Capstone Reports New High Grade Copper-Gold Discovery at Minto Mine
Discovery Hole 10SWC635 intercepts 2.4% Cu & 0.8g/t Au over 10.8m (including 3.7% Cu & 1.0g/t Au over 5.2m)
VANCOUVER, July 15 /PRNewswire-FirstCall/ - Capstone Mining Corp. (CS: TSX) today announced assay results from a new high grade copper-gold discovery, called "Wildfire", at its Minto Mine. The Wildfire discovery was made as a result of testing of an extensive geophysical anomaly detected during a deep penetrating IP survey being conducted over the Minto Mine property. Mineralized intercepts from three additional step-out holes, similar to the discovery hole, are being prepared for shipment to the assay lab and a third exploration drill is being sent to the mine to accelerate the assessment of this new discovery. Highlights from Wildfire discovery hole 10SWC635 are summarized in the table below.
Highlights of the Discovery Drill Hole at Wildfire
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From To Interval Interval Copper Gold Silver
Hole ID Target Area (m) (m) (m) (ft) (%) (g/t) (g/t)
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10SWC-635 Wildfire 87.5 98.3 10.8 35.4 2.41 0.81 6.8
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including 87.5 96.3 8.8 28.9 2.79 0.79 7.2
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including 91.1 96.3 5.2 17.1 3.74 0.96 10.1
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"The discovery of yet another high grade copper-gold zone reinforces the tremendous prospectivity of the Minto Mine property," said Stephen Quin, President of Capstone. "Geophysics suggests that the Wildfire discovery could have a significant aerial extent, is relatively shallow, and the grades from the first hole are very encouraging. With three more mineralized intercepts within the geophysical anomaly, we have elected to bring in a third drill rig to rapidly assess the potential of this exciting discovery."
Wildfire Discovery - Minto Mine
As reported on June 23, 2010, Capstone is undertaking a property-wide Titan-24 deep penetrating Induced Potential ("IP") survey. The survey is wrapping up this week but preliminary results identify a number of chargeability anomalies in areas untested by previous drilling. The Wildfire anomaly is one of the strongest and most extensive IP anomalies yet identified at Minto. Based upon the size, strength, and location with respect to known deposits, a decision was taken to drill Wildfire based upon the preliminary IP data only.
The Wildfire IP chargeability anomaly measures more than 900 metres north-south by more than 250 metres east-west. Previous drilling at Copper Keel North, Copper Keel South and at Airstrip, all with good results, had skirted the perimeter of the recently delineated Wildfire anomaly, but had not tested the main portion of anomaly. The discovery hole, 10SWC-635 reported herein, and three subsequent holes completed to date are targeted within the main part of the anomaly. More drilling is required to determine if mineralization is continuous between the known mineralization previously identified at Copper Keel North, Copper Keel South, and Airstrip. Capstone's most recent 3D geology model for Area 2 suggests continuity between Area 2 and Copper Keel North, and now geophysics suggests continuity right across to Wildfire and Copper Keel South. Drill road construction has commenced in order to facilitate a systematic drill pattern at Wildfire across its entire extent.
The mineralization at Wildfire is principally comprised of chalcocite, along with lesser bornite, chalcopyrite and native copper. Due to the presence of coarse native copper, additional screen analysis assays are being conducted to ensure such material is not being lost in the routine assay approach. Similar chalcocite-dominated mineralization was defined in the upper mineralized zone at Ridgetop and returned excellent recoveries and concentrate grades. Metallurgical testing will be required to determine the metallurgical characteristics of the Wildfire discovery.
Additional Minto Drilling
In addition to more drilling at Wildfire, drilling at Minto for the remainder of 2010 will also focus on increasing the confidence in and extending deeper mineral resources at Minto East, Area 2 and Copper Keel, as well as testing other Titan-24 IP anomalies already identified. Further step out and delineation drilling will be required in order to fully define the limits of the mineralization in all areas and to increase confidence levels to a point sufficient to support a conversion to mineral reserves, if economic factors warrant, by demonstrating both continuity of grade and thicknesses.
For current drillhole locations please view the accompanying map:
http://www.capstonemining.com/i/photos/minto/2010-28MintoProperty.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/2010-28MintoDrillResultsUpdate.jpg
For an inset view of drill results at Wildfire on a Chargeability Map (600m asl elevation) please view the accompanying map:
http://www.capstonemining.com/i/photos/minto/2010-28MintoWildfire.jpg
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 project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. 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 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.
SOURCE Capstone Mining Corp.
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