Capstone Commences Exploration Drilling at its Cozamin Mine, Mexico
VANCOUVER, April 21, 2010 /PRNewswire-FirstCall/ --
- Testing Targets Along High Grade Mala Noche Vein, in Parallel Structures & Satellite Targets
Capstone Mining Corp. (CS: TSX) today announced that it has commenced exploration diamond drilling at its Cozamin Mine in Zacatecas State, Mexico . The immediate focus for this drilling is to explore areas along the Mala Noche vein system (which hosts all of the current mineral resources and mineral reserves at the Cozamin mine) that are in close proximity to the current workings and existing mine infrastructure. A second phase of drilling is planned for later in the year to test targets that lie off the Mala Noche vein structure, and away from the mine workings. As reported on March 22, 2010, exploration expenditures at Cozamin are forecast to total US$3 million in 2010.
Limited drilling has already been conducted on one target located in the footwall of the Mala Noche vein, adjacent to the current production areas, called the "Mala Noche Footwall Zone". Using a small diamond drill owned by the mine, several significant intercepts of copper mineralization have already been located. A second high priority target lies immediately east of the Avoca stopes currently being mined, where mineral reserve grades and thicknesses are greatest. This target lies beyond the limits of the current mineral resources and mineral reserves, which have an artificial boundary at a historic claim boundary, on claims that were purchased.
"Four priority targets in close proximity to our Cozamin Mine will be drill tested in the coming months," said Stephen P. Quin, President & COO of Capstone Mining. "These targets represent the first of a number of targets generated from a sustained 12-month property-wide assessment of the exploration potential of the Cozamin Mine property and suggest significant potential for the discovery of new mineral resources within the principal known vein system that hosts all the currently known mineral resources and mineral reserves, as well as in parallel hydrothermal systems."
2010 Exploration Plan
The 2010 exploration plan is proceeding along two parallel tracks. The immediate focus is on targets within the Mala Noche vein system that are within close proximity to the current mine workings of haulages, ramps and drifts. Any mineral resources discovered in these areas could easily be drill defined and accessed via extensions from existing workings. The second exploration priority in 2010 will be to start testing standalone targets that lay within Capstone's current claims, near to the Cozamin mill , but which cannot be accessed through the current system of mine workings.
Phase 1 Priority Targets
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Four targets have been identified for immediate testing; three lie on strike within the Mala Noche vein structure and a fourth is in a sub- parallel structure hosting a vein and breccias complex. From west to east the four targets are identified as the Mala Noche West, Mala Noche Footwall , Avoca Extension and San Rafael Deep. The Mala Noche Footwall target is located in the footwall rocks of the Mala Noche Vein, within tens of metres to a few hundred metres of the current mine workings. Due to the proximity of and access to existing mine workings, this target will be drill tested first, over a 200m by 600m area. Drilling of the highest priority target, the Avoca Extension target, will start once a new underground cross-cut and drill stations are completed. Surface drilling will examine the San Rafael Deep target, below the mineral resources defined in the San Rafael area in 2008, and then the Mala Noche West target, a new area identified through exploration conducted by Capstone in 2009-10 that may represent the western extension of the Mala Noche vein system. Surface drilling is expected to commence in June 2010.
Capstone is currently focused on exploration of the most obvious targets reaching close proximity to the current underground infrastructure. However, in addition to the four targets mentioned above and described below, Capstone is also advancing multiple additional stand-alone exploration targets on its Cozamin claims based upon geophysics, geochemistry (rock and soil) and geological mapping. Some of these other targets may be drill tested from surface later in the year, after the near mine drilling is completed, and/or in future years.
For target locations relative to the current mine workings please view the accompanying long-section view:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin01.pdf
Avoca Extension
The Avoca Extension target is located immediately adjacent to active mining areas of the Cozamin Mine, where Avoca-style bulk mining is being utilized to extract ore from the widest and highest grade sections of the Mala Noche vein. The current mineral resource model suggests that the mineralization is open toward the east, but was not drilled in the past because Capstone did not own the claims over the target area. Capstone has since acquired these claims, as announced on September 8th, 2009. Due to the obvious potential and proximity to an important and active part of the mine, Capstone considers the Avoca Extension a priority target and drifting will commence shortly to provide an approximately 300m cross-cut into the Mala Noche hanging wall to facilitate access for underground drill testing.
For target location relative to the current mine workings please view the accompanying long-section view:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin02.pdf
Mala Noche Footwall
The Mala Noche Footwall target is a composite vein and breccia body hosted in a parallel to sub-parallel structure adjacent to the main production horizon at Cozamin, the Mala Noche vein. The Mala Noche Footwall structure follows a rhyolite dyke that lies in the footwall strata of the Mala Noche vein at a variable distance from the main mine workings. Insofar as is currently known, the Mala Noche Footwall zone appears to have a similar, moderately north inclination as the Mala Noche vein. Mineralization in the Mala Noche Footwall zone is strongly chalcopyrite dominated, as compared to the Mala Noche vein proper, which is predominantly zoned polymetallic mineralization. The Mala Noche Footwall mineralization intercepts to date are comprised of massive to semi-massive stringers within quartz veins or as coarse grained disseminations within associated hydrothermal breccias.
The zone was discovered in drill hole CG-04-27 drilled in 2004 when a significant interval of quartz stockworking with chalcopyrite mineralization hosted in rhyolite dike was cut 30m below the Mala Noche vein. This intercept was not followed up at the time since exploration work was concentrated on developing a mineral resource within the Mala Noche vein prior to constructing the present mining operation. Subsequent deepening of the central internal ramp, below Level 10 in the mine, cut significant chlorite-epidote alteration in the footwall to the Mala Noche vein. Subsequently, further development in the footwall on Level 12 exposed strong chlorite-epidote alteration and local chalcopyrite mineralization over a distance of 200m. These results rekindled interest in the footwall target and drilling in 2010 (using the Company's small underground rig from drill stations in the ramp) cut mineralization in four holes. Assays have been received from two of these holes and are presented below.
2010 Mala Noche Footwall Drilling
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Hole ID Target From To Interval Silver Copper Lead Zinc
Area (m) (m) (m)(x) (g/t) (%) (%) (%)
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MN
UG-ING-14 Footwall 57.00 59.00 2.00 11.0 0.67 0.01 0.19
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including 58.25 59.00 0.75 21.0 1.21 0.01 0.49
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MN
UG-ING-15 Footwall 35.25 37.75 2.50 30.6 2.09 0.01 0.06
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including 36.00 36.50 0.50 97.5 6.71 0.01 0.21
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MN
And Footwall 63.00 65.00 2.00 52.1 2.63 0.07 0.17
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including 63.25 63.75 0.50 179.5 9.36 0.22 0.33
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(x)There is currently insufficient drill data to determine the geometry
of this zone and estimate true thicknesses of these mineralized
intercepts.
Capstone used its small production oriented underground core drill, which has limited capacity, to obtain the drill intercepts listed above in an initial "proof of concept" drill program. Given the encouraging results, noted in the above table, Capstone is bringing in a drill contractor with a rig of sufficient capacity to test this zone along a strike length of 600 metres and a dip extent of 200 metres using the existing mine workings for drill platforms.
For proposed drillhole plan including completed holes please view the accompanying long-section:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin03.pdf
Mala Noche West
The Mala Noche West target is an area located to the west of the current mine workings. On surface, the area is a recessive weathering valley, with no bedrock exposure, and little is known about the prospective geology. Capstone intends to drill this area from surface, targeting the projected location of the Mala Noche vein, and stepping out incrementally from the last know location in the mineral resource model. Capstone considers this a particularly interesting area since several other vein systems (located to the south of the Mala Noche Vein) that have seen past production project into this area. The intersection point of these various systems lies in the vicinity of the recessive feature mentioned above, which has coincident soil geochemical and geophysical anomalies.
San Rafael Deep
The San Rafael Deep program is a continuation of the successful drilling conducted in 2008 that led to a new mineral resource estimate for San Rafael, as initially announced by the Company on February 18, 2009. In 2010, two holes are planned from surface to drill down dip from the previously announced mineral resource in order to probe the Mala Noche system and gain knowledge about the potential for mineralization in an area not previously tested.
For target location relative to the current mine workings and current mineral resources please view the accompanying long-section view:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin04.pdf
Quality Assurance/Quality Control
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 & COO for Capstone Mining Corporation. The exploration activities at the Cozamin Mine are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration for Capstone. The following employees of Capstone, each a Qualified Person, reviewed Technical Information contained in this news release: Brad Mercer, P. Geol., V.P. Exploration for Capstone and consulting geologist Hugh Willson, Professional Geologist, respectively reviewed the technical content of this news release. 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.
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.
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, [email protected]/
SOURCE Capstone Mining Corp.
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