Re: Corporate Update - Thursday, November 12, 2009
Corporate Update
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Cornerstone Corporate Update, November 2009:
Certain statements contained in this investor update may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the forward-looking statements contained herein.
Dear Subscriber:
Ecuador
We've made great progress since the summer and the pieces are now in place for a successful re-launch of our programs in Ecuador. We are very pleased and excited to have Intrepid Mines Ltd., an Australian-based gold mining and development company, partnering on our highly prospective Shyri property. Intrepid are currently mining the Paulsen's deposit in Australia. They also have a significant gold and porphyry copper discovery in Java, Indonesia. The Tujuh Bukit project has multi-million ounce potential for near-surface oxide gold production as well as deeper porphyry copper-gold mineralization which Intrepid have optioned to Vale, the large Brasilian mining group.
Intrepid see compelling geological similarities at Shyri and have committed a minimum $US 1.0 million to drill targets on the Gama prospect in the first year of their earn-in. Another great feature of the agreement is that Cornerstone will provide the personnel and exploration services to Intrepid during the option period. This will allow us to maintain our strong administrative and operating platform within the country. Please see our News Release 09-23, October 29th available on our website www.cornerstoneresources.com for details of the binding letter of intent.
On the permitting front, the Ecuadorian government passed the Mining Regulations on November 4th thus completing the regulatory framework for the re-initiation of exploration and mineral development activities. Subsequently, Kinross (Fruta del Norte) and Corriente
(Mirador) received the final sign-off from the Minister to restart their projects. We expect our final approvals will not be far behind and in fact we have already received formal notification that 13 of our
16 concessions have approved preliminary environmental impact assessments (EPIA's). The other three are under review but should be approved in due course. For Cornerstone the final regulatory piece is the issue of a water usage permit to enable diamond drilling on the Gama prospect at Shyri. We've made the required applications to the water agency and are about halfway through the 60-day permitting process. Assuming the water permit and the completion of the definitive agreement with Intrepid proceed as planned we should be ready to mobilize drills to Gama after the Christmas break.
In the meantime our prospecting and reconnaissance exploration work has continued on the Newmont strategic alliance within the 2000 km2 Macará project area. We have been very encouraged by the field results this fall as our geologists have been working in a well-mineralized belt of
rocks that extends northwards from Peru into Ecuador. While there are
known mineral deposits in Peru, the Ecuador section is very poorly
explored, yet constitutes an equally prospective terrain.
