VANCOUVER, Canada, December 1, 2010 /PRNewswire-FirstCall/ --
- Hole U240 Intercepts 6.5% Cu & 118g/t Ag over 7.3m (including 11.0% Cu & 202g/t Ag over 4.1m) plus a second zone of 3.0% Cu, 4.1g/t Au & 355g/t Ag over 11.2m
Capstone Mining Corp. (CS: TSX) today announced that it had successfully confirmed continuity between the two prior high grade intercepts announced on October 20, 2010 in the Mala Noche Footwall Zone ("MNFWZ") at its Cozamin Mine, and had encountered the MNFWZ in a cross-cut driven to evaluate the potential of this new discovery for mining.
On October 20, 2010, Capstone announced the discovery of a zone of high grade copper-silver mineralization in the MNFWZ in holes located 200m east of prior drilling. This discovery was made in a splay off the main Mala Noche vein and is in close proximity to the current mineral reserves and active mine workings. Hole U240, drilled between the two prior intercepts, intersected two intervals with high copper-gold-silver values over significant widths, confirming continuity of the high grade mineralization over approximately 150m of dip extent. The high gold values in hole U240 are particularly encouraging, as they are much higher than is typical for the Cozamin Mine. Hole U241, drilled on an adjacent section also intersected high grade copper silver mineralization. Three additional holes have been completed, for which assays are pending, two additional holes are in progress and more holes are planned. Capstone has added a second underground drill to expedite the evaluation of this high grade zone in the MNFWZ, which will continue into 2011. Assay results from hole U240 and U241 are summarized in the table below.
Drill Intercept Highlights for Mala Noche Footwall Zone Hole U240 Hole ID Target Area From To Interval Copper Gold Silver Lead Zinc (m) (m) (m)* (%) (g/t) (g/t) (%) (%) CG-10-U240 MNFWZ 314.9 326.1 11.2 3.03 4.11 355 0.04 1.90 And MNFWZ 357.6 364.9 7.3 6.47 0.07 118 0.04 0.44 including 357.6 361.7 4.1 11.01 0.08 202 0.06 0.67 CG-10-U241 MNFWZ 278.3 279.6 1.3 1.25 0.05 27 0.01 0.09 And MNFWZ 281.5 288.6 7.1 2.53 0.06 41 0.02 0.37 including 281.8 286.0 4.2 3.63 0.05 56 0.03 0.32 * Intervals reported are drill hole intercept lengths, true widths are believed to be within 85%-90% to those reported.
In addition to underground drilling, Capstone has commenced driving a cross-cut into the MNFWZ mineralization and has exposed the first of several anticipated mineralized zones. Once completely through the MNFWZ, lateral drifts will be completed along the mineralization to provide a thorough evaluation of the continuity of the mineralization and to generate metallurgical samples for testing. Given the close proximity of the MNFWZ to active mine haulage ways, the evaluation of this discovery is a priority for the remainder of 2010 and into 2011, with the objective of defining mineral resources and mineral reserves in order to provide a potential source of high grade mill feed.
"The discovery of the Mala Noche Footwall zone provides a near term opportunity to add high grade production at Cozamin," said Stephen Quin, President of Capstone. "Given the very encouraging results from holes completed to date, we continue to ramp up our evaluation, with drilling, drifting and metallurgical testing to continue through the end of the year and into 2011."
Please view the accompanying long-sections: http://capstonemining.com/i/maps/2010-51Cozamin_Cu_Grade_X_Thickness.jpg http://capstonemining.com/i/maps/2010-51Cozamin_Cu_Grade_Trend.jpg And the following link to see a cross-section showing CS-10-U235 and U240 http://capstonemining.com/i/maps/2010-51CozaminCrossSection_F-F.jpg Quality Assurance/Quality Control
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 Cozamin Mine are carried out under the supervision of Brad Mercer, P. Geol., VP Exploration for Capstone. Analyses for copper, zinc, lead, silver and gold were completed by ALS Chemex using the following method. The entire sample is crushed to a minimum of 70% minus 10 mesh. A 250g subsample of the crushed material is then pulverized to 85% minus 200 mesh. Gold and silver grades are determined by gravimetric fire assay using a 50g charge taken from the pulverized material. Copper, zinc and lead are determined by ICP analysis after 4 acid digestion of a 0.4g subsample of the pulverized material.
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 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 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.
For further information about Capstone, please contact:
Darren Pylot, Vice Chairman & CEO, Stephen Quin, President
Or Investor Relations' Jason Howe at +1-604-684-8894 or +1-866-684-8894 or e-mail Capstone at email@example.com
SOURCE Capstone Mining Corp.