VANCOUVER, Sept. 12, 2017 /CNW/ - 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
ID
|
Drill
hole
ID
|
From
(m)
|
To
(m)
|
Width
(m)
|
True
Width* (m)
|
Cu
(%)
|
Zn
(%)
|
Pb
(%)
|
Ag
(g/t)
|
Au
(g/t)
|
#1
|
CG-17-S284
including
including
including
|
773.0
777.0
777.0
777.0
|
792.9
791.7
782.8
779.4
|
19.9
14.7
5.8
2.4
|
15.0
11.0
4.4
1.8
|
1.01
1.24
2.42
5.37
|
0.37
0.48
0.43
0.33
|
0.12
0.15
0.01
0.01
|
19.1
22.8
33.7
70.9
|
0.006
0.005
0.008
0.012
|
#2
|
CG-17-S285
including
including
including
|
733.1
733.1
735.4
739.3
|
752.5
744.7
743.9
742.7
|
19.4
11.6
8.5
3.4
|
14.4
8.7
6.3
2.5
|
2.19
3.41
4.43
7.65
|
0.76
1.13
1.36
1.08
|
0.35
0.55
0.73
0.90
|
52.4
79.9
104.3
182.1
|
0.015
0.018
0.022
0.023
|
#3
|
CG-17-S287
|
-
|
-
|
-
|
-
|
Assays
Pending
|
#4
|
CG-17-S289
including
|
731.2
731.2
|
736.8
733.9
|
5.6
2.7
|
4.6
2.3
|
3.03
5.05
|
0.55
0.98
|
0.01
0.01
|
53.8
87.0
|
0.022
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 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
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 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.
SOURCE Capstone Mining Corp.