Capstone Reports Significant Drill Results from Mala Noche Footwall Zone,
Cozamin Mine
Hole UG-ING-22 Intercepts 4.4% Cu & 85g/t Ag over 17m, including 5.3% Cu & 103g/t Ag over 13.5m
VANCOUVER, Sept. 20 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced assay results confirming a new high grade copper-silver discovery at its Cozamin Mine in Zacatecas State, Mexico. Exploration drilling along the Mala Noche vein system is delineating a new mineralized structure in the footwall rocks to the main Mala Noche Vein (which hosts the current mineral reserves at Cozamin). This new mineralized system is in close proximity to active mine workings and is easily accessible, should mineral reserves be established.
Highlights of assays from the Mala Noche Footwall Zone (MNFWZ) are summarized in the table immediately below and the full results for new holes and historic holes are provided in the attached tables.
2010 Drill Results for Mala Noche Footwall Zone
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Target From To Interval Silver Copper Lead Zinc
Hole ID Area (m) (m) (m)* (g/t) (%) (%) (%)
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MN
UG-ING-22 Footwall 66.50 83.50 17.00 85.7 4.35 0.03 0.26
-------------------------------------------------------------------------
including 68.50 82.00 13.50 103.3 5.30 0.03 0.31
-------------------------------------------------------------------------
MN
CG-10-U223 Footwall 82.00 86.38 4.38 87.3 4.01 0.06 0.19
-------------------------------------------------------------------------
including 82.00 84.52 2.52 139.6 6.50 0.09 0.28
-------------------------------------------------------------------------
MN
And Footwall 103.00 105.05 2.05 30.2 1.95 0.02 0.08
-------------------------------------------------------------------------
MN
And Footwall 108.15 115.53 7.38 38.5 2.39 0.03 0.22
-------------------------------------------------------------------------
including 111.10 115.20 4.10 62.6 3.97 0.03 0.25
-------------------------------------------------------------------------
MN
UG-ING-23 Footwall 82.00 85.50 3.50 51.4 3.14 0.02 0.15
-------------------------------------------------------------------------
including 83.00 84.25 1.25 109.6 6.65 0.02 0.31
-------------------------------------------------------------------------
MN
CG-10-U219 Footwall 79.20 83.53 4.33 44.9 3.00 0.02 0.56
-------------------------------------------------------------------------
including 80.67 82.88 2.21 71.1 5.36 0.01 0.19
-------------------------------------------------------------------------
MN
CG-10-U230 Footwall 188.55 192.70 4.15 50.8 3.39 0.13 1.81
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* Intervals reported are intercept lengths, true widths are estimated
to be similar to those reported.
"The results from drilling of the newly discovered Mala Noche Footwall Zone at the Cozamin Mine are very encouraging," said Stephen Quin, Capstone's President. "The mineralization remains open to expansion, and drilling is continuing. In parallel with the continued exploration, Capstone has commenced estimating mineral resources for this area, since the close proximity to existing mine workings offers potential for near term production."
Mala Noche Footwall Zone
The MNFWZ, a vein and breccia complex separate from the main Mala Noche Vein, is associated with the margins of a rhyolitic dyke intruding into the footwall rocks of the Mala Noche system and has been traced in drill holes over 700 metres along strike and 200 metres in the dip direction. This subsidiary structure intersects the main Mala Noche vein system west of the San Roberto shaft at about a 30 degree angle and it is still open to the east, up-dip and down-dip. The current mineral resources and mineral reserves at the Cozamin Mine are entirely hosted in the main Mala Noche vein, and this new discovery of the MNFWZ represents a new style of mineralization not previously identified at Cozamin. The discovery of this new style of mineralization presents an opportunity for the identification and discovery of new, similar, mineralization in other areas where similar intersecting structures are known.
Update on 2010 Exploration Plan
As stated on April 21, 2010, the current 2010 exploration plan for Cozamin in 2010 and beyond is twofold:
1. The focus of the first half of 2010 was on drilling targets that are
in close proximity to the Mala Noche vein system and current mine
workings, which means any new resources could easily be drill defined
from existing workings. The discovery and expansion of the MNFWZ is
the first product of this program, and drilling is continuing.
Underground drilling has also commenced in an area east of the
widest, higher grade part of the Cozamin Mine, currently being mined
by Avoca methods. This exploration is being conducted on claims
acquired by Capstone in 2009.
2. The second exploration priority is to evaluate and drill test
exploration targets within Capstone's large land package surrounding
the Cozamin mill, but which cannot be accessed through the current
system of mine workings. This is the first such exploration by
Capstone since the acquisition of the Cozamin Mine and surrounding
land package. More than a dozen targets have been identified through
mapping, sampling and geophysics and sufficient field work has been
completed to begin drill testing about half of these. Drilling is
expected to commence before the end of September 2010.
The 2010 exploration expenditures are budgeted at US$3.7 million, exclusive of underground development costs.
For target locations relative to the current mine workings please view the accompanying long-sections:
http://www.capstonemining.com/i/photos/cozamin/2010-40Cozamin01.jpg
http://www.capstonemining.com/i/photos/cozamin/2010-40Cozamin02.jpg
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 of Capstone Mining Corp. The exploration activities at the Cozamin Mine are carried out under the supervision of Brad Mercer, P. Geol., VP Exploration of Capstone. 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.
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.
2010 Drill Results for Mala Noche Footwall Zone (MNFWZ)
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Target From To Interval Silver Copper Lead Zinc
Hole ID Area (m) (m) (m)* (g/t) (%) (%) (%)
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MN
UG-ING-14 Footwall Results previously released on April 21, 2010
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MN
UG-ING-15 Footwall Results previously released on April 21, 2010
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MN
UG-ING-17 Footwall 64.75 65.25 0.50 282.5 10.12 0.33 3.35
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MN
UG-ING-18 Footwall 44.50 45.25 0.75 2.9 2.33 0.01 0.13
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MN
And Footwall 59.00 60.00 1.00 3.6 2.25 0.38 0.08
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MN
UG-ING-22 Footwall 66.50 83.50 17.00 85.7 4.35 0.03 0.26
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including 68.50 82.00 13.50 103.3 5.30 0.03 0.31
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MN
UG-ING-23 Footwall 69.25 70.50 1.25 20.4 1.40 0.01 0.59
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And 82.00 85.50 3.50 51.4 3.14 0.02 0.15
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including 83.00 84.25 1.25 109.6 6.65 0.02 0.31
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MN
UG-ING-24 Footwall 39.75 43.50 3.75 38.2 1.97 0.02 1.16
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including 41.50 43.50 2.00 51.4 3.14 0.02 0.15
-------------------------------------------------------------------------
MN
And Footwall 60.25 62.00 1.75 32.7 2.62 0.01 0.10
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including 60.25 61.50 1.25 43.8 3.61 0.01 0.13
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MN
UG-ING-25 Footwall 80.25 82.35 2.10 11.7 0.63 0.01 0.59
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including 80.75 81.90 1.15 16.0 0.87 0.01 0.45
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MN
UG-ING-35 Footwall 40.37 41.93 1.56 32.2 1.07 0.08 2.84
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MN
And Footwall 55.48 56.30 0.82 40.9 2.72 0.02 0.10
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including 55.48 56.03 0.55 56.5 3.82 0.02 0.14
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MN
UG-ING-36 Footwall 47.25 48.10 0.85 56.9 4.33 0.01 0.14
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MN
And Footwall 57.30 64.25 6.951.20 27.6 1.75 0.01 0.41
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including 57.30 58.50 1.20 119.4 8.01 0.02 1.49
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MN
UG-ING-40 Footwall 0.55 1.55 1.00 64.00 1.93 0.00 2.28
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including 0.55 1.05 0.50 102.0 3.07 0.00 2.78
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MN
And Footwall Zn 3.70 5.10 1.40 11.14 0.03 0.19 2.77
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MN
And Footwall Zn 19.65 22.40 2.75 6.09 0.07 0.00 2.95
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MN
And Footwall Zn 26.95 29.45 2.50 8.20 0.09 0.33 2.32
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MN
CG-10-U218 Footwall 50.25 52.05 1.80 43.1 2.52 0.04 0.13
-------------------------------------------------------------------------
including 51.20 52.05 0.85 81.6 4.93 0.08 0.26
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MN
And Footwall 53.40 57.50 4.10 36.7 2.06 0.01 0.12
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including 54.05 54.60 0.55 103.5 6.99 0.01 0.26
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including 55.90 57.50 1.60 38.7 1.73 0.02 0.15
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MN
CG-10-U219 Footwall 59.03 60.34 1.31 28.3 1.69 0.03 0.64
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including 59.29 60.34 1.05 34.0 2.00 0.04 0.79
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MN
And Footwall 79.20 83.53 4.33 44.9 3.00 0.02 0.56
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including 80.67 82.88 2.21 71.1 5.36 0.01 0.19
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MN
CG-10-U220 Footwall 135.10 142.95 7.85 6.8 0.01 0.41 2.61
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including 136.70 138.32 1.62 10.2 0.01 0.34 6.02
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including 141.24 142.40 1.16 7.4 0.00 1.70 3.57
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MN
And Footwall 162.20 180.52 18.32 16.8 0.01 0.57 5.45
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including 162.20 165.60 3.40 21.9 0.01 0.88 6.29
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MN
CG-10-U221 Footwall 249.25 251.00 1.75 28.4 1.43 0.02 0.87
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including 249.75 250.75 1.00 41.8 2.16 0.01 1.07
-------------------------------------------------------------------------
MN
And Footwall 276.25 279.65 3.40 55.6 1.67 0.02 0.06
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including 276.75 278.65 1.90 28.7 2.24 0.02 0.08
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MN
CG-10-U222 Footwall 223.35 224.40 1.05 22.6 0.68 0.07 0.17
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MN
And Footwall 274.20 275.35 1.15 31.5 1.50 0.06 0.11
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MN
And Footwall Zn 196.02 197.65 1.63 7.33 0.07 0.33 1.31
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MN
CG-10-U223 Footwall 80.00 80.95 0.95 68.6 3.66 0.05 0.14
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MN
And Footwall 82.00 86.38 4.38 87.3 4.01 0.06 0.19
-------------------------------------------------------------------------
including 82.00 84.52 2.52 139.6 6.50 0.09 0.28
-------------------------------------------------------------------------
MN
And Footwall 103.00 105.05 2.05 30.2 1.95 0.02 0.08
-------------------------------------------------------------------------
including 103.00 104.00 1.00 50.0 3.34 0.03 0.14
-------------------------------------------------------------------------
MN
And Footwall 108.15 115.53 7.38 38.5 2.39 0.03 0.22
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including 111.10 115.20 4.10 62.6 3.97 0.03 0.25
-------------------------------------------------------------------------
MN
CG-10-U224 Footwall 131.56 133.00 1.44 24.4 0.82 0.06 0.37
-------------------------------------------------------------------------
including 132.06 132.75 0.69 32.0 1.27 0.06 0.26
-------------------------------------------------------------------------
MN
And Footwall 145.30 149.00 3.70 12.0 1.06 0.00 0.03
-------------------------------------------------------------------------
MN
And Footwall 155.10 156.10 1.00 40.5 1.35 0.05 1.40
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including 155.60 156.10 0.50 67.0 2.55 0.04 2.69
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MN
And Footwall 172.15 173.10 0.95 13.2 0.72 0.01 1.20
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MN
CG-10-U225 Footwall 63.20 64.55 1.35 11.7 0.27 0.05 0.50
-------------------------------------------------------------------------
MN
And Footwall 146.50 149.40 2.90 22.6 1.34 0.02 1.61
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including 147.80 148.75 0.95 49.2 3.16 0.02 0.89
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MN
CG-10-U226 Footwall 214.50 215.65 1.15 53.6 1.62 0.14 0.05
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MN
And Footwall 225.70 226.60 0.90 42.5 3.74 0.05 0.14
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MN
And Footwall 232.75 233.05 0.30 62.0 4.62 0.01 0.28
-------------------------------------------------------------------------
MN
And Footwall 235.40 235.95 0.55 23.0 1.50 0.04 0.10
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MN
And Footwall Au 243.60 245.80 2.20 46.8 0.91 0.01 0.04
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including 243.60 244.80 1.20 81.7 1.63 0.01 0.07
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MN
And Footwall 249.90 252.77 2.87 23.2 1.11 0.02 0.03
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including 252.05 252.77 0.72 45.0 1.80 0.04 0.05
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MN
And Footwall 258.40 262.10 3.70 26.4 0.83 0.01 0.03
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including 259.15 259.65 0.50 31.0 1.77 0.01 0.05
-------------------------------------------------------------------------
MN
CG-10-U227 Footwall 26.25 26.90 0.65 89.0 3.81 0.11 0.36
-------------------------------------------------------------------------
MN
And Footwall 48.75 49.70 0.95 31.0 1.40 0.03 0.09
-------------------------------------------------------------------------
including 49.15 49.70 0.55 44.0 2.19 0.02 0.11
-------------------------------------------------------------------------
MN
And Footwall 52.85 54.30 1.45 53.6 2.70 0.02 0.09
-------------------------------------------------------------------------
including 52.85 53.80 0.95 70.7 3.55 0.03 0.11
-------------------------------------------------------------------------
MN
And Footwall 70.05 72.20 2.15 7.1 0.00 0.09 3.60
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CG-10- MN
U228 Footwall Au 0.70 2.50 1.80 5.6 0.03 0.01 0.07
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MN
And Footwall 43.50 44.07 0.57 76.0 4.72 0.01 0.17
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MN
And Footwall 60.45 61.65 1.20 25.2 0.85 0.12 1.07
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including 61.10 61.65 0.55 49.0 1.82 0.03 0.13
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MN
And Footwall Zn 82.65 83.35 0.70 8.0 0.01 0.37 13.00
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MN
And Footwall 85.85 88.10 2.25 6.7 0.06 0.11 4.94
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including 87.55 88.10 0.55 12.0 0.13 0.42 10.50
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MN
CG-10-U230 Footwall 153.7 154.40 0.70 49.0 2.48 0.10 3.63
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MN
And Footwall 180.35 180.90 0.55 23.0 1.22 0.01 0.09
-------------------------------------------------------------------------
MN
And Footwall 188.55 192.70 4.15 50.8 3.39 0.13 1.81
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Including 189.05 192.70 3.65 55.2 3.68 0.15 2.03
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For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President; Or Investor Relations' Zobeida Slogan at (604) 684-8894 or (866) 684-8894, [email protected]
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