Capstone Reports Additional High Grade Copper-Gold Results From Minto East
Hole 10SWC599 intercepts 3.6% Cu & 6.0g/t Au over 17.9m (including 4.2% Cu & 1.2g/t Au over 12.7m)
VANCOUVER, April 27 /CNW/ - Capstone Mining Corporation (CS: TSX) today announced assay results from the remaining eight drill holes completed at Minto East as part of the Phase I 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 exploration focus in 2010. Highlights of assays from these most recent drill holes are summarized in the table below and the full results for all eight holes released today are provided in the attached table. Drilling is paused for spring thaw and to allow time to complete a large survey of deep imaging IP. Drilling will resume in June 2010 with two rigs.
Highlights of Recent Drilling at Minto East
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Target From To Interval Interval Copper Gold Silver
Hole ID Area (m) (m) (m)* (ft)* (%) (g/t) (g/t)
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Minto
10SWC-599* East 281.7 299.6 17.9 (17.6) 58.7 (57.7) 3.63 6.02 8.6
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including 286.9 299.6 12.7 (12.5) 41.7 (41.0) 4.24 1.21 9.6
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Minto
10SWC-612* East 284.3 300.7 16.4 (15.9) 53.8 (52.2) 3.57 1.60 7.5
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including 290.6 294.0 3.4 (3.3) 11.2 (10.8) 5.94 4.48 11.4
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* The values in parenthesises are estimated true thicknesses based upon
the current 3D interpretation of the Minto East horizon.
"These latest results from drilling at the Minto East discovery illustrate the potential for the definition of a significant, high grade copper-gold mineral resource," said Stephen Quin, President & COO of Capstone. "Following spring break-up and completion of a deep imaging geophysical survey, drilling will resume at Minto East with the objective of fully defining the extent of the Minto East deposit, which could be a potential source of high grade underground mill feed."
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 study was to evaluate the potential for underground extraction of higher grade mineral resources to supplement open pit production, and increase overall copper production.
The first phase of the 2010 drill program was focused on testing, on a broad spaced drill pattern, the potential to extend known mineralization outward from deeper horizons that are poorly drilled, mainly due to a prior focus on shallow mineralization. One of these target areas is the 2009 discovery of high grade mineralization flanking the main Minto open pit, at Minto East. The new intercepts reported here, along with previous drilling, indicate a sufficient extent of mineralization to support the estimation of a mineral resource for Minto East; this initial estimate is underway. Further step out and delineation drilling will be required in order to fully define the limits of the mineralization and 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.
Drilling will resume shortly after spring runoff conditions have abated and a deep imaging Induced Potential survey has been completed. The 2010 IP survey is a major expansion of a successful test survey in 2009 that was partially responsible for the Minto East discovery. The grid required for the 2010 survey is in progress and will cover about 80% of the Minto Property and is expected to model resistivity and chargeability to depth in the order of 750 metres.
For current drillhole locations please view the accompanying map: http://www.capstonemining.com/i/photos/minto/2010-15_CS_Current_Drillhole_Locations.jpg
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 East Drill Results
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To accompany Capstone Mining News Release Dated April 27, 2010
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Hole ID Target From To Interval Interval Copper Gold Silver
& Interval (m) (m) (m)* (feet)* (%) (g/t) (g/t)
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Minto
10SWC-599* East 281.7 299.6 17.9 (17.6) 58.7 (57.7) 3.63 6.02 8.6
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including 286.9 299.6 12.7 (12.5) 41.7 (41.0) 4.24 1.21 9.6
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Minto
10SWC-601* East 305.2 310.1 4.9 (4.8) 16.1 (15.7) 1.38 0.39 4.9
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Minto
10SWC-603* East 194.0 201.1 7.1 (6.8) 23.3 (22.3) 0.63 0.17 1.6
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and 246.5 255.5 9.0 (8.7) 29.5 (28.5) 0.37 0.02 1.3
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and 286.7 297.9 11.2 (10.8) 36.7 (35.4) 0.40 0.11 1.1
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and 348.5 353.2 4.7 (4.5) 15.4 (14.8) 1.07 0.35 3.3
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Minto
10SWC-605* East 204.7 210.2 5.5 (5.3) 18.0 (17.4) 0.66 0.19 1.9
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Minto
10SWC-607* East 257.0 262.2 5.2 (5.0) 17.1 (16.4) 0.38 0.06 1.5
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and 279.6 287.8 8.2 (7.8) 26.9 (25.6) 0.42 0.07 0.9
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Minto
10SWC-609 East Geochemically Anomalous - No Significant Intersections
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Minto
10SWC-612* East 284.3 300.7 16.4 (15.9) 53.8 (52.2) 3.57 1.60 7.5
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including 290.6 294.0 3.4 (3.3) 11.2 (10.8) 5.94 4.48 11.4
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Minto
10SWC-614* East 149.3 151.1 1.8 (1.7) 5.9 (5.6) 1.09 0.14 4.5
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323.5 325.7 2.2 (2.1) 7.2 (6.9) 1.57 0.34 7.4
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* The values in parenthesises are estimated true thicknesses based upon
the current 3D interpretation of the Minto East horizon.
For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO, Or Investor Relations' Zobeida Slogan at (604) 684-8894 or (866) 684-8894, [email protected]
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