Capstone Reports First Quarter Production Results
VANCOUVER, April 26 /CNW/ --
First Quarter Production of 16.7 million pounds of Copper in
Concentrates
VANCOUVER, April 26 /CNW/ - Capstone Mining Corp. (TSX: CS) today
announced its operating results for the three months ended March 31,
2011 from its two operating mines, Cozamin and Minto. Combined
production totalled 16.7 million pounds of copper in concentrates, with
additional by-products of lead, zinc, silver and gold.
Q1 2011 Production
______________________________
| |Q1 2011|
|______________________|_______|
|Copper in concentrates| |
|(millions of pounds) | |
|______________________|_______|
| - Cozamin | 8.6 |
|______________________|_______|
| - Minto | 8.1 |
|______________________|_______|
|Total | 16.7 |
|______________________|_______|
Operational Highlights for the three months ended March 31, 2011
The following is a summary of operational highlights for Capstone during
the first three months of 2011:
-- Production of 16.7 million pounds of copper contained in
concentrates.
-- By-product production of 4.2 million pounds of zinc, 0.8
million pounds of lead and 367,704 ounces of silver in
concentrates. Final gold production is not available since
assaying is done off site, but is estimated at 2,925 ounces for
the quarter.
-- At Cozamin, remediation activities in the mine curtailed mining
rates throughout the first quarter. By mid-March most of these
activities were completed and mining commenced in the Avoca
area at the end of March, which is expected to contribute to
higher productivity and grades throughout the remainder of the
year.
-- At Minto, production was at low levels in the first quarter due
to a combination of lower mill throughput and lower grades.
o The lower grades at Minto were due to a high grade ore shortfall in
Stage 4 of the Main Pit, resulting in processing less high grade
material than planned. While insignificant in overall volume of
ore in the Main Pit, the decrease in grade negatively impacted
metal production for the quarter. Mining during the first quarter
was focused on mining the final stage of the Minto Main Pit (Stage
5) before freshet where ore grades have been consistent with plan.
Mining of the Main Pit is now substantially completed.
o Steady improvements to SAG mill throughput were made through the
first quarter. To assist with increasing throughput, additional
crushing capacity has been implemented through contract crushing,
which began in mid-April to remedy the throughput shortfall until
design crushing changes are implemented, expected late in the third
quarter of 2011.
-- Minto received the amended water use license in late March.
Once implemented, the revised license is expected to facilitate
improved water management at Minto during freshet. Application
for the subsequent water use license amendment, which will
permit tailing discharge into the mined out Main Pit, will be
submitted by mid-May.
-- The environmental and socio-economic evaluation for the Phase
IV expansion was completed and a decision document was issued
recommending that the project proceed. A temporary amendment
to the current Quartz Mining License was issued in March which
allows stripping to begin for Area 2 mining and development of
the underground portal.
-- Pre-stripping has commenced in Area 2 at Minto following
completion of mining the remaining ore in the Main Pit. A new
Quartz Mining License at Minto is anticipated in the second
quarter that will permit the long-term development of Area 2.
Q1 Operating Details
_______________________________________________________
| |Cozamin| Minto |Q1 Total|
|______________________________|_______|_______|________|
|Production( (1)) | | | |
|(contained in concentrates) | | | |
|______________________________|_______|_______|________|
| - Copper (000s pounds) | 8,609 | 8,064 | 16,673 |
|______________________________|_______|_______|________|
| - Lead (000s pounds) | 757 | - | 757 |
|______________________________|_______|_______|________|
| - Zinc (000s pounds) | 4,174 | - | 4,174 |
|______________________________|_______|_______|________|
| - Silver (ounces) |325,480|42,224 |367,704 |
|______________________________|_______|_______|________|
| - Gold (ounces) | - | 2,925 | 2,925 |
|______________________________|_______|_______|________|
|Mine | | | |
|______________________________|_______|_______|________|
| - Tonnes of ore mined |226,131|293,459|519,590 |
|______________________________|_______|_______|________|
|Mill | | | |
|______________________________|_______|_______|________|
| - Tonnes processed |226,055|258,157|484,212 |
|______________________________|_______|_______|________|
| - Tonnes processed per day| 2,512 | 2,868 | 5,380 |
|______________________________|_______|_______|________|
| - Copper grade (%) | 1.87 | 1.56 | |
|______________________________|_______|_______|________|
| - Lead grade (%) | 0.23 | - | |
|______________________________|_______|_______|________|
| - Zinc grade (%) | 1.20 | - | |
|______________________________|_______|_______|________|
| - Silver grade (g/t) | 62.4 | 6.3 | |
|______________________________|_______|_______|________|
| - Gold grade (g/t) | - | 0.52 | |
|______________________________|_______|_______|________|
|Recoveries | | | |
|______________________________|_______|_______|________|
| - Copper (%) | 92.4 | 92.3 | |
|______________________________|_______|_______|________|
| - Lead (%) | 65.9 | - | |
|______________________________|_______|_______|________|
| - Zinc (%) | 69.8 | - | |
|______________________________|_______|_______|________|
| - Silver (%) | 71.6 | 81.0 | |
|______________________________|_______|_______|________|
| - Gold grade (%) | - | 67.4 | |
|______________________________|_______|_______|________|
|Concentrates ((1)) | | | |
|______________________________|_______|_______|________|
|Copper concentrates (dmt) |14,670 | 9,762 | 24,432 |
|______________________________|_______|_______|________|
| - Copper (%) | 26.6 | 37.5 | |
|______________________________|_______|_______|________|
| - Silver (g/t) | 600 | 135 | |
|______________________________|_______|_______|________|
| - Gold (g/t) | - | 9.3 | |
|______________________________|_______|_______|________|
|Lead concentrates(dmt) | 533 | - | 533 |
|______________________________|_______|_______|________|
| - Lead (%) | 64.4 | - | |
|______________________________|_______|_______|________|
| - Silver (g/t) | 2,454 | - | |
|______________________________|_______|_______|________|
|- Zinc concentrates (dmt) | 3,944 | - | 3,944 |
|______________________________|_______|_______|________|
| - Zinc (%) | 48.0 | - | |
|______________________________|_______|_______|________|
(1) Adjustments based on final settlements will be made in future
periods.
Outlook
Despite low production for the first quarter, Capstone is maintaining
full year 2011 guidance of 80-85 million pounds of copper in
concentrates. At Cozamin, production is expected to ramp up quickly
from first quarter levels now that mining has recommenced in the Avoca
area. At Minto, contract crushing commenced on April 15, increasing
throughput rates to a level that is expected to allow production to
proceed as planned for the remainder of the year.
Q1 Financial Results Timing
Q1 financial results are expected to be reported in late May or early
June 2011 and will be announced with conference call details once
scheduled.
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 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', '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. 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 resources;
possible variations in ore reserves, grade or recovery rates;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; 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.
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 and news releases
(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.
John Sagman, P. Eng., Capstone's Vice President, Technical Services, a
Qualified Person, reviewed all Technical Information contained in this
news release. In addition, Gregg Bush, Senior Vice President and Chief
Operating Officer for Capstone, reviewed all Technical Information in
this news release.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/April2011/26/c6712.html
Capstone Mining Corp.
Cindy Burnett, VP, Investor Relations
Telephone: 604-637-8157
Email: cburnett@capstonemining.com
Website: www.capstonemining.com