Botwood Basin

[johnlw]

Cornerstone to allow surveying by Inco at Garland

2006-01-09 08:17 ET - News Release

Mr. Glen McKay reports

CORNERSTONE TO COMMENCE AIRBORNE GRAVITY GRADIOMETRY SURVEY WITH INCO IN GARLAND LAKE AREA

Cornerstone Capital Resources Inc. has conditionally agreed to allow Inco to complete airborne gravity gradiometry surveys over its Garland projec, located 30 kilometres southeast of Voisey's Bay. The survey is part of a much larger survey being completed by Inco Ltd. over its propertyholdings in this area. The survey is designed to explore for favourable troctolitic rocks similar to those which host the Voisey's Bay deposits, and potentially has the capacity to directly detect large shallowly buried accumulations of massive sulphides akin to magmatic Ni-Cu-Co (nickel-copper-cobalt) deposits at Voisey's Bay.

The survey is planned to be completed in stages during the first half of 2006. Survey parameters have been chosen by Inco and include a gravity gradiometer, a gravimeter, a magnetic gradiometer and a LIDAR system. Cornerstone's Garland property is expected to receive 314 line kilometres of surveying as part of the larger Inco survey. Cornerstone will pay its share of the cost of the program, and both Inco and Cornerstone will be sharing portions of the data.

As previously released (see news issued in Stockwatch dated Sept. 28, 2005), Cornerstone's 53-square-kilometre Garland property covers the on-strike extensions of a series of AMT anomalies detected by an audio-magnetotelluric (AMT) survey completed by Inco in 2001. The anomalies are defined as a series of zones of higher conductivity interpreted to lie at a depth greater than 800 metres. Reports filed by Inco with the government of Newfoundland & Labrador indicate the area surrounding the AMT anomalies is locally underlain by troctolitic rocks considered favourable for hosting Voisey's Bay-style nickel sulphide mineralization. Cornerstone acquired its claims to cover portions of these untested AMT anomalies and their inferred on-strike extensions.

In commenting on working with Inco on this initiative, John Fleming, Cornerstone's chairman, states, "It is a pleasure to be co-operating with Inco on this survey and it is our hope that we will have other opportunities to work more closely with Inco in this region in the future."

In other news, Cornerstone has received notice that Falconbridge Ltd. has elected to terminate its option and earn-in agreement with respect to the Konrad nickel project and partnership area (Voisey's Bay corridor), located west of Inco's Voisey's Bay mine. It is Cornerstone's intention to seek joint venture partners for Konrad as well as its other nickel projects in Labrador.

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.