Capstone Reports Significant Copper-Gold Intercepts at Wildfire / Copper
Keel, Minto Mine
Hole 10SWC686 intercepts 2.0% Cu & 0.7g/t Au over 15.4m at Wildfire
VANCOUVER, Nov. 23 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced assay results for twenty-six new holes from the Wildfire / Copper Keel horizons at the Minto Mine. Exploration drilling at the Minto Mine is now finished for the season and geologic modelling has started with the objective of completing the first NI43-101 compliant mineral resource estimate for Wildfire and Copper Keel before the end of 2010. The extent of both the shallower (Wildfire) and deeper (Copper Keel) mineralized horizons have increased significantly as a result of this recent drilling and the Copper Keel horizon, in particular, is still open to the north and east. Highlights from the most recent holes drilled at Wildfire / Copper Keel are summarized in the table below, while complete results are attached.
Highlights of Recent Drilling at Wildfire
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Target From To Inter- Inter- Copper Gold Silver
Hole ID Area (m) (m) val val (%) (g/t) (g/t)
(m) (ft)
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10SWC-653* Wildfire 88.3 98.1 9.8(9.4) 32.2(30.8) 1.57 0.45 5.2
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Including 88.3 91.9 3.6(3.5) 11.8(11.5) 3.36 1.04 12.2
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10SWC-668 Wildfire 80.6 88.3 7.7 25.3 2.68 1.02 7.8
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Copper
10SWC-681* Keel 181.2 192.7 11.5(10.6) 37.7(34.8) 1.62 0.44 4.2
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Including 181.2 189.8 8.6(7.9) 28.2(25.9) 2.07 0.53 5.1
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10SWC-686 Wildfire 89.8 105.2 15.4 50.5 2.05 0.70 5.5
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Including 89.8 98.6 8.8 28.9 2.39 0.72 4.7
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Copper
10SWC-687 Keel 210.4 219.8 9.4 30.8 1.20 0.30 3.1
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Including 210.4 214.8 4.4 14.4 1.78 0.43 4.9
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10SWC-688 Wildfire 47.0 72.7 25.7 84.3 1.93 1.00 5.3
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Including 47.0 59.4 12.4 40.7 2.57 1.62 7.4
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(*) Estimated true thickness in parentheses
"The Wildfire discovery and the significantly expanded Copper Keel mineralization continue to return good thicknesses and grades," said Stephen Quin, President of Capstone. "These zones remain open to further expansion and offer potential for significant mineral resource additions based both on the drilling completed in 2010 and the potential for further expansions in 2011, when exploration drilling resumes in early 2011."
The remaining drill results from the 2010 Minto exploration program will be released before the end of 2010.
Wildfire/Copper Keel Discoveries
The original Copper Keel mineralization was a blind discovery made in 2006 at a depth of 175 metres as a result of geologic interpretation. However, the discovery was not followed up until much later as exploration was then focused on evaluating the potential of the shallower Area 2, Ridgetop and Minto North targets, all of which are now deposits determined to be amenable to open pit mining. The Wildfire discovery was made in 2010 as a result of testing a geophysical target. However, when the first Wildfire hole continued to depth beneath the discovery, it intercepted a second zone of mineralization, which we now believe to be a significant extension of the original Copper Keel discovery. Subsequent drilling, including these results released today, have confirmed the presence of an upper NNE-trending "Wildfire" horizon (potentially amenable to open pit mining), and a deeper NNW-trending Copper Keel zone linking up to the original 2006 discovery (potentially amenable to underground mining).
Geologic modelling for the Wildfire discovery and the significantly expanded Copper Keel horizon is underway, with the objective of completing a maiden mineral resource estimate for these areas before the end of 2010. However, assays for approximately 43 holes in these areas remain outstanding and the timing for completion of mineral resource estimates is dependent on the timely receipt of assay results. As a result of this timing, the fact that the limits of mineralization are not defined and the probability that some portions of these mineral resources will be in the inferred category (pending infill drilling in 2011), the Wildfire and Copper Keel zones will be excluded from the Phase V Pre-feasibility Study ("Phase V PFS") currently in progress. Capstone will make a subsequent update to the Phase V PFS, once the limits of the mineralization have been defined and there is sufficient drill hole density to increase the mineral resource classification to an indicated category or better. Capstone plans to start drilling again in early 2011.
Drill hole Location Maps
For current drillhole locations please view the accompanying map:
http://capstonemining.com/i/maps/2010-50_CS_Current_Drill_Hole_Locations.jpg
For an inset view of drill results at Wildfire / Copper Keel please view the accompany map.
http://capstonemining.com/i/maps/2010-50_CS_Wildfire_Copper-Keel_Drilling.jpg
For a current view of drill results in priority areas across the property please view the accompanying map:
http://capstonemining.com/i/maps/2010-50_MintoDrillResultsUpdate.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. The exploration activities at the Minto Mine are carried out under the supervision of Brad Mercer, P. Geol., 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 Minto, random check assays will be carried out by Inspectorate-IPL 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 Wildfire Phase II Drill Results
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To accompany Capstone Mining News Release Dated November 23, 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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10SWC-653* Wildfire 88.3 98.1 9.8(9.4) 32.2(30.8) 1.57 0.45 5.2
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including 88.3 91.9 3.6(3.5) 11.8(11.5) 3.36 1.04 12.2
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Copper
10SWC-664 Keel 152.9 158.9 6.0 19.7 0.70 0.01 0.4
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Copper
and Keel 195.7 209.0 13.3 43.6 1.22 0.64 4.6
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including 203.2 209.0 5.8 19.0 2.02 1.25 8.4
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including 206.7 209.0 2.3 7.5 2.86 2.30 13.2
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10SWC-668 Wildfire 80.6 88.3 7.7 25.3 2.68 1.02 7.8
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and Wildfire 125.8 138.4 12.6 41.3 1.45 0.38 3.4
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including 127.3 134.1 6.8 22.3 2.14 0.58 4.8
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and Wildfire 143.7 151.1 7.4 24.3 0.90 0.36 2.2
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10SWC-670 Wildfire 117.3 120.6 3.3 10.8 1.60 0.41 3.1
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10SWC-671 Wildfire 124.8 130.2 5.4 17.7 0.90 0.49 4.1
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10SWC-672 Wildfire 90.6 98.3 7.7 25.3 1.58 0.66 6.7
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including 90.6 95.2 4.6 15.1 2.17 0.96 9.8
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Copper
and Keel 154.3 163.2 8.9 29.2 1.29 0.92 3.2
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including 158.8 163.2 4.4 14.4 2.03 1.63 4.4
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Copper
10SWC-673 Keel 155.9 171.6 15.7 51.5 0.87 0.23 2.4
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including 157.4 166.4 9.0 29.5 1.07 0.28 3.1
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10SWC-675 Wildfire 96.8 109.3 12.5 41.0 1.14 0.28 1.9
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and Wildfire 122.3 124.4 2.1 6.9 2.26 1.15 9.3
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Copper
and Keel 234.0 249.5 15.5 50.9 0.69 0.13 2.4
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Copper
10SWC-676 Keel 164.6 168.7 4.1 13.5 0.61 0.20 1.4
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10SWC-678 Wildfire 72.2 75.1 2.9 9.5 0.67 0.00 0.5
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and Wildfire 78.0 88.0 10.0 32.8 0.45 0.12 0.8
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including 78.0 80.5 2.5 8.2 0.90 0.16 1.8
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and Wildfire 108.4 113.1 4.7 15.4 0.67 0.02 1.3
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Copper
and Keel 156.7 161.8 5.1 16.7 0.53 0.41 3.2
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10SWC-679 Wildfire 137.8 146.5 8.7 28.5 1.80 0.43 4.5
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10SWC-680 Wildfire 78.4 81.4 3.0 9.8 1.45 0.21 2.0
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and Wildfire 103.8 106.9 3.1 10.2 0.56 0.02 1.2
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and Wildfire 141.2 148.5 7.3 24.0 0.58 0.17 1.7
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10SWC-681* Wildfire 76.7 81.6 4.9(4.5) 16.1(14.8) 0.97 0.35 2.3
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and Wildfire 87.2 98.8 11.6(10.7) 38.1(35.1) 0.80 0.55 4.1
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including 90.2 95.8 5.6(5.2) 18.4(17.1) 1.31 0.68 5.7
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including 91.9 95.8 3.9(3.6) 12.8(11.8) 1.46 0.63 4.8
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Copper
and Keel 181.2 192.7 11.5(10.6) 37.7(34.8) 1.62 0.44 4.2
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including 181.2 189.8 8.6(7.9) 28.2(25.9) 2.07 0.53 5.1
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Copper
and Keel 199.3 220.0 20.7(19.1) 67.9(62.7) 0.60 0.14 1.3
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including 210.9 216.9 6.0(5.5) 19.7(18.0) 0.78 0.17 1.8
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10SWC-682 Wildfire 96.1 109.3 13.2 43.3 1.20 0.36 3.2
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including 99.9 109.3 9.4 30.8 1.48 0.48 4.1
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Copper
and Keel 203.7 206.8 3.1 10.2 0.70 0.39 2.6
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10SWC-683 Wildfire 121.0 126.4 5.4 17.7 1.97 0.58 6.3
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including 124.5 126.4 1.9 6.2 3.08 0.83 10.3
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10SWC-684 Wildfire 123.0 139.1 16.1 52.8 0.79 0.27 2.4
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including 123.0 128.9 5.9 19.4 1.18 0.45 3.1
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10SWC-686 Wildfire 80.1 82.3 2.2 7.2 1.33 0.08 0.4
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and Wildfire 89.8 105.2 15.4 50.5 2.05 0.70 5.5
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including 89.8 98.6 8.8 28.9 2.39 0.72 4.7
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and Wildfire 109.1 112.4 3.3 10.8 1.80 0.82 5.2
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Copper
10SWC-687 Keel 210.4 219.8 9.4 30.8 1.20 0.30 3.1
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including 210.4 214.8 4.4 14.4 1.78 0.43 4.9
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10SWC-688 Wildfire 47.0 72.7 25.7 84.3 1.93 1.00 5.3
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including 47.0 59.4 12.4 40.7 2.57 1.62 7.4
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and Wildfire 105.3 108.5 3.2 10.5 1.09 0.11 1.6
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and Wildfire 115.9 122.4 6.5 21.3 1.87 0.73 7.2
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Copper
and Keel 211.8 216.0 4.2 13.8 0.63 0.26 2.2
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10SWC-689 Wildfire 43.8 49.8 6.0 19.7 2.36 1.74 6.4
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including 43.8 46.4 2.6 8.5 2.95 2.59 9.3
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and Wildfire 72.9 75.1 2.2 7.2 4.02 2.22 5.1
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and Wildfire 105.8 115.0 9.2 30.2 1.79 0.38 4.9
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including 108.2 113.5 5.3 17.4 2.30 0.49 6.6
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Copper
and Keel 229.7 240.8 11.1 36.4 0.81 0.35 3.1
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including 235.3 238.0 2.7 8.9 1.46 0.32 4.2
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Wildfire /
10SWC-691 Copper Geochemically Anomalous - No Significant
Keel Intersections
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Copper
10SWC-692 Keel 233.9 251.3 17.4 57.1 0.47 0.07 1.0
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Copper
and Keel 278.6 281.1 2.5 8.2 0.99 0.30 4.3
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Copper
and Keel 313.5 327.7 14.2 46.6 0.55 0.16 2.3
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Copper
10SWC-694 Keel 217.1 231.6 14.5 47.6 0.36 0.10 1.0
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Copper
10SWC-695 Keel 219.2 226.2 7.0 23.0 0.96 0.26 3.6
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including 220.5 224.1 3.6 11.8 1.45 0.37 4.7
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Copper
10SWC-696 Keel 232.4 256.2 23.8 78.1 0.55 0.10 1.4
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including 247.5 256.2 8.7 28.5 0.78 0.16 2.0
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including 247.5 250.5 3.0 9.8 1.24 0.25 2.4
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Copper
and Keel 268.4 270.7 2.3 7.5 0.87 0.18 2.5
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Copper
10SWC-697 Keel 295.8 314.5 18.7 61.4 0.61 0.17 1.6
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including 307.2 314.5 7.3 24.0 0.76 0.29 2.3
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(*) Estimated true thickness in parentheses
For further information: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President, Or Investor Relations' Jason Howe at (604) 684-8894 or (866) 684-8894 or e-mail Capstone at [email protected]
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