cornerstone capital resources inc. · 2013. 3. 1. · cornerstone capital resources inc. corporate...

TSXV-CGP OTC-CTNXF F-GWNExploring World Class Mineral Districts

Cornerstone Capital Resources Inc.

Corporate Presentation

March 01, 2013

TSXV-CGP OTC-CTNXF F-GWN

Cautionary Statements

This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources continued advancement of its mineral exploration programs. When used in this presentation, the words “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “expect,” “may,” “project,” “plan,” and similar expressions are intended to be among the statements that identify ‘Forward-Looking Statements.’

Although Cornerstone Capital Resources believes that its expectations reflected in these ‘Forward-Looking Statements’ are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward looking statements.

Although Cornerstone Capital Resources believes the facts and information contained in the pages of this presentation to be as correct and current as possible, Cornerstone Capital Resources does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained in these pages. Nothing in this presentation constitutes either an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction.

The technical information contained in this presentation has been reviewed and approved by Terry Brace, P.Geo., Cornerstone’s VP Exploration (Canadian projects) and Yvan Crepeau, P.Geo, President of Cornerstone Ecuador SA and Minera Cornerstone Chile (Ecuadorian and Chilean projects), both of whom are qualified persons in accordance with National Instrument 43-101.

2

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TSXV-CGP OTC-CTNXF F-GWN3

75%

75%

51%

85%

25%

25%

49%

15%

0% 20% 40% 60% 80% 100%

Cape Ray

Little Deer

Macara

Cascabel

Prospect Generator

Business Model - Partners

Current % Earned by Partner

% Interest Partner Can Earn


Properties

ATLANTIC CANADA

ECUADOR

4

Little Deer Copper Property, Newfoundland

50-50 JV with Thundermin Resources

Includes 2 past-producing underground copper mines –Little Deer and Whalesback

Little Deer Deposit

Mineral resources of 99.8 million lbs of copper (Indicated) and 175.9 million lbs of copper (Inferred)

Excellent metallurgical test results - saleable, high grade copper concentrate grading over 28% copper with over 97% recovery

Nov 1, 2011 – Results of positive Preliminary Economic Assessment (PEA) announced – 1800 t/d underground mine with ramp and shaft access with 9.5 year mine life, Initial capital cost of $110 million, After-tax NPV @ 6% of $86.7 million, After-tax IRR of 21.5%

Whalesback Deposit

Mineral resources of 29.3 million lbs of copper (Indicated) and 15.3 million lbs of copper (Inferred)

Cape Ray Gold-Silver Property, Newfoundland

Benton Resources can earn 75% interest by spending C$3 million, making cash payments of C$125,000 and issuing 155,000 Benton shares

CHILEMiocene Property - Gold/Copper/Silver

Option to earn 100%

Within the northern extension of the Maricunga magmatic belt which hosts several world-class gold deposits

Cascabel & La Encrucijada Properties

SolGold can earn 85% interest by spending C$2.5 million, subscribing C$1.2 million Cornerstone shares & issuing C$500,000 SolGold shares

Multiple prospective near-surface porphyry gold-copper targets identified

Phase 1 drilling planned Q2 2013

Macará Property

JV with Newmont Ventures

2,500 km2 of prospective geology in southern Ecuador, including the 1,452 ha Bellavista concession

Shyri, Bella Maria & Caña Brava Properties

100% owned by Cornerstone

Shyri - Four gold prospects identified including Gama, Vetas Grandes, Cañaribamba & Yanasacha

Bella Maria & Caña Brava – Highly prospective porphyry and epithermal targets


Share Capitalization

(as at Dec. 31, 2012)

5

Shares Outstanding 142,931,355

Fully Diluted 167,131,524

Share Price (Feb. 27, 2013) $0.03

52 Week High / Low $0.125 – $0.02

Cash $822,521 (No Debt)

Market Cap (Feb. 27, 2013) $4.3 million


Ecuador

JV Projects

Cascabel

La Encrucijada

Macará

100%-Owned Cornerstone Projects

Shyri

Bella Maria

Caña Brava

Quito

CuencaShyri

Bella Maria

Macara

Monterrey

Fruta del Norte (Au-Ag)

Kinross Gold

Mirador (Cu-Au)

EcuaCorriente

Quimsacocha (Au-Ag)

INV Metals

Rio Blanco (Au-Ag)

International

Minerals

Zaruma (Au)

Dynasty Metals

& Mining

Cascabel

La Encrucijada

6

Advanced Stage Projects

(other companies)

Epithermal (Au-Ag)

& Porphyry (Au-Cu)

Targets


Cascabel (Au-Ag-Cu)

JV Partner SolGold plc can earn

85% interest by spending C$2.5

million, subscribing C$1.2 million

Cornerstone shares & issuing

C$500,000 SolGold shares

Exploration Funding = 100%

SolGold

Targeting porphyry gold-copper

deposits

Located in same belt as Junin

porphyry copper deposit (982 Mt @

0.89% Cu – Codelco/ Enami)

located 70 km to the south, and the

Colosa porphyry gold deposit (24

Moz Au in resources – AngloGold

Ashanti) located to the north in

central Colombia


Cascabel

Gold & Copper Results

Gold

Rock Chips & Stream Seds

Copper

Rock Chips & Stream Seds


CascabelMoran & Alpala Porphyry Target

Channel TR46

45.6 m @ 0.81 g/t Au & 0.59% Cu


CascabelComposite Interpretation Section

Channel TR46

45.6 m @ 0.81 g/t Au & 0.59% Cu


FALLA C

ATAM

AYO

FALLA RIO

LEO

N

70

0,0

00

mE

9,610,000 mN

2 km.0

2

kilometers

10

11

La Encrucijada (Au-Ag)

Geology

8,085 hectares Property

Formacion Sacapalca, andesitas, dacitas y sedimentos continentales

Leyenda La Encrucijada

Ignimbrita dacitica, textura eutaxitica

Toba de cristales riolitica (RCT)

Toba de lapilli (LT)

Sedimentos volcanicos de origen acuoso

Colapso

Formacion Tarqui, toba dacitica rica en biotita

Toba dacitica de grano fino (DFT)

Toba de cristales dacitica (DCT)

Argilica avanzada

Stocks rioliticos

Diorita

Silica masiva

Vuggy silica (rodados)



Gold in stream sediments,

rocks and soils

Rocks La Encrucijada Au_ppm

5 to 167 (2)

1 to 5 (6)

0.5 to 1 (18)

0.1 to 0.5 (34)

0 to 0.1 (139)

Soil La Encrucijada Au_ppm

0.05 to 0.222 (8)

0.02 to 0.05 (24)

0.01 to 0.02 (48)

0.005 to 0.01 (144)

0 to 0.005 (307)

70

0,0

00

mE

9,610,000 mN

2 km.0

110 m @ 0,67 g/t Au, incluyendo 45m @ 0,95 g/t Au.

0.49 g/t Au

5.23 g/t Au

2.08 g/t Au

1.12 g/t Au

5.13 g/t Au



70

0,0

00

mE

9,610,000 mN

2 km.0

154 g/t Ag

80.5 g/t Ag

40.1 g/t Ag

85 g/t Ag

390 g/t Ag

60.9 g/t Ag

111 g/t Ag

396 g/t Ag

60.6 g/t Ag

167 g/t Ag

309 g/t Ag

1100 g/t Ag

31.6 g/t Ag

40.2 g/t Ag

132 g/t Ag

84.6 g/t Ag

70.5 g/t Ag

56.5 g/t Ag

565 g/t Ag

35.2 g/t Ag

628 g/t Ag

40.2 g/t Ag

56.3 g/t Ag

30.7 g/t Ag

64.6 g/t Ag

33.1 g/t Ag

72.7 g/t Ag

Silver in stream sediments,

rocks and soils

Rocks La_Encrucijada Ag g/t

100 to 1,100 (10)

30 to 100 (17)

10 to 30 (11)

5 to 10 (11)

0 to 5 (150)

Soil_LaEncrucijada Ag g/t

5 to 21.9 (3)

1 to 5 (17)

0.5 to 1 (26)

0.3 to 0.5 (69)

0.1 to 0.3 (416)


Macara (Au-Cu)

Strategic Alliance and JV

agreement signed with

Newmont Ventures in Feb.

2008

AOI : Initially at 1,800 km²

and increased to 2,500 km²

Regional geochemical and

prospection program

Regional sampling program: 581 Stream Sediment; 473

Bleg, > 2,200 rock and 96 soil samples collected


Shyri (Au-Ag-Cu)

10 km

15

QuimsacochaIamgold / INV

Metals

Rio BlancoInternational Minerals

ChauchaSouthern Copper

(Groupo Mexico)

1

2

3

Targeting epithermal gold –

silver deposits and porphyry

copper-moly-gold deposits

Neighbouring Deposits:

1. Quimsacocha (Indicated

Resources = 3.3 Moz Au,

22.7 Moz Ag, 143.1 Mlb Cu)

2. Rio Blanco (Proven &

Probable Reserves = 0.6

Moz Au, 4.3 Moz Ag)

3. Chaucha – Large copper-

moly porphyry (no NI 43-101

compliant resources)

Gama

Yanasacha

Canaribamba

Vetas Grandes


Shyri

Gama Prospect

In 2011 completed the first ever diamond

drilling on the Gama prospect - 13 holes

totalling 4,279 m

Confirmed large porphyry-epithermal

system with gold-enrichment (0.71 g/t Au

over 45 m in hole GAD-11-002 and 0.45 g/t Au

over 26 m in hole GAD-11-011)

2012 Exploration Program

Ground geophysical surveys

(Magnetics and Induced

Polarization), soil geochemistry

surveys and detailed mapping

Q4 Phase 3 drilling – 5 holes

totalling 2,253 m

Confirmed underlying porphyry

system but only weakly mineralized

in area tested


Bella Maria (Au-Cu)

100%-owned Cornerstone

Abundant free gold in stream sediment panning

samples

Anomalous gold and copper in rock samples

Soil geochemistry surveys have outlined a large (3.5 km

x 1.5 km) coincident gold and copper-in-soil anomaly

accompanied by porphyry-style mineralization in the

central portion of property

Free Gold

in Panning

Samples

Permits required to

carry out field surveys

have already been

received

Actively seeking a JV

partner to advance

exploration


Bella Maria (Au-Cu)

Geology

Gold – Soils & Rocks Copper – Soils & Rocks

Gold – Stream Sediments,

Panned Concentrates & Rocks


Caña Brava (Au-Ag-Cu)

Geology & Alteration

Hydrothermal

Breccia

Lithocap


Caña Brava (Au-Ag-Cu)

Gold & Copper Geochemistry

Gold - Soils & Rocks

Copper - Soils & Rocks


Ecuador Generative Program

Regional Stream Silt

Geochemistry

Six datasets: total of 26,589

samples

- Public data: 15,159 samples

- Semi-Public data: 9,067 samples

- Proprietary data: 3,847 samples

Statistical review of the data

indicates the datasets can be

combined

First-pass data processing using

Au, As, Cu and Mo outlined 41

anomalous areas prospective for

porphyry and/or epithermal

mineralization


Chile

Escondida

El Penon MIOCENE

La Coipa

Lobo - Marte

Maricunga

Santiago

La Serena

Antofagasta

El Indio – El Tambo

Pascua Lama

Veladero

Cerro Negro

Andacollo

El Bronce

One of the world’s top mining

jurisdictions

World class gold and copper

deposits

Politically stable with established

regulatory environment

Long history of mining

Experienced labour force and

excellent infrastructure

Gold deposit/mine

Copper deposit/mine


Miocene Property Overview

23

Option to acquire 100% entered February 2011

Located in the Regions of Atacama and Antofagasta of northern Chile, approximately 200 km southeast of the port city of Antofagasta

Underlain by the same Miocene and Pliocene volcanic sequences that host the world class gold deposits in the Maricunga and El Indio magmatic belts to the south

The Maricunga belt contains a number of undeveloped advanced stage projects and two producing gold mines - Kinross Gold's Maricunga and La Coipa open pit mines

Option Agreement

option payments of CDN$500,000 payable over 5 years ($40,000 in each of years 1 & 2, $60,000 in year 3, $120,000 in year 4, and $240,000 in year 5), 50% may be in CGP shares

CDN$5 million in exploration expenditures over 5 years ($500,000 in years 1 & 2, $1 million in year 3, and $1.5 million in each of years 4 & 5)

2% NSR with the right to buy back half for US$1 million


Miocene (Au-Ag-Cu)


Project Mineral Reserves (Proven + Probable) Mineral Resources (Measured + Indicated)

Au (Moz) Ag (Moz) Cu (Mlb) Au (Moz) Ag (Moz) Cu (Mlb)

Maricunga Belt La Coipa (Kinross) 1.1 37.9 -- 0.3 13.9 --

La Pepa (Yamana) -- -- -- 2.8 -- --

Lobo - Marte (Kinross) 5.6 -- -- 0.6 -- --

Volcan (Andina) 6.6 -- -- 8.9 -- --

Maricunga (Kinross) 6.4 -- -- 2.9 -- --

Caspiche (Exeter) -- -- -- 21.3 48.4 5300.0

Cerro Casale (Barrick-Kinross) 23.2 58.7 5782.0 2.7 7.4 880.0

El Indio Belt Pascua Lama (Barrick) 17.8 671.1 655.7 4.8 136.1 194.0

Veladero (Barrick) 12.2 224.6 -- 0.9 24.9 --

El Indio (Exhausted

El Tambo Mines)

TOTAL 75.9 1007.5 6438.0 45.2 230.7 6374.0

0.3 -- -- --3.0 15.1

Major Gold Deposits,

Maricunga & El Indio Belts

Miocene (Au-Ag-Cu)


Miocene (Au-Ag-Cu)

Zone Soils Rocks Ha

Zone 1 741 131 20 100

Zone 2 119 24 6 500

Zone 3 431 99 11 400

Zone 4 30 6 0

Zone 5 - 13 3 100

Others - 7

Total 1321 280 41 100

ARGENTINA

CHILE

Zone 1

Zone 2

Zo

ne 3

Zone 5

Regional reconnaissance

program


Little Deer (LD) Copper Project

Located 10 km north of Springdale in

north-central Newfoundland

50-50 JV with Thundermin Resources

Includes the past-producing

Whalesback and Little Deer copper

mines which operated during the 1960’s

and 1970’s.

Since 2007, completed > 50,000 m of

diamond drilling and spent $8 million

on exploration

NI 43-101 compliant mineral resource

estimate and PEA completed


Little Deer – Whalesback

3D Model (looking NW)

Whalesback

Deposit

Little Deer

Deposit

Drift – 800’ Level

Classification Tonnes Cu (%) Cu (M lbs)

Indicated 1,911,000 2.37 99.8

Inferred 3,748,000 2.13 175.9

Deposits 780 m apart

Classification Tonnes Cu (%) Cu (M lbs)

Indicated 797,000 1.67 29.3

Inferred 443,000 1.57 15.3


NI 43-101 Mineral Resources

(P&E Mining Consultants)

Resource Classification -

Mineralized ZoneTonnes % Cu Cu lbs (M)

LITTLE DEER DEPOSIT (1)

Indicated – Little Deer Zone 1,911,000 2.37 99.8

Inferred – Little Deer Zone 1,240,000 1.93 52.8

Inferred – Footwall Zone 1,711,000 2.04 77.0

Inferred – Footwall Zone Splay 797,000 2.64 46.2

WHALESBACK DEPOSIT (2)

Indicated - Whalesback 797,000 1.67 29.3

Inferred - Whalesback 443,000 1.57 15.3

Total Indicated 2,708,000 2.16 129.1

Total Inferred 4,191,000 2.07 191.3

(1) P&E Mining Consultants, August 5, 2011

(2) P&E Mining Consultants, July 26, 2012


Scoping Level Metallurgical Test Work

Little Deer Deposit

Highlights

Production of a saleable, high grade copper concentrate grading over 28%

copper with over 97% copper recovery in locked cycle tests

Copper concentrates free of any deleterious elements

Copper recovered employing a simple rougher-cleaner flowsheet using a

common xanthate collector

Copper mineralization of medium hardness with Bond ball mill work index

of 14.6 kilowatt hours per tonne (“kWh/t”)

Fresh and aged tailings decant solutions well within Canadian Metal

Mining Effluent Regulations (“MMER”) limits and non-lethal designations

for MMER aquatic toxicology tests

* SGS Lakefield (2010)


Preliminary Economic Assessment

Little Deer Deposit

PEA Highlights - Base Case

Financial Summary (100% Equity Basis)

Initial Capital Cost = $110 million

Average Operating Cost = $47.32/t of ore mined & milled ($1.16/lb copper)

Total Revenue = $829 million

Pre-tax Net Cash Flow = $237 million. After-tax Net Cash Flow = $166 million

Pre-tax NPV = $130.4 million. After-tax NPV = $86.7 million

Payback of Pre-Production Capital = 3.5 years

Pre-tax IRR = 26.0%. After-tax IRR = 21.5%

Assumptions: Copper Price = US$3.75/lb, US$0.95 = C$1.00, 6% Discount Rate)

* P&E Mining Consultants (Nov. 01, 2011)


Little Deer Infrastructure

Goodyear’s Cove

Port

Little

Deer

Deposit

Provincial

Hydro Grid

Substation

Goodyear’s

Cove Port

Old Tailings Impoundment

Whalesback Mine


Cape Ray (Gold-Silver)

Property Overview

Definitive Option Agreement signed with Benton Resources Inc. in Dec. 2012

Benton has the ability to earn an initial 70% interest by spending C$2 million on exploration, and making payments of C$125,000 and 155,000 shares over 4 years.

Benton can earn an additional 5% (taking their interest to 75%) by incurring an additional C$1 million in exploration expenditures at its sole election but such election must be made within a period not exceeding 18 months from the date that Benton's interest vests at 70%.



Location & Geology

Windowglass

Hill

Deposit

51 Zone

Deposit



Mineral Resources

Deposit Resource

Category

(Cut-Off

Grade)

Tonnes

(Rounded)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

Contained

Gold

(oz)

Contained

Silver

(oz)

51 Zone Inferred

(2.5 g/t Au)

530,000 6.10 15.86 103,943 270,253

Windowglass

Hill

Inferred

(0.5 g/t Au)

1,810,000 1.77 11.28 103,001 656,415

* Mercator Geological Services, July 18, 2012

* NI 43-101 MINERAL RESOURCE ESTIMATE


Summary

Experienced senior management and

technical team

Prospect generator following the joint venture

model to diversify risk ( 50% exploration

funded by JV partners)

Portfolio of highly prospective exploration

projects in Ecuador, Chile and Atlantic

Canada with a strong focus on gold and

copper

cornerstone capital resources inc. · 2013. 3. 1. · cornerstone capital resources inc. corporate...

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