NEWSCornerstone and Coastport Intersect Massive Sulphides Assaying 29.0 g/t Gold, 289.4 g/t Silver, 17.3% Zinc and 5.9% Copper Over 8.9 m
MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - May 23, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FWB:GWN) and Coastport Capital Inc. (TSX VENTURE:CPP) (FWB:C1J) report that high-grade massive sulphides have been intersected during Phase I diamond drilling on the La Plata polymetallic volcanogenic massive sulphide (VMS) project located 60 km west of Quito, Ecuador. Preliminary results from drill holes LP-06-01 and LP-06-02, drilled to test the south-southwest extension of the La Mina deposit, within the La Plata prospect, are presented herein.
LP-06-01 intersected 8.9 m of massive baritic sulphide consisting of sphalerite, chalcopyrite, barite and pyrite with subordinate bornite-chalcocite-covellite. Coarse visible gold is observed in several samples. The massive sulphides averaged 28.95 g/t Au, 289.39 g/t Ag, 17.32% Zn, 5.86% Cu and 1.20% Pb over 8.9 m core length including 5.2 m averaging 48.29 g/t Au, 243.47 g/t Ag, 16.15% Zn, 4.88% Cu and 1.07% Pb. (Please note: over-limit analyses for Au, Zn and Pb are pending for several samples which initially assayed over the analytical detection limits. The above averages have been calculated using 10.0 g/t Au for two over-limit samples).
Preliminary assay results are tabulated below;
VerticalDrill Hole From (m) To (m) Width (m) Depth (m) Comments---------------------------------------------------------------------LP-06-01 162.70 162.95 0.25 125 massive sulphide"" 453.50 462.4 8.90 370 massive sulphideincl 457.20 462.4 5.20 visible gold---------------------------------------------------------------------LP-06-02 327.24 334.00 6.76 327 massive sulphide
Drill Hole Au (g/t) Ag (g/t) Zn (%) Cu (%) Pb (%)---------------------------------------------------------------------LP-06-01 14.05 44.50 14.25 0.65 1.30"" 28.95 289.39 17.32 5.86 1.20incl 48.29 243.47 16.15 4.88 1.07---------------------------------------------------------------------LP-06-02 Assays pending---------------------------------------------------------------------
The vertical depth of the 8.90 m sulphide interval in hole LP-06-01 is approximately 370 m below surface. The true width of the zone is estimated at 6.8 m (based on 50º to-core-axis bedding angles in the immediately overlying unit). LP-06-01 intersected a second, shallower massive sulphide horizon with a 0.25 m interval assaying 14.05 g/t Au, 44.50 g/t Ag, 14.25% Zn, 0.65% Cu and 1.30% Pb. This sulphide-barite interval is associated with a distinctive jasper/chert horizon and represents an additional target horizon requiring follow-up exploration. The vertical depth to this zone is approximately 125 m below surface.
LP-06-02 also intersected approximately 6.76 m of massive sulphides at a vertical depth of 327 m. Assays are pending.
LP-06-01 and LP-06-02 are located approximately 65 metres south-southwest down-plunge and 41 m west of the massive sulphide intersection in the nearest previous drill hole (hole 177-98-23; 9.8 m massive sulphides assaying 2.5 g/t Au, 69.6 g/t Ag, 14.3% Cu, and 1.7% Zn; part of the La Mina resource - see below(1). Holes LP-06-01 and LP-06-02 demonstrate that the La Mina deposit remains open to the southwest and west and maintains thickness similar to that reported from previous drilling in the area. An extensive sulphide stringer zone and well-developed sericite-quartz alteration system underlies the massive sulphide zone. Links to a drill plan and section are provided at Cornerstone's website at https://www.cornerstoneresources.com/files/properties_laplata_drillsection.pdf and Coastport's website at https://www.coastportcapital.com/s/laplata.asp
The exceptionally high precious metal grades associated with primary baritic massive sulphides suggest similarities to other deposits in the gold-rich (VMS) deposit class. The premier example is the Eskay Creek deposit in British Colombia which grades 65.5 g/t Au and 2,931 g/t Ag (BC Ministry of Energy, Mines and Petroleum website, 2006).
The La Mina deposit has a preliminary grade and tonnage estimateprepared by Cambior Mines Inc in 1998 as follows:
Tonnage (t) Au (g/t) Ag (g/t) Cu (%) Zn (%) Pb (%)---------------------------------------------------------------------Total Resources(1) 840,459 4.8 54.4 4.1 4.2 0.7
((1) Note: Resources referred to within this release are not compliant with the requirements of National Instrument 43-101. Neither Cornerstone nor Coastport has undertaken an independent investigation of the resource estimates nor independently analyzed the results of the previous exploration work in order to verify the classification of these resources. The historical estimates, therefore, should not be relied upon. Nevertheless, Cornerstone and Coastport believe that these historical estimates provide a conceptual indication of the exploration potential of the property.)
The Phase I drill program includes a minimum 2,225 m of diamond drilling in the La Mina deposit area as well as other target areas including the Guatuza and San Pablo prospects.
This press release was prepared by Mike Basha, PEng, PGeo, Cornerstone's Vice President Exploration, a Qualified Person, as per the definition in National Instrument 43-101. Lawrence Winter, MSc, PGeo, is the Qualified Person supervising the drilling program. George Smith, MSc, is Exploration Manager for Cornerstone in Ecuador.
Drilling is being performed by Kluane drilling with a "man-portable" diamond drill rig using NTW (5.71cm) and BTW (4.20 cm) coring apparatus. Under Cornerstone's QA/QC procedures, saw-cut samples representing 50% splits of cores were collected and sealed at the core processing facility on site and delivered to the lab by company personnel. Blanks and standards were inserted into every 20 sample batch. Samples were submitted to ALS Chemex in Quito, Ecuador and analyzed in Vancouver, BC. 50 g splits were used for all samples. Gold was analyzed by fire assay-AA and overlimits (+10 ppm) were done by gravimetric finish. All other elements were analyzed by aqua-regia digestion and ICPMS/AES with silver overlimits (+100 ppm) and Cu, Zn and Pb overlimits (+10,000 ppm) by AAS.
Coastport Capital Inc. (TSXV-CPP) (F-C1J) has an option to earn Cornerstone's 70% interest in the La Plata property by funding Cornerstone's commitments under its agreement with Sultana Del Condor Minera S.A. Coastport may acquire 100% of Cornerstone's interest by meeting all of Cornerstone's obligations to Sultana through to mine financing, by issuing Coastport shares to Cornerstone representing 10% of its fully diluted share capitalization, and by granting Cornerstone a 2% net smelter return royalty (NSR) in the project (See Cornerstone News Release dated 11/23/2005 (https://cornerstoneresources.com/news.asp?id=117)).
In addition to the La Plata project, Cornerstone and Coastport are working together on the Shyri project in the south-central part of Ecuador. These projects are among a larger portfolio of projects generated by Cornerstone since initiating work in the country in 2005. Cornerstone selected Ecuador for its first projects outside Canada because of the country's geological potential, modern mining law and that projects were available from a private Ecuadorian company through which the exploration work could be carried out. Exploration is being conducted with due attention to working with national and local authorities and local communities in accordance with Ecuadorian regulatory requirements. The substantial progress made to date, on the La Plata and Shyri projects in particular, bears out Ecuador's attractiveness for mining investment and the workability and reliability of the regulatory regime.
On Behalf of the Boards,
Glen H. McKay David PattersonPresident, President,Cornerstone Capital Resources Inc. Coastport Capital Inc.