VANCOUVER, April 12, 2012 /PRNewswire/ --
- First Quarter Production of 18.6million pounds of Copper in Concentrates
Capstone Mining Corp. ("Capstone") (TSX: CS) today announced its operating results for the three months ended March 31, 2012 for its two operating mines, Cozamin and Minto. Combined production totalled 18.6 million pounds of copper in concentrates with additional by-products of lead, zinc, silver and gold.
Q1 2012 Production Q1 2012 Copper in concentrates (millions of pounds) Cozamin 13.0 Minto 5.6 Total 18.6
"Operations at Cozamin ran exceptionally well in the first quarter, achieving record quarterly production for the second straight quarter," said Darren Pylot, President and CEO of Capstone. "Minto continued to process lower grade stockpile, however fresh ore from the Area 2 pit will start feeding the mill in April, with production at Minto scheduled to increase above the first quarter level for the remainder of the year."
Operational Highlights for the three months ended March 31, 2012
- Production of 18.6 million pounds of copper contained in concentrates.
- By-product production of 4.1 million pounds of zinc, 0.8 million pounds of lead and 430,532 ounces of silver in concentrates. Final gold production is not available since assaying is conducted off-site, but is estimated at 2,088 ounces for the quarter.
- Cozamin achieved record quarterly copper production for the second straight quarter. Production has gradually shifted from the Avoca zone to the 13C blocks in accordance with the 2012 mine plan. Development in the Mala Noche Footwall Zone continued during the quarter with 213 metres of development and 8,957 tonnes of ore produced from the zone.
- At Minto, first quarter production continued from the stockpile with the mill feed running about 90% low grade sulphide material and 10% higher grade partially oxidized ore. Mining in the Area 2 pit has begun to release ore consistent with the resource model projections, which will be delivered to the mill in April. Milled ore grade is expected to increase to an average of 1.5% copper in the second quarter.
Q1 2012 Operating Details
Cozamin Minto Q1 Total Production (1) (contained in concentrates) - Copper (000s pounds) 12,984 5,631 18,615 - Lead (000s pounds) 830 - 830 - Zinc (000s pounds) 4,098 - 4,098 - Silver (ounces) 404,673 25,859 430,532 - Gold (ounces) - 2,088 2,088 Mine - Tonnes of ore mined 290,699 61,416 352,115 Mill - Tonnes processed 290,222 319,838 610,060 - Tonnes processed per day 3,189 3,515 6,704 - Copper grade (%) 2.18 0.94 1.53 - Lead grade (%) 0.23 - 0.23 - Zinc grade (%) 0.98 - 0.98 - Silver grade (g/t) 61.2 3.3 30.8 - Gold grade (g/t) - 0.32 0.32 Recoveries - Copper (%) 93.1 84.5 88.6 - Lead (%) 57.8 - 57.8 - Zinc (%) 65.5 - 65.5 - Silver (%) 70.9 76.7 74.0 - Gold grade (%) - 64.1 64.1 Concentrates (1) - Copper concentrates (dmt) 21,947 7,482 29,429 Copper (%) 26.8 34.1 30.7 Silver (g/t) 518 107 303 Gold (g/t) - 8.7 8.7 - Lead concentrates (dmt) 609 - 609 Lead (%) 61.9 - 61.9 Silver (g/t) 1,998 - 1,998 - Zinc concentrates (dmt) 3,767 - 3,767 Zinc (%) 49.4 - 49.4
(1) Adjustments based on final settlements will be made in future periods.
Capstone's 2012 guidance for 80 million pounds (± 5%) of copper in concentrates remains unchanged. Operations at Cozamin ran very well in the quarter and production at Minto was consistent with guidance and the annual mine plan, which calls for the processing of low grade stockpile material through the early part of the second quarter.
Q1 Financial Results Timing
Capstone will report 2012 first quarter financial results on Wednesday, May 9, 2012 after market close, followed by a conference call and webcast for investors and analysts on Thursday, May 10, 2012 at 11:30 am Eastern time (8:30 am Pacific time).
Conference Call and Webcast Details
Date: Thursday, May 10, 2012
Time: 11:30 am Eastern Time (8:30 am Pacific time)
Dial in: North America - 1(888)231-8191, International - 1-647-427-7450
The conference call audio and transcript will be available on Capstone's website within approximately 24 hours of the call http://capstonemining.com/s/Conference_Calls.asp.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian mining company with two producing copper mines, the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the Minto copper-gold-silver mine in Yukon, Canada. In addition, Capstone has two development projects, the large scale 70% owned Santo Domingo copper-iron-gold project in Chile in partnership with Korea Resources Corporation and the 100% owned Kutcho copper-zinc-gold-silver project in British Columbia, as well as exploration at properties in Australia, British Columbia, Chile and Mexico. Using its cash flow and strong balance sheet as a springboard, Capstone aims to grow organically through continued mineral resource and reserve expansions and through acquisitions in politically stable, mining-friendly regions. Additional information is available at http://www.capstonemining.com.
Cautionary Note Regarding 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 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", "outlook", "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. In this document certain forward-looking statements are identified by words including "scheduled", "guidance", "plan" and "expected. 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, dependence on key personnel, labour pool constraints, labour disputes; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; 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 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.
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 http://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 disclosure of the technical information contained in this news release has been reviewed and approved by John Sagman, P. Eng., Capstone's Vice President, Technical Services, a Qualified Person under NI 43-101. In addition, Gregg Bush, Senior Vice President and Chief Operating Officer for Capstone reviewed all technical information in this news release.
For further information: Cindy Burnett, VP, Investor Relations, +1-604-637-8157, [email protected]
SOURCE Capstone Mining Corp.