Apr 23 2019
Cornerstone Capital Resources Inc. takes pleasure in announcing that Cornerstone and its auxiliary Cañabrava Mining S.A. have signed a binding option and farm-in agreement with Newcrest International Pty Limited, an auxiliary of Newcrest Mining Limited for Caña Brava and Tioloma properties of Cornerstone in Ecuador, focusing on epithermal gold-silver and porphyry gold-copper deposits in south central Ecuador.
This agreement applies and replaces the Heads of Agreement reported on February 19th, 2019: http://www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=845496.
Newcrest is one of the largest gold mining companies in the world, operating mines in Australia, Papua New Guinea, and Indonesia, and we are pleased to have entered into this Agreement with them. Newcrest is also partnering with us on the Miocene project in Chile (see news release dated December 10, 2018). We look forward to working with the Newcrest team on these properties.
Cornerstone applauds the Ecuadorian Ministry of Environment (ME)’s issuance in March of Ministerial Accord 020 (amending Ministerial Accord 009 of January 24, 2019), being the regulations for ‘scout (exploratory) drilling’ using up to 30 drill platforms during the initial exploration phase of an exploration project, and the issuance in the last week of the Application Form to obtain an environmental registration the obtainment of which is a condition to benefit from the scout drilling program. Cornerstone is studying the Application Format and expects to make an application for scout drilling in the coming months.
In the meantime, Cornerstone continues to advance its almost completed environmental impact assessment (EIA) for Caña Brava that would provide for drilling during the initial and advanced stages of exploration and beyond during the economic evaluation phase and expects to be submitting the EIA to ME for comments within 4 to 6 weeks’ time.
Teams from both companies are already meeting to define work programs and activities to be implemented in the following weeks and months.
Brooke Macdonald, President and CEO, Cornerstone Capital Resources Inc.
About Caña Brava and Tioloma
Caña Brava—Gold/Copper (Cornerstone has the right to earn 100%)
On February 26th, 2015, Cornerstone announced results from geological mapping surveys and prospecting performed in 2014 on the Caña Brava property located in south-central Ecuador.
The surveys recognized (1) two significant porphyry Cu-Au targets defined well by coincident geochemical, geological, and ground magnetic anomalies; (2) a higher grade, intermediate sulfidation, epithermal Au-Ag-Cu veins-breccia system mapped on the northern margin of the porphyry targets; and (3) a high sulfidation epithermal Au-Ag system identified in the property’s northeast corner. Then, a trenching program was finished (599 m, 20 trenches, 301 channel samples), spectrometry (Terraspec) work performed on soil samples (552), rock chips and channel samples (706), and a Phase 1 drill program has been made ready.
In July 2018, an EIA was started, which included an environmental base line study and consultation process. Base line study fieldwork has been finished and the EIA will be submitted to the Ministry of Environment (ME) for comment in about four to six weeks’ time.
Through an Ecuadorian subsidiary, Cornerstone has the right to receive a 100% interest from the original owner in the Caña Brava project in return for cash option payments of $40,000, twice in a year until Cornerstone makes decisions to use the option by making a final payment of $350,000. The $350,000 payment may be made early, the option may be used at any time, and the underlying NSR to the optionor may be bought for $150,000 at any time.
Tioloma—Gold/Copper (100% Cornerstone)
In March 2017, Cornerstone bought the Tioloma property for strategic reasons; the property encloses three sides of the Caña Brava property, this enlarging and efficiently forming a protective area of interest surrounding the Caña Brava property and on strike with a well-defined regional mineralized trend.