cornerstone capital resources inc. · 2017-03-01 · although cornerstone capital resources inc....

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

Cornerstone Capital Resources Inc.

Part 1. – Carried Interest in Cascabel Cu Au Project &

Prospect Generation in Ecuador, the most underexplored

part of the Andes

Part 2. - Project Exploration in the core of a new

mineralized district in Northern Chile

1

22 February 2017

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 Inc. 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 believes the facts and information contained in the pages of this presentation to be as

correct and current as possible, Cornerstone 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 Yvan Crepeau,

P.Geo, MBA, Cornerstone’s VP Exploration and President of Cornerstone Ecuador SA and Minera Cornerstone

Chile, who is a qualified person in accordance with Canada’s National Instrument 43-101.

2

http://www.sedar.com/


Management

3

H. Brooke Macdonald, B. Bus., L.L.B.

Director, President & CEO - Brooke has over 25 years experience in the

mining industry, specializing in the legal aspects of exploration and mine

development with an emphasis on Latin America. From 2004-2008 He was VP

Legal Affairs for Skye Resources Inc. until its acquisition by HudBay Minerals

Inc. Before that he worked with Placer Dome as legal counsel for Latin America

exploration and later as country manager in Venezuela. Prior to joining Placer,

he practiced law with Baker & McKenzie in Venezuela for four years. He earned

his law degree from Queen's University in Ontario, was admitted to practice in

British Columbia in 1984 and in New York in 2002.

Yvan Crepeau, P.Geo., MBA

VP Exploration - Yvan is an explorationist with over 30 years of

experience in the evaluation and management of exploration projects in

Eastern Canada, Asia, Central and South America, including complex

contract and permitting negotiations with government entities. He holds an

MBA from HEC in Montreal, specializing in International Management, and

a BSc in Geology from the University of Montreal.


Management (Cont.)

4

Colin McKenzie, P. Geo. - Non-Exec. Chairman - Colin been a director of

Cornerstone since 2006 and served as President & CEO from 2008 to 2010.

From 2004 to 2008, He was VP Exploration for Skye Resources, engaged in the

development of the Fenix nickel laterite deposit in Guatemala. Before joining

Skye, he was Director, Exploration for Inco, where he was in charge of

exploration in Latin America as well as responsible for generating new business

opportunities from Inco's portfolio of non-core exploration properties. From 1996

to 2000 he was VP Exploration for Voisey's Bay Nickel, responsible for

managing exploration and resource evaluation of the Voisey's Bay deposits.

Prior to that he held increasingly senior exploration positions with Rio Algom

and at BP Mining, where he was credited with the discovery of the Hope Brook

gold deposit. Colin holds B,Sc, (Honours) and M,Sc, degrees in Geology from

Dalhousie University.

Sabino DiPaola, CA – CFO – Sabino is a graduate of Concordia University,

and also serves as the CFO of several other Canadian TSXV listed exploration

companies. He has 10 years' experience in audit, finance and accounting while

working as an auditor for PricewaterhouseCoopers and BDO Canada, has been

involved with numerous financing and spin out transactions.


Management (Cont.)

5

David Loveys, C.A., Director David's experience has been primarily with large

Canadian publicly traded companies operating in the domestic and international

markets. He has held senior financial positions with CHC Helicopter Corporation

and, prior to that, with the NewTel Group of Companies. David has a Bachelor of

Commerce Degree from Memorial University of Newfoundland and qualified as a

Chartered Accountant in 1981. He successfully completed the Investment Dealers

Association of Canada, Canadian Securities Course in 1987.

W. John Clarke, B. Comm., J.D, C. Arb., C. Med., Director John Clarke was a

co-founder, in 1997, of Cornerstone in its original form as a private company and

has been a Director of Cornerstone Capital Resources Inc. since it was formed

and listed on the Alberta Exchange and subsequently on the TSXV Exchange in

1999. John has been a member of the Law Society of Newfoundland since 1979.

He holds a Bachelor of Commerce Degree from Memorial University of

Newfoundland and a Juris Doctor Degree from the University of Saskatchewan.

He is a member of the panel of arbitrators trained and approved by the provincial

Labour Management Arbitration Committee and maintained by the Provincial

Department of Labour.


Management (Cont.)

6

Beverley A. Evans, C.A., Director & Chair Audit Committee Ms. Evans is a

St. John's-based chartered accountant with over 20 years experience in senior

management roles with the Research and Development Corporation ("RDC"), a

NL crown corporation investing in research and development, FPI Limited, a

TSX-listed global seafood company, and Ernst and Young. As CFO of RDC, Ms.

Evans is responsible for financial, information technology ("IT"), procurement and

treasury operations of the corporation. She also is an executive member

responsible for strategic planning and execution of the corporation's business

plan. As CFO and Corporate Secretary for FPI, Ms. Evans was responsible for

corporate finance, foreign investment and consolidation strategy, financial

compliance for public company reporting, IT and human resources. She also

played a key role in executing the corporation's strategic business plans as it

transitioned from operator to holding company.


Share Capitalization

7

• Treasury Position: $CAD 3.1M @ Sept. 30, 2016

• Debt: $0

Common Shares 287,455,995

Listed warrants 26,666,667

Private warrants 88,031,000

Stock options 22,930,333

Finder’s warrants 6,263,292

431,327,288


Option Breakdown

8

Price Expiry Date Amount

$0.10 May 8, 2018 970,000

$0.10 June 11, 2018 125,000

$0.185 March 5, 2019 3,875,000

$0.10 January 29, 2020 2,377,000

$0.10 June 4, 2020 50,000

$0.05 June 13, 2021 3,233,333

$0.11 August 8, 2021 2,900,000

$0.15 November 15, 2021 9,400,000

22,930,333


Warrants Breakdown

9

Price Expiry Date Amount

$0.35 April 2019 26,666,667

$0.20 April 2019 1,808,450

$0.10 May 12, 2021 88,031,000

$0.05 May 12, 2018 4,454,842

120,960,959


PROPERTIES

10

CHILE

100% - OWNED PROPERTIES

▪ Miocene - Porphyry Au-Cu and Epithermal Au-Ag

JOINT VENTURED PROPERTIES

▪ Cascabel – Porphyry Cu –Au (SolGold)

100% - OWNED PROPERTIES

▪ Vetas Grandes – Epithermal Au-Ag

▪ Bella Maria – Porphyry and breccia hosted Au-Cu

OPTIONED PROPERTIES TO EARN 100%

▪ Caña Brava – Porphyry Au-Cu & Epithermal Au-Ag

PROJECT GENERATION

▪ GENEX program

▪ ENAMI EP strategic alliance agreement

CANADA

Head Office: Ottawa, ON

ECUADOR

TSXV-CGP OTC-CTNXF F-GWN11

• Cornerstone Capital Resources Inc. (TSX-V:CGP)

o Prospect Generator

o Focus on Ecuador and Chile

• Cornerstone Ecuador SA (CESA)o Active since 2005

o Investment: >$USD 30M, >75% by partners

o Strategic Alliance (SA) and Joint Venture (JV) model

o Approach: project Generation (GENEX) & partnership

o April-May 2016 Financing

o Current strategy

• Exploraciones Novomining SA (ENSA)

o Cascabel JV

• Minera Cornerstone Chile Ltda (MCCL)

o Prospect generator

o Miocene project

CORNERSTONE AND SUBSIDIARIES


• US$, no exchange controls, foreign investor may own 100% of

mineral rights

• > 500,000 bpd oil exports (with limited reserves)

• Political stability: Rafael Correa in power 10 years, re-elected Feb

2013 in landslide, new elections in February 2017

• President Correa Champion of large scale mining. See March 2016

video from Correa’s visit at FDN: https://vimeo.com/161555884

• Unprecedented infrastructure investment

o New highways built. 89% of country’s roads improved

o 9 Hydroelectric plants being built and starting in 2016 will

provide 8,300 MW of clean, low-cost energy

o 15 airports and 5 international seaports improved

o Multiple schools and medical centers built all over the

country

ECUADOR INVESTMENT CLIMATE

GENERAL



• 2006-07: Mineral exploration frenzy (Aurelian-FDN, EcuaCorriente-

Mirador, Iamgold-Quimsacocha, International Minerals-Rio

Blanco,...)

• 2008: Mining Mandate (Temporary Moratorium)

• 2009 & 2010: New Mining Law and new Mining Regulations

• 2011: Cornerstone 1st company to receive drill permit at Shyri-Gama

• 2013: Wood Mackenzie retained to assist in reviewing regulations

and taxation in the mining sector

• 2014:

o Cornerstone/SolGold’s discovery hole at Cascabel

o Ross Beatty acquires Odin Mining (Cangrejos project).

o Lundin Gold acquires Fruta Del Norte (FDN) from Kinross

o Ecuador successfully returns to the bond market

o Ecuador negotiates Free Trade Agreement with European Union

MINING SECTOR – IMPORTANT MILESTONES



• 2015:

o Creation of the Ministry of Mining in February

o CODELCO starts drilling Llurimagua (ex-Junín) world-class

porphyry Cu-Mo deposit

o Construction phase begins at Mirador Cu project

• 2016:

o Lundin Gold signs the Exploitation Agreement Terms and

Conditions for their 9.48 M Oz gold (Indicated + Inferred) FDN

deposit (4.82M oz. gold mineable reserves)

o Toachi Mining options La Plata gold-rich VMS deposit

o Claim staking process implemented in March. 700,000 Has

applied for in the first few weeks and more than 1.4M hectares

applied for to date. 160 mining titles ranted to date.

o Lundin Gold starts an exploration/drilling campaign on regional

targets near FDN



• 2016 (cont’d):

o Cornerstone and ENAMI EP sign definitive SA and JV agreement

to jointly explore in Ecuador. ENAMI has a preferential right to

acquire any ground in the country

o Successful financing for INV Metals (Loma Larga deposit),

Salazar Resources (El Domo deposit) and Cornerstone

o On June 6, Lundin Gold announced a positive FS on FDN (pre-

tax 23.8% IRR and after-tax 15.7% IRR)

o July 14: INV Metals announced a pre-FS on its Loma Larga

deposit, containing > 3 M oz gold resources (after-tax 26.3%

IRR)

o On July 14, Ecuador’s government approves FDN change from

exploration to exploitation phase. Lundin obtains

environmental permit for development



• 2017:

o Lumina Gold announces a 4 million ounce inferred gold resources

on its Cangrejos project

o Lundin Gold Signs Investment Protection Agreement for FDN

• 2016 (cont’d):

o Odin Mining to acquire Ecuador God and Copper Corp. and

changes its name to Lumina Gold Corp.

o Lundin Gold signs exploitation Agreement for FDN



• Fiscal stability contracts 25 yrs, renewable

• Accelerated depreciation, investor choice of 5 - 10 years

• Extraordinary income (windfall profits) tax (70%) only applicable

when metal price exceeds 10 yr. rolling monthly average plus one

standard deviation (likely 1 of every 7 years).

• Currency exportation tax (ISD) exemption for mining sector

• VAT (12%) refunds starting in 2018 adds up to 1.5% to IRR

• Limited applicability of capital gains tax

“Extraordinary Income (windfall profits) Tax and Sovereign adjustment are unlikely to be paid

under normal circumstances, and never before discounted payback of the initial investment”

(Wood Mackenzie PDAC 2016 Presentation)

MINING SECTOR – TAX ISSUES


Ecuador’s tax burden is competitive compared with regional countries

MINING TAXATION REGIME

Source: Wood Mackenzie presentation at PDAC 2016


Projects with other cost structures yield different percentages, but do not

alter the conclusion that Ecuador’s tax burden is in the competitive range

MINING TAXATION REGIME

Source: Wood MacKenzie presentation at PDAC 2016


ECUADOR PROJECTS

Cornerstone JV Projects

• Cascabel

Cornerstone 100%-Owned and optioned Projects

•Vetas Grandes

• Bella Maria

• Caña Brava*

* Option to earn 100%

20

Epithermal (Au-

Ag) & Porphyry

(Au-Cu) Targets


CASCABEL (Cu-Au)

• JV SolGold plc will own 85%

(subject to funding 100% through

BFS) Cornerstone 15%

• Targeting porphyry copper – gold

deposits

• Located in same belt as Junin

(now Llurimagua) porphyry Cu-

Mo deposit (982 M tons at 0.89%

Cu , 0,04% Mo) and the Colosa

porphyry Au deposit (905 M tons

at 0,92 g/t Au) located to the

north in central Colombia


EXPLORATION

History

• Stream sediment (SS) anomaly defined by regional BGS survey

• Property acquired from SBRL in March 2011 and reconnaissance work identified a

3x3 km rock chip anomaly within a 5x5 km stream sediment anomaly

• Systematic exploration program started in May 2012. Alpala discovery outcrop

found through prospecting work in the 1st field sequence

• Good exploration results reported every month and all over the property: good signs

• Heli-borne magnetic survey

• Terraspec mineralogical mapping of soils

• Deep penetration 3D IP Orion survey

TARGETS TO DATEPorphyry Cu-Au (14): Alpala (6), Triviño, Aguiñaga, Tandayama-America,

Chinambicito, Cristal, Carmen, Parambas, Moran. Eight of them are high priority

drilling.

CASCABEL (Cu-Au)

INFRASTRUCTURE

• Paved road to site. 196 km (3 hrs drive) from Quito

• Available electrical power / water

• Important industrial port in Esmeraldas City (222 km to

project site) downhill and by paved roads

• Old railroad from Ibarra to San Lorenzo being rehabilitated for

tourism as a first step


Significant intersections from CSD 13-001 (First hole ever drilled

on the property)302m @ 0.34% Cu, 0.48 g/t Au (0.77% Cu Eq) from 16m, including:

104m @ 0.37% Cu, 0.38 g/t Au (0.71% CuEq) from 16m and,

100m @ 0.65% Cu, 1.00 g/t Au (1.55% CuEq from 222m)

…from CSD 13-005 (Discovery hole)

1306m @ 0.62% Cu & 0.54 g/t Au (1.10% Cu Eq) from 24m to EOH, including:

672m @ 0.93% Cu, 0.91 g/t Au (1.74% CuEq) from 658m to EOH) or,

552m @ 1.03% Cu, 1.05 g/t Au (1.97% CuEq) from 778m to EOH) or,

258m @ 1.27% Cu, 1.40 g/t Au (2.52% CuEq) from 1052m to EOH

CASCABEL (Cu-Au)

2.97% Cu, 4.09 g/t Au

Note: Copper Equivalent (CuEq) has been calculated using $2.20 / Lb Cu and $1350 / oz Au

…and followed by a series of highly successful deep drill holes showing intercepts

of > 1000m @ > 1% CuEq


CASCABEL (Cu-Au)

24

3.04% Cu, 9.54 g/t Au

Intense B-veins stockwork with chalcopyrite


CASCABEL (Cu-Au)

Hole ID DepthFrom DepthTo Interval (m) Cu_% Au_g/t Cu.Eq_% True Width (E)

CSD-13-001 16 318 302 0.39 0.48 0.82 181

incl. 16 120 104 0.37 0.38 0.71 62

and 222 322 100 0.65 1.00 1.54 60

CSD-13-002 126 418 292 0.37 0.30 0.64 175

incl. 184 226 42 0.50 0.68 1.11 25

CSD-13-003 4 751.3 747 0.11 0.05 0.15 448

CSD-13-004 160 318.3 158.3 0.11 0.05 0.15 95

CSD-13-005 24 1330 1306 0.62 0.54 1.10 784

incl. 658 1330 672 0.93 0.91 1.74 403

CSD-14-006 184 226 42 0.11 0.07 0.17 25

CSD-14-007 654 1612 958 0.40 0.17 0.55 575

incl. 1160 1294 134 0.75 0.50 1.20 80

incl. 1200 1294 94 0.84 0.62 1.39 56

CSD-14-008 396 1310.45 914.5 0.41 0.44 0.80 549

incl. 862 1310.45 448 0.56 0.64 1.13 269

CSD-14-009 430 1757.35 1327 0.57 0.74 1.23 796

incl. 650 912 262 0.69 1.31 1.86 157

incl. 1062 1482 420 1.00 1.34 2.19 252

CSD-15-010 446 840 394 0.38 0.36 0.70 236

incl. 684 840 156 0.63 0.74 1.29 94

CSD-15-011 996 1054 58 1.45 1.44 2.73 35

incl. 1110 1518 408 0.56 0.34 0.86 245

incl. 1412 1518 106 0.73 0.50 1.18 64

CSD-15-012 128 1440 1312 0.67 0.63 1.23 787

incl. 844 1420 576 1.03 1.19 2.09 346

CSD-15-013 882 1362 480 0.46 0.22 0.66 288

incl. 932 1126 194 0.62 0.31 0.90 116

CSD-15-014 628 1396 768 0.50 0.45 0.90 461

incl. 808 1284 476 0.63 0.65 1.21 286

CSD-16-015 406 1048.4 642.4 0.33 0.14 0.45 385

CSD-16-015R2 394 1732 1338 0.49 0.36 0.81 803

incl. 890 1640 750 0.67 0.50 1.12 450

CSD-16-016 516 1661.6 1145.6 0.63 0.78 1.32 687

incl. 548 1404 856 0.80 1.04 1.73 514

and 928 1301.6 373.6 1.00 1.34 2.19 224

CSD-16-017 330 1278 948 0.60 0.53 1.07 683

incl. 702 1264 562 0.79 0.75 1.46 405

CSD-16-018 466 1670 1204 0.46 0.47 0.88 722

incl. 904 1568 664 0.70 0.77 1.39 398

incl. 1174 1436 262 0.91 1.15 1.93 157

Note: Assay results from 1794 to 2216.75 still pending

CSD-16-019 268 1400 1132 0.50 0.33 0.80 500

incl. 572 1374 802 0.63 0.43 1.02 360

or 838 1354 516 0.75 0.50 1.20 230

Note: Assay results from 1400m to EOH (End Of Hole) still pending* Data Aggregation Method

- Intercepts reported with up to 10m internal dilution. (Excluding bridging to a single sample)

- Intercepts selected using Cu equivalent cutoff grades of 0.10, 0.20, 0.30, 0.50, 0.70, 1.0 and 1.50

** Gold Conversion factor of 0.89 calculated from copper price US$2.20/lb and gold price US$1350/oz.

Cascabel Project - Summary of Drill Hole Intersections


CASCABEL – DEVELOPMENT CONCEPT

20


Summary• Cascabel project brought from a regional stream sediment anomaly to drilling

stage in 17 months…and to discovery hole in less than 22 months

• Environmental Impact Study (EIS) completed/approved in 7 months

Environmental license granted 24 hrs after EIS approval

• Very strong social license

• Alpala target drill tested to date but only one of 14 porphyry targets to be

tested on the 50 km² property

• Surface exploration results, deep and extensive geophysical anomalies and

drilling results are supportive of a large gold-enriched porphyry copper

occurrence

• Partner SolGold is funding 100% of project to finalization of a bankable

feasibility study

CASCABEL (Cu-Au)

CASCABEL IS A GOOD EXAMPLE OF CORNERTONE’S BUSINESS

MODEL AND CAPABILITY TO “DELIVER THE GOODS”


CESA PROPERTIES

28

Vetas Grandes & Bella Maria 100%-Owned

properties

Caña Brava Optioned to earn 100% property


VETAS GRANDES (Au-Ag)

• Epithermal Low to Intermediate Sulphidation gold-

silver prospect

• Extensive surface sampling, trenching and

geophysical surveys completed

• Several large, 3m to 7m veins and quartz vein/vein

breccia/stockwork forming swarm striking east-

northeast over 1.4 km

• Excellent correlation between mapped veins, rock

assay results, soil geochemistry

• Bonanza style mineralization: 3.4m grading 53.4 g/t Au

and 641.0 g/t Ag

• Regional mapping and prospecting work suggest that

Vetas Grandes could be part of a new mineral district



Excellent correlation between mapped veins,

rock assay results and IP chargeability /

resistivity anomalies

Modeling using multi-elements geochemical

distribution and ratios, spectrometry work,

quartz vein textures defined prospective

precious metals horizons and drill targets

Potential: 1Moz + gold and

significant Ag

Never has been drilled…and is

drill-ready

30



31

TENTATIVE WORK PROGRAM & BUDGET - VETAS GRANDES PROJECT Apr-16

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Activity Cumulative %

Work program

Concessions fees 2016 (2300 hectares)* $ 42.090 $ 42.090 1%

Concessions fees 2017 (2300 hectares)* $ 46.000 $ 88.090 2%

Prospecting work ** Property and district scale $ 90.000 $ 178.090 3%

Detailed geology - 2 teams *** $ 0 $ 178.090 0%

Soil geochem *** $ 0 $ 178.090 0%

Trenching *** $ 0 $ 178.090 0%

Geophysics - Magnetometer *** $ 0 $ 178.090 0%

Geophysics - IP *** $ 0 $ 178.090 0%

Drilling target definition *** $ 20.000 $ 198.090 1%

DDH - Phase 1 - 2500m $ 875.000 $ 1.073.090 29%

Evaluation of results - Phase 1 11 months $ 15.000 $ 1.088.090 0%

DDH Phase 2 - 5000m $ 1.750.000 $ 2.838.090 57%

Evaluation of results - Phase 2 18 months $ 15.000 $ 2.853.090 0%

$ 2.853.090 94%

Permitting

Social License and community relations program LS 6 months $ 100.000 $ 100.000 3%

Environmental License & management LA 6 months $ 75.000 $ 175.000 2%

Water permit PA 6 months $ 20.000 $ 195.000 1%

$ 195.000 6%

* Advanced Exploration Stage (AES, Drilling) $ 3.048.090 $ 169.338 (ave/mo)

** Optional TOTAL + 10% contingencies $ 3.352.899 $ 186.272 (ave/mo)

*** Work completed

TOTAL:

ADVANCED EXPLORATION PHASE (first 1.5 of 4 years)

87%

Phase 1 - 2500m

Phase 2- 5000m

SHYRI - VETAS GRANDES PROJECTYear 1 / Month Year 2 / Month Budget


BELLA MARIA (Au-Cu)

• Exceptionally high gold content in stream sediment

and free gold panned samples over the entire

property

• Soil geochemistry surveys have outlined a large (3

km x 2 km) coincident gold – copper +/- molybdenum

in-soil anomaly associated to porphyry-style

mineralization in the central portion of property

• Seven (7) mineralized prospects identified

Free Gold in

Pan

Concentrates


BELLA MARIA (Au-Cu)

• Newmont drilled thirteen holes on porphyry gold type mineralized zones 0-3km south of concession on its Cangrejos project:

o Trinchera and Paloma targets: Seven drill holes cut greater than 70m at 0.5 g/t Au cut-off. Drill hole C99-14 cut 1.6 g/t

Au and 0.2% Cu over 192m, including 3.1 g/t Au plus 0.3% Cu over 46m.

o Cacique target: A 22m intercept assayed 2.6 g/t Au and approximately 0.2% copper.

• Odin drilled 9 holes (3540m) intersecting significant porphyry Au-Cu style mineralization and announced a 4M oz gold resource on

January 25, 2017

Bella Maria 3D Topo, district geology, mineralization and exploration results

South and neighbor to Bella Maria:


BELLA MARIA (Au-Cu)

• Stream sediment samples collected across the property are

exceptionally anomalous in gold

• Large (3 by 2 km) coincident

gold - copper – molybdenum in-

soil anomaly identified in central

part of property

• Strong gold-copper

mineralization found by

drilling just south of property

(Odin Mining)

34

Results to date indicate excellent potential to host significant

porphyry and structurally controlled (breccias and veins) gold

and copper mineralization. Property never has been drilled but is

drill-ready

• Seven (7) mineralized Au-Cu

prospects have been identified


CAÑA BRAVA (Au-Ag-Cu)

Property hosts IS and HS epithermal gold-silver zones defined by extensive hydrothermal

breccia and silica ribs developed on top of porphyry gold-copper style mineralization



Geology map and DDH proposal

4 Mineralized zones defined:

• Porphyry style at Q. Soroche and Q. Cana Brava

• Epithermal style at Soroche Norte and Noreste

36

RTP ground magnetic data and interpretation



37

Rock and soil Gold (Au) assay results

Rock and soil Silver (Ag) assay results

Geochemical signature:

• Epithermal IS veins at Soroche Norte with Au-Ag-Pb-

Zn +/- As-Sb-Hg correlation

• High grade Au and Ag values associated to NE

oriented silicified ribs

•Epithermal HS Au-Ag mineralization at Sector Norte



Rock and soil Copper (Cu) analytical results

Rock and soil Molybdenum (Mo) assay results

Geochemical signature:

• Porphyry style at Soroche and Q. Caña Brava with

strong Cu-Mo-Au correlation

• Peripheral and intermediate sulphidation at

Soroche Norte

• Highly anomalous Mo +/- Cu values

Results strongly suggest that a porphyry

system(s) lies at shallow depth below Soroche

and Q. Caña Brava targets with peripheral higher

level Intermediate Sulphidation veins at Soroche

Norte

Property never has been drilled. Phase 1 drilling

program (3,200m) is proposed

38


GENERATIVE PROGRAM

Example: BLOCK 2 – GOLD

• Several datasets: > than 50,000 samples

• First-pass data processing completed with

93 anomalous areas defined

• Operational structure in place

Cornerstone has a strong capability to

generate and explore new projects


GENEX & TARGETING

40

• Second step, detailed

compilation program

completed

• 4 Zones, 5.55 M Has

• 100 gold and/or copper

exploration targets defined

Targeting program: Cornerstone properties, main deposits, prospects,

areas investigated, targets defined and concessions applied for

Several target areas applied

for (60,000 Has) under the

ENAMI EP JV and on our own

More could be done with a

JV partner or partners


STRATEGIC ALLIANCE WITH ENAMI

• Regional data compilation and integration

• Target areas defined using newly developed metallotects

• Zone 1 detailed data integration completed: 35 targets defined. 9 highest priority targets (60,000 has) selected for ground

acquisition

On June 14, 2016, Cornerstone Ecuador SA (CESA) signed the definitive Strategic Alliance and Joint

Venture agreement with Ecuador’s State Mining Company, ENAMI Empresa Pública.

ENAMI EP has a preferential right to acquire mining concessions anywhere within the country. It has

applied for approx. 40,000 Has of high quality targets in the Cascabel district under the JV agreement.

41


WHY ECUADOR?

ECUADOR – AN OPPORTUNITY TO GAIN A FIRST MOVER ADVANTAGE

In addition to being the last Andean nation that is largely unexplored, Ecuador has the

advantages of abundant water and electrical power (and low power costs), excellent

highway and port infrastructure, and already is known to host world class deposits. The

discovery of the Cascabel high grade copper-gold porphyry at surface by prospecting

clearly demonstrates the underexplored nature of the country and its high potential to

host easier-to-find deposits compared to its more mining-more mature neighbor

countries. Recent changes in the tax regime makes the country competitive with Chile,

Colombia, Brazil, Mexico and Peru.

Cornerstone has an experienced team of geologists who have been continuously active

in Ecuador since 2005, and is one of the most successful exploration companies active

there.

Potential partners can significantly de-risk their investment in the country by

operating through a JV or Strategic Alliance with Cornerstone, acquiring a first

mover advantage in one of the last mining frontiers in the Andes.

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Ecuador: Latin America’s newest mining destination


CHILE – MIOCENE PROJECT

Miocene property geology map showing prospective

areas

43



Gold assay results of Miocene project

rock samplesMiocene property, alteration zones

and mineral prospects.

44



Arsenic assay results of Miocene

project rock samples.

Mercury assay results of Miocene

project rock samples.

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Copper assay results of Miocene project

rock samples.

Molybdenum assay results of

Miocene project rock samples.

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WHY CORNERSTONE?

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• Interest in Cascabel financed to Bankable Feasibility Study

• Timely opportunity for project generators in Ecuador

• Underexplored country hosting world class precious and base metals

deposits

• Competitive tax regime and new regulations recently implemented

making the country significantly more attractive

• First mover advantage

• Operational structure in place since 2005: Expertise and databases

• 3 Drill-ready and JV-ready projects

• 5.6M Has targeting program completed. 100 Cu and Au targets defined

• New concessions applied for and some more that could be applied for

under ENAMI JV or under the general bidding process

• World class Cascabel discovery made in less than 2 years from an

early grass-root, regional exploration program. 55,000 Has applied for in

the same district.

• Exploring in the core of a new mineral district in northern Chile


www.cornerstonresources.com

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