Capstone Announces Initial Mineral Resource Estimate for Footwall Zone at Cozamin Mine
By Capstone Mining Corp., PRNESunday, June 19, 2011
VANCOUVER, June 20, 2011 -
Adds 74 million pounds of copper in the M&I Class and 163
million pounds in the Inferred Class
Capstone Mining Corp. (”Capstone”) (TSX: CS) today announced the
result of an initial mineral resource estimate for the Mala Noche
Footwall Zone (”MNFWZ”) at the Cozamin Mine in Zacatecas,
Mexico. This is a preliminary resource and exploration is
continuing.
“The size and grade of this new mineral resource estimate allows
Capstone to now consider production expansion scenarios as well as
extended mine life in an upcoming pre-feasibility study to begin in
the third quarter of 2011,” said Brad Mercer, Vice-President,
Exploration for Capstone. “The copper grade of this new
resource located in the footwall to the main ore zone is higher
than the current mineral reserve grades for the mine. Our
Cozamin team has successfully undertaken test mining in the MNFWZ
from two crosscuts driven from active mine workings to levels 12.0
and 12.8 in the MNFWZ where they have drifted both east and west
using conventional cut and fill mining methods and have already
extracted approximately 18,000 tonnes grading 2.67% copper,” he
added.
Cozamin Mine - Mineral Resources by Class for the MNFWZ at
a US$35 NSR Cut-off Grade (”COG”)*
Tonnes Copper Silver Zinc Contained Contained Contained
Classification (000's) (%) (g/t) (%) Cu(M lbs)Silver(M oz) Zn(M lbs)
Measured (M) 329 2.25 32.3 0.11 16.3 0.342 0.8
Indicated (I) 1,122 2.34 37.8 0.19 57.9 1.364 4.6
Total (M+I) 1,451 2.32 36.6 0.17 74.2 1.706 5.4
Additional
Inferred 2,836 2.61 30.8 0.28 162.9 2.812 17.6
* Metal Price assumptions (in USD)
and recovery assumptions used to calculate the NSR COG are exactly
the same as for the Cozamin Mine’s Mineral Reserve. Prices:
Cu=US$2.50; Zn=US$0.80; Ag=US$4.00. Processing recoveries: Cu=92%;
Zn=70%; Ag=72%.
Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Mineral resource estimates do not account for mineability,
selectivity, mining loss and dilution. These mineral resource
estimates include inferred mineral resources that are normally
considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. Even though test mining has been
undertaken in areas with M&I class mineral resources there is
no certainty that inferred mineral resources will be converted to
measured and indicated categories through further drilling, or into
mineral reserves, once economic considerations are applied.
Mineral Resource
Estimate Methodology
The mineral resource estimate for the MNFWZ reported herein was
prepared by Capstone’s geological team at the Cozamin Mine in
Zacatecas, Mexico and the methodology and results have been
reviewed by independent consultant Mr. Robert Sim, P.Geo. of SIM
Geological Inc. of Delta, BC, Canada. The estimate was
completed using GEMS© software using a three dimensional block
model (3 m by 2 m by 2 m block size). The dyke that hosts the
MNFWZ mineralization was interpreted as a three dimensional
wireframe domain that was used as a hard boundary to constrain the
estimation. Interpolation parameters have been derived based
on geostatistical analysis conducted on 0.5 metre composited drill
hole and channel sample data. Block grades have been
estimated using ordinary kriging and the resource has been
classified based on proximity to sample data and the continuity of
mineralization in accordance with CIM best practices. The MNFWZ
resource has been estimated using a total of 73 diamond drill
holes, variably spaced at 50 to 150 metre intervals, and 72 chip
channels taken at approximately 3 metre intervals across the back
of the test mining drifts.
Capstone’s Future
Exploration Plans Regarding the MNFWZ
In preparation for a pre-feasibility study to start in the third
quarter of 2011 that will examine the current mine and processing
plant capacities in light of this new discovery, two underground
diamond drills are actively infill drilling the MNFWZ mineral
resource area. The aim is to upgrade the classification of the
current inferred mineral resource to indicated class or better so
that economic considerations may be applied for the purpose of
establishing a new mineral reserve (see cautionary note above
regarding conversion of mineral resources to mineral reserves). In
addition to exploration drilling aimed at reclassification of
mineral resources, a third drill is scheduled to start in July to
step out to the east and down-dip beyond the extents of the current
resource estimate to test for extensions to the mineralization
where drilling now clearly shows the zone is still open in both
directions. In preparation for the arrival of that third
underground drill rig Capstone is currently upgrading mine
ventilation and preparing new drill stations.
About Capstone
Mining Corp.
Capstone Mining Corp. is a TSX listed
Canadian mining company with two producing copper mines in the
Americas: the Cozamin copper-silver-zinc-lead mine located in
Zacatecas State, Mexico and the Minto copper-gold-silver mine in
Yukon, Canada.
Using its operations as a springboard, Capstone aims to grow
organically and through acquisitions in politically stable,
mining-friendly jurisdictions, with a focus in the Americas:
organic growth through continued mineral resource and reserve
expansions as well as expanding operations at its operating mines,
development of its large 70% owned Santo Domingo copper-iron-gold
project in Chile in partnership with Korea Resources Corporation,
development of its Kutcho copper-zinc-gold-silver project in
British Columbia and exploration at properties in Chile, British
Columbia and Australia. Capstone’s cash flow and strong
balance sheet provide the platform to enhance that growth
profile. Capstone is included in the S&P/TSX Composite
Index and S&P/TSX Global Mining Index. Additional
information is available at
.
Quality
Assurance
The technical information in this news release has been prepared
in accordance with Canadian regulatory requirements set out in
National Instrument 43-101 (”NI 43-101″) and reviewed by Brad
Mercer, P. Geol., Vice President, Exploration for Capstone, the
person who oversees exploration activities on the Cozamin Mine
property.
The mineral resource estimate reported herein has been produced
by Cozamin Mine Geologist Cesar Pena and has been reviewed by
independent consultant Robert Sim, P.Geo. of SIM Geological
Inc. The mineral resources presented herein have been
estimated in conformity with generally accepted CIM “Estimation of
Mineral Resource and Mineral Reserves Best Practices” guidelines
and are reported in accordance with Canadian Securities
Administrators’ National Instrument 43-101. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
Analyses for copper, zinc, lead, silver and gold were completed
by ALS Chemex using the following method. The entire sample is
crushed to a minimum of 70% minus 10 mesh. A 250g subsample of the
crushed material is then pulverized to 85% minus 200 mesh. Gold and
silver grades are determined by gravimetric fire assay using a 50g
charge taken from the pulverized material. Copper, zinc and lead
are determined by ICP analysis after 4 acid digestion of a 0.4g
subsample of the pulverized material. Blank, standard and
duplicate samples are used for quality assurance and quality
control.
Cautionary Note
Regarding Forward-Looking Information
This document may contain “forward-looking information” within
the meaning of Canadian securities legislation and “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”). These forward-looking statements are
made as of the date of this document and Capstone Mining Corp. (the
“Company”) does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required under
applicable securities legislation.
Forward-looking statements relate to future events or future
performance and reflect Company management’s expectations or
beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves
and resources, the realization of mineral reserve estimates, the
timing and amount of estimated future production, costs of
production, capital expenditures, success of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. In
certain cases, forward-looking statements can be identified by the
use of words such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved” or the negative of these
terms or comparable terminology. By their very nature
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to actual results of
current exploration activities; changes in project parameters as
plans continue to be refined; future prices of mineral resources;
possible variations in ore reserves, grade or recovery rates;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; as well as
those factors detailed from time to time in the Company’s interim
and annual financial statements and management’s discussion and
analysis of those statements, all of which are filed and available
for review on SEDAR at
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
For further information:
Capstone Mining Corp.
Cindy Burnett, VP, Investor Relations
Telephone: +1-604-637-8157
Email:
Website:
.
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