Cornerstone Capital Resources Inc. (“Cornerstone” or “the
Company”) (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN)
(OTC:CTNXF) announces that, as a result of a review by
staff of the Ontario Securities Commission in respect of SolGold
plc (“SolGold”) and by staff of the Alberta Securities Commission
(“ASC”) in respect of the Company, the Company is issuing the
following news release regarding its technical disclosure made with
respect to the Alpala Project in Ecuador.
Regarding the documents:
- Technical Report titled “Cascabel Property NI 43-101 Technical
Report, Alpala Mineral Resource Estimation, May 2020” (“MRE#3”),
which has an effective date of 11 November 2019 and a signature
date of 22 May 2020.
- Technical Report titled “Cascabel Project, Northern Ecuador
Alpala Copper-Gold-Silver Deposit NI 43-101 Technical Report
on Preliminary Economic Assessment” (the “PEA”), which has an
effective date of 25 March 2019 and an amended date of 6 November
2019.
ASC staff have concluded that MRE#3 does not
comply with the requirements of National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) and the
requirements of Form 43-101F1 Technical Report (“Form 43-101F1”).
The basis for the default relates to the MRE#3 not containing
information for each of the content items required by Form 43-101F1
in order to support the Company’s continued disclosure of the
results of the 2019 PEA and the stage of development of the Alpala
Project (i.e. an “advanced property” as defined in NI 43-101).
ASC staff highlighted to Cornerstone that there
must only be one current technical report on a property at any
point in time. When an issuer files a new technical report, it will
replace any previously filed technical report as the current
technical report on that property.
Cornerstone acknowledges the defaults raised by
staff of the ASC as a result of its review. At the request of staff
of the ASC, Cornerstone will address these through the removal of
references to the superseded PEA and filing an amended MRE#3 on
SEDAR. SolGold has disclosed that it expects the amended report
will be filed by the end of September 2020. As the 2019 PEA results
have not been carried forward in the new technical report,
Cornerstone will not refer to the 2019 PEA results in ongoing
public disclosures and highlights that, as the PEA has been
superseded, the PEA should not be considered current.
The following points (listed in MRE#3) highlight
differences in the underlying assumptions between MRE#3 and the
Resource Estimate used in the PEA (MRE#2):
- 83,650 m of drilling have been added between the two
estimates, bringing the drill meters informing the estimate from
133,576 m in MRE#2 to 217,226 m for MRE#3. This has
materially increased the amount of information supporting the MRE#3
by 63%.
- The lithology and grade wireframes have been updated using new
drill hole information and revised structural trend surfaces.
During this revision in the current MRE, more attention has been
paid to ensuring that the grade wireframes are well-supported by
geological information, including b-vein percentages and local
structural trends. This has resulted in significant changes in the
geological interpretation in terms of geometry and volume of the
wireframes compared to the previous estimate.
- The estimation domain definitions, variographic, search and
estimation parameters have all been updated based on a more
detailed understanding of the deposit, the revised geological
interpretation, and the new drill hole information. All these
changes to the estimation process may have produced materially
different estimated grades and tonnages.
- The CuEq formula has changed based on up to date third party
metal price research. It is currently Cu% + (Au g/t * 0.613),
whereas previously it was Cu% + (Au g/t * 0.63). This has
effectively reduced the MRE#3 CuEq grade relative to MRE#2 by
approximately 3%.
- The “Estimation of Mineral Resources and Mineral Reserves Best
Practice Guidelines” (CIM, 2019), referenced in NI 43-101, have
been updated between the two estimates in November 2019. This has
resulted in materially different MRE classification and reporting
criteria being used between the two estimates:
- The current Mineral Resource classification has been based on a
quantitative drill hole spacing method that is referenced in CIM
(2019), whereas previously, a subjective classification method has
been used.
- The current Mineral Resource statement has been constrained by
an optimized shape to ensure the criteria for reasonable prospects
for eventual economic extraction have been met in accordance with
NI 43-101 and CIM (2019).
The combined effect of these underlying
assumptions result in a material difference between MRE#2 and
MRE#3. As MRE#2 forms the basis of the PEA results, the sections of
the PEA report pertaining to Advance Properties (Form 43-101F1
Items 15 to 22) are no longer relevant and staff of the ASC have
requested that the public be advised that they should not be relied
on by investors.
SolGold has disclosed that a new NI 43-101
Technical Report will be developed as part of the ongoing
Preliminary Feasibility Study (PFS) and is expected to be filed by
the end of December 2020. SolGold has disclosed that the PFS
Technical Report will be based on MRE#3 which delivered the
conversion of considerable tonnages into the Measured Resource
category, plus the addition of 1.6 Mt Cu, 2.5 Moz Au, and 92.2 Moz
Ag (not previously estimated) to Measured plus Indicated Mineral
Resources. SolGold has also disclosed that Revised Metallurgical
Recovery data, a more refined development and mining plan, and
increased gold price assumptions will also be embodied in the
forthcoming PFS. Cornerstone will issue a press release notifying
the public when the new 43-101 Technical Report is filed on
SEDAR.
Qualified PersonsMrs. Cecilia Artica MSc and
Dr. Gregory Harbort are independent “Qualified Persons” as
defined by NI 43-101. SolGold has disclosed that
Mrs. Artica and Dr. Harbort have each reviewed
information relating to the Mineral Resource Estimate contained in
a substantially identical news release issued by joint venture
partner and project operator SolGold, from which the technical and
scientific information in this news release relating to the Mineral
Resource Estimate is copied, and that Mrs. Artica and
Dr. Harbort each consent to the inclusion of the information
in the form and context in which it appears in SolGold’s news
release.
Yvan Crepeau, MBA, P.Geo., Cornerstone’s Vice President,
Exploration and a qualified person in accordance with
NI 43-101, is responsible for supervising the exploration
program at the Cascabel project for Cornerstone and has reviewed
and approved the information contained in this news release.
Quality Assurance / Quality Control on Sample
Collection, Security and AssayingPrimary sample collection
involves secure transport from the Cascabel concession in Ecuador,
to the ALS certified sample preparation facility in Quito, Ecuador.
Samples are then air freighted from Quito to the ALS certified
laboratory in Lima, Peru where the assaying of drill core, channel
samples, rock chips and soil samples is undertaken. ENSA (as
defined below) utilises ALS certified laboratories in Canada and
Australia for the analysis of metallurgical samples.
Samples are prepared and analysed using 100g 4-Acid digest ICP
with MS finish for 48 elements on a 0.25g aliquot (ME-MS61).
Laboratory performance is routinely monitored using umpire assays,
check batches and inter-laboratory comparisons between ALS
certified laboratory in Lima and the ACME certified laboratory in
Cuenca, Ecuador.
In order to monitor the ongoing quality of its analytical
database, ENSA’s Quality Assurance and Quality Control (QA/QC)
protocol encompasses standard sampling methodologies, including the
insertion of certified powder blanks, coarse chip blanks,
standards, pulp duplicates and field duplicates. The blanks and
standards are Certified Reference Materials supplied by Ore
Research and Exploration, Australia.
ENSA’s QA/QC protocol also monitors the ongoing quality of its
analytical database. The protocol involves Independent data
validation of the digital analytical database including search for
sample overlaps, duplicate or absent samples as well as anomalous
assay and survey results. These are routinely performed ahead of
Mineral Resource Estimates and Feasibility Studies. No material
QA/QC issues have been identified with respect to sample
collection, security and assaying.
About CornerstoneCornerstone 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 21.4% 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 7.6% 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
ir@cornerstoneresources.ca, or:
Investor Relations: Mario Drolet; Email: Mario@mi3.ca; Tel.
(514) 904-1333
Due to anti-spam laws, many shareholders and
others who were previously signed up to receive email updates and
who are no longer receiving them may need to re-subscribe
at http://www.cornerstoneresources.com/s/InformationRequest.asp
Cautionary Notice: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”, “will”,
“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.’ In particular, this news release contains
forward-looking statements including, without limitation, with
respect to the Company’s expectation that an amended MRE#3 will be
filed on SEDAR by the end of September 2020 and that a new NI
43-101 Technical Report will be developed as part of the ongoing
PFS and is expected to be filed by the end of December 2020.
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, Brooke Macdonald President and CEO
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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