Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS)
announces additional high grade copper and silver results from five
infill and 22 stepout drill holes at its Cozamin Mine, further to
the update of January 16, 2020. The drilling program, aiming to
double the current reserve base, is three months ahead of schedule
with 177 holes of the 200 hole program completed. The results
continue to demonstrate greater widths and higher grades than
current Mineral Reserves, as well as the potential for an expanded
high grade resource. An updated Mineral Resource and Mineral
Reserve estimates will be completed 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/20200423005263/en/
Figure 1 – Select High Grade Step-out and
Infill Holes at Cozamin Mine: April 2020 Drill Results. For full
details, see Capstone's news release of April 23, 2020. (Graphic:
Business Wire)
“These drill results, as well as the set released in January,
are amongst the best ever drilled at Cozamin. Despite the temporary
ramp down of operations at Cozamin, due to COVID-19 restrictions in
Mexico, we are well ahead of schedule and still expect to deliver
an updated Mineral Resource and Mineral Reserve estimate and
Technical Report by the end of this year,” said Brad Mercer, SVP
Exploration and Operations.
Darren Pylot, Capstone’s President and CEO said, “Challenging
times highlight the importance of having a safe, high grade, low
cost and efficiently managed mining operation within your
portfolio. These results support our belief that Cozamin will
remain a crown jewel asset for this decade and longer.”
Highlighted drill results are summarized in Table 1 and full
results for all previously unreleased holes since the January 16,
2020 news release are in Table 2.
Table 1 – Selected MNFWZ Drilling Completed Since the January
16, 2020 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)
25
CG-20-S471
step-out
no
567.5
574.1
6.6
5.1
7.58
0.26
0.01
113.1
including
567.5
572.3
4.8
3.7
9.61
0.32
0.01
140.8
16
CG-20-S473
step-out
no
629.9
635.8
5.9
5.2
5.16
0.15
0.00
92.2
including
629.9
633.8
3.9
3.4
7.38
0.21
0.01
130.8
21
CG-20-S466
step-out
no
614.7
625.1
10.4
7.3
3.70
0.12
0.01
64.1
including
620.9
625.1
4.2
2.9
6.16
0.19
0.01
105.3
23
CG-20-S476
step-out
no
603.2
607.4
4.2
3.2
5.94
0.18
0.01
100.7
3
CG-20-S470
infill
no
552.5
572.5
20.0
16.7
4.87
0.23
0.02
131.0
including
563.8
572.5
8.7
7.2
6.95
0.40
0.04
213.3
*estimated true width of vein intercept
for inclined drill holes
Figure 1 – Select High Grade Step-out and Infill Holes at
Cozamin Mine: April 2020 Drill Results
The best grade*thickness intercepts lie outside of the current
Mineral Reserve. There is a strong correlation between copper and
silver grades.
Figure 2 – Long-section of the Mala Noche Footwall Zone
Showing Copper % * Estimated True Width (m)
Figure 3 – Image of Drill Core from Hole CG-20-S471 (7.58%
Cu; 113.1 g/t Ag, TW 5.1m)
For drill hole location and context please view the long-section
of the MNFWZ at
https://capstonemining.com/files/images/maps/April-23-PR-Long-Section-Full.pdf.
Table 2 – All MNFWZ Drilling Completed Since the January 16,
2020 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-20-S475
step-out
no
431.0
441.7
10.7
8.6
1.55
0.16
0.05
65.7
including
432.3
438.5
6.2
5.0
2.30
0.25
0.08
95.4
2
CG-20-S479
step-out
no
534.4
535.1
0.7
0.7
3.94
0.29
0.02
102.0
3
CG-20-S470
infill
no
552.5
572.5
20.0
16.7
4.87
0.23
0.02
131.0
including
563.8
572.5
8.7
7.2
6.95
0.40
0.04
213.3
4
CG-20-S458
infill
no
548.1
578.0
29.9
21.3
2.06
0.20
0.01
52.7
including
562.5
567.1
4.6
3.3
7.11
0.43
0.02
217.2
5
CG-20-S465
infill
no
551.8
569.8
18.0
15.5
1.34
0.05
0.01
24.3
including
552.3
566.7
14.4
12.4
1.59
0.05
0.01
28.5
6
CG-20-S461
step-out
no
480.9
484.8
3.9
3.7
3.45
0.16
0.02
67.6
including
481.8
484.3
2.5
2.3
5.06
0.23
0.02
92.0
7
CG-20-S472
step-out
no
402.5
403.3
0.8
0.7
1.09
0.03
0.01
27.2
8
CG-20-S468
step-out
no
378.9
384.5
5.6
4.9
0.88
0.11
0.01
40.6
including
378.9
380.8
1.9
1.6
1.92
0.26
0.02
97.6
9
CG-20-S464
step-out
no
468.8
473.1
4.3
4.1
2.80
0.39
0.02
58.1
including
469.9
471.5
1.6
1.5
6.86
0.68
0.02
122.4
10
CG-20-S469
step-out
no
457.8
466.8
9.0
8.3
1.78
0.06
0.01
38.4
including
458.4
460.4
2.0
1.8
6.29
0.16
0.01
123.7
11
CG-20-S480
step-out
no
399.0
403.0
4.0
3.6
2.76
0.10
0.01
58.4
including
399.0
401.2
2.2
2.0
4.17
0.15
0.01
78.4
12
CG-20-S463
step-out
no
381.5
384.0
2.5
2.3
0.67
0.07
0.01
22.0
including
381.5
383.2
1.7
1.6
0.89
0.08
0.01
28.7
13
CG-20-S459
step-out
no
393.7
394.4
0.7
0.6
0.88
0.06
0.07
44.5
14
CG-20-S474
step-out
no
459.2
461.9
2.7
2.5
8.28
0.22
0.02
157.0
15
CG-20-S478
step-out
no
439.5
452.5
13.0
12.3
2.33
0.08
0.01
51.6
16
CG-20-S473
step-out
no
629.9
635.8
5.9
5.2
5.16
0.15
0.00
92.2
including
629.9
633.8
3.9
3.4
7.38
0.21
0.01
130.8
17
CG-20-U507
infill
no
522.1
522.8
0.7
0.6
2.36
0.11
0.01
40.0
18
CG-20-U508
infill
no
496.5
501.9
5.4
5.1
0.94
0.04
0.01
16.6
including
500.8
501.9
1.1
1.0
2.93
0.09
0.01
53.0
19
CG-20-U509
step-out
no
no significant intercepts
20
CG-20-U510
step-out
no
no significant intercepts
21
CG-20-S466
step-out
no
614.7
625.1
10.4
7.3
3.70
0.12
0.01
64.1
including
620.9
625.1
4.2
2.9
6.16
0.19
0.01
105.3
22
CG-20-S460
step-out
no
552.2
552.8
0.6
0.5
0.53
0.47
0.04
18.7
23
CG-20-S476
step-out
no
603.2
607.4
4.2
3.2
5.94
0.18
0.01
100.7
24
CG-20-S462
step-out
no
549.4
552.4
3.0
2.9
0.36
0.01
0.00
10.4
25
CG-20-S471
step-out
no
567.5
574.1
6.6
5.1
7.58
0.26
0.01
113.1
including
567.5
572.3
4.8
3.7
9.61
0.32
0.01
140.8
26
CG-20-S467
step-out
no
521.8
522.8
1.0
0.9
2.24
0.66
0.01
41.2
27
CG-20-S477
step-out
no
528.5
531.8
3.3
2.7
2.58
0.17
0.01
43.7
including
530.9
531.8
0.9
0.7
7.39
0.27
0.01
125.0
*estimated true width of vein intercept
for inclined drill holes
Following are the select high grade step-out and infill holes
from the January 2020 drill results, shown in the same format as
April’s results for reference. For full details, refer to the
Company’s news release of January 16, 2020.
Figure 4 – Select High Grade Step-out and Infill holes at
Cozamin: January 2020 Drill Results
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 0.25 to 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, potential delays in exploration due to
COVID-19 or governmental action, future prices of copper and other
metals, compliance with financial covenants, surety bonding, our
ability to raise capital or fund explorations, 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. 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 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/20200423005263/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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