2012 production of 82.8 million pounds of copper in
concentrates
VANCOUVER,
Jan. 10, 2013 /PRNewswire/ - Capstone
Mining Corp. ("Capstone") (TSX: CS) today announced the operating
results for the three and twelve months ended December 31, 2012 of its two operating mines,
Cozamin and Minto. Combined
production totalled 19.7 and 82.8 million pounds of copper in
concentrates in the fourth quarter and full year 2012,
respectively, with additional by-products of zinc, silver, gold and
lead.
2012 Production
|
|
Q1 |
Q2 |
Q3 |
Q4 |
2012 |
Copper in
concentrates
(millions of pounds) |
Cozamin |
13.0 |
12.1 |
11.0 |
10.8 |
46.9 |
Minto |
5.6 |
9.8 |
11.6 |
8.9 |
35.9 |
Total |
18.6 |
21.9 |
22.6 |
19.7 |
82.8 |
"We achieved our 2012 production guidance of 80 million pounds
±5% of copper, with both mines performing as anticipated in the
fourth quarter," said Darren Pylot,
President and CEO of Capstone. "The flexibility of having two
operating mines allowed Cozamin's strong performance to more than
compensate for the shortfall experienced at Minto during 2012."
Operational highlights for the three and twelve months ended
December 31, 2012
- Production of 19.7 and 82.8 million pounds of copper contained
in concentrates, respectively.
- By-product production of 4.3 and 17.2 million pounds of zinc,
415,060 and 1,759,352 ounces of silver and 0.5 and 2.9 million
pounds of lead in concentrates, respectively. Final gold
production is not available since assaying is conducted off-site,
but is estimated at 6,785 and 18,599 ounces for the respective
periods.
- Cozamin remained a very steady producer. Over the past
two years recoveries have consistently exceeded 92%, with
throughput increasing from an average of 3,000 tonnes per day
("tpd") in 2011 to 3,200 tpd in 2012. Despite copper grades
trending down towards the reserve grade over time, continued
exploration success has brought high-grade ore from the Mala Noche
Footwall Zone into production and extended the current mine life
(before inclusion of 2012 drilling) to nine years. Grades in
the fourth quarter were above the guided 1.7% copper, driven by the
ability to selectively mine high grade blocks in the West Zone.
- At Minto, 2011 and 2012 were
transitional years as mining progressed into the Area 2 pit.
Throughput has steadily increased at the mill, with 2012 throughput
of 1.34 million tonnes up 7% from 2011. In December,
regulatory approval was received to provide the flexibility to
further increase the milling rate up to 1.5 million tonnes per
year. Grades in the fourth quarter were at the expected 1.4%
copper, and considered the plan changes due to highwall
instability, which resulted in processing much more low-grade
stockpile materials than long-term plans had anticipated. The
previously announced accelerated pushback that was necessary to
improve the stability of the west pit highwall continued throughout
the fourth quarter. Mining in the Area 2 pit resumed in late
December and we are working towards achieving the 2013 plan.
Operating Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cozamin |
|
|
Minto |
|
|
TOTAL |
|
|
|
Q4 2012 |
|
|
Total 2012 |
|
|
Q4 2012 |
|
|
Total 2012 |
|
|
Q4 2012 |
|
|
Total 2012 |
Production (1)
(contained in concentrates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Copper (000s pounds) |
|
|
10,776 |
|
|
46,909 |
|
|
8,971 |
|
|
35,928 |
|
|
19,747 |
|
|
82,838 |
|
- Zinc (000s pounds) |
|
|
4,345 |
|
|
17,221 |
|
|
- |
|
|
- |
|
|
4,345 |
|
|
17,221 |
|
- Lead (000s pounds) |
|
|
524 |
|
|
2,891 |
|
|
- |
|
|
- |
|
|
524 |
|
|
2,891 |
|
- Silver (ounces) |
|
|
372,460 |
|
|
1,575,816 |
|
|
42,600 |
|
|
183,536 |
|
|
415,060 |
|
|
1,759,352 |
|
- Gold (ounces) |
|
|
- |
|
|
- |
|
|
6,785 |
|
|
18,599(2) |
|
|
6,785 |
|
|
18,599(2) |
Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Tonnes of ore mined |
|
|
285,766 |
|
|
1,170,590 |
|
|
233,547 |
|
|
942,739 |
|
|
519,313 |
|
|
2,113,329 |
Mill |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Tonnes processed |
|
|
285,415 |
|
|
1,172,902 |
|
|
312,325 |
|
|
1,341,584 |
|
|
597,740 |
|
|
2,514,486 |
|
- Tonnes processed per day |
|
|
3,102 |
|
|
3,205 |
|
|
3,395 |
|
|
3,666 |
|
|
6,497 |
|
|
6,870 |
|
- Copper grade (%) |
|
|
1.85 |
|
|
1.95 |
|
|
1.43 |
|
|
1.34 |
|
|
1.63 |
|
|
1.63 |
|
- Zinc grade (%) |
|
|
1.08 |
|
|
1.03 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
- Lead grade (%) |
|
|
0.18 |
|
|
0.20 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
- Silver grade (g/t) |
|
|
57.9 |
|
|
58.9 |
|
|
5.0 |
|
|
5.1 |
|
|
30.3 |
|
|
30.2 |
|
- Gold grade (g/t) |
|
|
- |
|
|
- |
|
|
0.79 |
|
|
0.58 |
|
|
|
|
|
|
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Copper (%) |
|
|
92.8 |
|
|
93.0 |
|
|
91.3 |
|
|
90.5 |
|
|
92.0 |
|
|
91.6 |
|
- Zinc (%) |
|
|
64.0 |
|
|
64.9 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
- Lead (%) |
|
|
47.2 |
|
|
55.8 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
- Silver (%) |
|
|
70.1 |
|
|
71.0 |
|
|
84.1 |
|
|
84.1 |
|
|
71.3 |
|
|
72.1 |
|
- Gold (%) |
|
|
- |
|
|
- |
|
|
85.8 |
|
|
74.0 |
|
|
|
|
|
|
Concentrates
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Copper concentrate (dmt) |
|
|
18,980 |
|
|
81,305 |
|
|
10,561 |
|
|
43,423 |
|
|
29,541 |
|
|
124,727 |
|
|
Copper (%) |
|
|
25.8 |
|
|
26.2 |
|
|
38.5 |
|
|
37.5 |
|
|
30.3 |
|
|
30.1 |
|
|
Silver (g/t) |
|
|
551 |
|
|
540 |
|
|
125.5 |
|
|
131.5 |
|
|
399.1 |
|
|
397.5 |
|
|
Gold (g/t) |
|
|
- |
|
|
- |
|
|
19.7 |
|
|
13.3 |
|
|
|
|
|
|
|
- Zinc concentrate (dmt) |
|
|
4,118 |
|
|
16,057 |
|
|
- |
|
|
- |
|
|
4,118 |
|
|
16,057 |
|
|
Zinc (%) |
|
|
47.9 |
|
|
48.6 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
- Lead concentrate (dmt) |
|
|
415 |
|
|
2,216 |
|
|
- |
|
|
- |
|
|
415 |
|
|
2,216 |
|
|
Lead (%) |
|
|
57.2 |
|
|
59.2 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Silver (g/t) |
|
|
2,696 |
|
|
2,324 |
|
|
- |
|
|
- |
|
|
|
|
|
|
(1) Adjustments based on final settlements will be made in
future periods.
(2) Full-year 2012 gold production includes an upward adjustment
for higher assays not reported in the third quarter.
2012 Year-End Financial Results Timing
Capstone will report 2012 year-end financial results on
Wednesday, March 13, 2013 after
market close, followed by a conference call and webcast for
investors and analysts on Thursday, March
14, 2013 at 11:30 am Eastern
Time (8:30 am Pacific
Time).
Conference Call and Webcast Details
Date: |
|
|
Thursday, March 14, 2013 |
Time: |
|
|
11:30 am Eastern Time -- 8:30 am Pacific Time |
Dial in: |
|
|
North America: 1-888-390-0605, International:
1-416-764-8609 |
Webcast: |
|
|
http://www.newswire.ca/en/webcast/detail/1096935/1195123 |
Replay: |
|
|
North America: 1-888-390-0541, International:
1-416-764-8677 |
Replay Passcode: |
|
|
017456 |
The conference call replay will be available until
March 28, 2013. The conference call
audio and transcript will be available on Capstone's website within
approximately 24 hours of the call at
http://capstonemining.com/s/Conference_Calls.asp.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company,
preferentially focussed on copper, with two producing copper mines,
the Cozamin copper-silver-zinc-lead mine located in Zacatecas
State, Mexico and the Minto copper-gold-silver mine in Yukon, Canada. In addition, Capstone has two
development projects, the large scale 70% owned Santo Domingo copper-iron-gold project in
Chile in partnership with Korea
Resources Corporation and the 100% owned Kutcho
copper-zinc-gold-silver project in British Columbia, as well as exploration at
properties in Canada, Chile, Mexico
and Australia. Using its cash flow
and strong balance sheet as a springboard, Capstone aims to grow
organically through continued mineral resource and reserve
expansions, exploration, and through acquisitions in politically
stable, mining-friendly regions. Additional information is
available at www.capstonemining.com.
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 mineral 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", "outlook", "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.
In this document certain forward-looking statements are identified
by words including "scheduled", "guidance", "plan", "planned",
"estimated", "projections", "projected" and "expected". 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; dependence on key personnel; labour pool
constraints; labour disputes; availability of infrastructure
required for the development of mining projects; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; and other risks of the
mining industry 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.
National Instrument 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, news releases and
MD&A's (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.
The disclosure of the technical information contained in this
news release has been reviewed and approved by John Wright, P. Eng., Capstone's Business
Development Manager, a Qualified Person under NI 43-101. In
addition, Gregg Bush, Senior Vice
President and Chief Operating Officer for Capstone reviewed all
technical information in this news release.
Cautionary Note to United States Investors
This news release contains disclosure that has been prepared in
accordance with the requirements of Canadian securities laws, which
differ from the requirements of U.S. securities laws. Without
limiting the foregoing, this news release uses the terms
"indicated" and "inferred" resources. U.S. investors are cautioned
that, while such terms are recognized and required by Canadian
securities laws, the U.S. Securities and Exchange Commission
("SEC") does not recognize them. Under U.S. standards,
mineralization may not be classified as a "reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve determination is made. U.S. investors are cautioned not to
assume that all or any part of indicated resources will ever be
converted into reserves. U.S. investors should also understand that
"inferred resources" have a great amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically. It cannot be assumed that all or any part of
"inferred resources" will ever be upgraded to a higher category.
Therefore, U.S. investors are also cautioned not to assume that all
or any part of inferred resources exist, or that they can be mined
legally or economically. Accordingly, information concerning
descriptions of mineralization and resources contained in this news
release may not be comparable to information made public by U.S.
companies subject to the reporting and disclosure requirements of
the SEC.
SOURCE Capstone Mining Corp.