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Report on Ecuador Gold Mining

 Abridged Version - April 12, 2007

 
 

Ecuador, Number One in Potential for Pipeline Ounces of Gold
By James O'Rourke, Staff Mining Journalist - April 11, 2007
  

     Ecuador remains wide open for gold exploration and new discoveries with technical risk being very low for many gold mining exploration companies as Ecuador has seen so little exploration. Northern Peru and Columbia, which surround Ecuador, both have some big deposits and Ecuador hadn’t seen the sort of systematic exploration that those countries have had (Peru more so than Columbia). According to a circle of mining professionals interviewed for this report Ecuador is the number one country to be in, you can pick up the phone and call Barrick and Newmont and that’s what they will tell you right now; Ecuador is the number one country in terms of potential - pipeline of ounces. That is where they see themselves, not in Peru (they are mining the ounces they found there).
 

     The most recent and by far the largest gold exploration success in Ecuador to date is Aurelian Resources Inc (TSX: ARU
chart news) with drill results that indicate multi million ounces of high grade epithermal gold at it's Fruta Del Norte project, located in south-eastern Ecuador. These drill results at their Fruta Del Norte Project had propelled this TSX Venture stock price from $2.90 last April 2006 to a high of $40.00 dollars just a mere 6 months later.
 

     Today several mining exploration companies are realizing the enormous potential of this under explored region of South America. Little know explorers such as Lateegra Gold Corp. (TSX-V: LRG
chart news) with its El Condor property adjacent to Aurelian’s El Tigre property (which is just a few km from the aforementioned Fruta Del Norte), located in the southern region of Ecuador, offers tremendous prospects by simply proximity, without little more than rudimentary exploration. Additionally, to the west is IAMGold Corp’s (TSX: IMG chart news) 3.5M+ oz advanced stage Quimsacocha property which continues to provide very attractive results. Cornerstone Capital Resources Inc. (TSX-V: CGP chart news) a junior explorer with significant target rich holdings in Ecuador possesses the Shyri project, immediately adjacent to the Quimsacocha deposit. In light of neighboring success and preliminary assay results, anticipation for Cornerstone’s Shyri project is high and a 15,000 Meter drill program is scheduled for 2007.
 

     Cornerstone is an established Canadian based mining exploration company and a large land holder in Ecuador, they are very aggressive and have a positive outlook on Ecuador. All indications are that the government welcomes mining interests that are prepared to act in a responsible fashion and within a framework where all (the People, the Government and the Company) win. Cornerstone has not slowed down and things are business as usual; new concessions are being approved, titles are being granted, and Cornerstone is talking to other like minded companies about joint ventures. The place is clearly open for business, the industry is maturing in Ecuador and Canadian mining companies embrace the requirements in place to protect the land, the people, and future investment potential.

 

     The new President of Ecuador is an economist PHD, trained in the US and Belgium, whose populist platform is based mainly on anti-corruption for the benefit of the People. He is proceeding with a referendum (scheduled for mid April) to rewrite the constitution and shake up some institutions, however he also appears to be a pragmatist in action; Ecuador is currently negotiating a free trade agreement with Canada as they are one of the largest trading partners with Ecuador, and 70% of all the foreign direct investment going into Ecuador comes from Canada. Ecuador would like to nurture and encourage this relationship. So from a mining prospective – the companies that are going to develop the mining industry, the majority of them come from Canada and so will that investment capital. It seem to be understood by all interested participants that the end result of foreign investment is what is required to pay for social programs in the subject areas.

 

     Companies with high potential gold targets in Ecuador, like those mentioned above, are likely to experience significant valuation upside when drilling ultimately brings forth exceptional numbers. Investors would do well to take a closer look at Ecuador gold companies since the initial exuberance exhibited in the stock charts last year has been reigned in and actions by the Government as they relate to mining seem amenable going forward. With this in mind we offer a case study of Cornerstone Capital Resources Inc. and its extensive holdings of high priority targets in Ecuador.

  Content found herein is not investment advise see Terms of Use, Disclosure & Disclaimer

Special Situation Review - Case Study: Cornerstone Capital Resources Inc. (TSX Venture Exchange: CGP chart news) offers tremendous potential for gold in Ecuador and uranium discoveries in Eastern Canada. A current review of Cornerstone Capital Resources Inc.'s uranium prospects and their unique business model is available at http://uraniumminer.net/cgp.htm. A brief overview and related links regarding its significant Ecuador gold prospects is made available below.

 

The true potential of Cornerstone's many projects appear to not be reflected in the current share price. Several of Cornerstone's current projects have outstanding potential.

 

Cornerstone Capital Resources Inc. started exploring in Ecuador during 2005, at which time 4 early stage gold and an advanced gold-rich VMS project was acquired. To date Cornerstone (CGP.V) (CTNXF.OTC) (GWN.F) has extensive land holdings in 12 individual projects, 2 of which are currently joint-ventured to Coastport Capital (CPP.V). Cornerstone currently has about 750 Sq Km in concessions in Ecuador right now.

 

For Cornerstone the real focus this year is the Shyri project (See Map Below); The objective of the Shyri exploration effort is to target areas with multi-million ounce gold potential. CGP.V has proposed a 7 million dollar program including 15,000 meters of drilling for which they have tentative approval at this point from their partner. Cornerstone, and their joint venture partner, are going forward in a big way on the Shyri project and the anticipation at this point is that, of the15,000 meter drill program, approximately 8,000 meters will be focused on one prospect called the Gama, which is on the NW quadrant of the property. The program will test a target that bears a lot of similarity to one that they are immediately adjacent to called Quimsacocha, owned by IAMGold. On Cornerstone’s Gama project a big alteration footprint has been identified and it is being prepared for drilling; the geophysics, prospecting, sampling, mapping, and necessary groundwork are near completion and they are now building the drill model/program. Not only do they have an alteration system similar to Quimsacocha but one discrete anomaly is about 4 km long by about 1 km wide and it has very distinct and significantly elevated geochemical pathfinder elements including elevated gold and silver.
 

Their other project with several high priority gold rich VMS targets is the La Plata project. Last year they drilled a substantial intersection from that area, which includes almost 9 meters of 31 grams per ton gold, 290 grams per ton silver, 18% zinc and 6% copper. In Phase II they drilled down plunge from that at La Mina in the south end, but were not able to extend that the zone. None the less they still have some other very prospective targets on that property to be tested.

 

Now on top of that CGP has a regional program that they are embarking upon outside of those two projects. They just acquired and are still acquiring concessions and prospective land which may generate interesting news in the weeks and months to come.

 


 

Cornerstone Capital Resource Inc. (TSX-V: CGP) offers insight and opportunity for investors as a high potential target rich gold explorer of significance in Ecuador

 

Diagram of Cornerstone Capital Resources Inc.'s Land Holdings in Southern Ecuador SA

 


Related Ecuador Links
Ecuador's Mining Undersecretetartyship Overview: http://www.menergia.gov.ec/ingles/secciones/mineria/dinamiPrincipal.html

Ecuador's Mining Undersecretetartyship Development Policies For The National Mining Sector: http://www.menergia.gov.ec/ingles/secciones/mineria/DinamiPoliticas.html

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Disclaimer & Disclosure: The information contained herein is believed to be accurate but this cannot be guaranteed. The analysis does not purport to be a complete study of securities and issues mentioned herein, and readers are advised to discuss any related purchase or sale decisions with a registered securities broker. Companies mentioned herein may be very early stages of development and thus can therefore be subject to business failure, and are to be considered speculative and high risk in nature. Reports herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. The author may or may not hold a position (long or short) in the securities mentioned herein. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather opinion only. The publisher may make take journalistic liberties employing the use of pseudonyms as reference contacts and accepting information at face value from what it believes to be credible sources. Further disclaimer and disclosure regarding various aspects of this report / article including compensation and other points may be seen at http://www.madisonaveresearch.com/disclaimer.htm.
 

 
 
 

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