Capstone Reports Exceptionally High Grade Copper-Zinc Intercepts from Kutcho
Project
Hole KC10-184 intercepts 10.3% Cu, 19.8% Zn, 2.9g/t Au & 666g/t Ag over 11.2m
(Including 14.7% Cu, 21.3% Zn, 2.0g/t Au & 126g/t Ag over 4.9m)
VANCOUVER, Sept. 27 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced additional high grade intercepts from drilling on its high grade Kutcho Copper-Zinc Project. As previously reported, the current drill program is following 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 inferred mineral resources in the Esso deposit as part of an initiative to advance the project to a pre-feasibility study. Highlights for the latest holes 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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Target From To Interval Interval
Hole ID Area (m) (m) (m)* (ft)*
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KC10-183 Esso 460.0 473.3 13.3 (12.4) 43.6 (40.6)
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Including 460.0 465.5 5.5 (5.1) 18.0 (16.7)
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KC10-184 Esso 499.2 510.4 11.2 (10.2) 36.7 (33.5)
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Including 499.2 504.1 4.9 (4.5) 16.1 (14.7)
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and Including 507.0 509.6 2.6 (2.4) 8.5 (7.8)
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Target Copper Zinc Gold Silver CuEq
Hole ID Area (%) (%) (g/t) (g/t) (%)(xx)
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KC10-183 Esso 4.88 4.77 0.90 98.8 7.9%
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Including 7.93 2.41 0.49 90.3 9.9%
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KC10-184 Esso 10.30 19.77 2.86 666.4 24.7%
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Including 14.69 21.29 1.97 126.1 24.5%
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and Including 14.22 1.26 5.22 2530.1 39.7%
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* 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 = $2.25/lb;
Zinc = $0.80/lb; Gold = $850.00/oz; Silver
= $13.50/oz), are for illustrative purposes and does
not take into account metal recoveries.
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 for sale overseas. The PEA recommended advancing the project through completion of a Pre-feasibility Study ("PFS").
Appointment of PFS Study Provider
In order to complete the PFS, Kutcho Copper Corp., Capstone's wholly owned subsidiary, has mandated JDS Energy & Mining ("JDS") to complete an independent, NI43-101 compliant pre-feasibility study for the Kutcho Project along the guidelines set out in the July 2010 PEA, with various sub-contractors responsible for specialized components of the PFS. JDS prepared the July 2010 PEA on the Kutcho Project and were also construction managers responsible for the construction of Capstone's (then Sherwood Copper's) Minto Mine in 2006-07, which mine was completed within 2% of budget and approximately six weeks early. The target for completion of the PFS is late 2010 or early 2011.
For current drillhole locations please view the accompanying map:
http://www.capstonemining.com/i/photos/kutcho/2010-41CS_DrillholeLocationsWithCuXmetres.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/2010-41CS_DrillholeLocationsWithZnXmetres.jpg
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 Kutcho 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 Kutcho, 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 ESSO Deposit Drill Results - Kutcho Project
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To accompany Capstone Mining News Release Dated September 27, 2010
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Target From To Interval Interval
Hole ID Area (m) (m) (m)* (ft)*
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KC10-181 Esso 459.3 462.8 3.5 (3.5) 11.5 (11.4)
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KC10-182 Esso 538.4 542.6 4.2 (4.2) 13.8 (13.7)
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And 553.0 553.9 0.9 (0.9) 3.0 (3.0)
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KC10-183 Esso 460.0 473.3 13.3 (12.4) 43.6 (40.6)
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Including 460.0 465.5 5.5 (5.1) 18.0 (16.7)
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KC10-184 Esso 499.2 510.4 11.2 (10.2) 36.7 (33.5)
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Including 499.2 504.1 4.9 (4.5) 16.1 (14.7)
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and Including 507.0 509.6 2.6 (2.4) 8.5 (7.8)
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Target Copper Zinc Gold Silver CuEq
Hole ID Area (%) (%) (g/t) (g/t) (%)(xx)
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KC10-181 Esso 0.28 0.01 0.12 1.0 0.36
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KC10-182 Esso 0.49 0.67 0.14 9.4 0.89
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And 0.98 0.03 0.07 18.6 1.19
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KC10-183 Esso 4.88 4.77 0.90 98.8 7.94
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Including 7.93 2.41 0.49 90.3 9.85
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KC10-184 Esso 10.30 19.77 2.86 666.4 24.74
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Including 14.69 21.29 1.97 126.1 24.45
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and Including 14.22 1.26 5.22 2530.1 39.68
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* 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 = $2.25/lb;
Zinc = $0.80/lb; Gold = $850.00/oz; Silver
= $13.50/oz), are for illustrative purposes and does
not take into account metal recoveries.
For further information: Darren Pylot, Vice Chairman & CEO; Stephen Quin, President; Or Investor Relations' Zobeida Slogan at (604) 684-8894 or (866) 684-8894 Or e-mail Capstone at [email protected]
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