Newcrest withdraws from Option and Farm-in Agreement for the Caña Brava/Tioloma gold-copper Project in Ecuador
OTTAWA, Jan. 25, 2022 (GLOBE NEWSWIRE) — Cornerstone Capital Resources Inc. (“Cornerstone” or “the Company”) (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN) (OTC:CTNXF) announces that Newcrest International Pty Limited (“Newcrest”), a subsidiary of Newcrest Mining Limited (ASX: NCM) has notified Cornerstone and its subsidiary Cañabrava Mining S.A. that Newcrest intends to withdraw from the option and farm-in Agreement Cornerstone’s Caña Brava and Tioloma properties in Ecuador (Figures 1 and 2) (the “Project”) targeting epithermal gold-silver and porphyry gold-copper deposits in south central Ecuador (see news release 19-11 dated April 22, 2019).
Figures related to 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:
President and CEO Brooke Macdonald said:
“Newcrest is one of the largest gold mining companies in the world, operating mines in Australia, Papua New Guinea, and Canada, and we are disappointed they have decided to withdraw from the Project. They have spent approximately US$2.9 million on the Project to date, more than satisfying their minimum commitment of US$2 million, and have been an excellent partner. They have told us their withdrawal is as a result of the delays related to permitting, and the need to prioritize other projects where they can get drilling started sooner.
“Teams from both companies are liaising to define activities to be implemented in the following weeks to wind down activities at the Project until Cornerstone can secure another funding partner.
“Cornerstone remains optimistic about the still untested geological potential of the Project and appreciates the strong support received from the Gualel community.
“Newcrest continues its involvement at Cornerstone’s Miocene gold project in Chile where drilling is ongoing (see news release 21-19 dated November 17, 2021).”
About Caña Brava and Tioloma
Caña Brava – Gold/Copper – (Cornerstone has the right to earn 100%)
On February 26, 2015, the Company announced results from prospecting and geological mapping surveys carried out during 2014 on the Caña Brava property located in south-central Ecuador.
The surveys identified (1) two significant porphyry Cu-Au targets well defined by coincident geological, geochemical and ground magnetic anomalies, (2) an intermediate sulphidation, higher grade, epithermal Au-Ag-Cu veins-breccia system mapped on the northern margin of the porphyry targets, and (3) a high sulphidation epithermal Au-Ag system recognized in the northeast corner of the property. Subsequently, a trenching program was completed (20 trenches, 599 metres, 301 channel samples), spectrometry (Terraspec) work carried out on soil samples (552), rock chips and channel samples (706) and a Phase 1 drill program has been prepared.
In August 2021, data from the detailed ground magnetic survey was reprocessed using a 3D inversion modeling technique. Results show strong and extensive magnetic bodies coincident with altered and mineralized zones at surface. The geological model was then adjusted and the drill program refined.
Caña Brava is “drill-ready” from a technical standpoint with well-defined drill targets, has a scout drilling permit and is in the process of obtaining a water use permit.
Cañabrava Mining S.A. (CBMSA) has the right to earn a 100% interest in the Caña Brava project from the original owner/underlying optionor in return for cash option payments of $40,000 every 6 months until CBMSA decides to exercise the option by making a final payment of $350,000. The $350,000 payment may be made early, the option exercised at any time, and the underlying NSR to the underlying optionor may be purchased for $150,000 at any time.
Tioloma – Gold/Copper (100% Cornerstone)
Cornerstone acquired the Tioloma property in March 2017 for strategic purposes; the property wraps around three sides of the Caña Brava property, thereby enlarging, and effectively creating a protective area of interest around, the Caña Brava property and on strike with a well-defined regional mineralized trend. Tioloma is at an earlier stage, but also has a permit for scout drilling.
Reconnaissance geological mapping and systematic soil and rock sampling were carried out in 2021, defining anomalous areas for follow up. 695 soil and 111 rock samples were collected, covering about 40% of the property.
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including the Cascabel gold-enriched copper porphyry joint venture in northwest Ecuador. Cornerstone has a 20.8% direct and indirect interest in Cascabel comprised of (i) a direct 15% interest in the project financed through to completion of a feasibility study and repayable at Libor plus 2% out of 90% of its share of the earnings or dividends from an operation at Cascabel, plus (ii) an indirect interest comprised of 6.86% of the shares of joint venture partner and project operator SolGold Plc. Exploraciones Novomining S.A. (“ENSA”), an Ecuadoran company owned by SolGold 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.
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: [email protected]; 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 beliefs, plans, objectives, strategies, intentions and expectations. The words “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “intend”, “trends”, “indicate”, “expect,” “may,” “should,” “could”, “project,” “plan,” or the negative or other variations of these words 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,
President and CEO
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