Cornerstone and Newcrest sign definitive Option and Farm-in Agreement for the Cana Brava gold-copper Project

OTTAWA, ON - Cornerstone Capital Resources Inc. reported that along with its subsidiary Canabrava Mining S.A., has signed a binding option and farm-in Agreement with Newcrest International Pty Limited, a subsidiary of Newcrest Mining Limited for Cornerstone's Cana Brava and Tioloma properties in Ecuador, targeting epithermal gold-silver and porphyry gold-copper deposits in south central Ecuador. 

President and CEO Brooke Macdonald said, “We are pleased to have entered into this Agreement with Newcrest. Newcrest is also partnering with us on the Miocene project in Chile. 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 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 Cana 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. Teams from both companies are already meeting to define work programs and activities to be implemented in the following weeks and months."

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 meters, 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.

An EIA was begun in July 2018, including an environmental base line study and consultation process. Base line study field work has been completed. The EIA will be submitted to the Ministry of Environment (ME).

The Company, through an Ecuadorian subsidiary, has the right to earn a 100% interest in the Cana Brava project from the original owner in return for cash option payments of $40,000 every 6 months until the Company 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 optionor may be purchased for $150,000 at any time.

The company’s address is 2742 St. Joseph Blvd., Unit 200, Orleans, ON K1C 1G5, www.cornerstoneresources.com.