Capstone Reports High Grade Copper-Gold Intercepts From Area 2/118 Extensions
Hole 10SWC596 intercepts 5.1% Cu & 1.7g/t Au over 4.0m
Hole 10SWC606 intercepts 2.3% Cu & 1.0g/t Au over 14.0m
Hole 10SWC611 intercepts 3.3% Cu & 2.2g/t Au over 4.1m
VANCOUVER, April 29 /CNW/ - Capstone Mining Corporation (CS: TSX) today announced assay results from ten drill holes completed at the Area 2/118 deposit and the Copper Keel North prospect as part of a Phase I evaluation of the underground potential at its high grade Minto copper-gold mine in the Yukon. These recent intercepts demonstrate that some zones of copper-gold mineralization at the south and east margins of Area 2 extend toward the Copper Keel prospect. Intercept highlights are summarized in the table below and the full results for all ten holes released today are provided in the attached table. Drilling is paused for spring thaw and to allow time to complete a deep imaging IP survey. It is anticipated to resume in June 2010 with two rigs.
Recent Drilling Highlights from Area 2/118 and Copper Keel
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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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Area
10SWC-596 2/118 198.8 212.0 13.2 43.3 1.91 0.66 6.3
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including 208.0 212.0 4.0 13.1 5.10 1.74 16.3
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Area
10SWC-600 2/118 141.5 145.5 4.0 13.1 3.06 1.04 11.3
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Area
10SWC-606 2/118 157.3 171.3 14.0 45.9 2.29 0.98 7.2
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Copper
10SWC-611 Keel 212.0 214.3 2.3 7.5 2.92 1.49 12.4
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and 232.8 236.9 4.1 13.5 3.31 2.17 25.7
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and 250.8 256.3 5.5 18.0 2.28 1.49 16.5
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"These latest assay results continue to build confidence that the higher grade mineralization below the proposed open pits at Area 2 and Area 118 can be expanded," said Stephen Quin, President & COO of Capstone. "The intercepts from Copper Keel are encouraging since there are no currently defined mineral resources in this area, and these kinds of intercepts warrant further investigation."
Minto Mine 2010 Phase 1 Drill Program - Area 2/118 Deposit and Copper Keel Prospect
Capstone reported the results of a 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. Phase 1 of the 2010 exploration program focused on drill testing potential to extend known mineralization outward from deeper horizons that had seen limited drilling in the past, mainly due to a prior focus on shallower mineralization amenable to open pit mining. One of these target areas is the 2009 discovery of high grade mineralization flanking the main Minto open pit, at Minto East (see Capstone news release April 27, 2010). The other focus area is the south and east margins of the Area 2/118 deposit and the intervening, limited drilled area between that deposit and the Copper Keel prospect. The current 3D resource models suggest there may be geological continuity between the two regions, especially in the deeper horizons. The aim of Phase 1 drilling in this region was to test the validity of this interpretation to justify an expanded drill program in 2010 in support of an updated mineral resource estimate. These "first pass" or Phase 1 intercepts reported herein indicate that several Area 2/118 mineralized horizons are indeed open to expansion and are potentially continuous with mineralization at Copper Keel North, located to the east of Area 2/118. The results justify further exploration drilling.
Further step out and delineation drilling is required in order to increase confidence levels by demonstrating both continuity of grade and thicknesses to a point sufficient to support increasing mineral resources and, ultimately, a conversion to mineral reserves, if economic factors warrant. Drilling operations are expected to resume shortly after spring runoff conditions have abated and after a deep imaging Induced Potential survey has been completed. This Titan-24 IP survey is expected to start in May and is a major expansion of a successful test survey in 2009, one that was partially responsible for the Minto East discovery. The cut grid required for the new IP survey is already half complete and ahead of schedule. The new survey will provide a resistivity and chargeability model to a depth of 750 metres and when integrated with the 2009 survey will cover approximately 80% of the Minto Property. These new models are expected to provide further impetus for step out drilling at Area 2/118 - Copper Keel and to develop new exploration targets property wide.
For current drillhole locations please view the accompanying map:
http://www.capstonemining.com/i/photos/minto/2010-16_CSCurrentDrillholeLocations.jpg
For an inset view of drill results at Area 2/118 to Copper Keel North please view the accompanying map:
http://www.capstonemining.com/i/photos/minto/2010-16_CSArea2-118Drilling.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 Area 2/118 and Copper Keel Drill Results
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To accompany Capstone Mining News Release Dated April 29, 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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Area
10SWC-596 2/118 198.8 212.0 13.2 43.3 1.91 0.66 6.3
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including 208.0 212.0 4.0 13.1 5.10 1.74 16.3
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Area
10SWC-600 2/118 141.5 152.1 10.6 34.8 1.52 0.58 6.0
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including 141.5 145.5 4.0 13.1 3.06 1.04 11.3
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and 225.6 236.7 11.1 36.4 0.95 0.51 4.8
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including 229.5 232.1 2.6 8.5 2.23 1.39 14.3
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and 245.5 246.9 1.4 4.6 2.14 1.01 13.4
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Area
10SWC-602 2/118 66.4 75.8 9.4 30.8 0.66 0.18 1.2
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and 78.6 82.0 3.4 11.2 1.50 0.56 4.4
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and 171.7 185.5 13.8 45.3 0.88 0.22 2.7
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including 177.5 182.0 4.5 14.8 1.62 0.30 4.2
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Area
10SWC-604 2/118 200.9 210.4 9.5 31.2 0.81 0.42 3.0
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including 207.3 210.4 3.1 10.2 1.64 1.01 5.8
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and 275.6 282.7 7.1 23.3 0.56 0.31 2.3
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Area
10SWC-606 2/118 118.4 124.8 6.4 21.0 0.62 0.06 1.5
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and 157.3 171.3 14.0 45.9 2.29 0.98 7.2
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and 270.0 278.5 8.5 27.9 0.88 0.28 1.7
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and 291.2 339.0 47.8 156.8 0.44 0.10 1.5
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including 298.0 303.8 5.8 19.0 0.90 0.25 2.5
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Area
10SWC-608 118 66.7 68.9 2.2 7.2 0.94 0.28 2.7
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and 84.9 98.6 13.7 44.9 0.59 0.09 1.6
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including 86.4 89.4 3.0 9.8 1.01 0.20 2.7
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Copper
10SWC-610 Keel 144.6 159.0 14.4 47.2 1.16 0.42 2.9
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including 148.0 152.5 4.5 14.8 2.00 0.69 4.8
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Copper
10SWC-611 Keel 212.0 214.3 2.3 7.5 2.92 1.49 12.4
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and 232.8 236.9 4.1 13.5 3.31 2.17 25.7
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and 250.8 256.3 5.5 18.0 2.28 1.49 16.5
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Copper
10SWC-613 Keel 185.6 187.7 2.1 6.9 0.69 0.09 1.8
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Copper
10SWC-615 Keel 128.8 137.0 8.2 26.9 0.76 0.24 2.7
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10SWC-616
to 623 Assays Pending
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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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