Cascabel Copper-Gold JV Project Update

OTTAWA, ON – Cornerstone Capital Resources Inc. reported project update for the Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador. The project is located within the gold-rich northern section of the Andean Copper belt. The project area hosts mineralization of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte, in northwestern Ecuador just west of the City of Ibarra, approximately 3 hour drive north of Quito and close to water, power supply and Pacific Ports.

Fifteen individual targets have been defined at Cascabel. SolGold has successfully drill tested three of the fifteen targets, being Alpala Central, Alpala Northwest, and Hematite Hill. Drill testing of a fourth target, at Alpala Southeast is currently under way (Hole 24). Current drilling focuses on defining the geometry of the growing Alpala deposit, which is open in virtually all directions. Over 34,000m of drilling has been completed to date, and the arrival of Rigs will see drill testing expanding to Alpala East, Alpala West, Trivino and Aguinaga by mid-year. The drilling program expands towards eight drilling rigs by year end, which will also see drill testing of the Tandayama-America prospect.

Hole 23 (CSD-17-023) at Alpala Northeast was abandoned at 159.0m depth after drilling contractors experienced technical difficulties downhole, and was redrilled as Hole 23R (CSD-16-023R) which continues drilling near vertical at a current depth of 579.1m testing approximately 125m below and in between Holes 12 and 16. To date, Hole 23R has intersected hydrothermal breccia and strong phyllic alteration, with the presence of clasts of mineralized porphyry within the breccia. Hole 23R is being drilled sub-vertical to intersect deep untested pockets of mineralization up to 1800m below surface and has a planned hole depth of approximately 2000m. 

Hole 24 (CSD-17-024) continues drilling at Alpala Southeast, at a current depth of 868.7m testing approximately 570m to southeast of Hole 23R. Hole 24 confirms the extension of the known mineralized corridor at Alpala to approximately 1300m from Hole 13 in the northwest. Drill core from Hole 24 below 738.9m shows strong chalcopyrite and bornite mineralization with significant magnetite, and low pyrite content, indicating probable proximity to the predicted copper and gold rich core of the greater Alpala Porphyry System.

Hole 24 lies approximately 100m north of Malte Creek, where chalcopyrite and bornite mineralization was noted in surface geological mapping. The Alpala Southeast prospect area is characterized by coincident Molybdenum and Copper/Zinc soil geochemical highs, as well as intense and advanced argillic alteration identified from soil auger chip spectral analysis. High dickite and pyrophyllite clay content, mark high temperatures of formation typical of that surrounding a porphyry core. Surface indications are being confirmed by drilling. Hole 24 has a planned hole depth of at least 2000m. Selected examples of mineralization encountered in Hole 24.

Hole 25 (CSD-17-025), at Hematite Hill, is intersecting multi-directional stockwork veining with chalcopyrite and bornite mineralization from 772.2m depth to the current depth of 847.0m. Hole 25 has a planned hole depth of at least 2000m. Selected examples of mineralization encountered in Hole 25.

Upgrade and expansion of site facilities are well underway at Cascabel as the project continues to expand towards 7 rigs by October and 10 rigs next year. The geology team have yet to define the extents of the Alpala porphyry system, and the deposit remains open in most directions, continuing to grow with each new drill hole. An aggressive drill program, producing approximately 90,000m of diamond drill core per annum from early 2018 is planned to delineate the system limits along the greater Alpala trend prior to a maiden resource statement, and to test the other multiple targets within the concession. An increasing understanding of the deposit is now leading to much larger step-outs in drilling as Solgold directs its program towards the copper and gold at a predicted large and rich heart of the Alpala system.