RobbyGG
10 years ago
Q3/14 Operating Results
The Q3/14 financial results are to be released after-market on Wednesday October 29, 2014, with the conference call the following day at 11:30 AM EST.
In comparison to the latest results released by Daniel Earle, Capstone mining reported Q3/14 production of 26.2 kt of copper (concentrate plus cathode), in line with his forecast of 26.0 kt. At Pinto Valley, throughput of 48.9 ktpd was in line with his forecast of 49.0 ktpd, while grades and recoveries of 0.39% Cu and 90.3% were in line with his expectations of 0.39% Cu and 89.1%, respectively. Guidance for 2014 remains unchanged at approximately 102 kt of copper at net cash costs of US$1.90-US$2.00 per payable pound Cu.
Guidance is being kept at Neutral.
At Pinto Valley, copper grades decreased during the quarter to 0.39% Cu from 0.46% Cu in Q2/14, while recoveries of 90.3% increased slightly from 89.1% in the prior quarter. Throughput increased to 48.9 ktpd from 45.7 ktpd in Q2/14, in line with Daniel Earle's expectations 49.0 ktpd. Daniel Earle expected incremental improvement in throughput to come largely from improving reliability in H2/14.
At Cozamin, recoveries were relatively flat 93.0% versus 92.7% the prior quarter; throughput and grades were 3.3 ktpd and 1.76% Cu respectively, lower than Daniel Earle's estimates of 3.5 ktpd and 1.85% Cu. The lower grades were reportedly due to the installation of additional ground support impacting the release of higher grade mining areas. Copper grades improved in September, slightly later than the company's 2014 mine plan, which expected grade returning to 1.85% Cu in H2/14.
At Minto, throughput and grade of 3.9 ktpd and 1.41% Cu respectively were in line with Daniel Earle's estimates of 4.0ktpd and 1.40% Cu; while recoveries of 93.8% was in line with the previous quarter of 94.2%. Daniel Earle noted that copper grades continue to fall (copper head grades in Q3/14 were 1.41% Cu, down from 1.45% Cu in Q2/14 and 1.59% Cu in Q1/14) as more stockpile than originally planned continued to be milled to maximize throughput; the company indicated processing in the fourth quarter will be from stockpile.
Some things to look forward to:
Permit for the operation of the port (Maritime Concession) – Q4/14E
Power agreement – H2/14
Approval of EIA (stage-gate)– Q1/15E
Engineering to advance to 60% to 65% (stage-gate) – Q3/15E
Engineering complete – Q1/16E
Production at Santo Domingo– H1/18E
Good luck to all!
goforthebet
15 years ago
Haywood names Detour Gold, Capstone Mining, B2Gold as top picks this year
http://www.mineweb.co.za/mineweb/view/mineweb/en/page67?oid=95396&sn=Detail
Haywood Securities analysts see many positives that should benefit gold and silver this year, and forecast a modest recovery in global base metals demand.
Author: Dorothy Kosich
Posted: Thursday , 07 Jan 2010
RENO, NV -
Haywood Securities top metals and mining picks this year are Detour Gold (TSX: DGC), Alamos Gold (TSX: AGI), Capstone Mining (TSX: CS), Farallon Mining (TSX: FAN), B2Gold (TSX: BTO), and Bear Creek Mining (TSX: BCM).
Metals and mining analysts Stefan Ioannou, Geordie Mark, Kerry Smith and Chris Thompson said Wednesday, "Gold continues to perform well, and we see many positives that should be supportive over the course of 2010."
"Additional concerns over the pace of a global economic recovery should also provide strong investor interest for both gold ETFs and gold equities," they advised. Haywood's estimated 2010 gold price is currently US$1,000 per ounce with spot gold currently around US$1,125 per ounce.
The analysts also forecast a silver price of US$15.25 for this year versus a spot price of $17.50/oz.
BASE METALS
In their analysis, Haywood said economic indicators suggest a modest recovery in global base metals demand which should help support base metal prices going forward.
Copper
In the short term the analysts expect copper prices will decline from their current levels "as a result of relatively modest overall fundamental demand growth coupled with high inventory levels-we note our 2010E average copper price forecast of US$2.75 per pound, London Metal Exchange inventory levels increased considerably during 2009, closing the year at approximately half a million tonnes-the highest levels since April."
"Over the longer term, we maintain our bullish outlook relative to historical levels and believe that U.S.-driven sentiment for soft demand will be overshadowed by global growth over the next two to three years, specifically in China, Asia, and India," they said.
"We are forecasting a decline in copper prices after 2011, reaching our long-term estimate of US$2.25 per pound in +2013 as new mine production comes on line," they added. "However, we continue to believe future mine production will depend largely on lower grade mines, which will redefine the industry's cost regime."
Zinc
Haywood has forecast an average zinc price of US$1 per pound this year, followed by an average zinc price of $1.15 in 2011. ‘We are forecasting that zinc prices will decline after 2011, reaching our long-term estimate of US$0.95 per pound in +2013," the analysts predicted. "Zinc prices could be volatile over the medium term, as new supply is not evident, and older mines are closed or mine lower grades."
Lead
The analysts estimate that lead will average US$1/lb this year and increase to $1.15/lb in 2011, then decline to a long-term estimate of 95-cents/lb in +2013. "The International Lead and Zinc Study Group forecasts lead consumption to increase by 3% in 2010," they said. "Additionally, Brunswick, one of the largest lead/zinc mines in the world, will close by the end of 2010 and provides further support for our positive outlook for both lead and zinc."
Nickel
"Reduced mine supply from production cutbacks announced last year should lead to a tight nickel market, and we anticipate nickel prices will increase to US$9 per pound in 2011, declining to our long-term estimate of US$7.50 per pound in +2013," the analysts said.
"The nickel market will be well supplied going forward, with production re-starts from Vale Inco (10% of world supply) once the strike is settled, another 4-5% from new mines coming on stream (Santa Rita and Talvivaara) and another 200,000 tonnes of new production (15% increase) under construction, including Koniambo, Ambatovy, Onca Puma and Barro Alto. In addition, the nickel pig iron produced from laterites in the Philippines and Indonesia continues to drop in cost and this material is also available to supply the nickel market going forward."
Molybdenum
Haywood predicts that molybdenum prices will increase to US$15/lb this year, and $20/lb in 2011, declining to a long-term estimate of $15/lb in +2013. "Looking ahead, we believe global molybdenum roasting capacity, currently at 480 million pounds per annum, is an important consideration, with some (arguably bullish) market commentators forecasting world consumption in excess of 480 million pounds within the next two years," the analysts said. "Looking further ahead, we expect growing demand fundamentals to dominate the molybdenum market, noting that the current list of greenfields projects lacks a significant number of large-scale ventures to potentially fill the expected supply deficit."
HAYWOOD TOP PICKS
Metals analyst Kerry Smith's top pick this year is Detour Gold, which he rated Sector Outperform and set a target price of $20.25 per share. "We remain bullish on the outlook for the company and believe that management will continue to deliver on reserve growth and are committed to development of this asset [the Detour Lake gold project in north-eastern Ontario," he wrote.
Smith suggests Detour Lake's gold reserves will increase from 8.81 million to at least 10 million ounces in the next resource/reserve update due to be released in the current quarter. "We believe investors will benefit from continued de-risking of this large gold deposit in Canada as Detour completes a full feasibility in Q2/10," he said. "Most importantly, the deposit is large, 100% owned, and has good infrastructure, making Detour Gold an ideal candidate for consolidation."
Top pick #2 for Smith is Alamos Gold, which he rated Sector Outperform with a $14/sh target.
"Alamos has completed a number of operational improvements in recent years, having a positive effect on crushing rates, increased leach recoveries, and lower operating costs at its 100% owned Mulatos mine in Mexico," Smith noted.
Meanwhile Alamos closed the acquisition of the Agi Dago and Kirazli project in Turkey last month. The two projects combined have a measured and indicated oxide resource of 1.3 million ounces of gold and 8.4 million ounces of silver.
Haywood expects Alamos to produce 200,000 ounces of gold in 2010 at total cash costs of US$325 per ounce increasing production to 350,000 ounces of gold production at total cash costs of $265/oz nu 2012.
Analyst Stefan Ioannou's top pick is Capstone Mining, which he rated Sector Outperform with a $3.50 per share target. "Low-cost producer status in low-risk jurisdictions, coupled with a strong balance sheet and proven management, separates Capstone from its peers," he said. "We believe recent share price weakness continues to provide a buying opportunity. Hence our SECTOR OUTPERFORM rating."
"In the sea of copper ‘development' stories, Capstone has successfully made the transition from explorer to producer ahead of many peers, providing investors with immediate exposure to positive cash flows from two low-cost mines, coupled with the ‘insurance' of a net-debt-free balance sheet," he added.
In his analysis, Ioannou highlighted the 45 million of annual copper production from Capstone's Minto mine in the Yukon and the 40 million to 45 million of copper production expected this year from the Cozamin mine in Mexico.
Ioannou second top pick is Farallon Mining, which he rated Sector Outperform with a target of 75-cents per share. He is particularly bullish about Farallon's G-9 polymetallic mine in Guerrero State, Mexico.
"G-9's low-cost production profile positions Farallon for immediate free-cash flow generation and represents and investment opportunity that has been overlooked and undervalued by the market," he said.
Analyst Chris Thompson's top pick is B2Gold Corp., which he rated Sector Outperform with a target of $1.75/sh. "B2Gold is an emerging gold mining with two producing assets-the Orosi and El Limon mines in Nicaragua, a past producer-the Bellavista mine in Costa Rica and explorations properties in Nicaragua, Columbia and Russia," he wrote. "Development enhancements are anticipated through exploration and resource growth in Nicaragua complimented by exploration activity in Columbia and Russia."
Thompson's second top pick is Bear Creek Mining, which he rated Sector Outperform with a target of $5.40 per share.
Bear Creek is developing two key projects, the Corani silver-lead-zinc project and the Santa Ana silver project, both located in Peru. "By advancing two significant silver-lead-zinc projects through to final feasibility, Bear Creek offers leverage to the silver, lead and zinc price," Thompson wrote.
"BCM has two top ten silver mines in the making, with lead and zinc credits and long life resources bases valued at US$0.24/ Eq Ag resource oz. Recent M&A activity highlights potential for further gains on the back of economic refinements and drilling at Corani + Santa Ana."
goforthebet
15 years ago
Capstone to produce as much as 100Mlb of copper in 2010
By: Liezel Hill
17th December 2009
TORONTO (miningweekly.com) – Vancouver-based Capstone Mining has forecast production in 2010 of between 90-million and 100-million pounds of copper in concentrates, the company reported on Thursday.
Capstone produces copper from its Cozamin mine, in Mexico, and the Minto operation, in Canada's Yukon territory.
The firm has forecast production of 95-million pounds of copper in concentrates this year, at a total cash cost of about $1/lb.
The company expects total cash costs next year of about $1,10/lb to $1,20/lb of payable copper, net of byproduct credits and selling costs.
Around 55% of total production in 2010 will come from Minto, with 45% expected from the Cozamin mine.
"With both of our mines, Cozamin and Minto, having been through a series of expansions over the past two to three years and now performing at or above design, we are looking forward to another good year in 2010," said CEO Darren Pylot.
"We are focused on fully optimizing efficiencies and production costs, with the objective of maximizing the profitability of the pounds we produce."
At Cozimin, the company is now mining from the wider, higher-grade portions of the deposits, and so output is expected to be higher next year than in 2009.
“Higher throughput, grades and recoveries are forecast for 2010 as compared to 2009 as a result of continued mill outperformance and sustained access to these wider, higher grade stopes,” the company said.
At Minto, copper production is expected to be similar to 2009, with increased throughput and a somewhat lower grade forecast for 2010.
The increased cash costs reflect lower overall grades.
Shares in Capstone Mining slid 1,4% on Thursday, to C$2,81 apiece by 15:59 in Toronto.
Edited by: Liezel Hill
GettinThere
16 years ago
Sherwood & Capstone Announce Combination to Create Intermediate Copper Producer
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/08/08 -- Sherwood Copper Corporation (TSX VENTURE: SWC)(TSX VENTURE: SWC.DB) and Capstone Mining Corp. (TSX: CS) have entered into a Letter Agreement to combine, by way of a plan of arrangement or other form of business combination, to create a well-funded, low-cost, growth-oriented, copper company with two producing mines in mining friendly jurisdictions in North America. The two companies have agreed to combine on an "at-market" basis whereby each Sherwood shareholder will receive 1.566 shares of Capstone (based on the 20-day volume weighted average share price of the two companies). The boards of directors of Sherwood and Capstone have unanimously approved the terms of the transaction.
Transaction Rationale
Capstone and Sherwood believe this merger will realize significant benefits for each of the company's shareholders, including:
- Significant production growth, with forecast production of 85 million pounds of copper in 2008, increasing to 110 million pounds in 2009, with significant by-products of gold, silver, lead and zinc, as previously disclosed;
- Low cost production with forecast total cash costs of under US$1.00 per pound of payable copper in 2008 and 2009, including all off-site costs and net of by-product credits, generating significant free cash flow to fund corporate growth opportunities;
- An aggressive, growth oriented company focused on maximizing the value of its existing high grade mines, Cozamin and Minto, through sequential increases in resources, reserves and production; the pursuit of value through continual improvements at its operations; the advancement of the high grade Kutcho project towards a production decision and accretive merger and acquisition opportunities.
- Diversification of operational and geographic risk with the high grade open pit Minto copper-gold-silver mine in Canada and the high grade, underground Cozamin copper-silver-zinc-lead mine in Mexico.
- Increased market capitalization that should improve trading liquidity for shareholders of the combined company.
- Continued focus on optimization and cost reduction strategies, with the Cozamin mill throughput set to increase to 3,000 tonnes per day and Minto to 3,200 tonnes per day by the end of 2008. Minto will also reduce exposure to high fuel costs for electrical power generation by connecting to grid power in Q4/08.
- Excellent exploration upside at both the Cozamin and Minto mines, where high grade resources have been increased by 47% and 140%, respectively, over the past two years, exclusive of the results from major exploration programs completed in 2008, many of the results for which are still pending. Sherwood completed 120 holes at Minto and 81 holes at Kutcho in 2008, the results for approximately half of which remain to be reported, while Capstone has completed 7,000m of underground and 25,000m of surface drilling at Cozamin, the results of which are to be incorporated into an updated resource and reserve estimate.
- A combined management team with complementary experience and a proven track record of building and profitably operating mines to create shareholder wealth, supported by a seasoned and experienced board of directors.
- Exposure to the potential development of the high grade Kutcho copper-zinc-gold-silver project in northwestern British Columbia, where a preliminary economic assessment (see Sherwood news release dated June 12, 2008) indicated potential for production of 45 million pounds of payable copper per year at a cash cost of less than $1.00 per pound (net of by-product credits) and outlined several opportunities for further project enhancements.
- Strong balance sheet to support growth strategies.
- Enhanced market exposure for Sherwood's shareholders through access to Capstone's TSX listing and increased weighting in the TSX composite index.
- Broadened research coverage for Capstone's shareholders through Sherwood's analyst coverage, presently at nine firms across the spectrum of Canadian brokerages.
Capstone and Sherwood further believe that their shareholders will benefit from the tax-effective combination of the two companies and allow for participation in the upside from the significantly enhanced business platform.
Board & Management
The board and management structure of the combined company will draw on the expertise of both companies and the board will include four current Sherwood directors, one current director of Capstone and one nominee of Capstone. Colin K. Benner has agreed to serve as non-executive Chairman. Darren Pylot (currently President & CEO of Capstone) will become Vice Chairman and CEO and Stephen Quin (currently President & CEO of Sherwood) will become President & COO of the combined company. Richard Godfrey (currently Chief Financial Officer of Sherwood) will become Chief Financial Officer of the combined company; other senior management from both companies will be integrated into the senior management of the combined company, retaining many of the same responsibilities. Capstone and Sherwood intend to capitalize on the success of their respective strategies for the operation, expansion and exploration of the high grade Cozamin and Minto copper mines, located in Zacatecas, Mexico, and Yukon, Canada.
"Capstone and Sherwood have each looked at numerous merger and acquisition possibilities over the past year and have concluded that this is the most compelling consolidation opportunity in the sector," said Darren Pylot, President & CEO of Capstone. "The combined management teams are a great fit, with complementary skills and experience and a common focus on acquiring and operating high grade, low cost operations in mining-friendly, politically stable jurisdictions. Operationally, the high grade Cozamin and Minto copper mines are tremendous assets, and each is undergoing a third expansion program and, combined, should produce more than 100 million pounds of copper at cash cost of less than a dollar per pound in 2009. These operations provide an excellent platform for future growth."
"The combination of Sherwood and Capstone is a highly complementary transaction," said Stephen Quin, Sherwood's President & CEO. "Capstone's strong cash and investments and modest copper hedging program is complementary to Sherwood's more leveraged balance sheet and larger copper hedging program (through the end of 2011). Both Sherwood and Capstone have production expansion opportunities at their Minto and Cozamin mines, which we aim to advance as soon as practicable, and Sherwood offers significant organic growth potential through continued exploration success at Minto and a high grade development opportunity at its Kutcho copper project."
Transaction
Capstone and Sherwood anticipate that the transaction will be carried out by way of statutory plan of arrangement of Sherwood whereby Capstone would acquire all of the issued shares of Sherwood and Sherwood would become a wholly-owned subsidiary of Capstone (the "Arrangement"). The transaction would be subject to certain standard conditions including that not less than 66 2/3% of the issued and outstanding shares of Sherwood being voted at a shareholders meeting being in favour of the transaction. However, the parties may consider an alternative form of transaction, such as an amalgamation or other form of business combination, as mutually determined by Capstone and Sherwood.
Full details of the offer will be included in the formal Arrangement Agreement and Management Information Circular to be filed with the regulatory authorities and mailed to Sherwood shareholders in accordance with applicable securities laws. Under the Arrangement Capstone will acquire all of the issued and outstanding shares of Sherwood in consideration for the issue of Capstone shares on the basis of 1.566 Capstone shares for every Sherwood share. The Arrangement is an "at market" transaction with no premium to either party, based on the 20-day volume weighted average price of each of Capstone and Sherwood to September 5, 2008. Based on the current Sherwood shares outstanding, the transaction would involve the issuance of approximately 84 million Capstone shares, which equates to 105% of Capstone's shares outstanding.
The proposed transaction is expected to be completed before the end of 2008 and is subject to certain customary conditions, including receipt of all necessary court and shareholder approvals and dissent rights to the Arrangement shall not have been exercised prior to the effective date of the Arrangement by holders of Sherwood shares representing in the aggregate 5% or more of outstanding Sherwood shares at such time. It is anticipated that a special meeting of shareholders of Sherwood (the "Meeting") will be held at a time yet to be determined to approve the proposed transaction.
Under the terms of the Arrangement, each Sherwood shareholder will be entitled to 1.566 Capstone shares for every one Sherwood share held. Sherwood's outstanding options and warrants adjusted in accordance with their terms so that the number of Capstone shares received upon exercise and the exercise price are adjusted proportionately to reflect the exchange ratio described above.
The transaction is subject to the consent of Sherwood's lenders under the provisions of its debt facilities.
Following a change of control event in Sherwood, Capstone must, within 30 days of the occurrence of the change of control, make an offer to redeem all of Sherwood's convertible debentures then outstanding. The offer to purchase must be made at a purchase price equal to 101% of the principal amount of the debentures, plus accrued and unpaid interest thereon, if any, up to but excluding the date set for the completion of the offer to purchase. Capstone has had indications of interests from a financial institution in providing a debt facility up to the amount of the convertible debentures, should Capstone decide it wishes to avail itself of this option.
Capstone has engaged Scotia Capital as its financial adviser and Blake, Cassels & Graydon LLP as its legal advisor in respect of this transaction. Sherwood has engaged Haywood Securities Inc. as its financial advisor and Gowling Lafleur Henderson LLP as its legal advisor in respect of this transaction.
Conference Call
Capstone and Sherwood will hold a conference call at 11:00 AM Toronto time (8:00 AM Vancouver time) on Tuesday September 9, 2008 to allow shareholders, securities analysts and investors the opportunity to hear management discuss the business combination outlined herein. The call can be accessed by dialling (toll free) 1-866-334-3876 or at 416-849-4292. The call will also be webcast by Vcall; the call and presentation can be accessed at Capstone's or Sherwood's websites at www.capstonemining.com or www.sherwoodcopper.com, respectively. The call will also be available for replay by dialling (toll free) 1-866-245-6755 or 416-915-1035 (Passcode 130485) for 14 days.
About Capstone Mining
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. The Cozamin Mine produced 6.7 million pounds of copper at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt, and approximately US$100 million in working capital and marketable securities as of June 30, 2008, based on current share prices.
Additional information on Capstone Mining and its Cozamin Mine is available on Capstone's website at http://www.capstonemining.com.
About Sherwood Copper
Sherwood Copper owns 100% of the high grade Minto copper-gold mine in Yukon, Canada, which was built on budget and ahead of schedule in 2007. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. With 140% growth in resources in two years, followed by a successful 2008 drilling program, Sherwood plans to evaluate options for further significant production expansions. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advancing towards production. The Minto Mine produced 12.8 million pounds of copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008. Sherwood has approximately 53.8 million shares outstanding and, at June 30, 2008, had approximately $51.7 million in project related debt, $43.6 million in convertible debentures, and $8.1 million drawn against a corporate credit facility, after repaying US$16.9 million in the first six months of 2008.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood's website at http://www.sherwoodcopper.com.
GettinThere
17 years ago
Capstone 2008 Expansion and Exploration Plans and Increases Production Forecasts for 2008 and 2009
Thursday January 17, 7:00 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jan 17, 2008 -- Capstone Mining Corp. ("Capstone") (Toronto:CS.TO - News) is pleased to report its 2008 expansion and exploration plans and budgets for the Cozamin mine located in Zacatecas State, Mexico. All dollar amounts are stated in U.S. dollars unless otherwise stated.
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MINE EXPANSION
Capstone is pleased to report it has started the expansion of the Cozamin mine from the current rate of 2,200 tonnes per day ("tpd") or 750,000 tonnes per year ("tpy") to 3,000 tpd or approximately 1 million tpy, a 36% increase in production. This expansion is expected to be completed by September 2008 at a total budgeted cost of $9.5 million (including a 15% contingency). The major areas of the expansion include the following; a new larger production ramp will be driven from surface down to the internal level 8 decline ramp within the mine (approximately 1,400m). The internal ramps from level 8 to 12 level will be enlarged and the underground crusher will be moved to a new dump pocket at level 11.5. This larger production ramp will provide the required additional ore haulage capacity and will compliment the 2,000 tpd shaft as well as allowing larger sized trucks to transport ore to surface. The cost of the ramp and equipment is estimated to be $4.0 million. A new 115kV high tension power line and substation will be constructed to supply up to 7.5mW to the mine. A 1.5mW generator will also be added to provide additional power to the mine before power line completion and will be used as an emergency power supply in the future when power outages occur. The upgrade in power is estimated to cost $3.6 million. Modifications within the plant include increasing belt sizes within the crushing area and larger floatation cells to handle the increase in concentrates. This is estimated to cost $1.2 million. An additional 6m lift will be added to the tailings dam at a cost of $700,000.
PRODUCTION FORECAST
As a result of the expansion to 3,000 tpd, Capstone is revising upward its 2008 and 2009 metal production forecast as follows;
------------------------------------------------
2008F 2009F
------------------------------------------------
------------------------------------------------
Tonnes milled 850,000 1,000,000
------------------------------------------------
------------------------------------------------
Copper (payable lbs) 30,000,000 40,000,000
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Silver (payable ozs) 1,300,000 1,500,000
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Zinc (payable lbs) 9,000,000 10,000,000
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Lead (payable lbs) 5,100,000 5,000,000
------------------------------------------------
EXPLORATION
A total of 18,000m of underground drilling and 650m of underground drifting are planned within the Cozamin mine. This drilling will be to upgrade existing inferred resources to the measured and indicated categories as well as to continue to explore to depth. This 2008 program is budgeted to cost $2.5 million (including a 15% contingency).
An additional 6,500m will be drilled from surface to explore the Mala Noche vein along strike and outside of the current resource area. The program is budgeted at $1.7 million (including a 15% contingency).
Robert B. Barnes, P.Eng, Vice President of Operations for Capstone and a qualified person under NI 43-101, has reviewed and approved the contents of this news release.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.4 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
This press release contains "forward-looking information" that is based on Capstone's current expectations, estimates, forecasts and projections. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Capstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Capstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Contact:
Contacts:
Capstone Mining Corp.
Chris Tomanik
(604) 684-8894
Email: ctomanik@capstonemining.com
Capstone Mining Corp.
Mark Patchett
(604) 684-8894
(604) 688-2180 (FAX)
Email: mpatchett@capstonemining.com
Website: www@capstonemining.com
GettinThere
17 years ago
Capstone Increases Resources to 8.6 Million Tonnes at the Cozamin Mine
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2007) - Capstone Mining Corp. (TSX:CS) -
HIGHLIGHTS
- An updated resource estimate has been completed for the Cozamin mine, as of August 31st, 2007.
- At a 1% cut-off grade:
- The resource update yields a 47% increase in tonnage with a 51% increase in contained copper and 54% in contained silver.
- The Measured and Indicated categories increase to 5.5 million tonnes containing 287 million pounds of copper, 131 million pounds of zinc, 47 million pounds of lead and 15.2 million ounces of silver.
- The Inferred category increases to 3.1 million tonnes containing 170 million pounds of copper, 80 million pounds of zinc, 16 million pounds of lead and 8.7 million ounces of silver.
- The resource reflects the tonnes mined as of August 31, 2007.
UPDATED COZAMIN RESOURCE YIELDS INCREASED TONNAGE
This new resource estimate significantly increases both the tonnage and contained metal within all of the resource categories, while maintaining its high grade. The following table shows the break down of resources at a 1% copper cut-off.
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Tonnes Million
Resource (1% Cu Cu Ag Zn Pb Au Million lbs(i) ozs(i)
Category Cut-off) (%) (g/t) (%) (%) (g/t) Cu Zn Pb Ag
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Measured 2,900,000 2.34 85.85 1.09 0.47 0.04 149.6 69.7 30.1 8.0
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Indicated 2,585,000 2.41 86.92 1.07 0.30 0.04 137.4 61.0 17.1 7.2
--------------------------------------------------------------------------
Measured &
Indicated 5,485,000 2.36 86.04 1.08 0.39 0.04 287.0 130.6 47.2 15.2
--------------------------------------------------------------------------
Inferred 3,124,000 2.47 86.37 1.16 0.23 0.04 170.2 79.9 15.9 8.7
--------------------------------------------------------------------------
Note: (i) 1 kilogram equals 2.2 lbs.; 31.103 grams equals 1 oz. Troy
This new resource estimate has been completed by qualified person Michelle Stone, P.Geo., Ph.D., of Capstone Mining Corp., Vancouver, B.C. This estimate is based on an updated 3D geologic model integrating an additional 26,266 metres of diamond drilling including 5,828 assays from 5 surface and 70 underground NQ-core drill holes and 6,954 underground chip channel samples collected in 2006 and 2007. These data augmented the 25,325 meters of drilling in 37 surface and 66 underground core holes and 1,103 underground chip channels samples used in the 2006 resource estimate. Grades for the model were estimated using the inverse distance squared (ID2) method from 2 metre composited intervals within the copper sulphide zone, and the mineralized hangingwall and footwall.
Resource tables and drill intercepts locations related to the above totals for the updated Cozamin resource estimate will be available on the Company's website www.capstonemining.com.
A technical report on the Cozamin Mine Project will be filed with SEDAR within 45 days.
The Company has already commenced a program of underground infill drilling to upgrade the inferred resources. In addition, the Company plans to undertake both surface and underground drilling in 2008 to explore along strike and down dip of the updated resources.
Hugh Willson, Vice President of Exploration for Capstone and a qualified person under NI 43-101, has reviewed the contents of this news release.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.7 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
This press release contains "forward-looking information" that is based on Capstone's current expectations, estimates, forecasts and projections. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Capstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Capstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Capstone Mining Corp.
Chris Tomanik
(604) 684-8894
(604) 688-2180 (FAX)
Email: ctomanik@capstonemining.com
Website: www.capstonemining.com
Source: CCN Matthews (October 15, 2007 - 5:46 PM EST)
GettinThere
17 years ago
Capstone Declares Expanded Commercial Production at Cozamin and Highlights Q4 Production and Sales
Marketwire
Capstone Mining Corp.
October 11, 2007 - 09:02:09 AM
Capstone Declares Expanded Commercial Production at Cozamin and Highlights Q4 Production and Sales
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2007) - Capstone Mining Corp. ("Capstone")(TSX:CS) is pleased to report that it has completed the expansion and commissioning of the 120% increase in production at its Cozamin mine located in Zacatecas State, Mexico. Commissioning of the mine expansion from the initial 350,000 tonnes per year (1,000 tonnes per day) to 750,000 tonnes per year (2,200 tonnes per day) began
in late May, with start up commencing in mid-June. Production in July and August averaged 1,900 tonnes per day or 86% of planned throughput. Production in September has averaged 1,977 tonnes per day or 90% of planned throughput and has achieved over 2,200 tonnes on successive days. During the first week
of October the mine has operated at designed throughput.
"Having declared commercial production at the 2,200 tonne per day rate in just 12 months from our initial production at Cozamin, will provide our shareholder's with increased cash flow and earnings from the Cozamin Mine," said Darren Pylot, President and CEO. As announced on July 19, 2007, the expansion was completed under budget and ahead of its scheduled completion date of October 2007. 100% of the capital was provided from internal cash flow.
PRODUCTION AND SALES FROM THE COZAMIN MINE IN FISCAL 2007
(all figures unaudited)
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Q1 Q2 Q3 Q4 Total
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Milled tonnes 93,055 95,439 112,277 161,162 461,883
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Copper Produced (lbs) 2.7M 2.8M 3.5M 4.8M 13.8M
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Copper Sales (lbs) 2.9M 2.1M 2.9M 3.9M 11.8M
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Zinc Produced (lbs) 1.9M 1.2M 1.6M 2.1M 6.8M
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Zinc Sales (lbs) 1.9M Nil 1.5M 1.6M 5.0M
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Lead Produced (lbs) 0.9M 0.5M 0.6M 1.0M 3.0M
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Lead Sales (lbs) Nil 1.4M 0.7M 0.7M 2.8M
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Note: Audited results for the fiscal year ended August 31, 2007 will
be reported in November 2007.
NORMAL COURSE ISSUER BID
Further to the news release dated July 12, 2007 Capstone purchased 484,100 common shares at an average price of $2.38. The shares have been returned to the transfer agent and subsequently cancelled. Capstone has 81,732,351 shares outstanding after the cancellation of the above share purchases.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.7 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
This press release contains "forward-looking information" that is based on Capstone's current expectations, estimates, forecasts and projections. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Capstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial
markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations
matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information.
Capstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Capstone Mining Corp. Chris Tomanik (604) 684-8894 (604) 688-2180 (FAX)Email: ctomanik@capstonemining.com Website: www.capstonemining.com
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