First Quarter Production of 16.7 million
pounds of Copper in Concentrates
VANCOUVER, April 26 /PRNewswire/ - Capstone Mining Corp.
(TSX: CS) today announced its operating results for the three
months ended March 31, 2011 from its
two operating mines, Cozamin and Minto. Combined production totalled 16.7
million pounds of copper in concentrates, with additional
by-products of lead, zinc, silver and gold.
Q1 2011 Production
|
Q1 2011 |
Copper in concentrates
(millions of pounds) |
|
- Cozamin |
8.6 |
- Minto |
8.1 |
Total |
16.7 |
Operational Highlights for the three months ended
March 31, 2011
The following is a summary of operational highlights for
Capstone during the first three months of 2011:
- Production of 16.7 million pounds of copper contained in
concentrates.
- By-product production of 4.2 million pounds of zinc, 0.8
million pounds of lead and 367,704 ounces of silver in
concentrates. Final gold production is not available since
assaying is done off site, but is estimated at 2,925 ounces for the
quarter.
- At Cozamin, remediation activities in the mine curtailed mining
rates throughout the first quarter. By mid-March most of
these activities were completed and mining commenced in the Avoca
area at the end of March, which is expected to contribute to higher
productivity and grades throughout the remainder of the year.
- At Minto, production was at
low levels in the first quarter due to a combination of lower mill
throughput and lower grades.
-
- The lower grades at Minto were
due to a high grade ore shortfall in Stage 4 of the Main Pit,
resulting in processing less high grade material than
planned. While insignificant in overall volume of ore in the
Main Pit, the decrease in grade negatively impacted metal
production for the quarter. Mining during the first quarter
was focused on mining the final stage of the Minto Main Pit (Stage
5) before freshet where ore grades have been consistent with
plan. Mining of the Main Pit is now substantially
completed.
- Steady improvements to SAG mill throughput were made through
the first quarter. To assist with increasing throughput,
additional crushing capacity has been implemented through contract
crushing, which began in mid-April to remedy the throughput
shortfall until design crushing changes are implemented, expected
late in the third quarter of 2011.
- Minto received the amended
water use license in late March. Once implemented, the
revised license is expected to facilitate improved water management
at Minto during freshet.
Application for the subsequent water use license amendment, which
will permit tailing discharge into the mined out Main Pit, will be
submitted by mid-May.
- The environmental and socio-economic evaluation for the Phase
IV expansion was completed and a decision document was issued
recommending that the project proceed. A temporary amendment
to the current Quartz Mining License was issued in March which
allows stripping to begin for Area 2 mining and development of the
underground portal.
- Pre-stripping has commenced in Area 2 at Minto following completion of mining the
remaining ore in the Main Pit. A new Quartz Mining License at
Minto is anticipated in the second
quarter that will permit the long-term development of Area 2.
Q1 Operating Details
|
Cozamin |
Minto |
Q1 Total |
Production (1)
(contained in concentrates) |
|
|
|
- Copper (000s pounds) |
8,609 |
8,064 |
16,673 |
- Lead (000s pounds) |
757 |
- |
757 |
- Zinc (000s pounds) |
4,174 |
- |
4,174 |
- Silver (ounces) |
325,480 |
42,224 |
367,704 |
- Gold (ounces) |
- |
2,925 |
2,925 |
Mine |
|
|
|
- Tonnes of ore mined |
226,131 |
293,459 |
519,590 |
Mill |
|
|
|
- Tonnes processed |
226,055 |
258,157 |
484,212 |
- Tonnes processed per day |
2,512 |
2,868 |
5,380 |
- Copper grade (%) |
1.87 |
1.56 |
|
- Lead grade (%) |
0.23 |
- |
|
- Zinc grade (%) |
1.20 |
- |
|
- Silver grade (g/t) |
62.4 |
6.3 |
|
- Gold grade (g/t) |
- |
0.52 |
|
Recoveries |
|
|
|
- Copper (%) |
92.4 |
92.3 |
|
- Lead (%) |
65.9 |
- |
|
- Zinc (%) |
69.8 |
- |
|
- Silver (%) |
71.6 |
81.0 |
|
- Gold grade (%) |
- |
67.4 |
|
Concentrates (1) |
|
|
|
Copper concentrates (dmt) |
14,670 |
9,762 |
24,432 |
- Copper (%) |
26.6 |
37.5 |
|
- Silver (g/t) |
600 |
135 |
|
- Gold (g/t) |
- |
9.3 |
|
Lead concentrates(dmt) |
533 |
- |
533 |
- Lead (%) |
64.4 |
- |
|
- Silver (g/t) |
2,454 |
- |
|
- Zinc concentrates (dmt) |
3,944 |
- |
3,944 |
- Zinc (%) |
48.0 |
- |
|
(1) Adjustments based on final settlements will be made in
future periods.
Outlook
Despite low production for the first quarter, Capstone is
maintaining full year 2011 guidance of 80-85 million pounds of
copper in concentrates. At Cozamin, production is expected to
ramp up quickly from first quarter levels now that mining has
recommenced in the Avoca area. At Minto, contract crushing
commenced on April 15, increasing
throughput rates to a level that is expected to allow production to
proceed as planned for the remainder of the year.
Q1 Financial Results Timing
Q1 financial results are expected to be reported in late May or
early June 2011 and will be announced
with conference call details once scheduled.
Cautionary Note Regarding 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 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.
43-101 Compliance
Unless otherwise indicated, Capstone has
prepared the technical information in this news release ("Technical
Information") based on information contained in the technical
reports and news releases (collectively the "Disclosure Documents")
available under Capstone Mining Corp.'s company profile on SEDAR at
www.sedar.com. Each Disclosure Document was prepared by or under
the supervision of a qualified person (a "Qualified Person") as
defined in National Instrument 43-101 Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators ("NI
43-101"). Readers are encouraged to review the full text of
the Disclosure Documents which qualifies the Technical
Information. Readers are advised that mineral resources that
are not mineral reserves do not have demonstrated economic
viability. The Disclosure Documents are each intended to be
read as a whole, and sections should not be read or relied upon out
of context. The Technical Information is subject to the
assumptions and qualifications contained in the Disclosure
Documents.
John Sagman, P. Eng., Capstone's
Vice President, Technical Services, a Qualified Person, reviewed
all Technical Information contained in this news release. In
addition, Gregg Bush, Senior Vice
President and Chief Operating Officer for Capstone, reviewed all
Technical Information in this news release.
SOURCE Capstone Mining Corp.