Capstone Reports 2009 Year-End Reserve & Resource Estimates
By Capstone Mining Corp., PRNETuesday, March 16, 2010
VANCOUVER, March 17, 2010 - Capstone Mining Corp. (CS: TSX) today reported mineral reserve and
resource estimates for its Cozamin and Minto mines, as well as the Kutcho
project, as at December 31, 2009. The new mineral reserve estimate at Cozamin
incorporates the mineral resources in the San Roberto deposit and the
adjacent San Rafael deposit announced on March 2, 2010, whereas the Minto
mineral reserve and resource estimates were included in the Phase IV
pre-feasibility study, the results of which were announced December 15,
2009, and the Kutcho mineral resource estimates included in the preliminary
economic assessment, the results of which were reported September 15, 2009.
Commenting on the 2009 estimates, Mr. Darren Pylot, Vice Chairman and CEO
of Capstone said "Capstone ended 2009 with a robust mineral reserve
inventory, sufficient to provide more than eight year operating lives for
both of our operating mines. In addition, the mineral resources not yet
converted to mineral reserves provide some near term opportunities for
continued reserve replacement as additional work is completed, and economics
justify. With significant exploration potential at both mines, as well as
the development potential at the high grade Kutcho project, Capstone has
ample opportunities to continue its record of strong organic growth through
near mine exploration."
The following tables summarize the mineral reserve and resource estimates
for both of the Company's mines and the Kutcho project as at December 31,
2009.
Capstone Mining - Mineral Reserves Estimates as of December 31, 2009
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Mineral Reserves
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Category 000s Cu Zn Pb Ag Au
Tonnes % % % g/t g/t
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Cozamin
Copper
Deposit Proven 1,610 2.16 1.01 0.52 76.0 0.06
Probable 5,932 1.62 1.57 0.30 59.0 0.11
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Total 7,542 1.73 1.45 0.35 63.0 0.10
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Zinc Deposit Proven - - - - - -
Probable 1,865 0.25 3.12 0.43 37.0 0.47
Total 1,865 0.25 3.12 0.43 37.0 0.47
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Cozamin Proven 1,610 2.16 1.01 0.52 76.0 0.06
Sub-total Probable 7,797 1.29 1.94 0.33 54.0 0.20
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Total 9,407 1.44 1.78 0.37 58.0 0.17
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Minto Proven 9,775 1.69 - - 6.1 0.67
Probable 1,118 1.25 - - 4.3 0.38
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Total 10,893 1.64 - - 5.9 0.64
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Mineral Reserves Contained Metal(x)
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Ag Au
Category Cu Zn Pb 000s 000s
m lbs m lbs m lbs ozs ozs
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Cozamin
Copper
Deposit Proven 77 36 19 3,951 3
Probable 211 205 40 11,255 21
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Total 288 241 58 15,207 24
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Zinc Deposit Proven - - - - -
Probable 10 128 18 2,233 28
Total 10 128 18 2,233 28
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Cozamin Proven 77 36 19 3,951 3
Sub-total Probable 222 333 57 13,488 49
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Total 298 369 76 17,439 52
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Minto Proven 364 - - 1,911 211
Probable 31 - - 153 14
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Total 395 - - 2,064 224
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Total Mineral Reserves 693 369 76 19,504 277
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(x) Totals may not add due to rounding
The parameters used to estimate the mineral reserves, as well as the
responsible qualified persons are detailed below. The mineral resources from
which the mineral reserves are derived are tabulated below.
Capstone Mining - Mineral Resource Estimates as of December 31, 2009
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Mineral Resources - inclusive of mineral reserves
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Category 000s Cu Zn Pb Ag Au
Tonnes % % % g/t g/t
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Cozamin
Copper
Deposit Measured 2,078 2.33 1.14 0.53 84.4 0.07
Indicated 6,604 1.73 1.71 0.33 64.4 0.13
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M&I(xx) 8,682 1.88 1.58 0.38 69.1 0.12
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Inferred 2,376 1.44 1.69 0.18 52.6 0.11
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Zinc
Deposit Measured 0 0 0 0 0 0
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Indicated 1,983 0.27 3.33 0.47 41.2 0.50
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M&I(xx) 1,983 0.27 3.33 0.47 41.2 0.50
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Inferred 1,697 0.12 2.95 0.72 30.1 0.64
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Sub-total Measured 2,078 2.33 1.14 0.53 84.4 0.07
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Indicated 8,587 1.40 2.09 0.36 59.0 0.22
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M&I(xx) 10,665 1.58 1.90 0.40 63.9 0.19
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Inferred 4,073 0.89 2.22 0.41 43.2 0.33
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Minto Measured 15,442 1.49 5.48 0.59
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Indicated 14,411 0.94 3.42 0.30
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M&I(xx) 29,852 1.22 4.48 0.45
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Inferred 5,849 0.91 2.93 0.25
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Kutcho Measured 5,421 2.15 2.86 31.4 0.34
Indicated 4,994 2.14 2.83 33.5 0.39
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M&I(xx) 10,415 2.14 2.85 32.4 0.36
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Inferred 1,893 2.09 2.93 33.6 0.46
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Mineral Resources
- inclusive of mineral
reserves Contained Metal
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Ag Au
Category Cu Zn Pb 000s 000s
m lbs m lbs m lbs ozs ozs
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Cozamin
Copper
Deposit Measured 107 52 25 5,638 5
Indicated 253 250 48 13,662 28
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M&I(xx) 360 302 73 19,300 33
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Inferred 76 89 10 4,019 9
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Zinc
Deposit Measured 0 0 0 0 0
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Indicated 12 146 21 2,627 32
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M&I(xx) 12 146 21 2,627 32
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Inferred 5 110 27 1,644 35
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Sub-total Measured 107 52 25 5,638 5
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Indicated 265 395 69 16,289 61
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M&I(xx) 371 447 93 21,928 65
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Inferred 80 199 36 5,662 44
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Minto Measured 506 2,718 293
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Indicated 299 1,588 142
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M&I(xx) 805 4,306 434
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Inferred 117 550 48
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Kutcho Measured 257 342 5,482 59
Indicated 236 312 5,376 62
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M&I(xx) 492 654 10,857 121
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Inferred 87 122 2,047 28
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Total Measured &
Indicated Mineral
Resources 1,669 1,101 93 37,090 620
Additional
Inferred Mineral
Resources 284 322 37 8,260 120
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(x) Totals may not add due to rounding
(xx) M&I (equal sign) Measured and Indicated
Cozamin
The mineral reserves estimates for the Cozamin deposits were completed
by Capstone staff under the supervision of Robert Barnes P.Eng., of Capstone,
using accepted, industry standard, methods that conform to National
Instrument 43-101. The reserve model has been developed using Gemcom
GEMS(TM).
The data and methodology utilized for the mineral reserve estimate is as
follows:
- The Cozamin mineral reserves were estimated using as a basis the
mineral resource model provided by Robert Sim, P.Geo. of SIM
Geological Inc. ("SGI") and announced March 2, 2010. The mineral
reserve estimate was prepared by Cozamin Mine staff under the
supervision of Robert B. Barnes, P.Eng., V.P. Operations Capstone
Mining Corp, a Qualified Person under NI 43-101.
- The mineral resource model was imported into Gemcom GEMS(TM)
software. Mining shapes were created to define the limit of economic
mining blocks from which mineral reserves were estimated. GEMS(TM)
was used to interrogate the resource model and report material within
the confines of the mining shapes. Mining recovery and dilution were
calculated individually for each stope with due consideration given
to the mining method. A minimum mining width was set at 3 meters
including dilution. Dilution estimated at 12% for all mining was
based on mining method, either cut and fill at 13% dilution or long
hole mining at 10% for wide stopes over 7 meters and 14% for stopes
under 7 meters.
- A lower limit economic NSR cut-off value ("COV") of $35 per tonne was
estimated based on historical and projected mining and processing
costs. The basis for the COV came from projected operating costs of
$18/t for mining, $12.50/t for processing and $4.50/t for general and
administration costs. Metal price assumptions used in estimating the
COV were US$2.50 per lb of copper, US$0.80 per lb of zinc, US$0.85
per lb of lead and US$4.00 per oz of silver (the latter is based on a
silver stream agreement).
- Only measured and indicated mineral resource blocks were used in the
estimation of mineral reserves. Inferred resources contained within a
mining shape were treated as dilution at the metal grades attributed
to those blocks in the resource model then treated as follows.
Dilution grades, including any inferred resource blocks, were
calculated as the block grade factored down to 33 % of the block
copper grade; 33 % of the block lead grade; 33 % of the block zinc
grade; and 20 % of the block silver grade.
- The mineral reserve mining blocks were designed with horizontal
(sill) and vertical pillars to provide ground support. Approximately
1.1 million tonnes or approximately 11% of the measured and indicated
resources at 1.82% copper are left as pillars.
Minto
The mineral resources are reported at a 0.5% copper cut-off for all
deposits and the mineral reserves are reported at a 0.62%, 0.55%, 0.58% and
0.56% copper cut-off grade (CCOG) for Minto Main, Minto North, Ridgetop and
Area 2/118 respectively. Mineral reserves and resources for the Minto Mine,
except for the Minto North mineral resources, were estimated by SRK
Consulting (Canada) Inc. The qualified persons responsible for the 2009
mineral resources estimate in the Area 2/118 and Ridgetop deposits is Dr.
Wayne Barnett, Ph.D., Pr.Sci.Nat., an independent qualified person as this
term is defined in National Instrument 43-101. The effective date of this
resource estimate is June 1, 2009. Marek Nowak, P.Eng., analyzed the data,
reviewed and validated the mineral resource estimates. The Minto North
mineral resource estimate was completed by Garth Kirkham, P.Geo., of Kirkham
Geosystems Ltd., an independent qualified person as this term is defined in
National Instrument 43-101; the effective date of this mineral resource
estimate is December 1, 2009.
Dino Pilotto, P.Eng., of SRK Consulting (Canada) Inc. estimated the
mineral reserves for all deposits comprising the Minto project as part of the
Phase IV Preliminary Feasibility Study ("Phase IV PFS"), the results of which
were reported in December 2009. The assumed start date for the Phase IV PFS
was January 1, 2010, with remaining mineral reserves in the Minto Main pit
forecast to that date. Due to some differences in actual mining production in
Q4/09 versus that forecast, the actual remaining mineral reserve at year end
is slightly different to that reported herein, but it makes no significant
difference to the life of mine plan. Mr. Pilotto is the Qualified Person
responsible for the estimates in the Phase IV PFS. Additional details on the
mineral resource and mineral reserve estimates for the Minto mine can be
found in the technical report filed on SEDAR in December 2009.
Kutcho
The mineral resources for the Kutcho property are reported at a 1.5%
copper cut-off for all deposits, as detailed in a news release dated February
9, 2009. The mineral resources for the Kutcho Project were estimated by Garth
Kirkham, P.Geo., of Kirkham Geosystems Ltd., an independent Qualified Person
as defined by NI43-101. Additional details can be found in the news releases
dated February 9, 2009 and September 15, 2009 and in the preliminary economic
assessment and technical report filed on SEDAR in September 2009.
The TSX does not accept any responsibility for the adequacy or accuracy
of this press release.
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
www.sedar.com. Although the 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.
Compliance with NI43-101
Unless otherwise indicated, Capstone has prepared the technical
information in this news release ("Technical Information") based on
information contained in the technical reports and news releases
(collectively the "Disclosure Documents") available under Capstone Mining
Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure Document
was prepared by or under the supervision of a qualified person (a "Qualified
Person") as defined in National Instrument 43-101 - Standards of Disclosure
for Mineral Projects of the Canadian Securities Administrators ("NI 43-101").
For readers to fully understand the information in this news release, they
should read the Technical Reports (available on www.sedar.com) in their
entirety, including all qualifications, assumptions and exclusions that
relate to the information set out in this presentation which qualifies the
Technical Information. Readers are advised that mineral resources that are
not mineral reserves do not have demonstrated economic viability. The
Disclosure Documents are each intended to be read as a whole, and sections
should not be read or relied upon out of context. The Technical Information
is subject to the assumptions and qualifications contained in the Disclosure
Documents.
The following employee of Capstone, each a Qualified Person, reviewed
Technical Information contained in this news release: Robert Barnes,
Professional Engineer, reviewed the mineral reserve estimate and
reconciliation related to the Cozamin Mine, Robert Sim, P.Geo., of SIM
Geological Inc. ("SGI"), reviewed the mineral resource estimates for the
Cozamin mine, and Brad Mercer, P.Geol., reviewed the mineral resource
estimates for the Minto mine and Kutcho project and Dino Pilotto, P.Eng., of
SRK Consulting (Canada) Inc. reviewed the mineral reserve estimates reported
herein for the Minto Mine.
For further information: about Capstone, please contact: Darren Pylot,
Vice Chairman & CEO, Stephen Quin, President & COO, Or Investor Relations'
Zobeida Slogan at +1-604-684-8894 or +1-866-684-8894,
zslogan@capstonemining.com
For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO, Or Investor Relations' Zobeida Slogan at +1-604-684-8894 or +1-866-684-8894, zslogan at capstonemining.com
Tags: canada, Capstone Mining Corp, March 17, Vancouver
