Capstone Reports Additional High Grade Copper-Zinc Intercepts From Kutcho Project
VANCOUVER, November 17, 2010 /PRNewswire-FirstCall/ --
- Hole KC10-202 Intercepts 6.2% Cu, 11.7% Zn, 1.1g/t Au & 68.5g/t Ag over 10.2m
Capstone Mining Corp. (CS: TSX) today announced additional high grade intercepts from the last batch of drill holes from 2010 on its high grade Kutcho Copper-Zinc Project. As previously reported, the drill program followed up on a recommendation in the Preliminary Economic Assessment ("PEA") announced on July 13, 2010 to increase the confidence in approximately 1.1 million tonnes of high grade but inferred class mineral resources in the Esso deposit. A new NI43-101 Mineral Resource estimate is nearing completion and will be announced before the end of 2010. This drilling is one of several initiatives being pursued in order to advance the project to completion of a pre-feasibility study. Highlights for the final batch of drill holes from 2010 are summarized below, while full results are attached. In situ copper equivalent grades are provided for illustrative purposes, based on the metal prices assumed in the PEA. Results for previous holes were announced in August and September.
Highlights of Esso Drilling - Kutcho Project
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CuEq
Hole Target From To Interval Interval Copper Zinc Gold Silver (%)
ID Area (m) (m) (m)(x) (ft)(x) (%) (%) (g/t) (g/t) (xx)
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KC10-
185 Esso 459.4 480.2 20.8 (18.5) 68.2 (60.7) 3.63 3.36 1.02 139.4 6.6%
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Incl-
uding 472.1 476.0 3.9 (3.5) 12.8 (11.5) 8.14 1.40 1.00 339.3 12.2%
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KC10-
188 Esso 477.3 488.5 11.2 (10.9) 36.7 (35.8) 3.58 9.29 0.46 37.1 7.5%
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KC10-
197 Esso 419.4 428.6 9.2 (8.2) 30.2 (26.9) 2.38 9.90 0.32 13.5 6.2%
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Incl-
uding 420.2 423.2 3.0 (2.7) 9.8 (8.9) 4.00 30.88 0.37 20.5 15.4%
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KC10-
198 Esso 520.3 545.3 25.0 (19.2) 82.0 (63.0) 3.61 3.07 1.29 124.8 6.5%
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KC10-
202 Esso 485.8 496.0 10.2 (8.9) 33.5 (29.2) 6.20 11.66 1.10 68.5 11.6%
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(x) The values in parenthesises are estimated true thicknesses based
upon the current 3D interpretation of the Esso horizon.
(xx) In situ Copper Equivalent Grades (CuEq) are calculated using the
same US$ metal price assumptions used in the July 6, 2010
Preliminary Economic Assessment (Copper (equal sign) $2.25/lb;
Zinc (equal sign) $0.80/lb; Gold (equal sign) $850.00/oz;
Silver (equal sign) $13.50/oz), are for illustrative purposes and
do not take into account metal recoveries.
"The results of the infill drill program completed in the Esso deposit exceeded expectations," said President, Stephen Quin. "Not only have we confirmed the continuity of the Esso mineralization, but have intercepted the highest grades ever encountered on the Kutcho property and over significant intervals. Further, this drilling demonstrated continuity of the high grade mineralization over significant distances," he said. "It is now clear that the Esso deposit will be an important contributor to the economics of the Kutcho Project, and extracting these very high grades early in the mine life should enhance the project return."
Kutcho Work Program
As reported in the August 5, 2010 news release, Capstone is undertaking a work program based on the recommendations of the recently completed PEA on the Kutcho Project. The PEA demonstrated potential for robust economics through the underground extraction of high grade copper-zinc-gold-silver mineralization from the Main and Esso deposits, followed by conventional flotation and production of copper and zinc concentrates. The PEA recommended advancing the project through completion of a Pre-feasibility Study (PFS) and contained a number of recommendations in order to achieve that objective, including infill drilling the Esso deposit to support mineral reserve estimation (done), optimization of metallurgical parameters (underway) and reviewing opportunities to reduce capital and operating costs (underway).
For current drillhole locations please view the accompanying map:
http://www.capstonemining.com/i/photos/kutcho/2010-48CS_DrillholeLocation
sWithCuXmetres.jpg
For a current view of drill results in priority areas across the property please view the accompanying map:
http://www.capstonemining.com/i/photos/kutcho/2010-48CS_DrillholeLocation
sWithZnXmetres.jpg
(Due to the length of these URLs, it may be necessary to copy and paste the hyperlinks into your Internet browser's URL address field. Remove the space if one exists.)
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. and Brad Mercer, P. Geo., VP, Exploration of Capstone. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geo., 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 http://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 Latest ESSO Deposit Drill Results - Kutcho Project
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To Accompany Capstone Mining News Release Dated November 17, 2010
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CuEq
Hole Target From To Interval Interval Copper Zinc Gold Silver (%)
ID Area (m) (m) (m)(x) (ft)(x) (%) (%) (g/t) (g/t) (xx)
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KC10-
185 Esso 459.4 480.2 20.8 (18.5) 68.2 (60.7) 3.63 3.36 1.02 139.4 6.6%
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Incl-
uding 472.1 476.0 3.9 (3.5) 12.8 (11.5) 8.14 1.40 1.00 339.3 12.2%
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KC10-
186 Esso 480.5 500.2 19.7 (18.5) 64.6 (60.7) 1.75 7.62 0.52 46.2 5.2%
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Incl-
uding 493.4 494.8 1.4 (1.3) 4.6 (4.3) 5.38 25.24 0.25 22.4 14.7%
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KC10-
187 Esso Geochemically Anomalous - No Significant Intersections
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KC10-
188 Esso 477.3 488.5 11.2 (10.9) 36.7 (35.8) 3.58 9.29 0.46 37.1 7.5%
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KC10-
189 Esso Hole Abandoned Short of Target
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KC10-
190 Esso 541.5 544.1 2.6 (2.4) 8.5 (7.9) 0.94 0.07 0.17 9.18 1.1%
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KC10-
191 Esso 530.4 531.7 1.3 (1.0) 4.3 (3.3) 2.69 3.92 0.33 83.5 5.0%
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KC10-
192 Esso Hole Abandoned Short of Target
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KC10-
193 Esso 453.7 458.9 5.2 (4.8) 17.1 (15.7) 1.49 2.71 0.22 18.6 2.7%
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KC10-
194 Esso Hole Abandoned Short of Target
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KC10-
195 Esso Geochemically Anomalous - No Significant Intersections
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KC10-
196 Esso 544.4 549.2 4.8 (4.0) 15.7 (13.1) 1.58 0.23 0.22 27.1 2.0%
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KC10-
197 Esso 419.4 428.6 9.2 (8.2) 30.2 (26.9) 2.38 9.90 0.32 13.5 6.2%
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Incl-
uding 420.2 423.2 3.0 (2.7) 9.8 (8.9) 4.00 30.88 0.37 20.5 15.4%
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KC10-
198 Esso 520.3 545.3 25.0 (19.2) 82.0 (63.0) 3.61 3.07 1.29 124.8 6.5%
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KC10-
199 Esso 521.7 533.1 11.4 (10.3) 37.4 (33.8) 2.06 15.21 1.05 61.0 8.6%
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Incl-
uding 524.8 529.1 4.3 (3.9) 14.1 (12.8) 1.90 36.19 1.50 76.9 16.3%
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KC10-
200 Esso 484.1 487.8 3.7 (3.2) 12.1 (10.5) 2.40 9.07 0.85 55.9 6.6%
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KC10-
201 Esso 493.5 495.0 1.5 (1.4) 4.9 (4.6) 0.77 15.73 0.21 11.4 6.6%
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KC10-
202 Esso 485.8 496.0 10.2 (8.9) 33.5 (29.2) 6.20 11.66 1.10 68.5 11.6%
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(x) The values in parenthesises are estimated true thicknesses based
upon the current 3D interpretation of the Esso horizon.
(xx) In situ Copper Equivalent Grades (CuEq) are calculated using the
same US$ metal price assumptions used in the July 6, 2010
Preliminary Economic Assessment (Copper (equal sign) $2.25/lb;
Zinc (equal sign) $0.80/lb; Gold (equal sign) $850.00/oz;
Silver (equal sign) $13.50/oz), are for illustrative purposes and
does not take into account metal recoveries.
For further information: For further information: about Capstone, please contact: 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 [email protected]
SOURCE Capstone Mining Corp.
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