Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS)
announces additional high grade copper and silver results from 21
infill and 6 step out drill holes at its Cozamin Mine, further to
the update of December 2, 2019. This brings the total drilled to
date to 150 holes of a 200 hole program, aiming to double the
current reserve base. Drill results to date continue to demonstrate
greater widths and grades than current Mineral Reserves, as well as
the potential for an expanded high grade resource. Mineral Resource
and Mineral Reserve estimates will be updated in late 2020. Cozamin
is expected to achieve a 50% increase to annual copper and silver
production of 50 to 55 million pounds and 1.5 million ounces,
respectively, by 2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200116005251/en/
Figure 1 – Select High Grade Step-out and
Infill Holes at Cozamin Mine (Graphic: Business Wire)
“The most recent drill results are exceeding our expectations
for the Mala Noche Footwall Zone (“MNFWZ”). We continue to see wide
intercepts of high copper-silver grades, and now step outs to the
northwest in undrilled territory are delivering some of the highest
grades ever drilled at Cozamin. The two-year drilling initiative is
more than two months ahead of schedule, allowing us to add more
holes for a new mineral resource and mineral reserve estimate and
Technical Report by the end of 2020,” said Brad Mercer, SVP
Exploration and Operations.
Darren Pylot, Capstone’s President and CEO said, “Our
exploration team continues to push the boundaries at Cozamin. After
13 years since we started mining, we continue to surface incredible
value for all stakeholders with the drill bit. These results will
ensure that this mine will remain a first quartile cost,
cornerstone asset well into the future. The entire Cozamin team is
doing a wonderful job in setting the mine up to be bigger and
higher grade in 2021 and beyond. Development work on both the
underground one-way ramp and ventilation are both on budget and
ahead of schedule to be completed by the end of 2020.”
Figure 1 – Select High Grade Step-out and Infill Holes at
Cozamin Mine
Figure 2 – Long-section of the Mala Noche Footwall Zone
Showing Copper % * Estimated True Width (m)
The best grade*thickness intercepts lie outside of the current
Mineral Reserve.
Figure 3 – Long-section of the Mala Noche Footwall Zone
Showing Silver g/t * Estimated True Width (m)
Comparing Figure 3 to Figure 2, the strong positive correlation
between copper and silver grades is clearly demonstrated.
Figure 4 – Image of Drill Core from Hole CG-19-S445
Coarse grained, high grade chalcopyrite mineralization along
with a positive copper-silver correlation underpins high copper and
silver recoveries.
Select intervals are summarized in Table 1 and full results for
all previously unreleased holes since the December 2, 2019
exploration update are in Table 2.
Table 1 – Selected MNFWZ Drilling Completed Since the
December 2, 2019 News Release
Section ID #
Drill hole ID
Type
In Resource
From (m)
To (m)
Width (m)
True Width* (m)
Cu (%)
Zn (%)
Pb (%)
Ag (g/t)
9
CG-19-S445
step-out
no
553.5
563.4
9.9
6.3
5.31
0.15
0.01
78.8
including
553.5
557.8
4.3
2.8
9.80
0.26
0.01
139.0
2
CG-19-S443
step-out
no
588.7
591.0
2.3
1.8
4.95
0.15
0.01
103.7
4
CG-19-S436
step-out
no
642.8
645.2
2.4
1.7
6.13
0.24
0.02
97.9
10
CG-19-S441
step-out
no
516.8
523.2
6.4
5.4
3.35
0.34
0.01
62.4
11
CG-19-S455
infill
no
487.8
493.5
5.7
5.4
7.65
0.35
0.10
141.3
12
CG-19-S437
infill
no
504.9
525.8
20.9
19.3
1.94
0.15
0.01
45.2
including
522.8
525.8
3.0
2.8
5.90
0.33
0.02
134.2
14
CG-19-S440
infill
no
597.5
603.2
5.7
4.9
8.29
0.25
0.02
133.1
including
597.5
601.5
4.0
3.4
10.75
0.32
0.02
165.9
23
CG-19-S444
infill
no
522.3
535.0
12.7
11.8
3.31
0.11
0.01
82.3
including
531.0
535.0
4.0
3.7
7.89
0.20
0.02
198.5
*estimated true width of vein intercept for inclined drill
holes
For drill hole location and context please view the long-section
of the MNFWZ at
https://capstonemining.com/files/images/maps/Cozamin-
Long-Section-Jan2020-Update.pdf.
Table 2 – All MNFWZ Drilling Completed Since the December 2,
2019 News Release
Section ID #
Drill hole ID
Type
In Resource
From (m)
To (m)
Width (m)
True Width* (m)
Cu (%)
Zn (%)
Pb (%)
Ag (g/t)
1
CG-19-S449
step-out
no
572.5
577.5
5.0
3.9
1.96
0.07
0.01
48.4
2
CG-19-S443
step-out
no
588.7
591.0
2.3
1.8
4.95
0.15
0.01
103.7
3
CG-19-S453
step-out
no
598.7
603.3
4.6
3.7
3.65
0.10
0.00
79.2
4
CG-19-S436
step-out
no
642.8
645.2
2.4
1.7
6.13
0.24
0.02
97.9
5
CG-19-U503
infill
no
481.8
487.9
6.1
6.0
1.92
0.07
0.01
37.1
including
485.8
487.9
2.1
2.1
2.56
0.12
0.01
48.2
6
CG-19-U505
infill
no
501.7
502.8
1.1
1.0
0.96
0.04
0.01
14.9
7
CG-19-U504
infill
no
512.3
519.7
7.4
7.1
2.53
0.07
0.01
50.4
including
516.4
519.7
3.3
3.2
4.92
0.13
0.02
101.5
8
CG-19-U506
infill
no
520.0
523.6
3.6
3.4
2.25
0.09
0.01
34.1
including
522.8
523.6
0.8
0.7
7.87
0.31
0.02
109.0
9
CG-19-S445
step-out
no
553.5
563.4
9.9
6.3
5.31
0.15
0.01
78.8
including
553.5
557.8
4.3
2.8
9.80
0.26
0.01
139.0
10
CG-19-S441
step-out
no
516.8
523.2
6.4
5.4
3.35
0.34
0.01
62.4
11
CG-19-S455
infill
no
487.8
493.5
5.7
5.4
7.65
0.35
0.10
141.3
12
CG-19-S437
infill
no
504.9
525.8
20.9
19.3
1.94
0.15
0.01
45.2
including
522.8
525.8
3.0
2.8
5.90
0.33
0.02
134.2
13
CG-19-S450
infill
no
496.6
510.3
13.7
12.5
1.50
0.15
0.00
32.6
including
506.2
510.3
4.1
3.8
2.61
0.14
0.01
54.2
14
CG-19-S440
infill
no
597.5
603.2
5.7
4.9
8.29
0.25
0.02
133.1
including
597.5
601.5
4.0
3.4
10.75
0.32
0.02
165.9
15
CG-19-S435
infill
no
626.2
630.2
4.0
3.1
2.87
0.07
0.01
55.6
16
CG-19-S452
infill
no
568.4
571.6
3.2
2.8
6.82
0.20
0.02
125.3
17
CG-19-S456
infill
no
568.3
577.0
8.7
6.9
3.39
0.10
0.01
93.0
18
CG-19-S442
infill
no
551.7
577.7
6.0
5.6
1.88
0.06
0.01
44.5
including
551.7
553.5
1.8
1.7
4.92
0.14
0.02
109.3
19
CG-19-S446
infill
no
625.2
629.5
4.3
3.4
5.16
0.18
0.02
101.1
including
625.2
626.7
1.5
1.2
13.04
0.38
0.02
236.5
20
CG-19-S457
infill
no
537.0
538.3
1.3
1.2
0.51
0.03
0.01
16.4
21
CG-19-S447
infill
no
533.6
541.0
7.4
7.2
4.99
0.13
0.01
117.6
including
535.2
540.4
5.2
5.1
6.41
0.17
0.01
151.6
22
CG-19-S438
infill
no
559.2
561.5
2.3
2.3
3.85
0.10
0.02
111.9
and
575.7
577.2
1.5
1.5
5.25
0.16
0.01
95.3
23
CG-19-S444
infill
no
522.3
535.0
12.7
11.8
3.31
0.11
0.01
82.3
including
531.0
535.0
4.0
3.7
7.89
0.20
0.02
198.5
24
CG-19-S454
infill
no
509.0
510.4
1.4
1.4
0.42
0.03
0.01
11.0
25
CG-19-S451
infill
no
no significant intercepts
26
CG-19-S448
infill
no
no significant intercepts
27
CG-19-S439
infill
no
526.9
527.4
0.5
0.5
0.76
0.28
0.03
46.7
*estimated true width of vein intercept for inclined drill
holes
METHODOLOGY
All samples were submitted for preparation by ALS at its
facilities in Zacatecas, Mexico, followed by analysis at the ALS
Laboratory in North Vancouver, Canada. The entire sample is crushed
to a minimum of 70% passing 2 millimetres. A 250g subsample of the
crushed material is then pulverized to 85% passing 75 microns.
Copper, zinc, lead and silver are determined by ICP analysis after
4 acid digestion of a 0.4g subsample of pulverized material. QAQC
samples in each batch of 20 samples include a blank, a certified
reference material and a duplicate (one of a field, coarse reject
or pulp reject).
ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metals mining company,
focused on copper. Our two producing mines are the Pinto Valley
copper mine located in Arizona, US and the Cozamin copper-silver
mine in Zacatecas State, Mexico. In addition, Capstone has the
large scale 70% owned copper-iron Santo Domingo development project
in Region III, Chile, in partnership with Korea Resources
Corporation, as well as a portfolio of exploration properties.
Capstone's strategy is to focus on the optimization of operations
and assets in politically stable, mining-friendly regions, centred
in the Americas. We are committed to the responsible development of
our assets and the environments in which we operate. Our
headquarters are in Vancouver, Canada and we are listed on the
Toronto Stock Exchange (TSX). Further information is available at
www.capstonemining.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release, and the documents incorporated by reference
herein, 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.
(“Capstone” or 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 our expectations or beliefs regarding
future events. Forward-looking statements include, but are not
limited to, statements with respect to the continuing success of
mineral exploration, Capstone’s ability to fund future exploration
activities, the estimation of mineral resources and mineral
reserves, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production and
capital expenditures, the success of our mining operations, the
estimations for potential quantities and grade of inferred
resources and exploration targets, environmental risks,
unanticipated reclamation expenses and title disputes. In certain
cases, forward-looking statements can be identified by the use of
words such as “plans”, “expects”, “aiming”, “approximately”,
“guidance”, “scheduled”, “target”, “estimates”, “forecasts”,
“extends”, “convert”, “potential”, “intends”, “anticipates”,
“believes” or variations of such words and phrases, or statements
that certain actions, events or results “may”, “could”, “should”,
“would”, “will”, “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 that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, amongst others, risks related to inherent hazards
associated with mining operations and closure of mining projects,
the inherent uncertainty of mineral exploration and estimations of
exploration targets, future prices of copper and other metals,
compliance with financial covenants, surety bonding, our ability to
raise capital, Capstone’s ability to acquire properties for growth,
counterparty risks associated with sales of our metals, foreign
currency exchange rate fluctuations, changes in general economic
conditions, accuracy of mineral resource and mineral reserve
estimates, operating in foreign jurisdictions with risk of changes
to governmental regulation, compliance with governmental
regulations, compliance with environmental laws and regulations,
reliance on approvals, licences and permits from governmental
authorities, impact of climatic conditions on our operations,
aboriginal title claims and rights to consultation and
accommodation, land reclamation and mine closure obligations,
uncertainties and risks related to the potential development of the
Cozamin project, increased operating and capital costs, challenges
to title to our mineral properties, maintaining ongoing social
license to operate, dependence on key management personnel,
potential conflicts of interest involving our directors and
officers, corruption and bribery, limitations inherent in our
insurance coverage, labour relations, increasing energy prices,
competition in the mining industry, risks associated with joint
venture partners, our ability to integrate new acquisitions into
our operations, cybersecurity threats, legal proceedings, and other
risks of the mining industry as well as those factors detailed from
time to time in the Company’s interim and annual financial
statements and MD&A 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 our actual results, performance
or achievements to differ materially from those described in our
forward-looking statements, there may be other factors that cause
our results, performance or achievements not to be as anticipated,
estimated or intended. There can be no assurance that our
forward-looking statements will prove to be accurate, as our actual
results, performance or achievements could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on our forward-looking statements.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Unless otherwise indicated, Capstone has prepared the technical
information in this news release (“Technical Information”) based on
information contained in the technical reports, news releases and
MD&A’s (collectively the “Disclosure Documents”) available
under Capstone Mining Corp.’s company profile on SEDAR at
www.sedar.com. For further details refer to the Company’s NI 43-101
Technical Report on Cozamine Mine, Zacatacas, Mexico published
January 24, 2019. 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”). Readers are encouraged to review the full text of the
Disclosure Documents 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 Scientific and Technical Information in this news release
has been prepared in accordance with NI 43-101 and reviewed and
approved by Brad Mercer, P. Geol., Capstone's Senior Vice
President, Operations and Exploration, a Qualified Person and the
person who oversees exploration activities on the Cozamin Mine
property.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200116005251/en/
Jerrold Annett, VP, Strategy and Capital
Markets 416-572-2272 jannett@capstonemining.com
Virginia Morgan, Manager, IR and Communications
604-674-2268 vmorgan@capstonemining.com
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