VANCOUVER, April 26, 2011 /PRNewswire-FirstCall/ --
- First Quarter Production of 16.7 Million Pounds of Copper in
Concentrates
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 http://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 http://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.
For further information:
Capstone Mining Corp.
Cindy Burnett, VP, Investor Relations
Telephone: 604-637-8157
Email: cburnett@capstonemining.com
Website: http://www.capstonemining.com
SOURCE Capstone Mining Corp.