Cornerstone-Coastport cut high-grade massive sulphides at La Plata

Vancouver – This year’s initial step-out drill hole by joint venture partners Cornerstone Capital Resources (CGP-V, CTNXF-O) and Coastport Capital (CPP-V, CSTPF-O) on the La Plata project, located 60 km west of Quito, Ecuador, has tied into significant volcanogenic massive sulphide (VMS) mineralization.

Hole LP-06-01 intersected 8.9 metres (from 453.5 metres) grading 29 grams gold per tonne, 289.4 grams silver per tonne, 17.3% zinc, 5.9% copper and 1.2% lead in an area drilled to test the south-southwest extension of the La Mina deposit.

The La Mina deposit consists of two VMS lenses, about 100 metres apart, on the hinge and eastern flank of a fold extending from surface to 300 metres depth. A 2004 scoping study on the deposit summarized an inferred resource of 688,000 tonnes grading 6.3 grams gold, 76 grams silver, 5.7% copper, 5.1% zinc and 0.6% lead, based on 28 widely spaced drill holes by Cambior (CBJ-T, CBJ-X) in the late 1990s. VMS mineralization occurs at the contact of felsic and intermediate volcanics, and is overlain by a jasperoid marker horizon.

Mineralization in the JV’s latest hole consists of a massive baritic sulphide comprised of sphalerite, chalcopyrite, barite and pyrite with amounts of bornite, chalcocite and covellite. A second hole intersected 6.8 metres of similar massive sulphides, about 60 metres north of the intersection in hole 01, with assay results pending.

Cornerstone has an option to earn 70% interest in a limited partnership on the project with local company Sultana del Condor by incurring US$3 million in exploration, paying US$1 million in cash and shares, completing a feasibility study and arranging mine financing. It has assigned its earn-in rights to Coastport Capital for assuming all obligations and by issuing a 10% share position to Cornerstone that will also retain a 2% net smelter return.

Following the May 24th news release, shares of Cornerstone rallied as high as 86 before closing up 15% at 70 apiece on trading volume of over 670,000. Coastport moved up to $1.49 per share before settling to close at $1.30, up 24% on 626,000 shares volume.