Cornerstone Metals Inc. Options West Jerome Project to Lowell Copper Ltd.
February 11, 2015 – Vancouver, British Columbia – Lowell Copper Ltd. (TSX.V: JDL) and Cornerstone Metals Inc. (TSX.V: CCC) ("Cornerstone" or the "Company") are pleased to announce that they have entered into a binding option agreement in respect of the grant of an option (the "Option") on Cornerstone's West Jerome project in Yavapai County, Arizona (the "Project").
Under the terms of the Option, Lowell Copper can acquire up to a 75% interest in the Project in exchange for Lowell Copper: 1) on the first anniversary and annually thereafter, issuing to Cornerstone C$40,000 worth of shares; 2) funding work expenditures as described below; and 3) issuing to Cornerstone C$15,000 worth of shares subject to the results of a gravity survey to be undertaken on the Project as part of the initial work program.
Lowell Copper can earn an initial 51% interest in the Project by incurring expenditures of C$600,000 on the Project within two years of the signing of the Option. To earn an additional 24% interest in the Project, for a total interest of 75%, Lowell Copper must incur an additional C$2,000,000 within two years of earning the initial 51% interest in the Project, after which a joint venture will be formed.
Paul Cowley, President and CEO of Cornerstone commented, "We are very pleased that a well-known, well-funded player in copper has recognized the potential of our West Jerome property."
The West Jerome property consists of approximately five square kilometres of claims on the west side of patented lands held by Freeport McMoran. The Project, a volcanogenic sulphide camp, contains a high-grade, massive sulphide target located 2.4 km south of the past-producing United Verde Mine (Phelps Dodge production records from 1889-1974 indicate 33 million tons grading 4.36% Cu, 1.53 opt Ag and 0.042 opt Au; 2.9 billion lbs of copper – this information is not necessarily indicative of the mineralization on the Project).
The Project has excellent geological and geophysical support for a large VMS target. The property has two favourable stratigraphic horizons traced from the United Verde mine onto West Jerome. Both surface exposures and limited drilling have identified strong chloritic alteration typical of a VMS feeder pipe and geophysical surveys (electromagnetic) have identified two strong anomalies coincident with the favourable stratigraphic horizons and chlorite alteration.
On Behalf of Cornerstone Metals Inc.
President and CEO
For further information, please contact:
Paul Cowley, the Company's President and Chief Executive Officer, is the Qualified Person as defined under National Instrument 43-101 and has approved the scientific and technical content of this news release.
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