VANCOUVER, British Columbia,
September 12, 2017 /PRNewswire/
--
Capstone Mining Corp. ('Capstone' or
the 'Company') (TSX: CS) today announced drill results of step-out
drilling at its Cozamin mine in Mexico. A half kilometre step-out drill hole
intercepted 2.2% copper over 14.4 metres ('m') estimated true width
('ETW'); including 4.4% copper over 6.3m ETW in hole S285.
"Based on confidence gained in several consecutive, annual
underground drilling campaigns on the Mala Noche Footwall Zone
('MNFWZ'), we recently added two surface rigs to step up the pace
of exploration and facilitate better long-range planning. Our
furthest step-out hole to date intercepted strong copper
mineralization 580 metres along strike to the southeast from the
limits of the current MNFWZ Indicated Mineral Resource," said
Brad Mercer, Capstone's Senior Vice
President, Exploration. "We encountered copper grades in excess of
4% immediately adjacent to Endeavour Silver Corp. ('Endeavour') claims over larger than average
widths than typical of the MNFWZ (see table below). As a result, we
have entered into an agreement with Endeavour which allows us to follow the
footwall structure beyond the boundary of our concession."
The agreement Capstone has entered into (the 'Agreement') with
Endeavour Silver Corp. ('Endeavour') allows for the two companies to
exchange access to certain of each other's mining concessions that
abut at the southern boundary of Capstone's Cozamin mine property.
The agreement provides Capstone with exploration and exploitation
rights on the Endeavour
concessions below 2,000 metres above sea level ('masl'), a depth
where copper rich mineralization has historically been found and
mined by Capstone, and provides Endeavor with exploration and
exploitation rights on the Capstone concessions above 2,000 masl,
where more precious metal dominant mineralization has historically
been mined, in the historic Zacatecas silver district.
The Agreement provides for both parties to share various
information on the concessions covered by the Agreement and to
jointly have access to explore for and exploit mineralization
appropriate to each company's core business; being base metals for
Capstone and precious metals for Endeavour. In certain instances it also
provides for a net smelter returns royalty for the entity electing
not to produce. Additionally, and under certain well-defined
instances, it provides flexibility around the 2,000 masl
division.
Capstone has completed four surface holes with an additional two
holes in progress near the claim boundary, and as a result of the
recent success has approved a further $1.3
million to Cozamin's 2017 capitalized exploration guidance
to continue wide-spaced testing of the MNFWZ structure on both
sides of the Capstone/Endeavour
boundary.
A summary of assay results of the step-out hole intercepts
underpinning Capstone's decision to enter into this agreement are
summarized in the table below. For drill hole location and context
please view the long-section of the MNFWZ at:
http://capstonemining.com/files/images/maps/MNFWZ.jpg
Section Drill hole From To Width True Cu Zn Pb Ag Au
ID ID (m) (m) (m) Width*(m) (%) (%) (%) (g/t) (g/t)
CG-17-S284 773.0 792.9 19.9 15.0 1.01 0.37 0.12 19.1 0.006
including 777.0 791.7 14.7 11.0 1.24 0.48 0.15 22.8 0.005
including 777.0 782.8 5.8 4.4 2.42 0.43 0.01 33.7 0.008
#1 including 777.0 779.4 2.4 1.8 5.37 0.33 0.01 70.9 0.012
CG-17-S285 733.1 752.5 19.4 4.4 2.19 0.76 0.35 52.4 0.015
including 733.1 744.7 11.6 8.7 3.41 1.13 0.55 79.9 0.018
including 735.4 743.9 8.5 6.3 4.43 1.36 0.73 104.3 0.022
#2 including 739.3 742.7 3.4 2.5 7.65 1.08 0.90 182.1 0.023
#3 CG-17-S287 - - - - Assays Pending
CG-17-S289 731.2 736.8 5.6 4.6 3.03 0.55 0.01 53.8 0.022
#4 including 731.2 733.9 2.7 2.3 5.05 0.98 0.01 87.0 0.022
#5 CG-17-S291 - - - - In Progress
#6 CG-17-S292 - - - - In Progress
*estimated true width of vein intercept for inclined drill holes
All samples were submitted for preparation by ALS at its
facilities in Zacatecas, Mexico,
followed by analysis at the ALS Laboratory in North Vancouver, Canada. The entire sample is
crushed to a minimum of 70% passing -10 mesh. A 250g subsample of
the crushed material is then pulverized to 85% passing -200 mesh.
Copper, zinc, lead and silver are determined by ICP analysis after
4 acid digestion of a 0.4g subsample of pulverized material. Gold
is determined by fire assay of a 30g sub-sample with AA finish.
QAQC samples in each batch of 20 samples include a blank, a
certified reference material and a duplicate (one of a field,
coarse reject or pulp reject).
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
polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two
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 Kutcho copper-zinc
project in British Columbia,
Canada, as well as exploration properties in Chile and US. Capstone's strategy is to focus
on the optimization of operations and assets in politically stable,
mining-friendly regions, centred in the Americas. Our headquarters
are in Vancouver, Canada and we
are listed on the Toronto Stock Exchange (TSX). Further information
is available at http://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 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 our expectations or beliefs regarding
future events. Forward-looking statements include, but are not
limited to, statements with respect to the continuing success of
mineral exploration, Capstone's ability to fund future exploration
activities, the realization of mineral reserve estimates, the
timing and amount of estimated future production and the success of
mining operations. In certain cases, forward-looking statements can
be identified by the use of words such as "plans", "expects",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", "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 "subject", "expected" and "intend". By their
very nature, forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
amongst others, risks related to inherent hazards associated with
mining projects, future prices of copper and other metals, changes
in general economic conditions, 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 under the Company's profile on SEDAR at
http://www.sedar.com. Although the Company has attempted to
identify important factors that could cause our actual results,
performance or achievements to differ materially from those
described in our forward-looking statements, there may be other
factors that cause our results, performance or achievements not to
be as anticipated, estimated or intended. There can be no assurance
that our forward-looking statements will prove to be accurate, as
our actual results, performance or achievements could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on our 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
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.
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., Senior Vice President and Chief Operating Officer.
Technical Information related to mineral exploration activities has
been reviewed and approved by Brad
Mercer, P. Geol., Senior Vice President, Exploration. Both
are Qualified Persons under NI 43-101.
Media Contact:
Cindy Burnett
VP, Investor Relations and Communications
+1-604-637-8157
cburnett@capstonemining.com