11-33 - Intrepid approves Phase 2 drilling at Gama prospect in Ecuador
The recently completed Phase 1 diamond drilling program at Gama confirmed a large alteration system containing anomalous copper, molybdenum and gold. Two holes intersected broad zones of gold enrichment in a porphyry system grading 0.71 g/t Au over 45 metres and 0.45 g/t Au over 26 metres in holes GAD-11-002 and GAD-11-011 respectively (see Cornerstone news releases dated May 31 and August 11, 2011 for details).
"We are pleased that Intrepid has approved a Phase 2 program at Gama", said Brooke Macdonald, Cornerstone's President. "This program will allow us to test the porphyry targets at depth and to develop new drilling targets for both epithermal and porphyry styles of mineralization on Gama. Environmental permits for drilling the Vetas Grandes and Cañaribamba prospects on the southern portion of the Shyri concession are expected to be received toward the end of the first quarter of 2012."
Gama Prospect
The Gama prospect is one of three recognized thus far on the Shyri property, and comprises an extensive zone of high sulphidation (HS) epithermal alteration measuring a minimum of 8.5 km by 3 km. The alteration is strongly zoned and centered over two high level, porphyry-type intrusions at the 3500 m to 3800 m elevations. Gama is located 15 km to the west of Iamgold's Quimsacocha HS epithermal gold deposit.
Qualified Person
Yvan Crepeau, M.Ba., P.Geo, President of Cornerstone Ecuador SA and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the Gama drilling program and has reviewed and approved the technical information contained in this news release.
Shyri Option Agreement
Intrepid Mines Limited ("Intrepid") is earning a 60% interest in the Shyri gold-silver-copper property under an option agreement signed with Cornerstone in January 2011. Under the terms of the Agreement, Intrepid has the ability to earn an initial 60% interest in the property by spending $US 6.0 million dollars over 5 years. Intrepid may earn an additional 20% in specific project areas up to 5,000 hectares each. Upon designation of a Project Area, Intrepid will make a $US 750,000 private placement in Cornerstone. To earn the additional interest, Intrepid will complete a bankable feasibility study or incur expenditures of $US 20 million, whichever comes first, and make a cash payment to Cornerstone of up to $US 5.0 million based on the gold equivalent ounces in the mineral reserve. There is no limit to the number of Project Areas Intrepid may designate within the property and each 'stand-alone' Project Area requires the same earn-in requirements (see news release dated Oct 29, 2009). Cornerstone is the project operator, and manages the exploration programs in close consultation and planning with Intrepid.
Other News
Cornerstone will be participating in the upcoming Latin Exploration 2011 Conference at the Sheraton Retiro Hotel Buenos Aires, Argentina, on October 17-18, 2011. Company president Brooke Macdonald, and Yvan Crepeau, President of Cornerstone Ecuador and Minera Cornerstone Chile will be presenting on October 17, and encourage all those interested to attend. Information on the conference is available at http://www.latinexploration.com.
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