Cornerstone gets 100% interest in True Grit-Golden Grit
2006-03-17 16:23 ET - News Release
Mr. Glen McKay reports
MOYDOW TERMINATES TRUE GRIT-GOLDEN GRIT PROPERTY OPTION, SOUTH CENTRAL NEWFOUNDLAND
Cornerstone Capital Resources Inc. now holds a 100-per-cent interest in the True Grit-Golden Grit gold property in south-central Newfoundland. A prospector retains a 1.5-per-cent net smelter royalty, of which Cornerstone can purchase 0.5 per cent for $1-million.
Moydow Mines International has filed expenditures and work on the property in excess of $870,000 over the past four years, including more than 7,700 metres of diamond drilling in 94 drill holes. Highlights of this work include drill results of 0.6 gram per tonne gold over a core length of 117 metres, including 26 metres averaging 0.83 gram per tonne gold (see Stockwatch, Aug. 27, 2003). These assays are associated with a broad, open-ended, 0.8-kilometre by 2.6-kilometre arsenic and gold-in-soil anomaly known as the True Grit anomaly, which was largely untested by Moydow, which focused on a one-kilometre-long segment of the anomaly, as well as other areas of the property. Previous explorers also encountered narrow high-grade gold showings within the soil anomaly, yielding channel sample assays of up to 15.6 grams per tonne gold over one metre. Another gold showing, the Golden Grit showing, located five kilometres west-southwest of the True Grit soil anomaly, is associated with a gold-in-soil and till anomaly, where limited trenching by previous explorers exposed quartz vein mineralization returning grab sample assays of up to 16.9 grams per tonne gold and channel sample assays of up to 0.98 gram per tonne gold over 0.5 metre.
Cornerstone is awaiting receipt of technical reports completed on the project by Moydow and, after reviewing results in detail, will seek a new joint venture partner to advance the project. Cornerstone believes the True Grit property covers a mineralized system with potential to host a world-class gold deposit similar to other deposits associated with Paleozoic tectonism and intrusive activity, such as the giant Muruntau deposit in Uzbekistan.
In other news, 799,000 stock options were exercised by insiders of Cornerstone, representing net proceeds to Cornerstone's treasury of $262,900.
With seven active joint venture projects in Canada and Ecuador, Cornerstone anticipates a very strong year in terms of joint venture expenditures and drilling activity. Discussions are continuing with potential joint venture partners interested in other projects.
Paul Moore, MSc, PGeo, chief geologist for Cornerstone, is the qualified person, as per National Instrument 43-101, responsible for the information in this news release.