| March 02, 2010 Capstone Announces Increased Mineral Resources Estimates for the Cozamin Copper Mine, Mexico | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10.7 million tonnes Measured and Indicated Resources at a Copper Grade of 1.6% Plus By-products VANCOUVER, BRITISH COLUMBIA - Capstone Mining Corp. (CS: TSX) today announced an updated NI43-101 compliant mineral resource estimate for its Cozamin Mine in Zacatecas State, Mexico. The new mineral resource estimate includes the results from 6,229 channel samples taken in 2009 from 40 stopes and drifts covering a cumulative distance of about 5km, as well as more detailed survey control. These data were incorporated into a completely new block model for the mine that now contains 25,168 individual channel samples, 150 drill holes from surface and 216 underground drill holes. These new mineral resource estimates will be used in a new mineral reserve estimate for the Cozamin Mine, which is expected to be completed in March. ¬ Capstone commenced mining the San Roberto deposit at the Cozamin Mine in 2006. Since commercial production began, 2.6 million tonnes have been mined at an average grade of 1.54% copper, 0.50% lead, 1.29% zinc and 71g/t silver. In addition to San Roberto, production from the adjacent San Rafael deposit commenced in late 2009. Robert Sim, P.Geo., of Sim Geological Inc., supervised the preparation of the updated mineral resource estimates for the San Roberto and San Rafael deposits. Summaries of these estimates are presented below, while additional details are attached. Cozamin Mine -- Mineral Resources by Class for All Deposits (at a NSR cut-off of US$35/t)
*Rounded to nearest thousand **Totals may not add exactly due to rounding "This updated mineral resource estimate demonstrates the robustness of the Cozamin mineralizing system," said Stephen P. Quin, President & COO of Capstone Mining. "Despite reductions due to mining activities in 2009, total contained copper and silver has increased modestly, while contained lead, zinc and gold have increased significantly. These gains are primarily the result of conversion of mineralized material previously below cut-off as a result of higher prices for lead and zinc" he said. "Following the 2009 acquisition of three mineral claims in the immediate vicinity of these mineral resources, we are optimistic that we will continue to more than replace the production in the immediate mine area," said Mr. Quin. "Further, we have almost completed a sustained 12-month property wide assessment of the Cozamin Mine property, involving airborne and ground geophysics, soil and rock sampling and geologic mapping. This work confirms that there is significant potential for discoveries of new deposits along the principal Mala Noche vein that hosts all the currently known mineral resources, as well as in parallel vein systems." Capstone plans to begin the drill testing of the priority new targets by mid-2010. Cozamin Mine -- Mineral Resources by Class for Each Deposit (at a NSR cut-off of US$35/t)
*Rounded to nearest thousand **Totals may not add exactly due to rounding Mineral Resource Estimates at different cut-offs The mineral resources at Cozamin are summarized at a series of cut-off limits for comparison purposes in the table below. Cozamin Mine -- Mineral Resources for all Deposits At Different NSR Cut-offs *Rounded to nearest thousand **Totals may not add exactly due to rounding
Mineral Resource Parameters The metal prices and metallurgical parameters used to estimate the NSR values for each deposit are presented in the following tables. At San Rafael, ore grading above 0.3% copper will be treated in the plant with San Roberto ore. Zinc-rich (copper-poor) ore will be treated separately and gold will be recovered as reflected in the separate parameters for San Rafael. <u>Cozamin Mine -- NSR parameters San Roberto
Cozamin Mine -- NSR parameters San Rafael Zinc Ore
Preparation of Mineral Resource Estimates The mineral resource estimates for the Cozamin deposits were completed by Capstone staff under the supervision of independent consultant Robert Sim, P.Geo., of SIM Geological Inc., using accepted, industry standard, methods that conform with National Instrument 43-101. The resource model has been developed using MineSight(r) (v4.61). There have been no diamond drill holes completed on either the San Roberto or San Rafael deposits in 2009. However, extensive underground channel sample data has been incorporated into the new mineral resource estimates, and the underground workings have been extensively resurveyed to provide greater accuracy to the data. Underground mining activities have occurred at both deposits during 2009 and this development continues to display a high degree of consistency and continuity to the mineralization. Resource Estimation Methodology The data and methodology utilized for the resource estimate is as follows:
Robert Sim P.Geo., of SIM Geological Inc., supervised the preparation of the mineral resource estimate for the Cozamin deposit. Mr. Sim has reviewed pertinent geological information in sufficient detail to support the data incorporated in the resource estimate. Robert Sim P.Geo., an Independent Qualified Person as defined under National Instrument 43-101, is responsible for the resource estimate presented in this release. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied. 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 zslogan@capstonemining.com The TSX does not accept any responsibility for the adequacy or accuracy of this press release. 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. Compliance with NI43-101 Unless otherwise indicated, Capstone has prepared the technical information in this news release ("Technical Information") based on information contained in the technical reports and news releases (collectively the "Disclosure Documents") available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). For readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents. 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 resource reconciliation and geological information related to the Cozamin Mine. Cozamin Mine - Details of Mineral Resource Estimates Resource estimates for each deposit at the Cozamin Mine are presented below. San Roberto Deposit -- Mineral Resources by Class (at a NSR cut-off of US$35.00)
*Rounded to nearest thousand **Totals may not add exactly due to rounding San Roberto Deposit -- Mineral Resources at Different NSR Cut-offs
*Rounded to nearest thousand **Totals may not add exactly due to rounding San Rafael Deposit -- Mineral Resources by Class (at a NSR cut-off of US$35.00)
*Rounded to nearest thousand **Totals may not add exactly due to rounding
San Rafael Deposit -- Mineral Resources at Different NSR Cut-offs
*Rounded to nearest thousand **Totals may not add exactly due to rounding | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
You can view the Next News Releases item: Thu Mar 4, 2010, Capstone Reports First High Grade Copper-Gold Results From 2010 Drilling at Minto You can view the Previous News Releases item: Thu Feb 25, 2010, Capstone Mining Presentation at the BMO Capital Markets Global Metals & Mining Conference You can return to the main News Releases page, or press the Back button on your browser. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||