Capstone Reports First Quarter Production Results
April 26 2011 - 7:29AM
PR Newswire (Canada)
VANCOUVER, April 26 /CNW/ -- First Quarter Production of 16.7
million pounds of Copper in Concentrates VANCOUVER, April 26 /CNW/
- 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. o 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. o 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. To view this news release in
HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/April2011/26/c6712.html
p Capstone Mining Corp.br/ Cindy Burnett, VP, Investor Relationsbr/
Telephone: 604-637-8157br/ Email: a
href="mailto:cburnett@capstonemining.com"cburnett@capstonemining.com/abr/
Website: a
href="http://www.capstonemining.com"www.capstonemining.com/a /p
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