|
Special Situation Review - Case Study:
Cornerstone Capital Resources Inc. (TSX Venture Exchange:
CGP
chart
news)
offers tremendous potential for
gold in Ecuador plus copper, nickel, and uranium discoveries in Eastern Canada.
Cornerstone appears exceptionally undervalued and was recently
the subject of a recommendation by Kaiser Bottom Fisher, Casey
Research and
recently made Stansberry & Associates Investment Research's top
10 buy list of prospect generators. Cornerstone possesses a
large quality portfolio of assets, several joint venture
arrangements, and has latent prosperity on concessions that
exhibit such high potential that CGP.V’s market cap appears to
be unreasonably undervalued relative to it's holdings of such
magnitude; Cornerstone has less than 51M shares outstanding and
trades at a share price of less than CDN$0.75. Investors should
pay attention to Cornerstone now, especially since its business
model is predicated on maximizing shareholder value plus
avoiding dilution and risk through joint venture partnerships.
Ecuador is one of the best
counties to be in for
potential pipeline of ounces of gold and Cornerstone Capital
Resources Inc. with over 750 Sq Km of concessions is in line for
upside valuation with its impressive portfolio of assets. A
15,000m diamond drill program on their Shyri gold project,
adjacent to IAMGold's 3.4+M ounce Quimsacocha gold deposit, will
test target areas with multi-million ounce gold potential.
Cornerstone also possesses impressive uranium and other metals
projects in Atlantic Canada. Cornerstone's has announced plans
to "drill 26,000 meters on five projects in Canada and Ecuador"
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. (CGP.V) (CTNXF.OTC) (GWN.F) has remarkably feral
potential for high grade gold discoveries in Ecuador as it now
possesses what is considered by many learned mining experts as
some of the most highly prospective mining concessions in the
Country. Cornerstone was ahead of the curve when it began
positioning itself as a major holder of high potential gold-rich
targets in Ecuador, back in 2005, when it acquired 4 early stage
gold and an advanced gold-rich VMS project. It has since added
numerous others and to date Cornerstone has extensive land
holdings in 12 individual projects, 2 of which are currently
joint-ventured.
The Shyri project holds the best
near term prospect for new developments from exploration. 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 the 15,000 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.
Work to date on these concessions indicates potential for
intermediate and high sulphidation precious metal deposits in
several target areas as well as potential for porphyry-style
mineralization. The Shyri concessions straddle the Ganarin Belt
and are immediately adjacent to IAMGold Corporation's
Quimsacocha high sulphidation gold project. The Ganarin Belt is
a 50 km long feature with several volcanic centres, related
intrusives and numerous epithermal gold-silver prospects.
Quimsacocha is the most advanced project in the Ganarin Belt.
IAMGOLD first announced significant drill intersections at
Quimsacocha in December 2004 and in September 2006 they reported
an indicated resource of 3.4 million ounces of gold in the
deposit. On Cornerstone’s Gama project a big alteration
footprint has been identified and it is being prepared for
drilling. The following is an update provided by Cornerstone in
a news release dated June 7, 2007:
|
EXCERPT
FROM RECENT NEWS - June 7, 2007
Copy from source
Cornerstone Provides
Update on Geophysics at GAMA, Shyri Project, Southern Ecuador
|
MOUNT PEARL,
NEWFOUNDLAND--(CCNMatthews - June 7,
2007) - Cornerstone Capital Resources
Inc. (TSX VENTURE:CGP - News;
FRANKFURT:GWN - News; BERLIN:GWN - News;
PINK SHEETS:CTNXF - News) is pleased to
provide an update on geophysical surveys
at the GAMA prospect on the 454 km2
Shyri Project in Azuay Province,
Ecuador. The results to date are
considered very encouraging and further
indicate the potential for discovery of
a high sulphidation epithermal gold
deposit at GAMA. The project is being
explored under an Option and Joint
Venture agreement with Coastport Capital
Inc.
A 200 line-km IP and magnetic ground
geophysical survey is currently 35%
complete at the GAMA prospect where
quartz-alunite alteration typical of a
high sulphidation epithermal gold system
is exposed over 4 km (Ermitas and
Boqueron zones) along the western slope
of a broad plateau. The exploration
target is mineralized silicic alteration
hosted within the quartz-alunite
lithocap below the plateau, similar to
that found at Iamgold's 3.5 million
ounce Quimsacocha gold deposit located
15 km east-southeast of GAMA.
The survey to date has focused on the
quartz-alunite alteration lithocap at
Boqueron. Additionally, 1.5 km long
exposure of alteration at the Pimo Ledge
Zone, 3.0 km to the south, has been
partially surveyed.
In typical high sulphidation ore
deposits, the quartz-alunite lithocap is
proximal to and envelops ore-grade
mineralization. The Boqueron zone is
interpreted to be an extensive,
lithologically controlled zone of
quartz-alunite alteration that dips
gently to the south. The exposed
alteration zone has a coincident
multi-element soil geochemical anomaly
(Au, Mo, Cu) and occurs consistently at
elevations between 3500 m and 3800 m. It
is important to note that the nearby
Quimsacocha deposit occurs at elevation
of about 3600 m, approximately 200 m
below surface, suggestive of a regional
elevation control on this type of
system.
Initial IP and ground magnetic data show
two parallel east-west responses
trending below the plateau indicative of
the quartz-alunite alteration and
interpreted silicic alteration (high
resistivity) enveloping potential
increased sulphide content (high
chargeability). Well developed
north-south trends are also indicated in
association with the GAMA alteration
lithocap exposed in the Boqueron
cliff-face. The north-south trends also
correlate with similarly oriented
west-dipping faults. The trends are
characterized by alternating elevated IP
resistivity and chargeability values
over a distance of 1.0 to 1.5 km by up
to 500 m wide. The magnetic survey
results show particularly low magnetic
response in the west over the surface
expression of the lithocap, consistent
with this style of alteration and the
destruction of magnetic minerals of the
original host unit by the acidic
hydrothermal fluids which produced the
alteration lithocap.
In cross-section, the high resistivity
values correlate with the surface
expression of the quartz-alunite
alteration lithocap and appear to extend
to at least 200 m depth where
chargeability increases, a feature
indicating potential for increased
sulfide mineralization hosted by
shallowly dipping volcanic stratigraphy.
Also, the resistivity results correlate
well with geological mapping which
indicate that the quartz-alunite system
extends to the east. These results
support the presence of a
near-horizontal mineralized silicic
layer(s) beneath the plateau to the east
of the exposed lithocap analogous to
Quimsacocha.
This interpretation of mineralization at
depth below the plateau is also
supported by the Ermitas breccia, a late
hydrothermal breccia located on the
plateau east of the Boqueron zone, that
contains abundant silicic fragments,
locally with pyrite-enargite
mineralization. As previously reported,
an individual mineralized clast from the
breccia returned a grade of 3.0 g/t Au
and the breccia matrix returned a grade
of 5.7 g/t Au, providing indirect
evidence that the breccia has sampled
and carried gold mineralization hosted
in a silicic zone at depth. These grades
indicate potential for discovery of a
buried, gold-mineralized, sulphide-bearing
silicic zone(s) associated with the
broader alteration below the plateau,
typical of high sulphidation deposits,
including Quimsacocha.
Pending completion of the field programs
and receipt of drill permits, 8000 m of
drilling is proposed at GAMA. This is
part of a planned 15,000 m diamond drill
program on the entire Shyri Property (GAMA,
Canaribamba and Vetas Grandes) that is
expected to start on receipt of drill
permits.
Maps and figures illustrating the
results discussed here have been posted
to the Cornerstone website at http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=189951
to accompany this press release.
The geophysical surveys and data
processing are being completed by Val
d'Or Geophysics, of Lima, Peru,
utilizing a pole-dipole array for the
IP. All rock samples reported in this
release were collected by Cornerstone
personnel, sealed on the property and
shipped to Acme Laboratories in Cuenca,
Ecuador, where they were prepared for
analysis. Pulps were shipped to
Vancouver for analysis of gold and trace
elements by a hot multi-acid digestion
and ICP/ES analysis of a 15 gram sample.
Samples containing gold greater than 1
g/t and silver greater than 100 g/t are
reanalyzed by a 1 ton fire assay with an
ICP/ES finish. All soil samples were
collected by Cornerstone personnel,
sealed on the property and shipped to
Acme Laboratories in Cuenca, Ecuador,
where they were prepared for analysis
for by multi-element ICP analysis.
Quality control was maintained
throughout the program by implementation
of procedures involving check assaying
and insertion of previously prepared
standards, blanks and duplicates for
each batch of 20 samples analyzed.
Coastport Capital Inc. has an option to
acquire a 100% interest in the Shyri
property by:
1) expending US$8 million to fund all
exploration programs and making option
payments to Cornerstone of US$490,000 in
cash and US$490,000 cash equivalent in
shares, all over a period of 4 years or
less; and
2) upon meeting the requirements of 1),
by issuing shares to Cornerstone equal
to 40% of Coastport's fully diluted
share capital and granting Cornerstone a
1% net smelter royalty. Cornerstone is
the operator until earn-in.
...
CLICK HERE TO SEE COMPLETE COPY FROM
SOURCE
|
|
|
|
Their other project with several high priority gold rich VMS
targets is the La Plata project in Ecuador - under Option to
Coastport Capital Inc. with plans for 4,585 metres of drilling.
Nine drill holes have been completed to date in Phase II
drilling, comprising 3,415 m of a proposed 8,000 m drill program
on the La Mina, Guatuza and San Pablo targets. Drilling was
suspended in February 2007 to permit further data review and
field assessments. The La Plata property hosts gold-rich, VMS
mineralization including the La Mina deposit that comprises two
lenses extending from near surface to 300 m in depth on the
eastern flank of a fold. The lenses, which are approximately 100
m apart, include drilled intersections from limited historical
exploration drilling such as 11.4 m grading 14.5 g/t Au, 103.6
g/t Ag, 9.35% Cu and 3.9% Zn. On June 22, 2006 Cornerstone
announced results from Phase I drilling that included drill hole
LP-06-01 which intersected 8.9 m of massive sulphide averaging
31.61 g/t Au, 289.39 g/t Ag, 18.16% Zn, 5.86% Cu and 1.61% Pb
over 8.90 m core length, including 5.2 m averaging 51.11 g/t Au,
243.47 g/t Ag, 17.58% Zn, 4.88% Cu and 1.77% Pb. Additionally
CGP has a regional program that they are embarking upon outside
of those two aforementioned projects. They just acquired and are
still acquiring concessions and prospective land which should
generate interesting news in the weeks and months to come.
|
