Cornerstone Metals Completes Due Diligence – Moves to Definitive Agreement Stage on Carlin Vanadium Project Acquisition
Cornerstone Metals Completes Due Diligence – Moves to Definitive Agreement Stage on
Carlin Vanadium Project Acquisition
September 5, 2017 - Vancouver, British Columbia – Cornerstone Metals Inc. (TSX-V –
CCC) (“Cornerstone” or the “ Company”) is pleased to announce that it has completed its due
diligence on the Carlin Vanadium Project and is proceeding to D efinitive Agreement stage. The
Company announced on August 11, 2017 it had entered into a non-binding Letter of Intent (LOI)
with Americas Gold Exploration Inc. (AGEI), a private Nevada co rporation, to acquire 100%
interest in its underlying opti on agreement on the Carlin Vanad ium Project, Nevada. The Carlin
Vanadium Project has one of the largest known primary vanadium deposits in the U.S.A. The
latest utility-scale battery st orage technology to emerge on th e commercial market is the
vanadium redox flow battery.
The Carlin Vanadium Project is located in Elko County 22km by r oad (14 miles) from the town
of Carlin, Nevada, and is comprised of 72 contiguous unpatented mineral claims totaling 461
hectares (1,140 acres). The Carlin Vanadium deposit was discove red by Union Carbide Corp.
(UCC) in the 1960’s, which completed surface mapping, trenching and 152 rotary drill holes in
11,133m (36,525 feet) of drilling. The average drill hole spaci ng was 60m (200ft) apart within
the more densely drilled areas. Drilling indicates a zone of mi neralization approximately 55m
(180 feet) thick striking nor th-south over 1,860m (6,100ft) in length and dipping 5°-30° east and
west averaging 760m (2,500ft) of down dip extent from surface. By 1967, UCC completed a
vanadium resource estimate that was completed prior to the adoption of NI 43-101.
SRK Consulting (U.S.) Inc. reported an NI-43-101 Inferred mineral resource within a Technical
Report titled NI 43-101 Technical Report on Resources , EMC Metals Corp., Carlin Vanadium
Project, Carlin, Nevada and dated April 30, 2010 (the “Technical Report”) on the depos it,
following the guidelines of the CIM Definition Standards for Mi neral Resources and Mineral
Reserves. The Technical Report, which was prepared according to the disclosure requirements of
NI 43-101 – Standards of Disclos ure for Mineral Projects, outlined an Inferred mineral resource,
at a 0.3% vanadium pentoxide (V 2O5) cut-off-grade, of 28 million tons at a weighted average
grade of 0.515% (V2O5), having a total metal content of 289 million pounds V2O5.
Notes to accompany Carlin Vanadium Mineral Resource:
The 0.3% V 2O5 cut-off-grade (CoG) was chosen for resource reporting based on the reasonable
potential for economic extraction under a conceptual open pit m ining and milling scenario. The
CoG was calculated using $2.30/short ton (“st”) mining cost, $3 5/st milling cost, $0.50/st admin
cost, 65% recovery, 95% selling pa y-for, 1% freight charge, 0% royalty and a $10.46/lb V 2O5
value. The V2O5 price was based on a five year trailing average value. This an alysis resulted in a
break-even CoG of 0.30%. The results reported in the resource s tatement are rounded to reflect
the approximation of grade and quantity, which can be achieved at this level of resource
estimation. Tonnage and grade measurements are in US units. Gra des are reported in
percentages.
The historic Carlin Vanadium mineral resource estimate that was p r e p a r e d b y S R K f o r E M C
Metals Corp. (EMC) had an eff ective date of April 9, 2010. Resu lts of the study were disclosed
previously by EMC in accordance with NI 43-101 and are consider ed historic in nature by the
Company. This historical estimate was prepared using currently accepted methods and
assumptions but the costs and prices assumed are not current. I t is considered reliable since the
geologic model developed by EMC geologists was used. The histor ical estimate uses the same
resource classes described in Section 1.2 of NI 43-101. The his torical estimate does not include
any more recent data or estimates available to the Company. The work needed to upgrade the
historical estimate as current mineral resources will be to use current costs and metal prices. A
qualified person has not completed sufficient work to classify the historical estimate as current
mineral resources. The Company is not treating the historical e stimate as current mineral
resources. Mineral resources that are not mineral reserves do n ot have demonstrated economic
viability.
Paul Cowley, Cornerstone’s Presi dent and CEO, comments, “The pr oject has an exceptional
setting, location and infrastructure available to it. We are lo oking to finalize the acquisition
expeditiously and begin work advancing the project.”
A Finder’s Fee is payable in relation to this transaction withi n guidelines of TSX-V policy. The
acquisition and Finder’s Fee are subject to TSX-V approval.
About Cornerstone Metals Inc.
Cornerstone’s objective is to advance exploration/development s tage copper, precious and
strategic minerals properties to production in the Americas. Th e Company’s Management and
Board Core Competence is in exploration, permitting, developmen t, construction, and operation
of mining projects.
Cornerstone owns 100% (subject to 1.5% NSR) of the West Jerome property, near Jerome,
Arizona, on the west side of Freeport McMoRan patented lands. The property, in a Volcanogenic
Massive Sulfide camp, is a high-gr ade, massive sulfide target l ocated 2.4 km south of the past-
producing United Verde (32 million tons grading 4.4% copper, 1.5 oz/t silver and 0.04 oz/t gold).
The West Jerome property has attractive untested drill targets.
Technical disclosure in this news release has been reviewed and approved by Paul Cowley,
P.Geo., a Qualified Person as defined by National Instrument 43 -101, and President and CEO of
the Company.
ON BEHALF OF CORNERSTONE METALS INC.
per:
“Paul Cowley”
CEO & President
For further information, please contact:
Paul Cowley
Tel: 604-340-7711
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information
Certain statements in this news release constitute "forward-lookin g" statements. These statements relate to future events or th e Company's future
performance and include the potential acquisitio n of the Carlin Vanadium project as desc ribed in the news release. All such sta tements involve
substantial known and unknown risks, uncertainties and other facto rs which may cause the actual results to vary from those expr essed or implied
by such forward-looking statements. In addition to other risks, the Company's potential acquisition may prove to be unsuccessfu l and the
Company may be unable to complete such transaction. Further, the Company may not attract capital in the future to finance the transaction costs
or obligations under the assignment, which could affect whether the Company proceeds with the acquisition. Forward-looking sta tements
involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they w ill not necessarily
be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anti cipated due to a
number of factors and risks. Although the fo rward-looking statements contained in th is news release are based upon what managem ent of the
Company believes are reasonable assumptions on the date of this ne ws release, the Company cannot assure investors that actual r esults will be
consistent with these forward-looking statements. The forward-look ing statements contained in this press release are made as of the date hereof
and the Company disclaims any intention or obligation to update or revise any forward-looking st atements whether as a result of new
information, future events or otherwise, except as required under applicable securities regulations.