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Cornerstone Capital (TSXV:CGP) pre-feasibility study update – Alpala Project, Cascabel Concession, Ecuador

Mining
TSXV:CGP
08 April 2021 13:45 (EDT)

Cornerstone Capital Resources Inc. (CGP) is pleased to announce updates on the Pre-feasibility Study on the Alpala Project in northern Ecuador.

Cornerstone Capital Resources Inc. (CGP) has a 15 per cent interest in the Alpala Project financed through to completion of a feasibility study, plus 7.5 per cent of the shares of joint venture partner and project operator SolGold Plc. Cornerstone’s total direct and indirect interest in Cascabel is 21.4 per cent.

The Alpala Project Team and the Project Committee, chaired by Interim CEO Keith Marshall, are making progress studying potential Alpala mine plans while addressing several mine developments and enhancements. 

The Alpala deposit comprises 2,663 Mt at 0.53 per cent CuEq in the Measured plus Indicated categories and contained metal content of 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz Ag.

The deposit measures approximately 900m in height and 500m in diameter.

Given the deposit’s size and geometry, Cornerstone is optimistic that the PFS will demonstrate that it is amenable to underground caving mining methods.

Cornerstone is confident that the revised approach being studied is more beneficial for Cornerstone and SolGold and will deliver significant shareholder value.

SolGold is currently expanding its team of experienced technical staff, with the first, Ms. Lisa Park, Head of Metallurgy, having recently joined.

Cornerstone is optimistic that the revised mine plan currently being studied as part of the PFS process could deliver similar metal production while mining significantly less material.

This could result in potentially significant cost savings.

The crushing, processing and waste storage requirements are also expected to be reduced accordingly, as would, in this potential scenario, the upfront capex associated with these installations.

Anticipated benefits of the revised approach being studied include lower expected execution risks, lower expected pre-production capital and significantly reduced time to first potential production.

Several proof-of-concept level studies on these options have been initiated, beginning with geotechnical and mining options.

These are being followed with more detailed studies and are expected to be included in the designs for downstream processes and infrastructure.

These studies are on track for the delivery of the PFS in late 2021.

Commenting on today’s PFS update, SolGold Interim CEO Keith Marshall said,

“The plan being studied is smaller in scale initially, but a much more selective and simpler approach to mining the deposit.”

“The previously studied plan was the equivalent of an inverted open pit, with limited selectivity, that would likely have resulted in the mining of larger volumes of waste material,” added Marshall.

Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including the Cascabel gold-enriched copper porphyry joint venture in northwest Ecuador.

Cornerstone Capital Resources Inc. (CGP) is up 5.56 per cent and is trading at C$3.80 at 11:44 am ET.

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