Cornerstone Cap Resources Inc (fka CTNXF)

[warant]

News out-- We might have a slim chance if CGP can prove up some more drill holes around the same results as holes 23 to 25 all other grades are not even worth a second look in this area, but we do have a chance with the width as being the main factor right now.Grade is ok 3.15% because of the width,you can,t be much shallower than that to be profitable and as we can see by the market, they also agree!
Also I hope that they drill this again by them selves and not JV it. Hope that the next program don,t take to long to start, if the can get some drill targets now and in the fall winter drilling will be a snap.


August 03, 2011
11-24 - Cornerstone intersects 3.15 g/t Au over 3.2 m on the El Strato Gold Property in Newfoundland

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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announced today that it has completed a 1,160 metre, 10 hole diamond drilling program on the El Strato gold property in north-central Newfoundland. The program successfully intersected a new gold-bearing breccia zone grading 3.15 g/t Au over a core length of 3.2 m along the southwest portion of the Rocky Bottom trend (see Table 1 and Figure 1 for a summary of the results). This new mineralized zone is the widest drill intersection encountered on the property to date and is open in all directions.
Brooke Macdonald, President of Cornerstone, said "The discovery of a new gold-bearing zone grading 3.15 g/t Au over 3.2 m represents the first significantly wide gold intersection to date on the El Strato property, and confirms the potential for mineable widths. We are encouraged by these results and will be planning a follow-up exploration drilling program to further evaluate the extent of the gold mineralization."

The drilling program primarily tested near-surface anomalies generated by work completed in 2010 that included an Induced Polarization (IP) survey, soil geochemistry survey, prospecting and a follow-up mechanical trenching program. The IP survey identified the DD trend, a 1.25 km long IP chargeability anomaly and the Rocky Bottom trend, a 1.75 km long IP chargeability anomaly. Three holes (ES-11-20 to 22) tested the DD trend along 700 m of its strike length. Holes ES-11-20 & 21 encountered locally weakly anomalous gold values ranging from 5 to 220 ppb Au. Hole ES-11-22, the northernmost hole along the trend, intersected typically weakly anomalous gold values (5 - 112 ppb Au) including a high of 2.23 g/t Au over 0.3 m in mafic volcanic rocks with quartz-carbonate patches. Three holes (ES-11-23 to 25) were drilled along the Rocky Bottom trend and intersected significant gold grades. Hole ES-11-23 intersected 3.15 g/t Au over 3.2 m in a breccia and 14.23 g/t Au and 20.3 g/t Ag over 1.2 m in a narrow quartz vein that was drilled partially down dip. Hole ES-11-24 intersected 2.16 g/t Au over 1.6 m in a shear zone and hole ES-11-25 intersected 3.01 g/t Au over 0.8 m in a quartz-veined shear zone. A more detailed description of the DD and Rocky Bottom trends is provided in a news release dated October 4, 2010.

Hole ES-11-26 tested the Mega Vein, an approximately 8 m wide quartz vein exposed at surface. The hole intersected only weakly anomalous gold including 20 ppb Au over 0.9 m in a quartz vein. Hole ES-11-27 tested the Triple N showing, from which grab samples assayed up to 4.2 g/t Au. The hole intersected 2.28 g/t Au and 8.8 g/t Ag over 0.2 m and 1.16 g/t Au and 11.1 g/t Ag over 0.25 m in narrow zones of quartz veining.

The Arrowhead showing, a >1 m wide sub-cropping mineralized quartz vein that has returned values up to 54.3 g/t Au in grab samples, was tested by holes ES-11-28 and 29. Hole ES-11-28 intersected the Arrowhead quartz vein which returned 143 ppb Au over 0.4 m. Hole ES-11-29, collared 110 m to the southwest of ES-11-28, intersected 7.39 g/t Au over 0.8 m including the Arrowhead quartz vein which assayed 18.7 g/t Au and 8.4 g/t Ag over 0.3 m.

Gold intercepts noted above typically contain variable amounts of sulphide mineralization comprised of pyrite and/or sphalerite and/or galena and/or minor chalcopyrite. See website for additional information regarding the El Strato property (www.cornerstoneresources.com).

Table 1: El Strato Drill Results

Hole No. Drill Target Area Location (UTM NAD 27 Z21) Azimuth (o) Dip (o) Length (m) From (m) To (m) Interval* (m) Au (g/t)**
Easting Northing
ES-11-20 DD Trend 540,885 5,494,413 290.0 -44.1 131 locally weakly anomalous Au
(ranging from 5-80 ppb Au)
ES-11-21 DD Trend 540,918 5,494,518 295.6 -42.4 125 locally weakly anomalous Au
(ranging from 5-220 ppb Au)
90.35 91.85 1.5 191 ppb
ES-11-22 DD Trend 541,171 5,495,047 291.5 -44.0 131 typically anomalous Au (5-112 ppb Au)
78.8 79.1 0.3 2.23
ES-11-23 Rocky Bottom Trend 541,732 5,494,427 293.8 -42.5 125 92.8 94.0 1.20*** 14.23
96.4 99.6 3.2 3.15
ES-11-24 Rocky Bottom Trend 542,033 5,494,857 124.8 -42.6 95 72.0 73.6 1.6 2.16
92.57 92.77 0.2 3.62
ES-11-25 Rocky Bottom Trend 542,204 5,494,975 126.6 -42.3 110 55.0 55.8 0.8 3.01
ES-11-26 Mega Vein 541,837 5,495,284 291.9 -43.3 53 locally weakly anomalous Au
(ranging from 5-188 ppb Au)
26.5 27.4 0.9 20 ppb
ES-11-27 Triple N Trench 542,224 5,495,889 303.5 -43.2 140 37.15 37.35 0.2 2.28
48.4 48.65 0.25 1.16
ES-11-28 Arrowhead Showing 542,772 5,495,586 297.3 -43.1 140 63.2 63.6 0.4 143 ppb
74.7 75.55 0.85 234 ppb
ES-11-29 Arrowhead Showing 542,727 5,495,483 297.8 -43.0 110 42.3 43.1 0.8 7.39
77.5 77.9 0.4 1.21
Total= 1,160
* all lengths noted are core lengths as true thickness is unknown at this time
** gold grades are in grams per metric tonne (g/t) unless otherwise noted as parts per billion (ppb)
*** drilled partially down-dip

Qualified Person

Brad Dyke, P.Geo., Project Geologist for Cornerstone, is the Qualified Person in accordance with National Instrument ("NI") 43-101 responsible for supervising the diamond drilling program on the El Strato property. Mr. Dyke has reviewed and approved the technical contents of this news release. All holes drilled by Cornerstone are BQTK in size. Photographic logging of all drill core was performed systematically prior to assaying. The core is logged and select sections, where appropriate, are sawn in half at a core logging facility in Springdale. Half of the core is submitted for analyses to Eastern Analytical Limited, an independent and qualified assayer located in Springdale, Newfoundland and the remaining half of the core is kept for future reference. Blanks, duplicates and standards are routinely used as part of the assay procedures.

Junior Exploration Assistance Program

Cornerstone would like to acknowledge financial support from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in carrying out the 2011 diamond drilling program on the El Strato property.

Other News:

Proceeds of $937,500 have been received from the exercise of the Company's remaining outstanding warrants. On June 24, 2011, the Company gave notice to warrant-holders that it was accelerating the expiry date as per the terms of the warrant agreement and all 4,687,500 warrants were exercised by the warrant-holders.

About Cornerstone

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Ecuador, Chile, and Atlantic Canada, and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone's projects. Further information is available on Cornerstone's website: www.cornerstoneresources.com.

For investor, corporate or media inquiries, please contact:

Investor Relations:
Email: [e-mail]
North America toll-free: 1 [phone]
Martti Kangas - Direct Line: 1 [phone]
Paul Benwell / Pat Kairns - Direct Line: 1 [phone]
Investors can access and join the following Cornerstone social media channels:
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The link to a recent Corporate presentation with narration is:
http://rblcommunications.com/resources/CGP/1/CGPmay2011.html

Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' 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 subsequent to 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

Further information is available on the Cornerstone Web site at www.cornerstoneresources.com; via e-mail at [e-mail]; or toll free at 1-877-277-8377.

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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