Capstone Provides 2008 Expansion and Exploration Plans and Increases Production Forecasts for 2008 and 2009
January 17 2008 - 7:00AM
Marketwired
VANCOUVER, BRITISH COLUMBIA (TSX: CS) 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.
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
------------------------------------------------
Silver (payable ozs) 1,300,000 1,500,000
------------------------------------------------
Zinc (payable lbs) 9,000,000 10,000,000
------------------------------------------------
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.
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
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