Coastport-Cornerstone tap new zone of high-grade copper at La Plata

Vancouver – In wrapping up its Phase 1 drill program, joint venture partners Cornerstone Capital Resources (CGP-V, CTNXF-O) and Coastport Capital (CPP-V, CSTPF-O) cut into a new discovery of high-grade copper on the La Plata project located about 60 km west of Quito, Ecuador.

Drill testing of a 200-metre long induced polarization (IP) chargeability anomaly (the Guatuza target), coincident with a favourable target horizon and surface alteration plus geochemistry, returned a 6.8-metre intercept (from 89.9 metres depth) of massive sulphides grading 6.97% copper, 1 gram gold per tonne and 9.5 grams silver per tonne in hole LP-06-06. A second, lower zone of massive sulphides was intersected at 104 metres downhole depth and returned 6.6 metres of 3.6% copper, 3.2% zinc, 1 gram gold and 12.1 grams silver, including a 2.6-metre interval of 6.87% copper, 3.75% zinc, 1.7 grams gold and 23.4 grams silver.

The Guatuza prospect is situated a couple hundred metres north of the La Mina deposit, which consists of two volcanogenic massive sulphide (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.

La Mina mineralization typically consists of a massive baritic sulphide comprised of sphalerite, chalcopyrite, barite and pyrite with amounts of bornite, chalcocite and covellite.

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.