JV project areas 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:
- A heliborne magnetic and radiometric survey was started in NW Ecuador in early December 2017 but had to be suspended due to bad weather
- The 2018 contract combines larger spacing flight lines and detailed survey over most prospective areas defined by prospecting work during the last several months
- High definition data generated to be integrated with ongoing field surveys to refine and prioritize exploration targets for further work
A contract has been signed with Canada-based New-Sense Geophysics Ltd to carry out high resolution helicopter-borne magnetic and radiometric surveys on the 3 concession blocks that inform the ENAMI-Cornerstone Ecuador S.A. (“CESA”) joint venture agreement (the “ENAMI-CESA JV Agreement”).
Phase 1 of the surveys was started in 2017 under a contract signed with another geophysics contractor but was not completed due to a late start by the contractor that caused the work to be undertaken during the rainy season. The balance of the survey to be carried out in 2018 includes completion of Phase-1 larger spacing flight lines and detailed surveys over the most prospective target areas identified by prospecting work. More than 3,000 line kilometres will be flown over the Espejo, Playa Rica and Rio Magdalena blocks. Data then will be processed (2D and 3D modeling) and integrated with information gathered from surface exploration surveys to refine and prioritize exploration targets to be systematically explored.
About the ENAMI-CESA JV Agreement
On June 14, 2016, Cornerstone announced that CESA had entered into the ENAMI-CESA JV Agreement with ENAMI EP, Ecuador's State Mining Company, creating a structure for ENAMI EP and CESA to jointly prospect and explore for mineral projects in Ecuador using Cornerstone's proprietary geological data base. While the ENAMI-CESA JV Agreement is not an exclusive arrangement and ENAMI EP is free to enter into similar arrangements with other companies, Cornerstone is the first, and, to the knowledge of Cornerstone, currently the only, non-state owned company to enter into such an exploration alliance with ENAMI EP.
The principal terms of the ENAMI Definitive Agreement are described on the Company’s web site at the following link: http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=760321
On March 3, 2017 Ecuador's Ministry of Mining granted ENAMI EP eight concession titles in Imbabura and Carchi provinces for exploration by the ENAMI-CESA JV. The eight concession titles total more than 37,182 hectares and are in the highly prospective Cascabel porphyry copper-gold district of northwest Ecuador, which hosts the Cascabel Project and the Llurimagua Project. On March 14, 2017, ENAMI EP was granted an additional concession called "Espejo 3", located approximately 10 kilometres east of the Cascabel concession in Carchi province and totalling 5,000 hectares, bringing the total number of the ENAMI-CESA JV Concessions included under the ENAMI-CESA JV to nine and the total area to over 42,000 hectares.
In applying for the ENAMI-CESA JV Concessions, a thorough compilation program using both public and Cornerstone's proprietary data was used to define anomalous areas typical of porphyry and large epithermal mineralized systems. Previous regional aeromagnetic surveys helped to define geology, alteration and significant structures. Geochemical and geophysical responses were calibrated over known deposits (Cascabel Cu-Au porphyry and Llurimagua Cu-Mo porphyry) and known mineralized prospects in the region. The highest ranked anomalies, those showing similar responses to Cascabel and Llurimagua, in terms of local geological and structural environments, elements, size, distribution and intensities, were selected and concessions applied for.
Four of the ENAMI-CESA JV Concessions are within the area called Espejo, east of Cascabel, three are within the area of Playa Rica and two are within the area of Rio Magdalena, both to the southwest of Cascabel (see Figure 1).
The exploration and development of the ENAMI-CESA JV Concessions is subject to customary rules under Ecuadorean mining law, including an initial exploration period of four years, followed by four years for advanced exploration (including drilling), followed by two years for pre-feasibility and feasibility studies and definition drilling, which period may be extended for a final two years prior to exploitation (mine development).
Cornerstone Grants Options
The Board of Directors of the Company has approved the granting of stock options totaling 16.55 million options to directors, officers, consultants and employees of the Company effective September 12, 2018. These options have been priced at $0.215 and have an expiry date of September 12, 2023. As per the Company's Stock Option Plan, these options vest in three equal tranches over an eighteen-month period from the date of issue. Following this stock option grant the Company has a total of 43,768,551 stock options outstanding, which represents approximately 7% of the Company's issued and outstanding common shares.
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 Bramaderos 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, including in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador. 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.
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,
Hugh Brooke Macdonald
President and 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.