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Capstone Reports High Grade Intercepts at Cozamin Mine in Step Out and Infill Drilling


News provided by

Capstone Mining Corp.

Apr 14, 2011, 06:57 ET

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Infill Hole U256 Intercepts 8.5% Cu & 75g/t Ag over 4.4m within a broader interval of 4.5% Cu & 41g/t Ag over 9.7m
Step-out Hole U259 Intercepts 5.0% Cu & 59g/t Ag over 5.7m within a broader interval of 2.5% Cu & 29g/t Ag over 13.6m
Step-out Hole U255 Intercepts 4.5% Cu & 75g/t Ag over 2.1m within a broader interval of 2.8% Cu & 84g/t Ag over 3.8m

VANCOUVER, April 14 /PRNewswire/ - Capstone Mining Corp. (TSX: CS) today announced drill results for four new exploration drill holes on the Mala Noche Footwall Zone ("MNFWZ") at the Cozamin Mine, Zacatecas, Mexico. Highlights are presented in the table below and the full results for all new underground holes on the MNFWZ for which assay data has been received are in the table attached.

"In this latest round of drilling, we are particularly encouraged with the results of the step-out drilling, with both holes for which we have data returning substantial vein widths at excellent grades and very high grades over significant sub-intervals. Hole U259 represents more than a 200 metre step-out to the east and illustrates that much more drilling is warranted in the MNFWZ," said Brad Mercer, VP Exploration for Capstone.  "We are taking steps to bring in higher capacity drills that will allow us to develop a drill program with at least one rig conducting step-out drilling, while two more follow-up with infill drilling. The MNFWZ is clearly open along strike to the east and down dip as can be seen in the diagrams linked to this news release."

Drill Intercept Highlights for Mala Noche Footwall Zone Holes U255, U256 and U259

Hole ID Target Area From
(m)
To
(m)
Interval
(m)*
True Width
(m)*
Copper
(%)
Silver
(g/t)
Lead
(%)
Zinc
(%)
U255 MNFWZ 545.50 549.30 3.80 2.90 2.81 84.3 0.05 0.22
including   547.15 549.30 2.15 1.64 4.45 75.3 0.00 0.12
U256 MNFWZ 290.80 300.45 9.65 7.62 4.49 41.20 0.01 0.21
including   295.50 299.90 4.40 3.47 8.46 75.22 0.02 0.38
U259 MNFWZ 554.00 567.55 13.55 11.66 2.47 29.49 0.01 0.50
including MNFWZ 555.45 561.10 5.65 4.86 5.00 59.01 0.01 1.16

Please view the accompanying long-sections to put the latest drill intercepts into context:

http://capstonemining.com/i/maps/2011-09Cozamin_Cu_Grade_X_Thickness.jpg

http://capstonemining.com/i/maps/2011-09Cozamin_Cu_Grade_Trend.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 ("NI 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.

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 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.

Detailed Assay Intervals for MNFWZ Drill Holes Released April 14, 2011

Hole ID Target Area From (m) To (m) Interval
(m)*
True Width
(m)*
Copper
(%)
Silver
(g/t)
Lead
(%)
Zinc
(%)
U255 MNFWZ 517.75 519.60 1.85 1.41 1.06 54.6 0.05 0.18
And MNFWZ 545.50 549.30 3.80 2.90 2.81 84.3 0.05 0.22
including   547.15 549.30 2.15 1.64 4.45 75.3 0.00 0.12
                   
U256 MNFWZ 248.90 252.55 3.65 2.87 0.43 11.62 0.01 0.22
And MNFWZ 290.80 300.45 9.65 7.62 4.49 41.20 0.01 0.21
including   295.50 299.90 4.40 3.47 8.46 75.22 0.02 0.38
                   
U258 MNFWZ No significant intersections
                   
U259 MNFWZ 554.00 567.55 13.55 11.66 2.47 29.49 0.01 0.50
including MNFWZ 555.45 561.10 5.65 4.86 5.00 59.01 0.01 1.16

 

SOURCE Capstone Mining Corp.

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