10-26 - Cornerstone and Thundermin to commence a new $1.6 million - 12,000 metre diamond drilling program on the Little Deer Copper Deposit, Newfoundland
The primary purpose of this drill program is to increase the estimated mineral resources outlined to date in the Deposit to the five to six million tonne range. The potential increase of the current mineral resource is conceptual in nature and it is uncertain whether further exploration will result in an expansion of this mineral resource.
The drilling program will focus on three main areas: 1) above the -400 m elevation where historical drilling suggests that there is good potential for outlining high grade resources in the eastern portion of the Deposit, especially above the -250 m elevation; 2) along strike both east and west of the limits of the current resource outline between the -650 m and the -400 m elevations; and 3) at depth below the -650 m elevation. The drill program will commence once all necessary permits have been received. One drill will be employed initially to begin testing the shallow potential in the eastern portion of the Deposit with a second drill to test deeper targets starting in early January 2011. It is anticipated that the program will be completed by June 30, 2011. Details on the Deposit can be found in numerous Cornerstone and Thundermin news releases dated between May 1, 2007 and October 19, 2010 which are on each company's website and on SEDAR.
A recent compilation of data from historical surface and underground diamond drill holes completed by British Newfoundland Exploration Limited during the 1960's, obtained from the archives of the Newfoundland and Labrador Department of Natural Resources, suggests that there is potential to add significant resources of high grade copper mineralization at shallower levels in the eastern portion of the Deposit above the -400 m elevation and, in particular, above the -250 m elevation. Historical surface holes LD-62-78 graded 2.9% Cu over 60.1 m, including intervals of 3.1% Cu over 11.6 m, 5.3% Cu over 15.5 m and 5.9% Cu over 7.9 m; LD-62-77 graded 2.3% Cu over 27.1 m; LD-63-83 graded 3.1% Cu over 10.4 m; LD-66-106 graded 3.3% Cu over 3.1 m; LD-62-80 graded 4.3% Cu over 3.7 m; LD-62-66 graded 2.4% Cu over 2.7 m; LD-61-54 graded 1.6% Cu over 9.2 m and LD-62-76 graded 1.4% Cu over 8.5 m. Underground holes 8-143 graded 8.1% Cu over 13.1 m; 8-123 graded 2.3% Cu over 32.0 m, including 2.3% Cu over 10.7 m and 12.0% Cu over 3.1 m; and 8-175 graded 7.0% Cu over 3.7 m. The reported copper intersections, in particular the intersections for the holes drilled from underground, approach true thickness. This copper mineralization occurs above the -250 m elevation over a strike length of approximately 160 m between 13,968E and 14,125E. The quoted holes represent a selection of holes from this area of the Deposit where there has been limited preproduction development undertaken in the past. New drilling will be undertaken during the current program to confirm and further delineate the copper mineralization in this area of the Deposit so that it can be incorporated into the existing mineral resource estimate.
Drilling will also be carried out between the -650 m and -450 m elevations along strike both east and west of the current mineral resource outline and at depth below the -650 m elevation. The eastern and western extent of the Deposit between the -650 m and -450 m elevations has not been delimited by the drilling undertaken to date and additional drilling is warranted in these areas. Likewise, a preliminary interpretation of the results from borehole Pulse electromagnetic surveys that were recently completed on five deep holes drilled during the last drill program suggests that there is potential for the discovery of additional copper mineralization below the -650 m elevation.
Mineral Resource Estimate
On October 13, 2010, Cornerstone and Thundermin announced that an updated NI 43-101 compliant mineral resource estimate had been completed by Scott Wilson RPA under the supervision of Mr. Reno Pressacco, M.Sc. (A), P.Geo., Senior Geologist for Scott Wilson RPA and an independent Qualified Person ("Q.P.") in accordance with NI 43-101. Scott Wilson RPA estimated that the Deposit contains Indicated Resources of 1,150,500 t at an average grade of 2.8% Cu and additional Inferred Resources of 2,335,500 t at an average grade of 2.1% Cu. A NI 43-101 compliant Letter Report entitled "Mineral Resource Update for the Little Deer Project" dated September 30, 2010, to support the updated mineral resource estimate, is available on Cornerstone's and Thundermin's websites.
Metallurgy
On October 19, 2010, excellent metallurgical results from scoping level test work on core samples from the Deposit were announced. This work, which was undertaken at SGS Lakefield Research Limited ("Lakefield") of Lakefield, Ontario, indicates that a saleable, high grade copper concentrate grading over 28% copper with over 97% recovery and free of any deleterious elements can be produced from the Deposit. The use of a simple rougher-cleaner flowsheet, a common xanthate collector, pH control with lime and a relatively course primary grind for copper liberation from mineralization of medium hardness suggest that the operating costs should fall into the low range for any metallurgical plant constructed to treat the Little Deer copper mineralization.
Qualified Person
Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager, Cornerstone Resources Inc., is the Q.P. responsible for supervising the drilling program on the Little Deer property for the purposes of NI 43-101. Mr. Hussey has also reviewed the contents of this news release for accuracy.
Little Deer Joint Venture
Cornerstone and Thundermin, the operator, have the option, on a 50/50 basis to earn a 100% interest in the Little Deer Copper Deposit and adjacent property from Weyburn Investments Ltd. Thundermin, under its joint venture agreement with Cornerstone, has the right to increase its interest in the Little Deer property to 75% by completing a feasibility study and by arranging 100% of the necessary bank financing required to place the property into commercial production. Details on the Deposit and the terms of the agreement with Weyburn can be found in numerous news releases and on Cornerstone's and Thundermin's respective websites and on SEDAR.
Junior Exploration Assistance Program
Cornerstone and Thundermin would like to acknowledge the financial support received from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in carrying out a portion of their work on the Little Deer property.
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