VANCOUVER, March 7, 2011 /PRNewswire-FirstCall/ -- - Step-out Drilling on the Mala Noche Footwall Zone Continues to Encounter High Grades - Hole U254 Intercepts 5.2% Cu & 180g/t Ag over 8.2m (including 6.0% Cu & 210g/t Ag over 6.9m) - Hole U251 Intercepts 1.6% Cu & 19g/t Ag over 22.6m (including 5.1% Cu & 58g/t Ag over 5.4m)
Capstone Mining Corp. (CS: TSX) today announced drill results for four exploration drill holes on the Mala Noche Footwall Zone ("MNFWZ") at the Cozamin Mine, Zacatecas, Mexico. New drill access and platforms have been added and Capstone intends to ratchet up the underground exploration program. Highlights are presented in the table below and the full results for all four new holes for which assay data has been received are in the table attached.
"We are pleased to report additional results from the Mala Noche Footwall Zone drilling at the Cozamin Mine. These most recent results extend the zone eastward by approximately 100 metres," said Brad Mercer, VP Exploration for Capstone. "We believe the MNFWZ, a splay off the main Mala Noche Vein, provides a near term opportunity to add high grade resources and potential high grade mill feed for the Cozamin operation. We intend to continue our drill program and produce a mineral resource estimate before the end of 2011 to provide a basis to evaluate development options for the MNFWZ," Mr. Mercer added.
Drill Intercept Highlights for Mala Noche Footwall Zone Holes U251 and U254 Hole ID Target To Interval True Copper Silver Lead Zinc Area From (m) (m) Width (%) (g/t) (%) (%) (m) (m) U251 MNFWZ 326.10 348.65 22.55 21.20 1.56 18.9 0.00 0.05 including 342.25 347.65 5.40 5.08 5.14 58.4 0.01 0.14 U254 MNFWZ 419.85 428.00 8.15 6.67 5.16 180.53 0.09 0.33 including 421.10 428.00 6.90 5.65 6.01 209.80 0.11 0.38
Capstone's current plan is to drill 40-50 drill holes on approximately 50 metre centres and underground access has been recently completed to execute this program. The logistics of establishing additional drill access from one of the main haulage ways is being evaluated to see if even larger step-outs can be taken toward the east and down dip, a direction where the highest grade copper-silver mineralization is still clearly open. The intent is to have two drills executing the current 50 metre centre pattern while a third drill probes ahead on a much wider pattern. Capstone will gauge the potential size of this high grade area to determine if additional drills with greater capacity are needed.
Please view the accompanying long-sections to put the latest drill intercepts into context:
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 Brad Mercer, P. Geol., VP, Exploration of Capstone, Qualified Person as defined by NI 43-101. Exploration activities at the Cozamin Mine are carried out under Mr. Mercer's supervision.
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 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.
Detailed Assay Intervals for MNFWZ Drill Holes Released March 7, 2011 Hole ID Target Area From To Interval True Copper Silver Lead Zinc (m) (m) (m)* Width (%) (g/t) (%) (%) (m)* U248 MNFWZ 403.70 404.65 0.95 0.51 2.16 35.0 0.01 0.07 And MNFWZ 418.80 424.25 5.45 2.90 0.38 6.3 0.00 0.01 U250 MNFWZ 223.30 226.10 2.80 2.38 3.63 49.3 0.02 0.18 And MNFWZ 265.35 266.40 1.05 0.89 0.92 20.7 0.01 0.07 U251 MNFWZ 296.65 303.95 7.30 6.85 1.12 57.7 0.09 2.36 And MNFWZ 326.10 348.65 22.55 21.20 1.56 18.9 0.00 0.05 including 342.25 347.65 5.40 5.08 5.14 58.4 0.01 0.14 U254 MNFWZ 371.25 372.25 1.00 0.81 1.45 23.00 0.02 0.44 And MNFWZ 412.50 413.50 1.00 0.82 0.96 14.00 0.02 2.27 And MNFWZ 419.85 428.00 8.15 6.67 5.16 180.53 0.09 0.33 including 421.10 428.00 6.90 5.65 6.01 209.80 0.11 0.38 For further information: Capstone Mining Corp. Cindy Burnett, Investor Relations Telephone: +1-604-637-8157 Email: firstname.lastname@example.org Website: http://www.capstonemining.com
SOURCE Capstone Mining Corp.