Cornerstone Capital Resources looks to be on track for a very busy 2021, with many of its diverse projects being worked on or soon to be worked on. The company’s projects are located in Ecuador and Chile.
The company is a prospect generator that leverages exploration funding through joint ventures and strategic partnerships. Cornerstone has plenty of partners working to advance its portfolio of assets, which gives shareholders the potential for discovery at a much lower risk because it generally does not have to issue equity to fund expensive drill programs.
The company has a solid shareholder base which includes:
|Maxit Capital/D. Bob Sangha||19.4%|
|Greg Chamandy (Chairman)||10.8%|
|Rosseau Asset Management||10.5%|
|Sprott & Clients||5.0%|
As many of my readers know, Cornerstone is the founding partner of Cascabel, the only available Tier 1 copper-gold asset in the world not owned by a global, multi-national mining company. The company owns 21.4% of Cascabel, which holds tremendous mineral wealth in the ground, and with the prices of gold, copper, and silver continuing to be strong, the economics behind the project continues to improve, giving investors exceptional leverage to these commodities.
I recently caught up with the company’s Chairman, Greg Chamandy, to ask about the present market, the company, and its upcoming programs:
Alex Deluce: First off, thank you, Greg, for taking the time to do a Q/A with us.
To start, many of our readers have learned these last few months about the world-class nature of Cascabel.
Can you walk us through your thoughts on the Cascabel asset and why market participants should pay attention to the company in this market where we are beginning to see elevated gold, silver, and copper prices?
Thank you, Alex.
Firstly, Cornerstone Capital Resources is a prospect generator with a diversified portfolio of very exciting gold, silver, and copper projects. As you and your readers know, the company is the founding partner of the world-class Cascabel project, which is the only available tier-one copper-gold asset in the world not owned by a global, multi-national mining company. Cornerstone effectively owns 21.4% of Cascabel.
With elevated copper, gold, and silver prices, I encourage individuals to learn about the resource size of the Alpala deposit located at the Cascabel concession. The resource includes:
- 21 billion pounds of copper
- 21 million ounces of gold
- 92 million ounces of silver
in the M&I resource category with almost two-thirds of that in the measured category. This gives Cornerstone tremendous leverage to these commodities’ prices due to the mineral resources in the ground.
Alex Deluce: Moving on to a different subject, can you give our readers a bit of a background on yourself? You have quite a history of being a very multidisciplinary yet extremely successful entrepreneur.
Sure, I was the co-founder of Gildan Activewear and its former Chairman and CEO, and the former Chairman and co-owner of Europe’s Best frozen food.
I am also the former Executive Chairman of Richmont Mines, which was later acquired by Alamos Gold for $933 million in 2017.
Alex Deluce: You recently have started being very active on social media, providing readers with some great content on economics and precious metals. What are your thoughts on gold at the moment?
It is certainly a fascinating time to be a follower of markets with all the different things happening, ranging from aggressive global central bank monetary expansion to coinciding fiscal support from governments.
Global debt to GDP is set to surge to a record in 2020 with no clear path to a quick economic recovery. History has always shown that gold performs very well in times of economic uncertainty. There is plenty of that. Additionally, another tailwind for gold is the $17 trillion in global negative-yielding debt.
Alex Deluce: As many prolific investors have touched on, what are your thoughts on the USD and its reserve currency status? Do you think we will eventually see a new system where the USD is no longer the reserve currency?
It is undoubtedly a fascinating topic to follow, which has drawn plenty of debate. I posted a chart on Twitter on September 3rd that went viral worth noting:
Reserve currencies are not permanent. There have been plenty of changes as previously it was Britain that held the reserve currency position.
Interestingly, whichever country’s currency was the reserve currency of the world, that country was also the world’s preeminent military power. But as many prominent investors have mentioned, with the Federal Reserve monetizing so much debt and keeping yields suppressed, investors might begin to look for an alternative, which is one of the reasons why we are seeing incredible demand for gold in the form of ETF exposure and the physical metal.
Additionally, it should be mentioned that central banks worldwide are beginning to experiment with and test digital currencies that, if ever implemented, would provide more competition for the dollar.
Alex Deluce: Shifting back to Cornerstone for a moment, in addition to the developments at Cascabel, the company has really positioned itself as a premier prospect generator. What other assets in the company’s portfolio excite you in this improving precious metals market?
We believe all of our assets have strong exploration potential. I encourage the Gold Telegraph readers to visit our new website (click here to visit website) to learn about our portfolio of assets. Our business model is about generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
There will be plenty of activity within our portfolio of assets for the remainder of the year and in 2021:
As reported on September 17th – an exploration program is planned at the Bella Maria gold-copper project with a drilling program scheduled for 2021 to test prospective targets and anomalies. This project is 100% owned by Cornerstone and is located approximately 50 km southeast of the city of Machala in El Oro Province, southwestern Ecuador.
Notably, the Bella Maria project borders the NE corner of Lumina Gold’s Greater Cangrejos gold property, where Lumina has announced a resource of 10.4 m oz Au in the indicated category and 6.3 m oz. Au in the inferred category. This project has never been drilled and has exceptional gold in stream sediments draining the property so we are very excited about this upcoming program.
As reported on September 11th – drilling is currently underway at the Bramaderos gold project which is focused on the Espiritu gold-silver target. This is a joint venture project located in southern Ecuador.
Sunstone is the project operator with an 87.5% interest and is funding 100% of the drilling.
As reported on August 27th – We provided an update on the Miocene gold-copper project located in Chile. The project is subject to a farm-in Agreement with Newcrest International Pty Limited (“Newcrest”), a subsidiary of Newcrest Mining Limited.
The Miocene project is located in the Regions of Atacama and Antofagasta of northern Chile (Figure 1) and is targeting epithermal gold-silver and porphyry gold-copper deposits along the interpreted northern extension of the Maricunga magmatic belt which hosts several world-class gold deposits.
Drilling was initially scheduled to start in February – March in 2020 but was suspended due to COVID-19. Drilling is now scheduled to take place during the austral summer season between December 2020 and April 2021
It is going to be very busy in 2021.
Alex Deluce: Thank you for your time, Greg. Hopefully, we can do another Q/A in the coming weeks to go over macro themes and speak on Cornerstone again.
I encourage my readers to review Cornerstone’s new website, here: https://cornerstoneresources.com/
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