NEWFOUNDLAND - Toronto's AGNICO-EAGLE MINES has signed a joint venture agreement covering the El Strato gold property with CORNERSTONE CAPITAL RESOURCES of Mount Pearl, Nfld. The deal calls for Agnico-Eagle to earn an initial 51% by spending $1.95 million on exploration over four years and payments to Cornerstone of $150,000. Agnico-Eagle may increase its interest to 61% by funding a bankable feasibility study, and can further increase its interest to 75% by assisting Cornerstone to arrange mine financing. Cornerstone will operate the exploration program until Agnico-Eagle earns an interest.
This is the second joint venture of the two companies in Newfoundland. Agnico-Eagle is currently earning up to a 51% interest in the Colchester project, 15 km east of El Strato.
The El Strato property is located in the Baie Verte Peninsula, next to the Baie Verte Line, a major tectonic boundary. Cornerstone's claims host several high-grade gold occurrences. Recently discovered showings include gold mineralization hosted by multiple quartz veins up to 0.3-m wide in several parallel fault zones. Assays of 26 grab samples from the veins average 10.3 g/t Au and range up to 54.3 g/t Au. Soil geochemical surveys have extended the gold anomaly over a 2-km strike length, coincident with the newly-defined fault zones. Historic and recent prospecting along this trend has discovered numerous mineralized float and outcrop occurrences assaying from 20 to 155 g/t Au.
Further information is available on the Cornerstone web site at www.CornerstoneResources.com, via e-mail at [email protected]
, or toll free at 1- 877-277-8377.