Capstone Reports Significant Results in 200m Step-out Drilling on Mala Noche
Footwall Zone, Cozamin Mine
Hole CG-10-U235 Intercepts 5.0% Cu & 133g/t Ag over 12.8m, including 7.6% Cu & 201g/t Ag over 8.1m
VANCOUVER, Oct. 20 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced assay results from three new drill holes representing a major step-out on the newly discovered high grade copper-silver Mala Noche Footwall Zone ("MNFWZ") at its Cozamin Mine in Zacatecas State, Mexico. Exploration drilling along the Mala Noche system is outlining a significant new mineralized system on a structure that is adjacent to the one that hosts the current mineral reserves at Cozamin. As stated in a news release dated September 20, 2010, this new mineralized system has been extensively drilled along a panel measuring approximately 700m (strike) by 200m (dip), with numerous copper-silver rich intercepts. Two of the three holes reported today represent a major step-out to the east and down dip from the previous drilling. Hole CG-10-U235 intercepted the highest grade copper-silver mineralization to date in the MNFWZ and represents a 200m east and 200m vertical step out from earlier drilling on this new zone.
Highlights of assays from the new holes on the MNFWZ are summarized in the table immediately below and the full results for all three holes are provided in the attached table.
Drill Intercept Highlights for Mala Noche Footwall Zone (MNFWZ)
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Target From To Interval Copper Silver Lead Zinc
Hole ID Area (m) (m) (m)* (%) (g/t) (%) (%)
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MN
CG-10-U233 Footwall 304.50 308.90 4.40 2.65 42.6 0.02 0.09
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including 305.45 308.90 3.45 3.29 52.6 0.02 0.11
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MN
CG-10-U235 Footwall 326.65 332.05 5.40 2.42 32.2 0.01 0.20
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MN
And Footwall 363.45 376.25 12.80 4.97 133.2 0.04 0.38
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including 364.48 372.54 8.06 7.56 201.1 0.06 0.55
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* Intervals reported are intercept lengths, true widths are not
currently known but are believed to be close to those reported.
"The latest intercepts from the recently discovered MNFWZ are very encouraging, with copper-silver grades increasing with depth and the zone open in most directions," said Stephen Quin. "Drilling is continuing with the objective of defining a National Instrument 43-101 compliant mineral resource estimate which, given proximity to the existing mine workings, could be brought to production quickly, should economics warrant."
Mala Noche Footwall Zone
The MNFWZ is associated with the margins of a rhyolitic dyke intruding into the footwall rocks of the Mala Noche system and has been traced in drill holes over 700 metres along strike and now, with these latest intercepts, more than 350 metres in the dip direction. This subsidiary structure intersects the main Mala Noche vein system west of the San Roberto shaft, at about a 30 degree angle, and is still open to the east, up-dip and down-dip. The current mineral resources and mineral reserves at the Cozamin Mine are entirely hosted in the main Mala Noche vein and this discovery of the MNFWZ represents a new style of mineralization not previously identified at Cozamin. The discovery of this new style of mineralization presents an opportunity for the identification and discovery of new, similar, mineralization in other areas where similar intersecting structures are known. The mineralization in this new zone is coarse grained chalcopyrite, which should have good metallurgical characteristics and yield a clean concentrate.
Please view the accompanying long-sections:
http://capstonemining.com/i/photos/Cozamin/2010-45CozaminCuGradeTrend.jpg
http://www.capstonemining.com/i/photos/cozamin/2010-45CozaminCuGradeXThickness.jpg
http://capstonemining.com/s/Cozamin.asp?ReportID=353257
Quality Assurance/Quality Control
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 Cozamin Mine are carried out under the supervision of Brad Mercer, P. Geo., V.P. Exploration of Capstone. The following employees of Capstone, each a Qualified Person, reviewed Technical Information contained in this news release: Robert Barnes, Professional Engineer and consulting geologist Hugh Willson, Professional Geologist, respectively reviewed the technical content of this news release. Analyses for copper, zinc, lead, silver and gold were completed by ALS Chemex using the following method. The entire sample is crushed to a minimum of 70% minus 10 mesh. A 250g subsample of the crushed material is then pulverized to 85% minus 200 mesh. Gold and silver grades are determined by gravimetric fire assay using a 50g charge taken from the pulverized material. Copper, zinc and lead are determined by ICP analysis after 4 acid digestion of a 0.4g subsample of the pulverized material.
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 Mining Corp. (the "Company") 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 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 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.
2010 Drill Results for Mala Noche Footwall Zone (MNFWZ)
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Target From To Interval Copper Silver Lead Zinc
Hole ID Area (m) (m) (m)* (%) (g/t) (%) (%)
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MN
CG-10-U232 Footwall 3.00 9.05 6.05 0.57 16.7 0.10 0.19
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including 7.35 7.95 0.60 1.50 30.0 0.01 0.08
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And 18.25 20.50 2.25 0.01 5.0 0.01 2.55
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MN
CG-10-U233 Footwall 7.45 9.55 2.10 0.76 18.38 0.00 0.05
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MN
And Footwall 26.95 27.95 1.00 0.05 7.25 0.57 3.08
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MN
And Footwall 301.10 303.25 2.15 0.94 18.07 0.01 0.20
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MN
And Footwall 304.50 308.90 4.40 2.65 42.60 0.02 0.09
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including 305.45 308.90 3.45 3.29 52.57 0.02 0.11
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MN
And Footwall 336.10 337.30 1.20 0.87 17.04 0.02 0.04
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MN
CG-10-U235 Footwall 0.00 4.00 4.00 1.24 44.25 1.82 0.77
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MN
And Footwall 7.15 9.40 2.25 0.30 11.76 0.19 1.11
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MN
And Footwall 323.55 324.11 0.56 0.09 60.36 0.22 2.61
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MN
And Footwall 326.65 332.05 5.40 2.42 32.15 0.01 0.20
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including 326.65 331.18 4.53 2.82 37.25 0.00 0.13
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MN
And Footwall 338.26 338.80 0.54 1.41 17.52 0.01 0.05
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MN
And Footwall 363.45 376.25 12.80 4.97 133.19 0.04 0.38
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including 364.48 372.54 8.06 7.56 201.09 0.06 0.55
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For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President Or Investor Relations' Jason Howe at (604) 684-8894 or (866) 684-8894, [email protected]
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