VANCOUVER, May 30, 2011 /CNW/ -- At a 0.5% Copper cut-off grade,
total mineral resources at the Minto Mine now exceeds 1 billion
pounds of copper VANCOUVER, May 30, 2011 /CNW/ - Capstone Mining
Corp. ("Capstone") (TSX: CS) today announced the result of a
National Instrument 43-101 compliant mineral resource estimate for
the Wildfire/Copper Keel area at the Minto Mine in Yukon,
Canada. Wildfire/Copper Keel is now recognized as a
southeastwardly extension of the Area 2/118 deposit which is
currently being pre-stripped in preparation for mining. The
combined Area 2/118/Copper Keel/Wildfire mineral resources are now
recognized as a single mineral deposit and will be referred to as
the Minto South Deposit ("MSD"). The Copper Keel region of this
larger deposit model is still open and exploration drilling is
currently in progress with two drills. "The exploration success at
Minto continues to be translated into mineral resource additions
that support the near term growth strategy at our mining
operations. Since 2006 the Minto Mine has realized steady expansion
through a program of discovery and feasibility in a series of
phases that have increased mine life and throughput. Capstone plans
to follow up this latest mineral resource addition with a new
Pre-Feasibility Study (Minto - Phase VI PFS) that is expected to
start in the third quarter of 2011," said Brad Mercer,
Vice-President, Exploration for Capstone. Additional Mineral
Resources by Class in the Wildfire/Copper Keel Region of MSD at a
0.5% Cu Cut-off Grade ("COG")**
_________________________________________________________________________
|Classification| | | | |Contained|Contained|Contained| | | |Copper|
|Silver| Cu | Gold | Silver | | |Tonnes | |Gold | | (000's | (000's
| (000's | | |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|________|______|_____|______|_________|_________|_________|
|Measured (M) | 3,176| 1.09| 0.39| 3.35| 76,071| 40.0| 341.8|
|______________|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 6,198| 1.04| 0.34| 3.18| 142,498| 67.9| 633.9|
|______________|________|______|_____|______|_________|_________|_________|
|Total (M&I) | 9,374| 1.06| 0.36| 3.24| 218,570| 107.9| 975.6|
|______________|________|______|_____|______|_________|_________|_________|
|Additional | 1,113| 0.98| 0.33| 3.22| 24,066| 11.6| 115.3|
|Inferred | | | | | | | |
|______________|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding. **Exclusive of all previous resources estimated for Area
2/118 deposit Mineral resources that are not mineral reserves do
not have demonstrated economic viability. Mineral resource
estimates do not account for mineability, selectivity, mining loss
and dilution. These mineral resource estimates include inferred
mineral resources that are normally considered too speculative
geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves. There is
also no certainty that these inferred mineral resources will be
converted to measured and indicated categories through further
drilling, or into mineral reserves, once economic considerations
are applied. Minto South Deposit (MSD) - Mineral Resource Estimate
Geological modelling using new drill holes from 2010 and 2011
(partial) in the Wildfire/Copper Keel area indicate that Wildfire
and Copper Keel are a southeast extension of mineralization located
on the Area 2 side of the previous Area 2/118 resource model and
not separate deposits as initially thought. Approximately 134
new drill holes were added to the existing database of 235 holes to
estimate a mineral resource for the entire MSD. These new data
indicate a continuity of mineralization between Copper Keel
mineralization and the deeper levels of Area 2. The new model
indicates that there was also continuity of mineralization between
Wildfire and the shallower levels of Area 2 before erosion removed
mineralization and created the false impressions of a gap between
the two deposits. The 219 million pounds of copper gained in
M&I resource class and attributable to the Wildfire/Copper Keel
area of the MSD block model was determined by tabulating all
mineralized blocks at the stated cut-off grade that lie outside of
the southeast perimeter of the previous Area 2/118 block model. The
table below is a tabulation of all mineral resources by class for
the combined Minto South Deposit at a 0.5% Cu COG. Total Mineral
Resources by Class for the Minto South Deposit at a 0.5% COG***
_________________________________________________________________________
|Classification| | | | |Contained|Contained|Contained| | | |Copper|
|Silver| Cu | Gold | Silver | | |Tonnes | |Gold | | (000's | (000's
| (000's | | |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|________|______|_____|______|_________|_________|_________|
|Measured (M) | 10,091| 1.23| 0.46| 4.1| 274,474| 149.7| 1,319.8|
|______________|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 26,295| 0.96| 0.31| 3.3| 552,706| 263.1| 2,812.9|
|______________|________|______|_____|______|_________|_________|_________|
|Total (M&I) | 36,386| 1.03| 0.35| 3.5| 827,181| 412.8|
4,132.4|
|______________|________|______|_____|______|_________|_________|_________|
|Additional | 7,429| 0.82| 0.23| 2.8| 134,296| 55.0| 666.3|
|Inferred | | | | | | | |
|______________|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding. ***This tabulation includes mineral resources previous
outlined for the Area 2/118 deposit. For new mineral
resources added by the new interpolation please refer to the
previous table. Total Undeveloped Resources for the Minto Mine The
following table details the total of all of the undeveloped mineral
resources on the property at a COG of 0.5% Cu. The table includes
Minto North, Minto East, Minto South and Ridgetop as listed form
north to south. Any resources remaining in the Minto Main deposit
are excluded because mining of this pit has been completed.
Existing ore stockpiles are also excluded. At the end of this
news release is also a table of the undeveloped mineral resources
for Minto at select copper COGs. Estimated grade and tonnage stated
at copper COGs below 0.5% copper are for illustrative purposes
only; to show the sensitivity of the mineral resource to changing
copper COGs. Some of the estimated grade and tonnage at lower COGs
may lie outside of any constraints imposed for "reasonableness of
mining" purposes with respect to National Instrument 43-101.
Mineral resources at higher cut-off grades are for illustrative
purposes and do not necessarily imply a higher potential for
economic extraction. Only those mineral reserves determined by
previous feasibility studies are currently considered economically
viable. The property-wide mineral resource numbers reported herein
are inclusive of all previously defined mineral reserves that are
currently supported by previous pre-feasibility work. Please refer
to the Technical Report titled Minto Phase V Preliminary
Feasibility Study Technical Report dated December 15, 2010 filed on
SEDAR for any further discussion about mineral reserves at Minto. A
new pre-feasibility study (Phase VI) is anticipated to start in the
third quarter of 2011 to apply economic considerations to the newly
estimated mineral resources in the Wildfire/Copper Keel extension
of the MSD. Total Mineral Resources by Class for all Deposits
Outside of the Minto Main Pit at a 0.5% Cu COG****
_________________________________________________________________________
|Classification| | | | |Contained|Contained|Contained| | | |Copper|
|Silver| Cu | Gold | Silver | | |Tonnes | |Gold | | (000's | (000's
| (000's | | |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|________|______|_____|______|_________|_________|_________|
|Measured (M) | 13,465| 1.33| 0.53| 4.3| 395,209| 228| 1,881|
|______________|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 30,828| 0.98| 0.33| 3.4| 664,794| 325| 3,334|
|______________|________|______|_____|______|_________|_________|_________|
|Total (M&I) | 44,293| 1.09| 0.39| 3.7|1,060,002| 553| 5,215|
|______________|________|______|_____|______|_________|_________|_________|
|Additional | 8,360| 0.88| 0.27| 2.9| 162,429| 72| 792| |Inferred |
| | | | | | |
|______________|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding. ****Excludes any resources remaining in the Minto Main
Deposit, where mining as now ceased, as well as existing stockpiles
of ore originating in the Minto Main Deposit. Mineral Resource
Estimate Methodology The mineral resource estimate for the
Wildfire/Copper Keel addition to the Minto South Deposit reported
herein was prepared by SRK Consulting of Vancouver. The estimate
was completed in Gemcom Software GEMS© using a three dimensional
block model (10 m by 10 m by 3 m (vertical) block size). The
mineralization was interpreted into nine distinct domains, modelled
as wireframes and used as hard boundaries to constrain
estimation. Geostatistical analysis was completed on the 1.5m
composite assay data for each of the metals, and variograms were
defined for each domain of mineralization. The grades for copper
and gold were interpolated into the block model using ordinary
kriging method. Whereas the silver grades were interpolated using
the inverse distance squared method only. Interpolated results are
reported in measured, indicated and inferred categories and are
based on continuity of the mineralization and sample density. Minto
South Deposit (MSD) -- Mineral Resources by Class at Select Copper
Cut-offs
_________________________________________________________________________________
| | | | | | |Contained|Contained|Contained| | | | | | | | | | | |
|Cut-Off| |Copper| |Silver| Copper | Gold | Silver | | | |Tonnes |
|Gold | | (000's | (000's | (000's | |Classification| (Cu%)
|(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Measured (M) | 2.0 | 1,370 | 2.59 |1.14 | 9.20 | 78,095 | 50 | 402
|
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.5 | 2,884 | 2.14 |0.89 | 7.38 | 135,922 | 82 | 680 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.0 | 5,134 | 1.74 |0.70 | 5.93 | 197,205 | 114 | 966 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.5 | 10,091 | 1.23 |0.47 | 4.12 | 274,474 | 150 | 1,320 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.4 | 12,070 | 1.10 |0.41 | 3.67 | 294,001 | 157 | 1,406 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.3 | 15,019 | 0.96 |0.35 | 3.15 | 316,578 | 165 | 1,502 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.2 | 19,147 | 0.80 |0.28 | 2.62 | 338,964 | 173 | 1,596 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | | | | | | | | |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 2.0 | 1,311 | 2.61 |0.93 | 9.62 | 75,354 | 39 |
397 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.5 | 3,243 | 2.07 |0.73 | 7.60 | 148,205 | 76 | 782 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.0 | 8,137 | 1.55 |0.55 | 5.61 | 277,998 | 143 | 1,462 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.5 | 26,295 | 0.95 |0.31 | 3.32 | 552,706 | 263 | 2,813 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.4 | 36,046 | 0.82 |0.26 | 2.83 | 648,579 | 299 | 3,284 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.3 | 50,105 | 0.68 |0.21 | 2.37 | 756,391 | 338 | 3,829 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.2 | 68,147 | 0.57 |0.17 | 1.97 | 854,355 | 370 | 4,333 |
|______________|_______|________|______|_____|______|_________|_________|_________|
Minto South Deposit (MSD) -- Mineral Resources by Class at Select
Copper Cut-offs - continued
_________________________________________________________________________________
| | | | | | |Contained|Contained|Contained| | | | | | | | | | | |
|Cut-Off| |Copper| |Silver| Copper | Gold | Silver | | | |Tonnes |
|Gold | | (000's | (000's | (000's | |Classification| (Cu%)
|(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Sub-total | | | | | | | | | |(M&I)** | 2.0 | 2,681 | 2.60
|1.03 | 9.41 | 153,449 | 89 | 799 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.5 | 6,127 | 2.10 |0.81 | 7.50 | 284,127 | 159 | 1,462 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.0 | 13,272 | 1.62 |0.61 | 5.74 | 475,204 | 258 | 2,428 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.5 | 36,386 | 1.03 |0.35 | 3.54 | 827,180 | 413 | 4,132 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.4 | 48,116 | 0.89 |0.30 | 3.04 | 942,581 | 457 | 4,691 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.3 | 65,123 | 0.75 |0.24 | 2.55 |1,072,969| 503 | 5,332 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.2 | 87,294 | 0.62 |0.19 | 2.11 |1,193,318| 543 | 5,929 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | | | | | | | | |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Additional | | | | | | | | | |Inferred | 2.0 | 136 | 2.71 |1.37
|15.13 | 8,087 | 5 | 55 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.5 | 482 | 1.96 |0.79 | 9.36 | 20,847 | 11 | 134 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 1.0 | 1,312 | 1.48 |0.52 | 6.22 | 42,841 | 21 | 250 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.5 | 7,429 | 0.82 |0.23 | 2.82 | 134,296 | 55 | 667 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.4 | 11,307 | 0.69 |0.18 | 2.33 | 172,320 | 66 | 844 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.3 | 17,300 | 0.57 |0.14 | 1.88 | 218,193 | 78 | 1,046 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | 0.2 | 25,850 | 0.46 |0.11 | 1.52 | 263,831 | 90 | 1,267 |
|______________|_______|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding. **Exclusive of all previous resources estimated for Area
2/118 deposit Quality Assurance The technical information in this
news release has been prepared in accordance with Canadian
regulatory requirements set out in National Instrument 43-101 ("NI
43-101") and reviewed by Brad Mercer, P. Geol., Vice President,
Exploration for Capstone, the person who oversees exploration
activities on the Minto Mine property. The mineral resource
estimate reported herein for the Area 2/118/Wildfire/Copper Keel
deposit was estimated by Wayne Barnett, Pr.Sci.Nat. and Marek
Nowak, P. Eng. of SRK Consulting. Dr. Barnett is the Independent
Qualified Person under NI 43-101 responsible for the MSD mineral
resource estimate and has reviewed the information in this release
in respect of the MSD mineral resource estimate. The database used
to estimate the Wildfire/Copper Keel deposit was audited by SRK.
SRK is of the opinion that the current drilling information is
sufficiently reliable to extend with confidence the boundaries of
the mineralized domains from Area 2 into Wildfire/Copper Keel, and
that the assaying data is sufficiently reliable to support
estimating mineral resources. The mineral resources presented
herein have been estimated in conformity with generally accepted
CIM "Estimation of Mineral Resource and Mineral Reserves Best
Practices" guidelines and are reported in accordance with Canadian
Securities Administrators' National Instrument 43-101. Mineral
resources are not mineral reserves and do not have demonstrated
economic viability. In the opinion of SRK, the block model resource
estimate and resource classification reported herein are a
reasonable representation of the mineral resources at
Wildfire/Copper Keel deposit at the current level of sampling. With
respect to the MSD mineral resource estimate, the analytical method
for the copper and silver analyses is aqua regia digestion of the
samples followed by atomic absorption spectroscopy. Gold is
analysed by fire assay fusion with atomic absorption spectroscopy
finish. Analyses are carried out by ALS Chemex in North Vancouver.
When visible gold is noted in drill core samples or regular fire
assay values appear abnormally high, screen metallic assay method
is used to determine the total gold content and gold content of
different size fractions. This is considered industry best practice
when dealing with coarse gold mineralization where a nugget effect
is suspected. This determination is accepted as the most
representative value and is used in the assay database for resource
calculations. Blank and standard samples are used for quality
assurance and quality control. Where more than two check samples
assay outside expected ranges, the entire batch is re-assayed.
After the completion of planned drill programs at Minto, random
check assays will be carried out by Acme Analytical of Vancouver.
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 mineral 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. To view this news release
in HTML formatting, please use the following URL:
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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
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