11-25 - Cornerstone and Thundermin file NI 43-101 technical report on SEDAR in support of an updated Little Deer mineral resource estimate
The Technical Report and Mineral Resource Estimate entitled "Technical Report and Resource Estimate Update on the Little Deer Copper Deposit, Newfoundland, Canada, August 5, 2011" was prepared by Mr. Eugene Puritch, P. Eng., President, P&E Mining Consultants Inc. ("P&E") and Dr. Wayne Ewert, P. Geo., Vice President, P&E, independent Qualified Persons ("QP's") in accordance with NI 43-101.
As reported on June 22, 2011, P&E estimates that the Deposit contains a 66% increase in Indicated Resources of 1,911,000 tonnes at an average grade of 2.37% Cu (99.8 million lbs of copper) and a 61% increase in Inferred Resources of 3,748,000 tonnes at an average grade of 2.13% Cu (175.9 million lbs of copper) (see Table 1).
Brooke Macdonald, President of Cornerstone, said "The updated mineral resource estimate represents a substantial increase, and we are very pleased to have met our goal of establishing five to six million tonnes of potentially economic grade copper mineralization. Results of the internal scoping review, also being carried out by P&E, are expected to be received by mid-August. This study is evaluating a range of potential mining and operating scenarios for the project and will provide management with preliminary information on the economic viability of developing a new copper mine at Little Deer".
Table 1: Summary of Little Deer Mineral Resources (P&E, June 20, 2011)
| Resource Classification/Zone | Tonnes (t) | Copper (%) | Cu lbs (M) |
| Indicated Mineral Resources | |||
| Little Deer Zone | 1,911,000 | 2.37 | 99.8 |
| Inferred Mineral Resources | |||
| Little Deer Zone | 1,240,000 | 1.93 | 52.8 |
| Footwall Zone | 1,711,000 | 2.04 | 77.0 |
| Footwall Zone Splay | 797,000 | 2.64 | 46.2 |
| Total Inferred Resources | 3,748,000 | 2.13 | 175.9 |
Notes:
1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
4) Ordinary Kriging was used for Cu grade interpolation.
5) Grade capping of 15% Cu utilized on composites.
6) A variable bulk density based on numerous field measurements was used for tonnage calculations.
7) A copper price of US$3.42/lb (May 31 2011 24 month trailing average) and an exchange rate of US$0.95=C$1.00 was utilized to derive the 1% Cu cut-off grade. Mining costs were C$40/t, process costs were C$15/t and G&A was C$5/t. Concentrate freight and smelter treatment charges were C$10/t mined. Concentrate mass pull was 7%, process recovery was 97%, smelter payable was 96% and Cu refining was US$0.07/lb. The Little Deer Copper Deposit is located approximately 10 km north of Springdale in north-central Newfoundland. To date, the Deposit has been outlined to varying degrees of detail over a strike length of approximately 1,050 m and to a vertical depth of approximately 1,000 m. The Deposit remains open to the west and at depth and the potential for discovery of additional mineral resources is believed to be high.
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