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Cornerstone Provides Update on Cascabel Copper-Gold Porphyry Exploration Project

Cornerstone Capital Resources Inc. announces the following project update for the Cascabel copper-gold porphyry exploration project in northern Ecuador, in which the Company has a 15% interest financed through to completion of a feasibility study.

HIGHLIGHTS:

  • 740m (from 320m to 1060m) @ 0.24% Cu & .016 Au g/t (0.34 % Cu Equivalent "CuEq" *), which includes 58m (from 996m to 1054m) @1.45% Cu & 1.44 g/t Au (2.32% CuEq). See table 1.
  • Current hole depth 1426m (at June 4th)
  • Rig 2 expected to start operations by the end of July.

As of June 4th, CSD-15-011 (hole 11) had reached a depth of 1426m encountering a potassic and propylitic altered microdiorite host. The volume content of quartz veins containing copper sulphide minerals and magnetite is variable but appears to increase with depth. Hole 11 is targeted to drill to approximately 1600m (see figures 2 and 3).

Figures referred to in this release can be seen on the Company's website (www.cornerstoneresources.com) or in PDF format by clicking the link below: http://www.cornerstoneresources.com/i/pdf/NR15-12Figures.pdf.

The occurrence of bornite and molybdenite mineralization in portions of the hole to date is interpreted to possibly indicate increasing proximity to the primary source of the copper-gold porphyry mineralization at Cascabel.

Following completion of the drill hole the rig is expected to move to a location on the southeast side of the central part of Alpala to test extensions of the strongly mineralized zone to the southeast.

The overall Alpala target zone is localized along the northwest-trending Alpala structural zone and consists of a number of strongly mineralized centres within a 2.5km x 500m zone of extensive porphyry-style mineralization.

* Note1: 3D interpretation of the mineralized zone in this part of the prospect area is not yet completed. Intercepts as reported relate to core length.

*Note 2: Cu-equivalent (CuEq) values are calculated using copper price US$ 6614/tonne and gold price of US$ 40/gram (US$ 1,244/ounce). Cu equivalent ("Cu Eq") grade is calculated by following equation: Cu Eq. = Cu% + (Au g/t x 0.6). Cu-Equivalent values do not take into account the recoverability of gold.

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