Capstone Reports First High Grade Copper-Gold Results From 2010 Drilling at Minto
VANCOUVER, March 4, 2010 /PRNewswire-FirstCall/ --
- Hole 10SWC594 intercepts 2.3% Cu & 4.1g/t Au over 10.2m (including 2.6% Cu & 6.1g/t Au over 6.7m)
Capstone Mining Corporation (CS: TSX) today announced assay results from six of seventeen drillholes completed to date as part of an evaluation of the underground potential at its high grade Minto copper-gold mine in the Yukon. These most recent drill intercepts demonstrate the potential to expand the deeper copper-gold mineralization that is the focus of the early 2010 drilling. Highlights of assays from these recent drillholes are summarized in the table below and the full results for all six holes released today are provided in the attached table. Drilling continues with two rigs.
Highlights from 2010 Drilling
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Hole ID Target Area From To Interval Interval Copper Gold Silver
(m) (m) (m)(x) (ft)(x) (%) (g/t) (g/t)
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10SWC-592 Area 2 South 30.9 45.6 14.7 48.2 1.33 0.41 2.7
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Including 33.9 36.9 3.0 9.8 2.33 0.72 5.4
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And 68.5 86.2 17.7 58.1 1.43 0.58 7.3
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Including 72.9 77.9 5.0 16.4 2.26 1.00 12.5
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And 221.1 224.7 3.6 11.8 1.75 0.65 3.7
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10SWC-594 Minto East 278.6 288.8 10.2 33.5 2.32 4.14 10.8
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Including 282.1 288.8 6.7 22.0 2.62 6.12 14.9
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10SWC-597 Minto East 285.5 295.6 10.1 33.1 2.60 1.00 6.0
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And 293.0 295.6 2.6 8.5 4.40 1.41 10.7
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10SWC-598 Area 2 South 41.1 52.0 10.9 35.8 1.22 0.13 1.0
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Including 43.5 46.5 3.0 9.8 2.74 0.16 1.3
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And 243.0 250.4 7.4 24.3 2.49 0.86 8.1
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"The holes highlighted above illustrate the potential for increased resources below or adjacent to those currently being targeted in the open pits outlined in the Phase IV Pre-feasibility Study," said Stephen Quin, President & COO of Capstone. "The first phase of drilling in 2010 is reinforcing our belief that there is excellent potential to develop an underground mine that would provide supplemental high grade feed to enhance and smooth out the production profile laid out in the Phase IV pre-feasibility study."
2010 Drill Program - Minto Mine
Capstone reported the results of the Phase IV Pre-feasibility Study ("Phase IV PFS") for the expansion of the Minto Mine on December 15, 2009. One of the key opportunities identified in the Phase IV PFS was to evaluate the potential for underground extraction of higher grade mineral resources to supplement open pit production, and increase overall copper production.
The current drill program is designed as a first pass to test for extensions to several areas where mineral resources or high grade exploration intercepts are known but not adequately defined. These target areas include the margins of the Area 2/118 deposit and the Minto East discovery from 2009. The six holes released to date show that three existing mineral resource blocks are open for expansion: Area 2 deep and Area 2 shallow are open to the south and Copper Keel North is open to the north and west. In addition, the new intercepts from Minto East indicate a sufficient extent of mineralization that suggest a mineral resource will be delineated here.
Further drilling and evaluation is underway in these areas in order to increase confidence levels to a point sufficient to support a conversion to mineral reserves, if economic factors warrant, by demonstrating both continuity of grade and thicknesses.
For current drill hole locations, please view the accompanying map: http://www.capstonemining.com/i/photos/minto/2010-07MintoProperty.jpg
For a current view of drill results in priority areas please view the accompanying map: http://www.capstonemining.com/i/photos/minto/ 2010-07MintoDrillResultsUpdate.jpg
(Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. Remove the space if one exists.)
Minto East Core at PDAC
Capstone will have core from the 2009 Minto East and Minto North discoveries available for viewing at the Core Shack at the Prospectors and Developers Convention, which is being held at the Metro Toronto Convention Centre. Capstone will be exhibiting at the Core Shack on March 7 and 8, 2010.
The TSX does not accept any responsibility for the adequacy or accuracy of this press release.
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 & COO for Capstone Mining Corporation. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration (Canada) for 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 Acme Analytical 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 Minto North (only) Drill Results
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To accompany Capstone Mining News Release Dated March 4, 2010
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Hole ID Target Area From To Interval Interval Copper Gold Silver
& Interval (m) (m) (m)(x) (ft)(x) (%) (g/t) (g/t)
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10SWC-592 Area 2 South 30.9 45.6 14.7 48.2 1.33 0.41 2.7
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including 33.9 36.9 3.0 9.8 2.33 0.72 5.4
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and 68.5 86.2 17.7 58.1 1.43 0.58 7.3
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including 72.9 77.9 5.0 16.4 2.26 1.00 12.5
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and 221.1 224.7 3.6 11.8 1.75 0.65 3.7
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and 276.0 280.7 4.7 15.4 0.59 0.10 2.3
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10SWC-593 Area 2 South 170.5 176.5 6.0 19.7 0.92 0.16 2.4
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including 170.5 173.5 3.0 9.8 1.29 0.19 2.6
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10SWC-594 Minto East 278.6 288.8 10.2 33.5 2.32 4.14 10.8
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including 282.1 288.8 6.7 22.0 2.62 6.12 14.9
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10SWC-595 Area 2 South 169.9 174.5 4.6 15.1 0.69 0.13 1.4
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and 208.3 234.0 25.7 84.3 0.45 0.13 1.1
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and 265.7 267.2 1.5 4.9 3.02 1.39 16.9
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10SWC-596 Area 2 South Assays pending
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10SWC-597 Minto East 211.3 232.2 20.9 68.6 0.46 0.18 1.0
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and 285.5 295.6 10.1 33.1 2.60 1.00 6.0
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including 293.0 295.6 2.6 8.5 4.40 1.41 10.7
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10SWC-598 Area 2 South 41.1 52.0 10.9 35.8 1.22 0.13 1.0
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including 43.5 46.5 3.0 9.8 2.74 0.16 1.3
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and 243.0 250.4 7.4 24.3 2.49 0.86 8.1
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including 243.0 248.0 5.0 16.4 2.85 0.93 8.0
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10SWC-599 to 608 Assays pending
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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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