Capstone Reports Significant Copper-Gold Intercepts at Wildfire / Copper Keel, Minto Mine
By Capstone Mining Corp., PRNEMonday, November 22, 2010
Hole 10SWC686 Intercepts 2.0% Cu & 0.7g/t Au Over 15.4m at Wildfire
VANCOUVER, November 23, 2010 - Capstone Mining Corp. (CS: TSX) today announced assay results for
twenty-six new holes from the Wildfire / Copper Keel horizons at the Minto
Mine. Exploration drilling at the Minto Mine is now finished for the season
and geologic modelling has started with the objective of completing the first
NI43-101 compliant mineral resource estimate for Wildfire and Copper Keel
before the end of 2010. The extent of both the shallower (Wildfire) and
deeper (Copper Keel) mineralized horizons have increased significantly as a
result of this recent drilling and the Copper Keel horizon, in particular, is
still open to the north and east. Highlights from the most recent holes
drilled at Wildfire / Copper Keel are summarized in the table below, while
complete results are attached.
Highlights of Recent Drilling at Wildfire
Hole ID Target Area From To Interval Interval Copper Gold Silver
(m) (m) (m) (ft) (%) (g/t) (g/t)
10SWC-653* Wildfire 88.3 98.1 9.8 (9.4) 32.2 1.57 0.45 5.2
(30.8)
Including 88.3 91.9 3.6 (3.5) 11.8 3.36 1.04 12.2
(11.5)
10SWC-668 Wildfire 80.6 88.3 7.7 25.3 2.68 1.02 7.8
10SWC-681* Copper Keel 181.2 192.7 11.5 37.7 1.62 0.44 4.2
(10.6) (34.8)
Including 181.2 189.8 8.6 (7.9) 28.2 2.07 0.53 5.1
(25.9)
10SWC-686 Wildfire 89.8 105.2 15.4 50.5 2.05 0.70 5.5
Including 89.8 98.6 8.8 28.9 2.39 0.72 4.7
10SWC-687 Copper Keel 210.4 219.8 9.4 30.8 1.20 0.30 3.1
Including 210.4 214.8 4.4 14.4 1.78 0.43 4.9
10SWC-688 Wildfire 47.0 72.7 25.7 84.3 1.93 1.00 5.3
Including 47.0 59.4 12.4 40.7 2.57 1.62 7.4
(*) Estimated true thickness in parentheses
"The Wildfire discovery and the significantly expanded Copper Keel
mineralization continue to return good thicknesses and grades," said Stephen
Quin, President of Capstone. "These zones remain open to further expansion
and offer potential for significant mineral resource additions based both on
the drilling completed in 2010 and the potential for further expansions in
2011, when exploration drilling resumes in early 2011."
The remaining drill results from the 2010 Minto exploration program will
be released before the end of 2010.
Wildfire/Copper Keel Discoveries
The original Copper Keel mineralization was a blind discovery made in
2006 at a depth of 175 metres as a result of geologic interpretation.
However, the discovery was not followed up until much later as exploration
was then focused on evaluating the potential of the shallower Area 2,
Ridgetop and Minto North targets, all of which are now deposits determined to
be amenable to open pit mining. The Wildfire discovery was made in 2010 as a
result of testing a geophysical target. However, when the first Wildfire hole
continued to depth beneath the discovery, it intercepted a second zone of
mineralization, which we now believe to be a significant extension of the
original Copper Keel discovery. Subsequent drilling, including these results
released today, have confirmed the presence of an upper NNE-trending
"Wildfire" horizon (potentially amenable to open pit mining), and a deeper
NNW-trending Copper Keel zone linking up to the original 2006 discovery
(potentially amenable to underground mining).
Geologic modelling for the Wildfire discovery and the significantly
expanded Copper Keel horizon is underway, with the objective of completing a
maiden mineral resource estimate for these areas before the end of 2010.
However, assays for approximately 43 holes in these areas remain outstanding
and the timing for completion of mineral resource estimates is dependent on
the timely receipt of assay results. As a result of this timing, the fact
that the limits of mineralization are not defined and the probability that
some portions of these mineral resources will be in the inferred category
(pending infill drilling in 2011), the Wildfire and Copper Keel zones will be
excluded from the Phase V Pre-feasibility Study ("Phase V PFS") currently in
progress. Capstone will make a subsequent update to the Phase V PFS, once the
limits of the mineralization have been defined and there is sufficient drill
hole density to increase the mineral resource classification to an indicated
category or better. Capstone plans to start drilling again in early 2011.
Drill hole Location Maps
For current drillhole locations please view the accompanying map:
capstonemining.com/i/maps/2010-50_CS_Current_Drill_Hole_Locations.jpg
For an inset view of drill results at Wildfire / Copper Keel please view
the accompany map.
capstonemining.com/i/maps/2010-50_CS_Wildfire_Copper-Keel_Drilling.jpg
For a current view of drill results in priority areas across the property
please view the accompanying map:
capstonemining.com/i/maps/2010-50_MintoDrillResultsUpdate.jpg
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 and reviewed by Stephen P. Quin, P. Geo., President of
Capstone Mining Corp. The exploration activities at the Minto Mine are
carried out under the supervision of Brad Mercer, P. Geol., VP, Exploration
of Capstone.
The analytical method for the copper and silver analyses is aqua regia
digestion of the samples followed by atomic absorption spectroscopy. Gold is
analysed by fire assay fusion with atomic absorption spectroscopy finish for
gold. Analyses are carried out by ALS CHEMEX in North Vancouver. When visible
gold is noted in drill core samples or regular fire assay values appear
abnormally high, the pulp and screen metallic assay method is used to
determine the total gold content and gold contents of different size
fractions. This is considered industry best practice when dealing with coarse
gold mineralization where a nugget effect is suspected. This determination is
accepted as the most representative value and is used in the assay database
for mineral resource calculations. Blank and standard samples are used for
quality assurance and quality control. Where more than two check samples
assay outside expected ranges, the entire batch is re-assayed. After the
completion of planned drill programs at Minto, random check assays will be
carried out by Inspectorate-IPL of Vancouver.
Forward-Looking Statements
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.
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 mineral 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.
Details of Wildfire Phase II Drill Results
To accompany Capstone Mining News Release Dated November 23,
2010
Hole ID Target From To Interval Interval Copper Gold Silver
& Interval (m) (m) (m) (*) (feet) (%) (g/t) (g/t)
(*)
10SWC-653* Wildfire 88.3 98.1 9.8 32.2 1.57 0.45 5.2
(9.4) (30.8)
including 88.3 91.9 3.6 11.8 3.36 1.04 12.2
(3.5) (11.5)
10SWC-664 Copper Keel 152.9 158.9 6.0 19.7 0.70 0.01 0.4
and Copper Keel 195.7 209.0 13.3 43.6 1.22 0.64 4.6
including 203.2 209.0 5.8 19.0 2.02 1.25 8.4
including 206.7 209.0 2.3 7.5 2.86 2.30 13.2
10SWC-668 Wildfire 80.6 88.3 7.7 25.3 2.68 1.02 7.8
and Wildfire 125.8 138.4 12.6 41.3 1.45 0.38 3.4
including 127.3 134.1 6.8 22.3 2.14 0.58 4.8
and Wildfire 143.7 151.1 7.4 24.3 0.90 0.36 2.2
10SWC-670 Wildfire 117.3 120.6 3.3 10.8 1.60 0.41 3.1
10SWC-671 Wildfire 124.8 130.2 5.4 17.7 0.90 0.49 4.1
10SWC-672 Wildfire 90.6 98.3 7.7 25.3 1.58 0.66 6.7
including 90.6 95.2 4.6 15.1 2.17 0.96 9.8
and Copper Keel 154.3 163.2 8.9 29.2 1.29 0.92 3.2
including 158.8 163.2 4.4 14.4 2.03 1.63 4.4
10SWC-673 Copper Keel 155.9 171.6 15.7 51.5 0.87 0.23 2.4
including 157.4 166.4 9.0 29.5 1.07 0.28 3.1
10SWC-675 Wildfire 96.8 109.3 12.5 41.0 1.14 0.28 1.9
and Wildfire 122.3 124.4 2.1 6.9 2.26 1.15 9.3
and Copper Keel 234.0 249.5 15.5 50.9 0.69 0.13 2.4
10SWC-676 Copper Keel 164.6 168.7 4.1 13.5 0.61 0.20 1.4
10SWC-678 Wildfire 72.2 75.1 2.9 9.5 0.67 0.00 0.5
and Wildfire 78.0 88.0 10.0 32.8 0.45 0.12 0.8
including 78.0 80.5 2.5 8.2 0.90 0.16 1.8
and Wildfire 108.4 113.1 4.7 15.4 0.67 0.02 1.3
and Copper Keel 156.7 161.8 5.1 16.7 0.53 0.41 3.2
10SWC-679 Wildfire 137.8 146.5 8.7 28.5 1.80 0.43 4.5
10SWC-680 Wildfire 78.4 81.4 3.0 9.8 1.45 0.21 2.0
and Wildfire 103.8 106.9 3.1 10.2 0.56 0.02 1.2
and Wildfire 141.2 148.5 7.3 24.0 0.58 0.17 1.7
10SWC-681* Wildfire 76.7 81.6 4.9 16.1 0.97 0.35 2.3
(4.5) (14.8)
and Wildfire 87.2 98.8 11.6 38.1 0.80 0.55 4.1
(10.7) (35.1)
including 90.2 95.8 5.6 18.4 1.31 0.68 5.7
(5.2) (17.1)
including 91.9 95.8 3.9 12.8 1.46 0.63 4.8
(3.6) (11.8)
and Copper Keel 181.2 192.7 11.5 37.7 1.62 0.44 4.2
(10.6) 34.8)
including 181.2 189.8 8.6 28.2 2.07 0.53 5.1
(7.9) (25.9)
and Copper Keel 199.3 220.0 20.7 67.9 0.60 0.14 1.3
(19.1) (62.7)
including 210.9 216.9 6.0 19.7 0.78 0.17 1.8
(5.5) (18.0)
10SWC-682 Wildfire 96.1 109.3 13.2 43.3 1.20 0.36 3.2
including 99.9 109.3 9.4 30.8 1.48 0.48 4.1
and Copper Keel 203.7 206.8 3.1 10.2 0.70 0.39 2.6
10SWC-683 Wildfire 121.0 126.4 5.4 17.7 1.97 0.58 6.3
including 124.5 126.4 1.9 6.2 3.08 0.83 10.3
10SWC-684 Wildfire 123.0 139.1 16.1 52.8 0.79 0.27 2.4
including 123.0 128.9 5.9 19.4 1.18 0.45 3.1
10SWC-686 Wildfire 80.1 82.3 2.2 7.2 1.33 0.08 0.4
and Wildfire 89.8 105.2 15.4 50.5 2.05 0.70 5.5
including 89.8 98.6 8.8 28.9 2.39 0.72 4.7
and Wildfire 109.1 112.4 3.3 10.8 1.80 0.82 5.2
10SWC-687 Copper Keel 210.4 219.8 9.4 30.8 1.20 0.30 3.1
including 210.4 214.8 4.4 14.4 1.78 0.43 4.9
10SWC-688 Wildfire 47.0 72.7 25.7 84.3 1.93 1.00 5.3
including 47.0 59.4 12.4 40.7 2.57 1.62 7.4
and Wildfire 105.3 108.5 3.2 10.5 1.09 0.11 1.6
and Wildfire 115.9 122.4 6.5 21.3 1.87 0.73 7.2
and Copper Keel 211.8 216.0 4.2 13.8 0.63 0.26 2.2
10SWC-689 Wildfire 43.8 49.8 6.0 19.7 2.36 1.74 6.4
including 43.8 46.4 2.6 8.5 2.95 2.59 9.3
and Wildfire 72.9 75.1 2.2 7.2 4.02 2.22 5.1
and Wildfire 105.8 115.0 9.2 30.2 1.79 0.38 4.9
including 108.2 113.5 5.3 17.4 2.30 0.49 6.6
and Copper Keel 229.7 240.8 11.1 36.4 0.81 0.35 3.1
including 235.3 238.0 2.7 8.9 1.46 0.32 4.2
10SWC-691 Wildfire / Geochemically Anomalous - No Significant
Copper Keel Intersections
10SWC-692 Copper Keel 233.9 251.3 17.4 57.1 0.47 0.07 1.0
and Copper Keel 278.6 281.1 2.5 8.2 0.99 0.30 4.3
and Copper Keel 313.5 327.7 14.2 46.6 0.55 0.16 2.3
10SWC-694 Copper Keel 217.1 231.6 14.5 47.6 0.36 0.10 1.0
10SWC-695 Copper Keel 219.2 226.2 7.0 23.0 0.96 0.26 3.6
including 220.5 224.1 3.6 11.8 1.45 0.37 4.7
10SWC-696 Copper Keel 232.4 256.2 23.8 78.1 0.55 0.10 1.4
including 247.5 256.2 8.7 28.5 0.78 0.16 2.0
including 247.5 250.5 3.0 9.8 1.24 0.25 2.4
and Copper Keel 268.4 270.7 2.3 7.5 0.87 0.18 2.5
10SWC-697 Copper Keel 295.8 314.5 18.7 61.4 0.61 0.17 1.6
including 307.2 314.5 7.3 24.0 0.76 0.29 2.3
(*) Estimated true thickness in parentheses
For further information:
Darren Pylot, Vice Chairman & CEO; Stephen Quin, President;
Or Investor Relations' Jason Howe at +1(604)684-8894 or +1(866)684-8894 or
e-mail Capstone at info@capstonemining.com
CO: Capstone Mining Corp.
Darren Pylot, Vice Chairman & CEO; Stephen Quin, President; Or Investor Relations' Jason Howe at +1(604)684-8894 or +1(866)684-8894 or e-mail Capstone at info at capstonemining.com
