VANCOUVER, Oct. 10, 2018 /CNW/ - Capstone Mining Corp.
("Capstone") (TSX: CS) announced production results for the three
and nine months ended September 30,
2018. Combined production totalled 21,400 and 60,600 tonnes
of copper in the third quarter and year-to-date periods,
respectively, with additional by-products of zinc, molybdenum,
lead, silver and gold.
Q3 and YTD 2018 Copper Production (tonnes)
|
Q1
|
Q2
|
Q3
|
YTD
2018
|
Pinto
Valley
|
11,400
|
13,400
|
14,200
|
39,000
|
Cozamin
|
4,300
|
3,500
|
4,400
|
12,200
|
Total copper
production from continuing operations (1)
|
15,700
|
16,900
|
18,600
|
51,200
|
Minto
|
3,500
|
3,100
|
2,800
|
9,400
|
Total copper
production (1)
|
19,200
|
20,000
|
21,400
|
60,600
|
|
(1) Total
production includes copper in concentrate and cathode
production.
|
"Pinto Valley performed as expected in the third quarter, with
planned higher grade feeding the mill as scheduled," said
Darren Pylot, President and CEO of
Capstone. "Cozamin's copper production was higher than projected
and zinc production rose considerably. We remain on track to meet
our consolidated copper production guidance from continuing
operations for the year."
Operational Summary
- At Pinto Valley, production increased in the third quarter on
planned higher grade. Throughput rose from the second quarter due
to more stable operations and steadily improving availability in
the crushing and milling circuits, as the asset reliability project
continues to advance.
- At Cozamin, copper production for the quarter increased on
higher grade and throughput. Mine output increased over the
previous quarter as production from the San Rafael zinc zone ramped
up to planned levels by mid-quarter, resulting in the highest
quarterly zinc production in over five years.
- At Minto, the revised mine
plan produced 2,800 tonnes of copper for the third quarter. The
asset continues to be classified as a discontinued operation held
for sale.
Q3 and YTD 2018 Operating Details
|
Pinto
Valley
|
Cozamin
|
Minto
|
|
Q3
|
YTD
2018
|
Q3
|
YTD
2018
|
Q3
|
YTD
2018
|
Contained
Production (1)
|
- Copper
(tonnes)
|
14,203
|
39,044
|
4,350
|
12,155
|
2,801
|
9,421
|
- Zinc
(tonnes)
|
-
|
-
|
2,046
|
4,388
|
-
|
-
|
- Molybdenum
(tonnes)
|
16
|
64
|
-
|
-
|
-
|
-
|
- Lead
(tonnes)
|
-
|
-
|
439
|
768
|
-
|
-
|
- Silver (ounces)
(2)
|
82,268
|
229,623
|
321,487
|
824,584
|
24,426
|
89,413
|
- Gold (ounces)
(2) (3)
|
-
|
547(5)
|
-
|
-
|
2,594
|
7,812
|
Payable Copper
Production (1) (tonnes)
(in
concentrate and cathode)
|
13,717
|
37,717
|
4,170
|
11,658
|
2,710
|
9,115
|
Mine
|
- Ore (tonnes) – open
pit
|
4,755,475
|
14,383,271
|
-
|
-
|
-
|
546,951
|
- Waste
(tonnes)
|
6,041,640
|
19,645,895
|
-
|
-
|
-
|
1,314,504
|
- Ore (tonnes) –
underground
|
-
|
-
|
266,192
|
708,777
|
94,031
|
264,540
|
Mill
|
- Tonnes
processed
|
4,757,746
|
14,220,084
|
270,346
|
707,474
|
212,794
|
867,804
|
- Tonnes processed
per day
|
51,715
|
52,088
|
2,939
|
2,591
|
2,313
|
3,179
|
- Copper grade (%)
(4)
|
0.34
|
0.31
|
1.70
|
1.80
|
1.43
|
1.25
|
- Zinc grade
(%)
|
-
|
-
|
1.13
|
0.95
|
-
|
-
|
- Molybdenum grade
(%)
|
0.008
|
0.006
|
-
|
-
|
-
|
-
|
- Lead grade
(%)
|
-
|
-
|
0.32
|
0.24
|
-
|
-
|
- Silver grade
(g/t)
|
*
|
*
|
48.73
|
46.49
|
4.53
|
4.19
|
- Gold grade
(g/t)
|
*
|
*
|
-
|
-
|
0.41
|
0.37
|
Recoveries
|
- Copper
(%)
|
84.8
(4)
|
84.8
(4)
|
94.7
|
95.2
|
92.3
|
86.8
|
- Zinc (%)
|
-
|
-
|
67.1
|
65.4
|
-
|
-
|
- Lead (%)
|
-
|
-
|
51.3
|
46.1
|
-
|
-
|
- Silver
(%)
|
*
|
*
|
75.9
|
78.0
|
78.7
|
76.5
|
- Gold (%)
|
*
|
*
|
-
|
-
|
67.9
|
61.5
|
Concentrates
|
- Copper concentrate
(dmt)
|
51,206
|
142,934
|
16,775
|
46,166
|
7,621
|
24,764
|
Copper (%)
|
27.1
|
26.5
|
25.9
|
26.3
|
36.7
|
38.0
|
Silver (g/t)
|
*
|
*
|
516.1
|
506.3
|
99.7
|
112.3
|
Gold (g/t)
|
*
|
*
|
-
|
-
|
7.7
|
8.1
|
- Zinc concentrate
(dmt)
|
-
|
-
|
4,306
|
9,232
|
-
|
-
|
Zinc (%)
|
-
|
-
|
47.5
|
47.5
|
-
|
-
|
- Molybdenum
concentrate (dmt)
|
32
|
128
|
-
|
-
|
-
|
-
|
- Lead concentrate
(dmt)
|
-
|
-
|
718
|
1,250
|
-
|
-
|
Lead (%)
|
-
|
-
|
61.2
|
61.5
|
-
|
-
|
Silver (g/t)
|
-
|
-
|
1,874
|
1,819
|
-
|
-
|
Payable Copper
Shipped (tonnes)
|
14,465
|
37,787
|
4,350
|
11,375
|
3,449
|
7,434
|
|
(1) Adjustments
based on final settlements will be made in future periods. (2)
Silver and gold at Pinto Valley and gold at Minto are not assayed
on site, resulting in a significant lag time in receiving this
data. As such, these figures are estimates and for Minto includes
gold contained in copper concentrate and gold contained in gold
concentrate produced. (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. (4) Grade and
recoveries were estimated based on concentrate production and may
be impacted by settlements from prior production periods.
*Silver and gold have not been estimated in the Pinto Valley
resource model. Only recovered silver and payable gold is reported
for this mine. (5) YTD 2018 includes a negative 28 ounce adjustment
made in Q3 2018 related to Q2 2018 gold sales for which final
settlement was made in Q3 2018.
|
Operating Outlook
Capstone's 2018 consolidated copper production guidance for
Pinto Valley and Cozamin remains unchanged at 71,000 tonnes
(+/-5%).
Financial Results Timing
Capstone will report Q3 2018 financial results on Tuesday, October 30, 2018 after market close,
followed by a conference call and webcast for investors and
analysts on Wednesday, October 31,
2018 at 11:30 am Eastern Time
(8:30 am Pacific Time).
Conference Call and Webcast Details
Date:
|
Wednesday, October
31, 2018
|
Time:
|
11:30 am Eastern Time
(8:30 am Pacific Time)
|
Dial in:
|
North America:
1-888-390-0546, International: +416-764-8688
|
Webcast:
|
https://event.on24.com/wcc/r/1809407/E53474A5946C34AFFB94F9A1F3BF60B4
|
Replay:
|
North America:
1-888-390-0541, International: +416-764-8677
|
Replay
Passcode:
|
808789#
|
The conference call replay will be available until Wednesday, November 7, 2018. The conference call
audio and transcript will be available on Capstone's website within
48 hours of the call at
https://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
polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has the
large scale 70% owned copper-iron Santo
Domingo development project in Region III, Chile, in partnership with Korea Resources
Corporation as well as a portfolio of exploration properties.
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 estimation of mineral
resources and mineral reserves, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production and capital expenditures, the success of our
mining operations, environmental risks, unanticipated reclamation
expenses and title disputes. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects", "expected", "potentially", "guidance" 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", "planned",
"expected", "scheduled" and "projected". 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
operations, assumptions related to geotechnical condition of
tailings facilities, future prices of copper and other metals,
compliance with financial covenants, surety bonding, our ability to
raise capital, counterparty risks associated with sales of our
metals, use of financial derivative instruments and associated
counterparty risks, foreign currency exchange rate fluctuations,
changes in general economic conditions, accuracy of mineral
resource and mineral reserve estimates, operating in foreign
jurisdictions with risk of changes to governmental regulation,
compliance with governmental regulations, compliance with
environmental laws and regulations, reliance on approvals, licences
and permits from governmental authorities, impact of climatic
conditions on our Pinto Valley, Cozamin and Minto operations, aboriginal title claims and
rights to consultation and accommodation, land reclamation and mine
closure obligations, uncertainties and risks related to the
potential development of the Santo Domingo Project, uncertainties
related to the sale of Minto Explorations Ltd., increased operating
and capital costs, challenges to title to our mineral properties,
dependence on key management personnel, potential conflicts of
interest involving our directors and officers, corruption and
bribery, limitations inherent in our insurance coverage, labour
relations, increasing energy prices, competition in the mining
industry, risks associated with joint venture partners, our ability
to integrate new acquisitions into our operations, cybersecurity
threats 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., Capstone Senior Vice
President and Chief Operating Officer, a Qualified Person under NI
43-101.
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SOURCE Capstone Mining Corp.