Cozamin is a copper-silver underground mine with a surface milling facility, located 3.6 km north-northwest of Zacatecas City in the mineral-rich state of Zacatecas, Mexico.

Since the first full year of operation in 2007, Cozamin mine has generated free cash flow at all points of the copper price cycle. In 2020, a capital investment of $5 million to debottleneck the underground operation by building a one-way ramp, has unlocked 50% more metal output to over 50 million pounds copper and 1.6 million ounces of silver per year over the next 10 years. Project completion was three weeks ahead of schedule and on budget in early December 2020, without any safety incidents. Ramp up to 3,780 tonnes per day is on track in Q1 2021.

Updated Reserve Estimate (Oct 31/20)

Proven & Probable Reserve of 14.1Mt at 1.77% Cu
250 kt of contained copper metal at 1.77% Cu
20.179 mozs of contained silver metal at 44 g/t Ag

Capstone’s Exploration team has delivered excellence with the 2021 LOMP showing a 10+ year mine life at Cozamin, with 512+ million pounds of copper production, 16+ million ounces of silver and higher cumulative cash flow of ~$500 million than what the mine has been realized from 2007 – 2020E. Darren Pylot, President & CEO of Capstone Mining says “The Best is Yet to Come at Cozamin.”

What’s Next?  A project called Impact23 was announced in January 2021, which aims to tie in several growth initiatives with an updated technical report to be delivered in 2023.  Exploration expansion potential in the MNFWZ East and West targets will continue to be top priority. Other projects include enhanced pillar recovery, stope dilution optimization, truckless headings and evaluating alternative mining techniques including ore sorting technology to lower costs and dilution to convert resources to reserves from MNFWZ Indicated Resources, as shown below.

In January 2021, an updated Mineral Reserve was released, increasing Proven and Probable Mineral Reserves as of October 31, 2020 by 39%, compared to April 30, 2020, to 14.1 million tonnes grading 1.77% copper.

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Location

Mexico Cozamin Location

Geology and Mining

Geological setting Epithermal and mesothermal vein deposit hosted in intercalated carbonaceous meta-sedimentary rocks and andesitic volcanic rocks ranging in age from Triassic to Cretaceous, and Tertiary rhyolite intrusive rocks and flows.
Economic Mineralization Chalcopyrite, Sphalerite, Galena, Argentite
Mining method Underground longhole stoping
Primary product mined Copper
By-products mined Silver, zinc, lead

Technical Reports

Download item year list

Mineral Reserves & Resources

Cozamin Mine Estimated Mineral Reserves as at October 31, 2020

Classification Tonnes
(kt)
Copper
(%)
Silver
(g/t)
Zinc
(%)
Pb
(%)
Copper Metal
(kt)
Silver Metal
(koz)
Zinc Metal
(kt)
Lead Metal
(kt)
Proven 0 0.00 0 0.00 0.00 0 0 0 0
Probable 14,127 1.77 44 0.54 0.21 250 20,179 77 29
Proven + Probable 14,127 1.77 44 0.54 0.21 250 20,179 77 29

NOTE:  Tucker Jensen, P.Eng., Superintendent Mine Operations at Capstone Mining Corp., is the Qualified Person for this Cozamin Mineral Reserve update. Disclosure of the Cozamin Mineral Reserves as of October 31, 2020 was completed using fully diluted mineable stope shapes generated by the Maptek Vulcan Mine Stope Optimizer software and estimated using the 2020 MNFWZ resource block model created by Garth Kirkham, P.Geo., FGC and the 2017 MNV resource block model created by J. Vincent, P.Geo., formerly of Capstone Mining Corp. Mineral Reserves are reported at or above a US$48.04/t net smelter return (“NSR”) cut-off in conventionally backfilled zones for 2020-2022, a US$51.12/t NSR cut-off in conventionally backfilled zones for 2023+, a US$56.51/t NSR cut-off in paste backfilled zones of Vein 10, and a US$56.12/t NSR cut-off in paste backfilled zones of Vein 20 using three formulae based on zone mineralization. Copper-silver dominant zones use the NSR formula: (Cu*50.476 + Ag*0.406)*(1-NSRRoyalty%). MNFWZ zinc-silver zones use the NSR formula: (Ag*0.259 + Zn*15.081 + Pb*15.418)*(1-NSRRoyalty%). MNV zinc-silver dominant zones use the NSR formula: (Ag*0.203 + Zn*13.163 + Pb*13.233)*(1-NSRRoyalty%). Metal price assumptions (in US$) of Cu = $2.75/lb, Ag = $17.00/oz, Pb = $0.90/lb, Zn = $1.00/lb and metal recoveries of 96% Cu, 84% Ag, 0% Pb and 0% Zn in copper-silver dominant zones, 0% Cu, 60% Ag, 92% Pb and 86% Zn in MNFWZ zinc-silver dominant zones, and 0% Cu, 53% Ag, 79% Pb and 75% Zn in MNV zinc-silver dominant zones. Mineral reserve calculations consider mining by long-hole stoping and mineral processing by flotation. Tonnage and grade estimates include dilution and mining losses. The NSR royalty rate applied varies between 1% and 3% depending on the mining concession, and royalties are treated as costs in mineral reserve estimation. An exchange rate of MX$20 per US$1 is assumed. All metals are reported as contained. Figures may not sum exactly due to rounding.

Cozamin Mine Estimated Mineral Resources as at October 31, 2020

Classification Tonnes
(kt)
Copper
(%)
Silver
(g/t)
Zinc
(%)
Pb
(%)
Copper Metal
(kt)
Silver Metal
(koz)
Zinc Metal
(kt)
Lead Metal
(kt)
Measured (M) 407 1.24 53 1.23 0.40 5 698 5 2
Indicated (I) 29,265 1.53 43 1.10 0.32 446 40,799 322 94
Total M + I 29,672 1.52 44 1.10 0.32 451 41,497 327 95
Inferred 13,869 0.54 39 2.23 0.74 75 17,383 309 103

NOTE: Mineral Resources are classified according to CIM (2014) definitions, estimated following CIM (2019) guidelines and have an effective date of October 31, 2020. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Independent Qualified Person for the estimates is Mr. Garth D. Kirkham, P.Geo., FGC., of Kirkham Geosystems Ltd. Mineral Resources are reported using four formulae for NSR based on mineralization. Copper-silver dominant zones use the NSR formula: (Cu*60.779 + Ag*0.485)*(1-NSRRoyalty%). Copper-zinc zones use the NSR formula: (Cu*58.430 + Ag*0.416 + Zn*15.368 + Pb*7.837)*(1-NSRRoyalty%). MNFWZ zinc-silver dominant zones use the NSR formula: (Ag*0.304 + Zn*18.323 + Pb*17.339)*(1-NSRRoyalty%). MNV zinc-silver dominant zones use the NSR formula: (Ag*0.256 + Zn*16.401 + Pb*14.977)*(1-NSRRoyalty%). Metal price assumptions (in US$) used to calculate the NSR for all deposits are: Cu = $3.25/lb, Ag = $20.00/oz, Zn = $1.20/lb and Pb = $1.00/lb. Recoveries used in the four NSR formulae are based on mineralization. Copper-silver dominant zones use the following recoveries: 96% Cu and 85% Ag. Copper-zinc zones use the following recoveries: 92% Cu, 79% Ag, 72% Zn and 42% Pb. MNFWZ zinc-silver dominant zones use the following recoveries: 60% Ag, 86% Zn and 92% Pb. MNV zinc-silver dominant zones use the following recoveries: 55% Ag, 77% Zn and 80% Pb. The NSR formulae include confidential current smelter contract terms, transportation costs and royalty agreements from 1 to 3%, as applicable. An exchange rate of MX$20 per US$1 is assumed. Totals may not sum exactly due to rounding. The NSR cut-off of US$50/tonne is based on historical mining and milling costs plus general and administrative costs. The Mineral Resource Estimate encompasses both the MNFWZ and the MNV. Drilling campaigns from 2018 have focused on the MNFWZ and no drilling has been performed on the MNV since 2017. The Mineral Resource considers underground mining by longhole stoping and mineral processing by flotation. No dilution is incorporated in the Mineral Resource. All metals are reported as contained. Mineral Resource estimates do not account for mining loss and dilution. These Mineral Resource estimates include Inferred Mineral Resources considered too speculative geologically to apply economic considerations for categorization as Mineral Reserves. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Resources.