| December 21, 2009 Capstone Reports Final Copper-Gold Results From 2009 Minto Exploration Program | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VANCOUVER, BRITISH COLUMBIA -- Capstone Mining Corporation (CS: TSX) today announced the remaining assay results from 58 drillholes completed in 2009 at its high grade Minto copper-gold mine in the Yukon. These holes were drilled with a variety of objectives, ranging from infill drilling within existing resources to regional exploration. The infill drilling was focused in the Ridgetop and Area 2 deposits and was aimed at converting inferred mineral resources excluded from the recent Minto Phase IV Pre-feasibility study to higher confidence levels, while the regional exploration drilling began the evaluation of some new areas. Highlights of assays from these final drill holes are summarized in the table below and the full results are provided in a table at the end of this release. Final Minto Drill Results for 2009
"These drill results wrap up a very successful 2009 exploration program at the Minto Mine," said Stephen Quin, President & COO of Capstone. "During the year, we discovered, defined and converted to mineral reserves the new Minto North deposit and, later in the year, discovered the Minto East deposit. Combined, this makes six new discoveries in three years and this success is a credit to the excellent work by our exploration team," he said. "In 2010, we will be focused on defining the new Minto East discovery, defining and hopefully extending the potential underground mining areas around the proposed open pits, while, in parallel, aiming to make yet more discoveries on this highly prospective property." Details of the 2010 exploration program will be provided once exploration commences in early 2010. Ridgetop and Area 2 Infill Drilling On June 9, 2009, Capstone announced mineral resource estimates for the Ridgetop and Area 2/118 deposits, which included a significant quantity of inferred mineral resources that cannot be used in a pre-feasibility study. The Minto Phase IV Pre-feasibility Study, announced on December 15, 2009, identified an opportunity to convert this inferred mineral resource located in and around the proposed Phase IV open pits to a minimum of indicated class. If successful, upgrading of these mineral resources could potentially increase mineral reserves and lower the strip ratios within these open pits. The largest effort expended on this initiative was at Ridgetop, where 40 new holes were drilled on the perimeter of the mineral resources and in some gaps within the model, where the mineralization is relatively shallow. A new area of shallow mineralization was discovered on the southwest flank of the previous mineral resource model and some relatively higher grade areas were noted locally, within the original mineral resource area. Re-estimation of the mineral resources for these deposits, incorporating the new drill results, is in progress and is expected to be completed in Q1, 2010. Five holes were also drilled near the southwest corner of Area 2, where it transitions into Area 118; only modest gains were made here and are not likely to have a significant impact on the overall mineral resource for the Area 2/118 deposit. Minto East Drilling Two holes reported herein are from Minto East; 09SWC-591 (see table above) which intersected high grade mineralization similar to the discovery holes and has extended the strike length of the high grade mineralization at Minto East to 85 metres, and it is still open. Down hole geophysics (DCIP) was completed in hole 09SWC-584, the results of which suggests the Minto East deposit has the best potential to the south and then to the north of the holes completed to date. The second hole in this area reported herein, 09SWC-583 was drilled before the Minto East discovery hole and is more than 90m east of and perpendicular to the trend identified in the discovery and follow-up holes and, while it does contain two intervals of copper mineralization, it is unclear how they relate to the Minto East prospect. Other Drilling Eleven other holes reported herein were drilled on a variety of chargeability anomalies from Pole-Dipole Induced Potential and Titan-24 Direct Current Induced Potential surveys. Most of these holes intersected anomalous copper mineralization and locally higher grade mineralization over narrow intervals, but did not adequately explain the anomalies, some of which are comparable in size and tenor to those over the Minto North and Minto East discoveries. Follow-up down-hole geophysics suggests these chargeability targets may be offset from the limited coverage of the surface IP surveys. This issue will be addressed by a more extensive Titan 24 DCIP survey in 2010, in order to support more refined targeting for further exploration drilling in mid-2010. For current drill hole locations, please view the accompanying map: http://www.capstonemining.com/i/photos/minto/2009-40MintoProperty.jpg For a current view of drill results in priority areas please view the accompanying map: http://www.capstonemining.com/i/photos/minto/2009-40MintoDrillResultsUpdate.jpg For further information about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO Or Investor Relations' Jason Howe at (604) 684-8894 or (866) 684-8894 info@capstonemining.com 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 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 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", "outlook", "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 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 under the Company's profile 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. The Company provides 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 North (only) Drill Results To accompany Capstone Mining News Release Dated December 21, 2009
* Estimated true thickness in parenthesis | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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