Capstone Reports Multiple High Grade Copper-Gold Intercepts from the Copper Keel/Wildfire Deposit at the Minto Mine
VANCOUVER, January 10, 2011 /PRNewswire/ --
- Hole 10SWC730 Intercepts 2.5% Cu & 1.4g/t Au over 13.3m Including 3.1% Cu & 1.3g/t Au over 9.0m at Wildfire
- Hole 10SWC735 Intercepts 2.5% Cu & 1.0g/t Au over 11.1m Including 3.7% Cu & 1.8g/t Au over 4.2m at Copper Keel
Capstone Mining Corp. (CS: TSX) today announced assay results for forty-two, 2010 holes from the Wildfire / Copper Keel deposit at the Minto Mine. These are the final 2010 drill holes to be reported for this deposit and work on a first resource estimate for Wildfire / Copper Keel is underway and should be completed sometime in February. Highlights from these most recent Wildfire / Copper Keel exploration holes are summarized in the table below, while complete results are attached.
Highlights of Recent Drilling at Wildfire
Hole ID Target Area From To Interval Interval Copper Gold Silver
(m) (m) (m) (ft) (%) (g/t) (g/t)
10SWC-730 Wildfire 96.6 109.9 13.3 43.6 2.48 1.38 10.0
including 99.3 108.3 9.0 29.5 3.10 1.32 11.4
10SWC-735 Copper Keel 202.6 213.7 11.1 36.4 2.45 1.03 9.3
including 209.5 213.7 4.2 13.8 3.68 1.75 14.2
10SWC-715 Wildfire 83.2 94.1 10.9 35.8 2.37 1.41 9.6
including 85.8 91.1 5.3 17.4 3.72 2.34 15.5
10SWC-749 Wildfire 90.4 97.4 7.0 23.0 2.01 0.31 3.4
including 93.1 96.6 3.5 11.5 3.29 0.33 5.4
and Wildfire 124.6 131.0 6.4 21.0 1.91 0.33 2.8
including 124.6 127.7 3.1 10.2 3.26 0.52 4.6
"The stacked nature of multiple copper bearing horizons makes Wildfire / Copper Keel an efficient target to explore. It is also an attractive geometry for mining and Capstone will focus exploration in this area in the first half of 2011," said Brad Mercer, Vice-President of Exploration for Capstone. A preliminary mineral resource estimate for Wildfire / Copper Keel is expected in the first quarter of 2011, to be followed by an updated resource before year-end, once the deposit is fully drilled off. This more robust estimate is expected to add further impetus to our ongoing feasibility work aimed at increasing mineral reserves and where Capstone is exploring a balance between mine expansion and increased mine life," he added.
Capstone's 2011 Exploration Plans
Capstone's 2011 exploration budget is currently set at $12.9 million and 72,000 metres of exploration drilling. As in prior years the Company will consider increasing these amounts should results warrant. Exploration drilling is now ramping up again for 2011 and by mid-January will resume at Cozamin using 5 rigs, which will be followed with 3 rigs starting at Minto in February and a single rig at Kutcho in July or August.
Capstones exploration priority in 2011 is to expand the Wildfire / Copper Keel deposit at Minto and the Mala Noche Footwall Zone at Cozamin. Both deposits have mineral resource estimates in progress and both remain open to expansion so additional resource estimates are anticipated for later this year. The aim is to have both new deposits drilled to a standard to support a minimum of Indicated Class Mineral Resource that could support mine planning for feasibility considerations. In addition to these near term resource additions other exploration targets such at Inferno at Minto and the Mala Noche Vein West at Cozamin will be aggressively tested as well.
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. There is also no certainty that mineral resources will be converted to mineral reserves through further drilling and once economic considerations are applied.
Drill hole Location Maps
For current drillhole locations please view the accompanying map:
http://capstonemining.com/i/maps/2011-01CSCurrentDrillHoleLocations.jpg
For a current view of drill results in the Wildfire / Copper Keel area please view the accompanying map:
http://capstonemining.com/i/maps/2011-01MintoDrillResultsUpdate.jpg
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 Brad Mercer, P. Geol., VP, Exploration of 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 Inspectorate-IPL 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 Capstone Mining Corp. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements.
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", "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 http://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.
Details of 2010 Wildfire Phase Drill Results
To accompany Capstone Mining News Release Dated January 10, 2011
Hole ID Target From To Interval Interval Copper Gold Silver
& Interval (m) (m) (m)* (feet)* (%) (g/t) (g/t)
10SWC-705 Wildfire / 124.0 148.3 24.3 79.7 0.87 0.36 2.3
Ridgetop
including 135.0 141.1 6.1 20.0 1.97 0.60 4.4
10SWC-708 Wildfire / 125.2 141.2 16.0 52.5 0.65 0.11 1.9
Ridgetop
including 125.2 129.5 4.3 14.1 1.27 0.04 1.7
and 165.5 167.3 1.8 5.9 2.05 2.02 23.1
10SWC-709 Wildfire / 129.7 139.0 9.3 30.5 0.53 0.06 1.7
Ridgetop
and 147.8 150.7 2.9 9.5 0.67 0.02 0.5
and 160.5 187.3 26.8 87.9 0.45 0.05 1.3
including 162.0 166.5 4.5 14.8 0.85 0.05 1.6
10SWC-711 Wildfire 94.5 99.1 4.6 15.1 0.60 0.01 0.8
and Wildfire 116.2 124.9 8.7 28.5 0.56 0.22 1.8
including 118.5 121.4 2.9 9.5 1.13 0.44 3.8
10SWC-712 Copper 154.4 168.4 14.0 45.9 1.63 0.43 4.2
Keel
and Copper 183.1 188.6 5.5 18.0 0.57 0.11 2.1
Keel
10SWC-713 Wildfire / 148.9 153.3 4.4 14.4 0.44 0.16 2.1
Ridgetop
10SWC-714 Wildfire 85.5 96.0 10.5 34.4 1.09 0.41 2.3
and Copper 155.2 163.7 8.5 27.9 0.50 0.03 1.1
Keel
and Copper 176.7 181.0 4.3 14.1 0.64 0.27 2.9
Keel
10SWC-715 Wildfire 83.2 94.1 10.9 35.8 2.37 1.41 9.6
including 85.8 91.1 5.3 17.4 3.72 2.34 15.5
and Wildfire 100.3 114.7 14.4 47.2 0.55 0.11 1.1
and Wildfire 125.7 128.8 3.1 10.2 1.01 0.42 3.2
and Wildfire 132.7 142.7 10.0 32.8 0.60 0.20 1.5
10SWC-716 Wildfire 131.9 139.3 7.4 24.3 0.51 0.06 1.5
and Copper 222.8 237.4 14.6 47.9 1.42 0.33 4.6
Keel
including 222.8 227.0 4.2 13.8 2.09 0.50 7.3
10SWC-717 Wildfire 111.4 116.9 5.5 18.0 0.28 0.11 0.8
10SWC-719 Copper 168.1 173.1 5.0 16.4 0.75 0.18 2.0
Keel
and Copper 176.8 185.4 8.6 28.2 0.93 0.24 2.3
Keel
10SWC-720 Wildfire - Geochemically Anomalous - No Significant
Copper Intersections
Keel
10SWC-721 Wildfire 108.7 118.9 10.2 33.5 1.30 0.81 3.4
10SWC-722 Wildfire - Geochemically Anomalous - No Significant
Copper Intersections
Keel
10SWC-724 Copper 223.7 236.1 12.4 40.7 0.95 0.22 3.4
Keel
10SWC-725 Copper 163.5 165.0 1.5 4.9 0.98 0.03 0.6
Keel
10SWC-726 Wildfire 123.0 135.3 12.3 40.4 0.61 0.20 2.1
10SWC-727 Wildfire 117.3 139.5 22.2 72.8 0.43 0.13 0.9
10SWC-728 Copper 228.3 239.7 11.4 37.4 0.79 0.21 2.9
Keel
10SWC-729 Wildfire 121.6 127.2 5.6 18.4 2.44 1.74 7.7
10SWC-730 Wildfire 96.6 109.9 13.3 43.6 2.48 1.38 10.0
including 99.3 108.3 9.0 29.5 3.10 1.32 11.4
10SWC-731 Wildfire 101.0 112.5 11.5 37.7 0.96 0.23 2.1
and Wildfire 118.5 121.0 2.5 8.2 1.10 0.54 4.0
10SWC-732 Wildfire - Geochemically Anomalous - No Significant
Copper Intersections
Keel
10SWC-733 Wildfire 96.3 103.2 6.9 22.6 2.36 0.54 5.8
including 98.4 103.2 4.8 15.7 2.97 0.76 8.2
and Wildfire 113.7 130.6 16.9 55.4 1.55 0.55 3.7
including 113.7 123.1 9.4 30.8 2.14 0.67 4.9
10SWC-734 Copper 165.1 168.0 2.9 9.5 1.42 0.75 4.2
Keel
and Copper 176.2 193.0 16.8 55.1 1.17 0.26 3.5
Keel
including 176.2 184.5 8.3 27.2 1.45 0.27 3.8
10SWC-735 Copper 202.6 213.7 11.1 36.4 2.45 1.03 9.3
Keel
including 209.5 213.7 4.2 13.8 3.68 1.75 14.2
10SWC-736 Wildfire 100.7 104.8 4.1 13.5 1.69 0.92 5.5
10SWC-737 Wildfire 76.3 83.8 7.5 24.6 0.97 0.50 1.2
and Copper 297.6 321.5 23.9 78.4 1.06 0.37 3.7
Keel
including 315.7 319.0 3.3 10.8 2.74 0.49 6.3
10SWC-738 Copper 179.1 192.1 13.0 42.7 1.69 0.43 5.3
Keel
including 179.1 187.8 8.7 28.5 1.84 0.42 5.1
10SWC-740 Wildfire 44.8 58.2 13.4 44.0 1.80 0.87 5.1
including 46.0 48.0 2.0 6.6 5.21 1.12 14.7
and 52.3 58.2 5.9 19.4 2.05 1.06 5.4
10SWC-741 Wildfire 136.3 152.2 15.9 52.2 0.70 0.16 1.2
including 139.6 145.2 5.6 18.4 1.01 0.28 1.9
and Copper 160.4 175.5 15.1 49.5 1.37 0.49 4.4
Keel
including 165.0 173.8 8.8 28.9 1.63 0.64 5.3
10SWC-742 Wildfire 95.7 107.8 12.1 39.7 1.19 0.36 3.8
including 95.7 101.1 5.4 17.7 1.58 0.46 5.2
10SWC-743* Wildfire 127.5 134.0 6.5 (6.2) 21.3 0.73 1.42 6.1
(20.3)
including 129.0 131.1 2.1 (2.0) 6.9 1.16 2.27 14.7
(6.6)
10SWC-744 Wildfire 126.4 133.0 6.6 21.7 1.35 0.68 3.3
and Wildfire 147.0 148.7 1.7 5.6 0.91 0.26 3.1
10SWC-745 Wildfire - Geochemically Anomalous - No Significant
Copper Intersections
Keel
10SWC-747 Wildfire - Geochemically Anomalous - No Significant
Copper Intersections
Keel
10SWC-748 Copper 184.3 200.9 16.6 54.5 0.63 0.17 2.0
Keel
including 188.7 192.0 3.3 10.8 1.17 0.24 3.8
10SWC-749 Wildfire 90.4 97.4 7.0 23.0 2.01 0.31 3.4
including 93.1 96.6 3.5 11.5 3.29 0.33 5.4
and Wildfire 124.6 131.0 6.4 21.0 1.91 0.33 2.8
including 124.6 127.7 3.1 10.2 3.26 0.52 4.6
10SWC-751 Copper 181.2 192.5 11.3 37.1 0.42 0.14 1.8
Keel
10SWC-752 Copper 227.1 239.5 12.4 40.7 1.80 0.47 8.6
Keel
10SWC-753 Wildfire 94.1 98.5 4.4 14.4 1.70 0.14 2.4
and Copper 168.4 178.1 9.7 31.8 1.62 0.47 5.9
Keel
including 171.2 174.7 3.5 11.5 3.36 0.75 12.3
10SWC-756 Wildfire 92.8 102.1 9.3 30.5 1.10 0.28 5.4
For further information about Capstone, please contact: Darren Pylot, President & CEO, Or Investor Relations' Jason Howe at +1-604-684-8894 or +1-866-684-8894 or e-mail Capstone at info@capstonemining.com
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