Capstone Reports 8th High Grade Copper-Gold Discovery & Major Step Out at Minto Mine

Dec 09, 2010, 07:30 ET from Capstone Mining Corp.

VANCOUVER, December 9, 2010 /PRNewswire-FirstCall/ --

- Hole 10SWC750 Intercepts 15.3% Cu & 4.4g/t Au Over 2.6m at Inferno Discovery

- Hole 10SWC758 Intercepts 1.9% Cu & 0.5g/t Au over 19.1m, Including 3.3% Cu & 0.7g/t Au Over 7.1m in Major Step-out to NE of Copper Keel

Capstone Mining Corp. (CS: TSX) today announced two separate exploration developments at its Minto Mine in the Yukon Territory: the discovery of a new high grade copper-gold zone, designated "Inferno", northeast of the Minto Main deposit, and a 250m extension to the northeast of the Wildfire/Copper Keel mineralization discovered and drill defined in 2010. The mineralization in both areas was detected by a deep penetrating IP survey conducted earlier this year. Drilling highlights are summarized in the table below while the full results for nine new holes released today are in the table attached.

Drilling Highlights for the Inferno Discovery and Step-out Drilling at Copper Keel

    Hole ID   Target Area    From   To  Interval Interval Copper Gold  Silver
                              (m)   (m)   (m)      (ft)    (%)   (g/t) (g/t)
    10SWC-739 Copper Keel NE 259.0 277.6  18.6     61.0    1.95  0.52   4.8
    including                259.0 269.5  10.5     34.4    2.60  0.65   6.5
    10SWC-746 Inferno         31.6  61.4  29.8     97.8    0.82  0.57   6.1
    and                      278.3 282.3   4.0     13.1    3.19  1.83  11.3
    10SWC-750 Inferno        273.6 276.2   2.6      8.5   15.26  4.39  67.7
    10SWC-757 Copper Keel NE 264.7 279.8  15.1     49.5    1.71  0.50   4.2
    including                265.8 271.2   5.4     17.7    2.48  0.86   6.2
    10SWC-758 Copper Keel NE 242.6 261.7  19.1     62.7    1.88  0.46   3.6
    including                242.6 249.7   7.1     23.3    3.28  0.71   4.7

"The continued exploration success at Minto validates the new approaches and techniques utilized in 2010 and bodes well for future exploration," said Stephen Quin, President of Capstone. "Particularly encouraging is the identification of a potential parallel trend of mineralization to the one we have been focused on for the past four years," he said. "While less well explored, this second axis of mineralization already hosts four discoveries made in the past 12 months."

Inferno Discovery and Copper Keel Step-out

Earlier this year Capstone completed a property-wide Titan-24 deep penetrating Induced Potential ("IP") survey and identified a number of chargeability anomalies in areas untested by previous drilling; the high grade mineralization at Inferno and Copper Keel Northeast were both discovered by drill testing two of these targets.

The Inferno anomaly was selected for drill testing because of its position relative to the Minto Main deposit (currently being mined by open pit methods), located immediately on the north side of the DEF fault, a deep regional structure that terminates the Minto Main deposit at its north end. Drilling to date has intersected a shallower, moderate grade zone underlain by a narrower, high grade zone. Inferno may represent the off-faulted extension of the Minto Main deposit. The Titan-24 survey suggests that the four holes completed to date at Inferno have tested the northern end of a chargeability anomaly that extends more than 300 metres south of this drilling. This additional potential will be evaluated when drilling resumes in early 2011.

The 3D inversion model of the Titan-24 data also identified a distinct bulls-eye chargeability anomaly centered about 250m north of the nearest Wildfire/Copper Keel drilling and 250 metres east of any pre-2010 Copper Keel drill holes. Drilling, and a recent new geology interpretation, suggests this area of thick, high grade mineralization is the continuation of the Copper Keel horizon, the most laterally continuous mineralized horizon discovered to date at Minto. Capstone's most recent 3D geology model supports continuity between Area 2, Copper Keel and Copper Keel Northeast, and now geophysics (corroborated by drilling) suggests continuity all the way to Copper Keel South, a distance of over 1,000m. Infill drilling between Copper Keel Northeast and the main Copper Keel zone will occur in 2011.

It is also worth noting the alignment of the Inferno, Minto East, Copper Keel North, Wildfire and Copper Keel South mineralization along an axis approximately parallel to the Minto North, Minto Main, Area 2 and Ridgetop axis that had been the priority exploration focus prior to 2010. Given the productivity of the latter trend, the recognition of a second mineralized axis could provide a new focus for exploration.

With the release of the nine drillholes contained herein, results for an additional 45 holes remain to be received and should be all released between now and mid-January 2011. Once all of the assays from 2010 drilling are received Capstone will proceed with a maiden resource estimate for Wildfire (2 horizons) and Copper Keel (1 horizon). Mineralized trends in this stacked sub-horizontal system partially overlap and are clearly open in several directions. The new resource model is expected be a catalyst for further exploration drilling in 2011.

For current drillhole locations please view the accompanying map: http://www.capstonemining.com/i/photos/minto/2010-56MintoProperty.jpg

For a current view of drill results in priority areas across the property please view the accompanying map: http://www.capstonemining.com/i/photos/minto/2010-56MintoDrillResults Update.jpg

(Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. Remove the space if one exists.)

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 Stephen P. Quin, P. Geo., President of Capstone Mining Corp. The exploration activities at the Minto Mine are carried out under the supervision of 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 Recent Inferno and Copper Keel Drill Results
      To accompany Capstone Mining News Release Dated December 9, 2010

     Hole ID    Target   From(m)  To(m) Interval Interval Copper Gold  Silver
    & Interval                             (m)     (feet)   (%)   (g/t) (g/t)
    10SWC-700  Wildfire/
               Ridgetop    76.2    88.2    12.0    39.4    0.28  0.06    0.5

    10SWC-703  Wildfire    87.8   100.2   12.4     40.7    1.29  0.51    4.8
    including              87.8    93.6    5.8     19.0    2.27  0.96    8.7
       And     Wildfire   144.5   153.7    9.2     30.2    0.85  0.26    2.0
    including             149.5   153.7    4.2     13.8    1.28  0.37    3.0
       And      Copper
                 Keel     169.4   175.9    6.5     21.3    1.01  0.26    2.7

    10SWC-723   Inferno    61.9    75.9   14.0     45.9    1.14  0.59    5.5
    including              67.8    74.7    6.9     22.6    1.82  0.94    9.0

    10SWC-739   Copper
                Keel NE   259.0   277.6   18.6     61.0    1.95  0.52    4.8
    including             259.0   269.5   10.5     34.4    2.60  0.65    6.5
    including             262.9   266.6    3.7     12.1    3.31  0.86   10.1

    10SWC-746   Inferno    31.6    61.4   29.8     97.8    0.82  0.57    6.1
       And                278.3   282.3    4.0     13.1    3.19  1.83   11.3

    10SWC-750   Inferno   273.6   276.2    2.6      8.5   15.26  4.39   67.7
    including             274.2   276.3    2.1      6.9   19.39  5.49   85.5
       And                330.6   345.0   14.4     47.2    1.07  0.57    5.3
    including             339.6   345.0    5.4     17.7    2.03  1.14    9.7

    10SWC-754   Copper
                Keel NE   262.8   282.4   19.6     64.3    2.23  0.60    8.5
    including             268.6   273.3    4.7     15.4    4.60  1.21   21.7

    10SWC-757   Copper
                Keel NE   264.7   279.8   15.1     49.5    1.71  0.50    4.2
    including             265.8   271.2    5.4     17.7    2.48  0.86    6.2

    10SWC-758   Copper
                Keel NE   242.6   261.7   19.1     62.7    1.88  0.46    3.6
    including             242.6   249.7    7.1     23.3    3.28  0.71    4.7
       And                285.2   290.0    4.8     15.7    1.18  0.39    3.1

For further information: Darren Pylot, Vice Chairman & CEO or Stephen Quin, President Or Investor Relations' Jason Howe at +1-604-684-8894 or +1-866-684-8894 or e-mail Capstone at info@capstonemining.com

SOURCE Capstone Mining Corp.