11-34 - Cornerstone and Thundermin Identify Encouraging New Tonnage Potential at the Past-Producing Whalesback Copper Mine, Springdale Area, Newfoundland
The Whalesback Copper Mine is located approximately 10 km north of Springdale in north-central Newfoundland and approximately 800 m north of the 100% owned Little Deer Copper Deposit where Cornerstone and Thundermin have outlined significant copper resources since June 2007 (see below). The two deposits are connected on the 800 foot (244 m) level by an approximately 800 m long drift and both deposits possess underground infrastructure that may be of use in any future mining operations (see Figure 2 -- http://www.cornerstoneresources.com/i/pdf/NR11-34Figure2.pdf). Additional information on the Little Deer Copper Deposit is available in numerous news releases issued between May 1, 2007 and August 31, 2011 and on Cornerstone's and Thundermin's respective websites and on SEDAR.
Whalesback Copper Mine and Property
Diamond drill logs and assay data for 60 surface and 242 underground holes from the Whalesback Copper Mine were recovered from the archives of the Newfoundland and Labrador Department of Natural Resources in St. John's. Drill hole numbers and pierce points for 107 holes drilled in the mineralized zone below and to the west of the areas mined by BRINEX are shown on Figure 1. The corresponding assay results and assay widths, most of which approach true width, are presented in Table 1. Twenty four of the historical holes had copper intersections grading > 2.0% Cu, 49 had copper intersections grading between 1.0% and 2.0% Cu and 33 had copper intersections grading < 1.0% Cu. Only one of the historical holes did not intersect significant copper mineralization. Significant results from the historical drill holes include 4.5% Cu over 6.1 m, 4.0% Cu over 3.4 m, 3.2% Cu over 5.5 m, 3.0% Cu over 4.3 m, 2.9% Cu over 8.4 m, 2.9% Cu over 6.1 m, 2.6% Cu over 4.6 m, 2.5% Cu over 5.3 m and 2.4% Cu over 9.1 m (see Table 1). Underground hole 11-11 is the deepest hole drilled to date on the Whalesback Deposit. This hole, which intersected 1.7% Cu over 8.4 m at a vertical depth of approximately 565 m, has never been followed up with additional drilling.
H. Brooke Macdonald, President of Cornerstone said "We are very encouraged by results of the compilation of historical Whalesback Mine data. At this point the situation is reminiscent of Little Deer four years ago when we recognized the potential to significantly expand the copper resources, particularly at depth, around the former Little Deer Mine. Our drilling at Little Deer has confirmed that potential, and we're optimistic we can duplicate that success at the Whalesback Mine. Historically both mines have operated as a single unit, and identification of new copper resources at Whalesback will have a significant positive impact on project economics and an eventual production decision".
Table 1: Whalesback -- Historical Surface and Underground Drill Results
For Table 1 please see http://www.cornerstoneresources.com/i/pdf/NR11-34-Table1.pdf
The sulphide mineralization within the Whalesback Copper Mine consists predominantly of disseminated, stringer, semi-massive and massive pyrite-chalcopyrite-pyrrhotite within altered mafic volcanic rocks similar to that encountered within the adjacent Little Deer Copper Deposit. The historical drill hole data presented in Figure 1 and Table 1 demonstrates that there are existing copper resources already defined beneath and to the west of the area mined previously by BRINEX. In addition, the data suggests that there is excellent potential to further expand these resources with additional diamond drilling at relatively shallow depths. The adjacent Little Deer Copper Deposit is known to occur over a strike length of 1,050 m and to persist to a vertical depth of at least 1,000 m whereas the deepest intersection at Whalesback is at a vertical depth of approximately 565 m. It is believed that the copper mineralization at Whalesback could also continue further along strike to the west and to depth and cover an area at least comparable in size to the Little Deer Copper Deposit.
Cornerstone and Thundermin intend to undertake 3,800 m of diamond drilling in 9 holes on the Whalesback property commencing this fall. The purpose of this work is to confirm the historical results and to expand the copper resources to the west and at depth below the areas mined previously by BRINEX. The discovery of additional economic grade copper resources at relatively shallow depths in this area of the Whalesback property could be extremely important to an eventual decision to place the Little Deer Copper Deposit into commercial production.
The potential for establishing additional resources on the Whalesback property is conceptual in nature and it is uncertain whether further diamond drilling will be successful in defining additional resources of economic grade copper mineralization on the property.
Mineral Resources -- Little Deer Copper Deposit
On June 22, 2011, Cornerstone and Thundermin reported a National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Deposit comprising Indicated Resources of 1,911,000 tonnes at an average grade of 2.37% Cu (99.8 million pounds of copper) and Inferred Resources of 3,748,000 tonnes at an average grade of 2.13% Cu (175.9 million pounds of copper). The mineral resource estimate was prepared under the supervision of Mr. Eugene J. Puritch, P. Eng., President of P&E Mining Consultants Inc. of Brampton, Ontario. Mr. Puritch is an independent Qualified Person ("Q.P.") in accordance with NI 43-101.
Qualified Person
Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager, Cornerstone Resources Inc., is the Q.P. responsible for the compilation of all of the historical data on the Whalesback Copper Mine for the purposes of NI 43-101. Mr. Hussey has also reviewed the contents of this news release for accuracy.
Little Deer Joint Venture
Under the terms of its joint venture agreement with Cornerstone, Thundermin 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 Cornerstone can be found in numerous news releases between May 1, 2007 and June 22, 2011 and on Cornerstone's and Thundermin's respective websites and on SEDAR.
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