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TSXV - CGP OTC - CTNXF F - GWN Exploring World Class Mineral Districts Cornerstone Capital Resources Inc. Corporate Presentation October 2012

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Page 1: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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

Cornerstone Capital Resources Inc.

Corporate Presentation

October 2012

Page 2: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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.

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Page 3: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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70%

50%

51%

65%

60%

30%

50%

49%

35%

40%

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

Cape Ray

Little Deer

Macara

Cascabel

Shyri

Prospect Generator

Business Model - Partners

Page 4: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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)

CHILELa Fortuna Property - Copper/Silver

Option to earn 100%

Cerro Negro copper-silver mine and mill complex located just 3 km to the west

Miocene Property - Gold/Copper/Silver

Option to earn 100%

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

Shyri Property (4 Gold prospects)

Intrepid Mines earning 60% interest by spending US$6 million over 5 years

First ever diamond drilling completed on Gama prospect in 2011 (13 holes, 4279 m)

Cascabel Property

SolGold earning 65% interest by spending US$7.8 million over 4 years

Aggressive US$2.8 million year 1 program with Phase 1 drilling planned Q4 2012-Q1 2013

Macará Property

JV with Newmont Ventures

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

La Encrucijada, Bella Maria & Monterrey Properties

100% owned by Cornerstone

Page 5: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Share Capitalization

(as at Sep. 14, 2012)

Shares Outstanding 142,931,355

Fully Diluted 167,587,774

Share Price $0.09

52 Week High / Low $0.055 – $0.22

Cash (June 30, 2012) $924,850 (No Debt)

Market Cap $12.9 million

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Page 6: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Ecuador

JV Projects

Shyri

Cascabel

Macará

100%-Owned Cornerstone Projects

La Encrucijada – Epithermal HS

Bella Maria – Porphyry and breccia

Au-Cu

Monterrey – Epithermal LS and HS

Quito

CuencaShyri

Bella Maria

Macara

Monterrey

Fruta del Norte (Au-Ag)

Kinross Gold

Mirador (Cu-Au)

EcuaCorriente

Quimsacocha (Au-Ag)

Iamgold / INV Metals

Rio Blanco (Au-Ag)

International

Minerals

Zaruma (Au)

Dynasty Metals

& Mining

Cascabel

La Encrucijada

6

Advanced Stage Projects

(other companies)

Page 7: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Shyri (Au-Ag-Cu)

10 km

7

QuimsacochaIamgold / INV

Metals

Rio BlancoInternational Minerals

ChauchaSouthern Copper

(Groupo Mexico)

1

2

3

JV partner Intrepid Mines

earning a 60% interest by

spending US$6 million over 5

years

Exploration Funding = 100%

Intrepid

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

Page 8: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Shyri (Au-Ag-Cu)

4 prospect areas (Gama, Yanasacha,

Vetas Grandes & Cañaribamba)

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 Program

Ground geophysical surveys

(Magnetics and Induced

Polarization), soil geochemistry

surveys and detailed mapping

Q3-Q4 Phase 3 drilling (2,500 m)

on Satoshuaycu porphyry target

Page 9: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Gama Prospect

Geology

Satoshuaycu

Target Area

(Phase 3 Drilling)

Boqueron

Target Area

(Phase 1 & 2 Drilling)

GAD-11-002

0.71 g/t Au, 0.18% Cu

over 45 m

Page 10: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Gama Prospect

Ground Magnetics

Satoshuaycu

Target Area

(Phase 3 Drilling)

Boqueron

Target Area

(Phase 1 & 2 Drilling)

GAD-11-002

0.71 g/t Au, 0.18% Cu

over 45 m

Page 11: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Satoshuaycu Porphyry Target

Proposed Phase 3 Drill Holes

Target Attributes

Focus of porphyry intrusive activity

Large km-scale zones of associated

hydrothermal alteration

Coincident gold, copper & molybdenum soil

anomalies

Large associated magnetic high

Associated induced polarization

chargeability anomalies

Best result from Phase 1 & 2 drilling (GAD-

11-002) located on eastern extension and

higher part of the porphyry system

Page 12: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Cascabel (Au-Ag-Cu)

JV Partner SolGold plc

earning 65% interest by

spending US$7.8 million over 4

years

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

Page 13: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Cascabel

Gold & Copper Results

Gold

Rock Chips & Stream Seds

Copper

Rock Chips & Stream Seds

Page 14: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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CascabelMoran & Alpala Porphyry Target

Page 15: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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CascabelComposite Interpretation Section

Page 16: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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

LA FORTUNA

Page 17: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Chilean Property Overview

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Option to acquire 100% entered March 2011

Located in the Valparaíso Region of central Chile, approximately 100 km north of Santiago

August 30, 2011 preliminary results of ongoing exploration program

Seven prospective mineralized zones distributed over a large area (18 km2) identified to date

Trench TH1 returned 19.5 m at 1.34% Cu and 58.0 g/t Ag

Of 163 rock samples collected during mapping and prospecting, 34 (19%) returned >0.5% Cu, including 24 (14%) which returned >1.0% Cu; 18 (10%) returned >30 g/t Ag, including 5 (3%) which returned >100 g/t Ag

78% of copper is soluble in samples (49) which returned >0.5% Cu

Option Agreement

option payments of CDN$600,000 payable over 4 years ($70,000 at signing, $30,000 at end of year 1, and $500,000 at end of year 4)

CDN$3 million in exploration expenditures over 4 years ($500,000 in year 1, $750,000 in each of years 2 & 3, and $1 million in year 4)

1.5% NSR with advance payments annually following option exercise

La Fortuna (Ag-Cu)

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)

Page 18: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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La Fortuna (Cu-Ag)

Cerro Negro

Mine & Mill Complex

(SX-EW Plant & Concentrator)

4 km

0Trenches

3.62 %Cu, 13 g/t Ag

Target Areas

4.48 %Cu, 300 g/t Ag

2.92 %Cu, 196 g/t Ag

1.88 %Cu, 249 g/t Ag

TH14A: 7.7m@ 0.36% Cu, 12g/t Ag

TH14B: 26.3m@ 0.18% Cu, 6g/t Ag

1.89 %Cu, 79 g/t Ag

TH1: 19.5m@ 1.34% Cu, 58g/t Ag

TH11: 2.2m@ 0.51% Cu

TH9: 4m@ 0.34% Cu

and 5.5m @ 0.12% Cu

TH15A: 12m@ 0.39% Cu

TH12: 28.1m@ 0.16% Cu

TH6: 18m@ 0.08% Cu

and 1.2m@ 0.27% Cu

and 2.2m@ 0.31% Cu, 8g/t Ag

TH7: 16m@ 0.49% Cu, 10g/t Ag

and 10.8m@ 0.95% Cu, 18g/t Ag

TH8: 117.9m@ 0.19 % Cu, 10g/t Ag

including 52.4m@ 0.33% Cu, 17g/t Ag

Cu Showing (>0.5%)

TH2: 12m@ 0.21% Cu, 13g/t Ag

TH5: 24m@ 0.09% Cu, 8g/t Ag

1.16 %Cu, 65 g/t Ag

1.58 %Cu

MCCL CAMP

3.49 %Cu, 16 g/t Ag

0.9 %Cu

0.78 %Cu, 30 g/t Ag

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Page 19: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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La Fortuna (Cu-Ag)

Drill Hole Plan: 18 Holes

5400 meters

Magnetics

IP and proposed DDH

Geology

N

Page 20: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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La Fortuna (Cu-Ag)

SECTION N165

Page 21: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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

Page 22: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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

Page 23: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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

Page 24: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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)

Page 25: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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)

Page 26: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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Little Deer Infrastructure

Goodyear’s Cove

Port

Little

Deer

Deposit

Provincial

Hydro Grid

Substation

Goodyear’s

Cove Port

Old Tailings Impoundment

Whalesback Mine

Page 27: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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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

Q4 2012 and 2013 - Expect continued positive news

flow from drilling results at Shyri, Cascabel, La Fortuna

and Little Deer projects

Page 28: Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources

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