12-08 - Cornerstone issues first tranche of shares for Miocene Gold-Silver-Copper project in Chile
Cornerstone, through its wholly-owned subsidiary Minera Cornerstone Chile Limitada (MCCL), acquired the exclusive right to the proprietary database and has already utilized the information to apply for mineral concessions to explore several prospective areas. So far, mineral concession applications covering a total of 41,100 hectares (41.1 km2) have been filed which encompass areas that are highly prospective for hosting porphyry gold-copper and epithermal gold-silver deposits. The agreement gives Cornerstone the right to acquire an undivided 100% interest in any concessions acquired using the database within the Miocene project area by incurring exploration expenditures of CAD$5.0 million and making cash payments of CAD$250,000 and issuing shares of Cornerstone valued at CAD$250,000 over a 5-year period. The acquisition is subject to a 2.0% Net Smelter Royalty in favour of the licensors, one-half (1.0%) of which can be purchased by Cornerstone at any time for CAD$1,000,000.
About Miocene
The Miocene project is located in the Atacama and Antofagasta regions of northern Chile, approximately 200 kilometres southeast of the port city of Antofagasta. The project area is underlain by the same Miocene and Pliocene volcanic sequences and associated high-level intrusions that host the world class gold deposits in the Maricunga and El Indio magmatic belts to the south. Known gold deposits in the Maricunga belt terminate abruptly north of Kinross Gold Corporation's (TSX: K; NYSE: KGC) La Coipa mine and the projected northward trend of the gold belts are dominated by extensive covered areas. Geological and structural interpretations suggest that the gold belts continue north under cover, providing opportunities for new discoveries beneath post-mineralization cover.
A regional exploration program was completed on the Miocene project during the period March 2011 to April 2012. Alteration mapping using Aster (Advanced Spaceborne Thermal Emission and Reflection Radiometer) satellite imagery, combined with airborne magnetic survey data and regional geological and structural data, was used to define prospective areas for ground follow up. Reconnaissance geological mapping at a scale of 1:25,000, rock sampling and widely spaced soil sampling (2,000 m by 500 m and 1,000 m by 250 m) were carried out over a large area of 70,000 hectares (70 km²) covering exposed and altered bedrock and adjacent soil and gravel-covered pampas. A total of 1,312 soil and 280 rock samples were collected. Soil samples were analyzed utilizing a combination of analytical techniques designed to detect deep and/or buried mineralization. Geological mapping and spectrometry work better defined the alteration zones (type, size and distribution) that were identified by the Aster satellite imagery. Geochemical anomalies were defined for base metals, precious metals and pathfinder elements associated with porphyry gold-copper and epithermal gold-silver styles of mineralization. Results of the work program are currently being compiled and assessed, and will be announced once the evaluation is completed.
Consistent with its prospect generator business model, Cornerstone is actively seeking a joint venture partner to help advance exploration on this exciting early-stage project.
Qualified Person
Yvan Crepeau, M.Ba., P.Geo, President of Minera Cornerstone Chile Limitada and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the Miocene exploration program and has reviewed and approved the technical information contained in this news release.
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