Moves 92 million pounds of copper from Inferred to Indicated
Resource Classification
VANCOUVER,
March 7, 2013 /CNW/ - Capstone Mining
Corp. ("Capstone") (TSX: CS) today announced the results of an
updated National Instrument 43-101 ("NI 43-101") compliant mineral
resource estimate for the Mala Noche Footwall Zone ("MNFWZ") at the
Cozamin Mine in Zacatecas, Mexico.
Drilling in the MNFWZ since the last resource update in February of
2012 has converted 92 million pounds of copper from the Inferred
category to the Indicated category. This reflects drilling that was
completed in the latter half of 2011 and most of 2012 that was not
included in the last estimate. At a US$35 net smelter return ("NSR") cut-off grade
("COG"), the Cozamin Mine's total Measured and Indicated
("M&I") mineral resources at December
31, 2012, including adjustments for mining, were 430 million
pounds of copper.
"We are pleased to report another successful
year of drilling at Cozamin, which targeted the MNFWZ Inferred
resource for classification upgrade," said Brad Mercer, Capstone's Vice President of
Exploration. "The M&I copper resource at the MNFWZ now stands
at 189 million pounds, 87 million pounds of which have already been
converted into a mineral reserve. This additional 92 million pounds
of mineral resource now in the M&I class will be targeted by
mine engineering for potential conversion into mineral reserves
during 2013. Both the Mala Noche Vein and MNFWZ remain open and are
the target of 20,000 metres of drilling from underground this year
in a US$4.5 million exploration
program."
Mineral Resource Estimate by Class for the
MNFWZ, Dec. 31, 2012, at a
US$35 NSR COG*
|
Tonnes
(000's) |
Copper
(%) |
Silver
(g/t) |
Zinc
(%) |
Contained
Copper
(M lbs) |
Contained
Silver
(M oz) |
Contained
Zinc
(M lbs) |
Measured (M) |
400 |
2.09 |
44.9 |
0.43 |
18.4 |
0.6 |
3.8 |
Indicated (I) |
4,400 |
1.75 |
33.7 |
0.25 |
169.8 |
4.8 |
24.1 |
Total M&I |
4,810 |
1.78 |
34.7 |
0.26 |
188.6 |
5.4 |
27.9 |
Inferred |
1,410 |
1.80 |
29.7 |
0.21 |
56.0 |
1.3 |
6.6 |
* Metal Price assumptions (in USD) used to calculate the NSR
COG for all deposits are: Cu=$2.50; Zn=$0.80; Ag=$20.00. |
Processing recoveries used to calculate the NSR COG for the
MNFWZ Resource are: Cu=92%; Zn=69%; Ag=72%. Totals may not sum
exactly due to rounding. |
Mineral Resource Estimate by Class for all
Copper Deposits, Dec. 31, 2012, at a
US$35 NSR COG*
|
Tonnes
(000's) |
Copper
(%) |
Silver
(g/t) |
Zinc
(%) |
Contained
Copper
(M lbs) |
Contained
Silver
(M oz) |
Contained
Zinc
(M lbs) |
Measured (M) |
3,780 |
1.63 |
65.4 |
1.42 |
135.6 |
8.0 |
118.6 |
Indicated (I) |
9,120 |
1.42 |
43.2 |
1.07 |
285.1 |
12.7 |
216.0 |
Total M&I |
12,910 |
1.48 |
49.7 |
1.18 |
421.1 |
20.6 |
334.7 |
Inferred |
3,360 |
1.39 |
35.7 |
0.90 |
102.8 |
3.9 |
67.0 |
* Metal Price assumptions (in USD) used to calculate the NSR
COG for all deposits are: Cu=$2.50; Zn=$0.80; Ag=$20.00. |
Processing recoveries used to calculate the NSR COG for the
MNFWZ Resource are: Cu=92%; Zn=69%; Ag=72% |
Processing recoveries used to calculate the NSR COG for the San
Roberto Resource are: Cu=92%; Zn=69%; Ag=62%. Totals may not sum
exactly due to rounding. |
The foregoing tables represent the Mala Noche Vein and MNFWZ
copper zones only, and do not include the San Rafael zone, which is predominately a zinc
zone.
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. Even though mining has been
undertaken in areas of the MNFWZ with Proven and Probable class
mineral reserves there is no certainty that Inferred mineral
resources will be converted to Measured and Indicated categories
through further drilling, or into mineral reserves, once economic
considerations are applied.
Mineral Resource Estimate Methodology
The mineral resource estimate for the MNFWZ reported herein was
prepared by independent consultant Ali
Shahkar P.Eng., Principal Consultant with Lions Gate
Geological Consulting Inc. ("LGGC") located in Sechelt, BC, Canada. The estimate was completed using GEMS©
software using a three dimensional block model (10 metre by 5 metre
by 3 metre block size). The MNFWZ model is comprised of three
interpreted three-dimensional wireframes, a background domain which
encompasses the overall MNFWZ structure and two veins which occur
close to the hanging-wall and foot-wall of the background domain.
The two vein wireframes were used as hard boundaries to constrain
the interpolation of grades into the block
model. Interpolation parameters have been derived based on
geostatistical analysis conducted on 0.5 metre composited drill
hole and channel sample data. Block grades have been
estimated using Ordinary Kriging (OK) method and the mineral
resources have been classified based on proximity to sample data
and the continuity of mineralization in accordance with CIM best
practices. The MNFWZ resource has been estimated using a total of
173 diamond drill holes (2324 composites) and 3277 channel sample
composites.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company,
committed to the responsible development of our assets and the
environments in which we operate. We are preferentially focused 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 our cash flow
and strong balance sheet as a springboard, Capstone's growth aims
to come from continued mineral resource and reserve expansions,
exploration, and through acquisitions in politically stable,
mining-friendly regions. Our headquarters are in Vancouver, Canada and we are listed on the
TSX. Further information is available at
www.capstonemining.com.
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 Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators ("NI
43-101") and supervised and reviewed by Brad Mercer, P. Geol., Capstone's Vice
President, Exploration, a "Qualified Person" as defined in National
Instrument 43-101 and the person who oversees exploration
activities on the Cozamin Mine property. In addition,
Gregg Bush, Capstone's Senior Vice
President and Chief Operating Officer, reviewed and approved this
news release.
The mineral resource estimate reported herein for the MNFWZ has
been produced by independent consultant Ali
Shahkar P.Eng, of Lions Gate Geological Consulting
Inc. Mr. Shahkar is the Independent Qualified Person under NI
43-101 responsible for the MNFWZ mineral resource estimate and has
reviewed the information in this release in respect of the MNFWZ
mineral resource estimate. 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.
Analyses for copper, zinc, lead, silver and gold were completed
by ALS Chemex using the following method. The entire sample is
crushed to a minimum of 70% minus 10 mesh. A 250g subsample of the
crushed material is then pulverized to 85% minus 200 mesh. Gold and
silver grades are determined by gravimetric fire assay using a 50g
charge taken from the pulverized material. Copper, zinc and lead
are determined by ICP analysis after 4 acid digestion of a 0.4g
subsample of the pulverized material. Blank, standard and
duplicate samples are used for quality assurance and quality
control.
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. 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.
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 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.