VANCOUVER, Jan. 13, 2016 /CNW/ - Capstone Mining Corp.
("Capstone") (TSX: CS) today announced production results for the
three and twelve months ended December 31,
2015. Combined production totalled 26,000 and 92,900 tonnes
of copper in the fourth quarter and full year 2015, respectively,
with additional by-products of zinc, molybdenum, lead, silver and
gold.
2015 Copper Production (tonnes)
|
Q1
|
Q2
|
Q3
|
Q4
|
2015
|
2015 Guidance
(1)
|
Pinto
Valley
|
15,800
|
14,300
|
14,000
|
16,700
|
60,800
|
59,000
|
Cozamin
|
3,800
|
2,700
|
4,300
|
4,900
|
15,700
|
15,500
|
Minto
|
4,100
|
4,100
|
3,800
|
4,400
|
16,400
|
15,500
|
Total copper
production (2)
|
23,700
|
21,100
|
22,100
|
26,000
|
92,900
|
90,000
|
Totals may not add
due to rounding. (1) Total copper production guidance of 90,000
tonnes (+/- 5%) and Pinto Valley guidance reflects guidance
provided on January 20, 2015. Production guidance at Minto was
increased, offsetting reduced Cozamin guidance on September 9,
2015. (2) Total production includes copper in concentrate and
cathode production.
|
|
"Capstone's 2015 copper production met guidance, with
outperformance at Pinto Valley and Minto offsetting the production challenges at
Cozamin that occurred early in the year," said Darren Pylot, President and CEO of Capstone.
"Pinto Valley had a very strong fourth quarter with record
quarterly throughput of over 54,000 tonnes per day, demonstrating
significant improvement and exceeding our expectations."
Fourth Quarter Operational Highlights
- Payable copper shipped for the quarter from all three mines was
22,300 tonnes.
- Pinto Valley had an exceptional quarter, posting daily, monthly
and quarterly throughput records under Capstone's ownership of
60,500, 54,800 and 54,100 tonnes per day ("tpd"), respectively.
Both grade and recovery were as planned for the quarter.
- At Cozamin, the average grade for the quarter of 1.75% copper
offset slightly lower mining rates and mill throughput. The mine is
continuing to work towards increasing developed stopes, but has
largely overcome the issues leading to the production shortfall
experienced early in the year.
- At Minto, a pocket of high
grade underground ore in excess of 3% copper in close proximity to
existing development was opportunistically mined and processed,
resulting in higher grade for the quarter than planned. Stripping
of the Minto North pit is proceeding well and the lower-grade ore
was reached as expected in December.
Q4 2015 and Full Year Operating Details
|
|
|
|
|
Pinto
Valley
|
Cozamin
|
Minto
|
|
Q4
|
2015
|
Q4
|
2015
|
Q4
|
2015
|
Contained
Production (1)
|
|
- Copper
(tonnes)
|
16,692
|
60,746
|
4,883
|
15,650
|
4,450
|
16,515
|
- Zinc
(tonnes)
|
-
|
-
|
1,344
|
5,860
|
-
|
-
|
- Molybdenum (Mo
tonnes)
|
-
(2)
|
88.8
|
-
|
-
|
-
|
-
|
- Lead
(tonnes)
|
-
|
-
|
104
|
684
|
-
|
-
|
- Silver
(ounces)
|
94,908
|
292,149
|
399,834
|
1,286,774
|
52,849
|
170,493
|
- Gold (ounces)
(3)
|
-
|
1,002
|
-
|
-
|
4,320
|
16,114
|
Payable Copper
Production (1) (tonnes)
(in
concentrate and cathode)
|
16,130
|
58,718
|
4,667
|
14,967
|
4,305
|
15,978
|
Mine
|
|
- Ore (tonnes) – open
pit
|
5,846,016
|
23,139,132
|
-
|
-
|
212,632
|
383,414
|
- Waste
(tonnes)
|
3,182,790
|
11,463,850
|
-
|
-
|
2,998,431
|
5,044,292
|
- Ore (tonnes) –
underground
|
-
|
-
|
287,783
|
1,078,606
|
132,486
|
456,826
|
Mill
|
|
- Tonnes
processed
|
4,978,317
|
17,730,407
|
295,524
|
1,079,778
|
342,982
|
1,387,958
|
- Tonnes processed
per day
|
54,112
|
48,576
|
3,212
|
2,958
|
3,728
|
3,803
|
- Copper grade
(%)
|
0.38
(4)
|
0.38
(4)
|
1.75
|
1.56
|
1.44
|
1.38
|
- Zinc grade
(%)
|
-
|
-
|
0.73
|
0.84
|
-
|
-
|
- Molybdenum grade
(%)
|
-
|
0.007
|
-
|
-
|
-
|
-
|
- Lead grade
(%)
|
-
|
-
|
0.11
|
0.14
|
-
|
-
|
- Silver grade
(g/t)
|
*
|
*
|
61
|
53
|
6
|
5
|
- Gold grade
(g/t)
|
*
|
*
|
-
|
-
|
0.50
|
0.49
|
Recoveries
|
|
- Copper
(%)
|
88.8
(4)
|
87.4
(4)
|
94.2
|
93.0
|
90.2
|
86.2
|
- Zinc (%)
|
-
|
-
|
62.4
|
64.6
|
-
|
-
|
- Lead (%)
|
-
|
-
|
31.4
|
44.2
|
-
|
-
|
- Silver
(%)
|
*
|
*
|
69.5
|
69.6
|
80.8
|
76.9
|
- Gold (%)
|
*
|
*
|
-
|
-
|
77.6
|
73.6
|
Concentrates
|
|
- Copper concentrate
(dmt)
|
59,071
|
205,233
|
19,292
|
60,826
|
12,475
|
45,703
|
|
Copper (%)
|
27.4
|
28.6
|
25.3
|
25.7
|
35.7
|
36.1
|
|
Silver
(g/t)
|
*
|
*
|
612
|
598
|
132
|
116
|
|
Gold (g/t)
|
*
|
*
|
-
|
-
|
10.77
|
10.97
|
- Zinc concentrate
(dmt)
|
-
|
-
|
2,908
|
12,453
|
-
|
-
|
|
Zinc (%)
|
-
|
-
|
46.2
|
47.1
|
-
|
-
|
- Molybdenum
concentrate (dmt)
|
-
|
184
|
-
|
-
|
-
|
-
|
- Lead concentrate
(dmt)
|
-
|
-
|
193
|
1,166
|
-
|
-
|
|
Lead (%)
|
-
|
-
|
53.6
|
58.6
|
-
|
-
|
|
Silver
(g/t)
|
-
|
-
|
3,257
|
3,112
|
-
|
-
|
Payable Copper
Shipped (tonnes)
|
14,728
|
57,668
|
4,366
|
14,863
|
3,227
|
14,990
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
based on final settlements will be made in future periods. (2) The
Pinto Valley molybdenum circuit did not operate in the fourth
quarter as a result of below break-even molybdenum prices. (3)
Pinto Valley gold production reaches payable levels from time to
time. Any payable gold production will be reported in the period
revenue is received. At Minto, final gold production is
not available since assaying is conducted off-site, but is
estimated above. (4) Grade and recoveries were estimated based on
concentrate production. *Silver and gold have not
been estimated in the Pinto Valley resource model. Only recovered
silver and payable gold is reported for this mine.
|
2016 Operating and Capital Guidance
Capstone expects to release 2016 operating and capital guidance
during the week of January 18 – 22,
2016
Financial Results Timing
Capstone will report 2015 financial results on Tuesday, February 16, 2016 after market close,
followed by a conference call and webcast for investors and
analysts on Wednesday, February 17,
2016 at 11:30 am Eastern Time
(8:30 am Pacific Time).
Conference Call and Webcast Details
Date:
|
Wednesday, February
17, 2016
|
Time:
|
11:30 am Eastern Time
(8:30 am Pacific Time)
|
Dial
in:
|
North America:
1-888-390-0546, International: +416-764-8688
|
Webcast:
|
http://event.on24.com/r.htm?e=1094432&s=1&k=949A9A55D556086D2F443F4A7444D365
|
Replay:
|
North America:
1-888-390-0541, International: +416-764-8677
|
Replay
Passcode:
|
535944#
|
The conference call replay will be available until Wednesday, March 2, 2016. The conference call
audio and transcript will be available on Capstone's website within
approximately 24 hours of the call at
http://capstonemining.com/investors/events-and-presentations/default.aspx.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company,
focused on copper. We are committed to the responsible development
of our assets and the environments in which we operate. Our three
producing mines are the Pinto Valley copper mine located in
Arizona, US, the Cozamin
copper-silver mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two
copper development projects; the large scale 70% owned copper-iron
Santo Domingo project in Region
III, Chile, in partnership with
Korea Resources Corporation, and the 100% owned copper-zinc Kutcho
project in British Columbia,
Canada, as well as exploration properties in Chile. Using our cash flow and strong balance
sheet as a platform, Capstone's strategy is to extend the lives of
our current mines with mineral resource and reserve expansions,
maintain optionality on the Santo
Domingo development project, prudently progress the
exploration portfolio and grow through acquisitions in politically
stable, mining-friendly regions. We will pace our growth with our
financial capacity, ensuring we retain, as a priority, sufficient
financial flexibility to meet the requirements of our existing
operations and our committed development projects, while
maintaining an adequate cushion to deal with market volatility and
operating risks inherent in the mining industry. Our headquarters
are in Vancouver, Canada and we
are listed on the Toronto Stock Exchange (TSX). Further 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 conversion of mineral resources to
mineral reserves, 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 "guidance", "expectations", "planned", "estimated",
"budgeted" and "schedule". 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 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; counterparty risks associated with sales of our metals;
changes in general economic conditions; increased operating and
capital costs; operating in foreign jurisdictions with risk of
changes to governmental regulation; impact of climatic conditions
on our Pinto Valley, Cozamin and Minto operations; increasing energy prices;
our ability to integrate new acquisitions into our operations, 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
The technical information in this news release ("Technical
Information") 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"). The disclosure of the Technical Information contained in
this news release has been reviewed and approved by Gregg Bush, P. Eng., Capstone Senior Vice
President and Chief Operating Officer, a Qualified Person under NI
43-101.
SOURCE Capstone Mining Corp.