Capstone Mining 2017 Second Quarter Production Results

VANCOUVER, July 12, 2017 /CNW/ - Capstone Mining Corp. ("Capstone") (TSX: CS) today announced production results for the three and six months ended June 30, 2017. Combined production totalled 24,000 and 44,900 tonnes of copper in the second quarter and year-to-date periods, respectively, with additional by-products of zinc, molybdenum, lead, silver and gold.

Q2 and YTD 2017 Copper Production (tonnes)

	Q1	Q2	YTD 2017
Pinto Valley	11,300	15,500	26,800
Cozamin	4,100	4,100	8,200
Minto	5,500	4,400	9,900
Total copper production ^(1)	20,900	24,000	44,900
(1) Total production includes copper in concentrate and cathode production.

"All three of our mines produced according to plan in the second quarter," said Darren Pylot, President and CEO of Capstone. "Pinto Valley set new quarterly, monthly and daily throughput records after returning to full operations from the heavy rain and maintenance activities early in the year."

"Cozamin's copper production once again outperformed and Minto continued to execute a mine plan that  advances the operation towards an extended mine life into 2020 and potentially beyond," continued Mr. Pylot.

Operational Highlights

• At Pinto Valley, throughput averaged 58,700 tonnes per day ("tpd") for the quarter, setting a quarterly throughput record as well as achieving a new monthly throughput record in May of 60,300 tpd. Grade, recoveries and production were as planned for the quarter.
• At Cozamin, grade and recoveries were as expected, with throughput continuing ahead of plan on ongoing improvement in mine production and mine development.
• At Minto, production for the quarter was impacted by mine sequencing changes to support a mine life extension. Throughput continued higher than planned, but head grade and recoveries were lower than planned due to a higher percentage of partially oxidized ore feeding the mill from the Area 2, Stage 3 open pit and underground mining running slightly behind schedule.

Q2 and YTD 2017 Operating Details

		Pinto Valley		Cozamin		Minto
		Q2	YTD 2017	Q2	YTD 2017	Q2	YTD 2017
Contained Production ^(1)
- Copper (tonnes)		15,491	26,791	4,106	8,236	4,406	9,926
- Zinc (tonnes)		-	-	786	2,044	-	-
- Molybdenum (Mo tonnes)		7	7	-	-	-	-
- Lead (tonnes)		-	-	18	37	-	-
- Silver (ounces)		86,267	147,748	233,852	495,474	41,789	98,174
- Gold (ounces) ^(2)		581	3,420	-	-	4,982	13,609
Payable Copper Production ^(1)(tonnes)   (in concentrate and cathode)		14,966	25,887	3,947	7,918	4,262	9,603
Mine
- Ore (tonnes) – open pit		5,610,740	10,047,769	-	-	532,929	576,172
- Waste (tonnes)		6,759,251	13,143,552	-	-	2,311,740	4,319,767
- Ore (tonnes) – underground		-	-	231,421	468,223	91,844	159,926
Mill
- Tonnes processed		5,338,662	9,515,745	230,799	465,022	378,874	747,195
- Tonnes processed per day		58,667	52,573	2,536	2,569	4,163	4,128
- Copper grade (%)		0.33^(3)	0.32^(3)	1.85	1.84	1.43	1.55
- Zinc grade (%)		-	-	0.55	0.67	-	-
- Molybdenum grade (%)		0.005	0.005	-	-	-	-
- Lead grade (%)		-	-	0.07	0.07	-	-
- Silver grade (g/t)		*	*	39.6	42.7	4.5	5.1
- Gold grade (g/t)		*	*	-	-	0.59	1.04
Recoveries
- Copper (%)		86.1^(3^)	85.1 ^(3)	96.1	96.0	81.5	85.7
- Zinc (%)		-	-	62.0	66.0	-	-
- Lead (%)		-	-	11.4	11.8	-	-
- Silver (%)		*	*	79.6	77.6	76.3	79.7
- Gold (%)		*	*	-	-	69.5	54.4
Concentrates
- Copper concentrate (dmt)		53,696	91,973	14,874	29,903	9,743	21,640
	Copper (%)	27.9	28.1	27.6	27.5	45.2	45.9
	Silver (g/t)	*	*	483	509	133	141
	Gold (g/t)	*	*	-	-	15.9	19.6
- Zinc concentrate (dmt)		-	-	1,621	4,255	-	-
	Zinc (%)	-	-	48.5	48.0	-	-
- Molybdenum concentrate (dmt)		-	-	-	-	-	-
- Lead concentrate (dmt)		-	-	29	59	-	-
	Lead (%)	-	-	58.9	61.7	-	-
	Silver (g/t)	-	-	2,904	3,216	-	-
Payable Copper Shipped (tonnes)		12,539	24,942	3,774	7,838	4,458	9,573

(1) Adjustments based on final settlements will be made in future periods. (2) Pinto Valley gold production reaches payable levels from time to time. Any payable gold production will be reported in the period revenue is received. At Minto, final gold production is not available since assaying is conducted off-site, but is estimated above. (3) Grade and recoveries were estimated based on concentrate production. *Silver and gold have not been estimated in the Pinto Valley resource model. Only recovered silver and payable gold is reported for this mine.

Operating Outlook

Capstone expects to be within the range of 2017 consolidated production guidance of 94,000 tonnes (±5%) of copper. Minto and Cozamin are expected to complete the year on, or above plan, largely offsetting Pinto Valley's first quarter deficit.

Financial Results Timing

Capstone will report Q2 2017 financial results on Monday, July 31, 2017 before market open, followed by a conference call and webcast for investors and analysts the same day at 11:30 am Eastern Time (8:30 am Pacific Time).

Conference Call and Webcast Details

Date:	Monday, July 31, 2017
Time:	11:30 am Eastern Time (8:30 am Pacific Time)
Dial in:	North America: 1-888-390-0546, International: [phone]
Webcast:	http://event.on24.com/r.htm?e=1421361&s=1&k=20DB088377B441B928A92B347D0179CE
Replay:	North America: 1-888-390-0541, International: [phone]
Replay Passcode:	103102#

The conference call replay will be available until Monday, August 7, 2017. The conference call audio and transcript will be available on Capstone's website within 48 hours of the call at http://capstonemining.com/investors/events-and-presentations/default.aspx.

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two development projects; the large scale 70% owned copper-iron Santo Domingo project in Region III, Chile, in partnership with Korea Resources Corporation, and the 100% owned Kutcho copper-zinc project in British Columbia, Canada, as well as exploration properties in Chile and US. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.

Cautionary Note Regarding 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 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 our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "expected", "potentially", "guidance" 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. In this document certain forward-looking statements are identified by words including "guidance", "plan", "expects" and "expected". By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations, assumptions related to geotechnical condition of tailings facilities, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, counterparty risks associated with sales of our metals, use of financial derivative instruments and associated counterparty risks, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions on our Pinto Valley, Cozamin and Minto operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Santo Domingo Project, increased operating and capital costs, challenges to title to our mineral properties, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats and other risks of the mining industry 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 under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

National Instrument 43-101 Compliance

The technical information in this news release ("Technical Information") was prepared by, or under the supervision of, a qualified person (a "Qualified Person") as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). The disclosure of the Technical Information contained in this news release has been reviewed and approved by Gregg Bush, P. Eng., Capstone Senior Vice President and Chief Operating Officer, a Qualified Person under NI 43-101

SOURCE Capstone Mining Corp.

Cindy Burnett, VP, Investor Relations and Communications, 604-637-8157, [email protected]

Related Links

www.capstonemining.com