Capstone Adds 219 Million Pounds of Copper in M&I Mineral Resource at Minto Mine
VANCOUVER, May 30, 2011 /CNW/ --
At a 0.5% Copper cut-off grade, total mineral resources at the Minto
Mine now exceeds 1 billion pounds of copper
VANCOUVER, May 30, 2011 /CNW/ - Capstone Mining Corp. ('Capstone') (TSX:
CS) today announced the result of a National Instrument 43-101
compliant mineral resource estimate for the Wildfire/Copper Keel area
at the Minto Mine in Yukon, Canada. Wildfire/Copper Keel is now
recognized as a southeastwardly extension of the Area 2/118 deposit
which is currently being pre-stripped in preparation for mining. The
combined Area 2/118/Copper Keel/Wildfire mineral resources are now
recognized as a single mineral deposit and will be referred to as the
Minto South Deposit ('MSD'). The Copper Keel region of this larger
deposit model is still open and exploration drilling is currently in
progress with two drills.
'The exploration success at Minto continues to be translated into
mineral resource additions that support the near term growth strategy
at our mining operations. Since 2006 the Minto Mine has realized steady
expansion through a program of discovery and feasibility in a series of
phases that have increased mine life and throughput. Capstone plans to
follow up this latest mineral resource addition with a new
Pre-Feasibility Study (Minto - Phase VI PFS) that is expected to start
in the third quarter of 2011,' said Brad Mercer, Vice-President,
Exploration for Capstone.
Additional Mineral Resources by Class in the Wildfire/Copper Keel Region
of MSD at a 0.5% Cu Cut-off Grade ('COG')**
_________________________________________________________________________
|Classification| | | | |Contained|Contained|Contained|
| | |Copper| |Silver| Cu | Gold | Silver |
| |Tonnes | |Gold | | (000's | (000's | (000's |
| |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|________|______|_____|______|_________|_________|_________|
|Measured (M) | 3,176| 1.09| 0.39| 3.35| 76,071| 40.0| 341.8|
|______________|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 6,198| 1.04| 0.34| 3.18| 142,498| 67.9| 633.9|
|______________|________|______|_____|______|_________|_________|_________|
|Total (M&I) | 9,374| 1.06| 0.36| 3.24| 218,570| 107.9| 975.6|
|______________|________|______|_____|______|_________|_________|_________|
|Additional | 1,113| 0.98| 0.33| 3.22| 24,066| 11.6| 115.3|
|Inferred | | | | | | | |
|______________|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding.
**Exclusive of all previous resources estimated for Area 2/118 deposit
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for
mineability, selectivity, mining loss and dilution. These mineral
resource estimates include inferred mineral resources that are normally
considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is also no certainty that these inferred mineral
resources will be converted to measured and indicated categories
through further drilling, or into mineral reserves, once economic
considerations are applied.
Minto South Deposit (MSD) - Mineral Resource Estimate
Geological modelling using new drill holes from 2010 and 2011 (partial)
in the Wildfire/Copper Keel area indicate that Wildfire and Copper Keel
are a southeast extension of mineralization located on the Area 2 side
of the previous Area 2/118 resource model and not separate deposits as
initially thought. Approximately 134 new drill holes were added to the
existing database of 235 holes to estimate a mineral resource for the
entire MSD. These new data indicate a continuity of mineralization
between Copper Keel mineralization and the deeper levels of Area 2. The
new model indicates that there was also continuity of mineralization
between Wildfire and the shallower levels of Area 2 before erosion
removed mineralization and created the false impressions of a gap
between the two deposits.
The 219 million pounds of copper gained in M&I resource class and
attributable to the Wildfire/Copper Keel area of the MSD block model
was determined by tabulating all mineralized blocks at the stated
cut-off grade that lie outside of the southeast perimeter of the
previous Area 2/118 block model.
The table below is a tabulation of all mineral resources by class for
the combined Minto South Deposit at a 0.5% Cu COG.
Total Mineral Resources by Class for the Minto South Deposit at a 0.5%
COG***
_________________________________________________________________________
|Classification| | | | |Contained|Contained|Contained|
| | |Copper| |Silver| Cu | Gold | Silver |
| |Tonnes | |Gold | | (000's | (000's | (000's |
| |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|________|______|_____|______|_________|_________|_________|
|Measured (M) | 10,091| 1.23| 0.46| 4.1| 274,474| 149.7| 1,319.8|
|______________|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 26,295| 0.96| 0.31| 3.3| 552,706| 263.1| 2,812.9|
|______________|________|______|_____|______|_________|_________|_________|
|Total (M&I) | 36,386| 1.03| 0.35| 3.5| 827,181| 412.8| 4,132.4|
|______________|________|______|_____|______|_________|_________|_________|
|Additional | 7,429| 0.82| 0.23| 2.8| 134,296| 55.0| 666.3|
|Inferred | | | | | | | |
|______________|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding.
***This tabulation includes mineral resources previous outlined for the
Area 2/118 deposit. For new mineral resources added by the new
interpolation please refer to the previous table.
Total Undeveloped Resources for the Minto Mine
The following table details the total of all of the undeveloped mineral
resources on the property at a COG of 0.5% Cu. The table includes Minto
North, Minto East, Minto South and Ridgetop as listed form north to
south. Any resources remaining in the Minto Main deposit are excluded
because mining of this pit has been completed. Existing ore stockpiles
are also excluded. At the end of this news release is also a table of
the undeveloped mineral resources for Minto at select copper COGs.
Estimated grade and tonnage stated at copper COGs below 0.5% copper are
for illustrative purposes only; to show the sensitivity of the mineral
resource to changing copper COGs. Some of the estimated grade and
tonnage at lower COGs may lie outside of any constraints imposed for
'reasonableness of mining' purposes with respect to National Instrument
43-101.
Mineral resources at higher cut-off grades are for illustrative purposes
and do not necessarily imply a higher potential for economic
extraction. Only those mineral reserves determined by previous
feasibility studies are currently considered economically viable. The
property-wide mineral resource numbers reported herein are inclusive of
all previously defined mineral reserves that are currently supported by
previous pre-feasibility work. Please refer to the Technical Report
titled Minto Phase V Preliminary Feasibility Study Technical Report
dated December 15, 2010 filed on SEDAR for any further discussion about
mineral reserves at Minto. A new pre-feasibility study (Phase VI) is
anticipated to start in the third quarter of 2011 to apply economic
considerations to the newly estimated mineral resources in the
Wildfire/Copper Keel extension of the MSD.
Total Mineral Resources by Class for all Deposits Outside of the Minto
Main Pit at a 0.5% Cu COG****
_________________________________________________________________________
|Classification| | | | |Contained|Contained|Contained|
| | |Copper| |Silver| Cu | Gold | Silver |
| |Tonnes | |Gold | | (000's | (000's | (000's |
| |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|________|______|_____|______|_________|_________|_________|
|Measured (M) | 13,465| 1.33| 0.53| 4.3| 395,209| 228| 1,881|
|______________|________|______|_____|______|_________|_________|_________|
|Indicated (I) | 30,828| 0.98| 0.33| 3.4| 664,794| 325| 3,334|
|______________|________|______|_____|______|_________|_________|_________|
|Total (M&I) | 44,293| 1.09| 0.39| 3.7|1,060,002| 553| 5,215|
|______________|________|______|_____|______|_________|_________|_________|
|Additional | 8,360| 0.88| 0.27| 2.9| 162,429| 72| 792|
|Inferred | | | | | | | |
|______________|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding.
****Excludes any resources remaining in the Minto Main Deposit, where
mining as now ceased, as well as existing stockpiles of ore originating
in the Minto Main Deposit.
Mineral Resource Estimate Methodology
The mineral resource estimate for the Wildfire/Copper Keel addition to
the Minto South Deposit reported herein was prepared by SRK Consulting
of Vancouver. The estimate was completed in Gemcom Software GEMS© using
a three dimensional block model (10 m by 10 m by 3 m (vertical) block
size). The mineralization was interpreted into nine distinct domains,
modelled as wireframes and used as hard boundaries to constrain
estimation. Geostatistical analysis was completed on the 1.5m
composite assay data for each of the metals, and variograms were
defined for each domain of mineralization. The grades for copper and
gold were interpolated into the block model using ordinary kriging
method. Whereas the silver grades were interpolated using the inverse
distance squared method only. Interpolated results are reported in
measured, indicated and inferred categories and are based on continuity
of the mineralization and sample density.
Minto South Deposit (MSD) -- Mineral Resources by Class at Select Copper
Cut-offs
_________________________________________________________________________________
| | | | | | |Contained|Contained|Contained|
| | | | | | | | | |
| |Cut-Off| |Copper| |Silver| Copper | Gold | Silver |
| | |Tonnes | |Gold | | (000's | (000's | (000's |
|Classification| (Cu%) |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Measured (M) | >2.0 | 1,370 | 2.59 |1.14 | 9.20 | 78,095 | 50 | 402 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.5 | 2,884 | 2.14 |0.89 | 7.38 | 135,922 | 82 | 680 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.0 | 5,134 | 1.74 |0.70 | 5.93 | 197,205 | 114 | 966 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.5 | 10,091 | 1.23 |0.47 | 4.12 | 274,474 | 150 | 1,320 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.4 | 12,070 | 1.10 |0.41 | 3.67 | 294,001 | 157 | 1,406 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.3 | 15,019 | 0.96 |0.35 | 3.15 | 316,578 | 165 | 1,502 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.2 | 19,147 | 0.80 |0.28 | 2.62 | 338,964 | 173 | 1,596 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | | | | | | | | |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Indicated (I) | >2.0 | 1,311 | 2.61 |0.93 | 9.62 | 75,354 | 39 | 397 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.5 | 3,243 | 2.07 |0.73 | 7.60 | 148,205 | 76 | 782 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.0 | 8,137 | 1.55 |0.55 | 5.61 | 277,998 | 143 | 1,462 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.5 | 26,295 | 0.95 |0.31 | 3.32 | 552,706 | 263 | 2,813 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.4 | 36,046 | 0.82 |0.26 | 2.83 | 648,579 | 299 | 3,284 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.3 | 50,105 | 0.68 |0.21 | 2.37 | 756,391 | 338 | 3,829 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.2 | 68,147 | 0.57 |0.17 | 1.97 | 854,355 | 370 | 4,333 |
|______________|_______|________|______|_____|______|_________|_________|_________|
Minto South Deposit (MSD) -- Mineral Resources by Class at Select Copper
Cut-offs - continued
_________________________________________________________________________________
| | | | | | |Contained|Contained|Contained|
| | | | | | | | | |
| |Cut-Off| |Copper| |Silver| Copper | Gold | Silver |
| | |Tonnes | |Gold | | (000's | (000's | (000's |
|Classification| (Cu%) |(000's)*| (%) |(g/t)|(g/t) | lbs)* | oz)* | oz)* |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Sub-total | | | | | | | | |
|(M&I)** | >2.0 | 2,681 | 2.60 |1.03 | 9.41 | 153,449 | 89 | 799 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.5 | 6,127 | 2.10 |0.81 | 7.50 | 284,127 | 159 | 1,462 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.0 | 13,272 | 1.62 |0.61 | 5.74 | 475,204 | 258 | 2,428 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.5 | 36,386 | 1.03 |0.35 | 3.54 | 827,180 | 413 | 4,132 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.4 | 48,116 | 0.89 |0.30 | 3.04 | 942,581 | 457 | 4,691 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.3 | 65,123 | 0.75 |0.24 | 2.55 |1,072,969| 503 | 5,332 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.2 | 87,294 | 0.62 |0.19 | 2.11 |1,193,318| 543 | 5,929 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | | | | | | | | |
|______________|_______|________|______|_____|______|_________|_________|_________|
|Additional | | | | | | | | |
|Inferred | >2.0 | 136 | 2.71 |1.37 |15.13 | 8,087 | 5 | 55 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.5 | 482 | 1.96 |0.79 | 9.36 | 20,847 | 11 | 134 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >1.0 | 1,312 | 1.48 |0.52 | 6.22 | 42,841 | 21 | 250 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.5 | 7,429 | 0.82 |0.23 | 2.82 | 134,296 | 55 | 667 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.4 | 11,307 | 0.69 |0.18 | 2.33 | 172,320 | 66 | 844 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.3 | 17,300 | 0.57 |0.14 | 1.88 | 218,193 | 78 | 1,046 |
|______________|_______|________|______|_____|______|_________|_________|_________|
| | >0.2 | 25,850 | 0.46 |0.11 | 1.52 | 263,831 | 90 | 1,267 |
|______________|_______|________|______|_____|______|_________|_________|_________|
*Rounded to nearest thousand; totals may not sum exactly due to
rounding.
**Exclusive of all previous resources estimated for Area 2/118 deposit
Quality Assurance
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in National
Instrument 43-101 ('NI 43-101') and reviewed by Brad Mercer, P. Geol.,
Vice President, Exploration for Capstone, the person who oversees
exploration activities on the Minto Mine property.
The mineral resource estimate reported herein for the Area
2/118/Wildfire/Copper Keel deposit was estimated by Wayne Barnett,
Pr.Sci.Nat. and Marek Nowak, P. Eng. of SRK Consulting. Dr. Barnett is
the Independent Qualified Person under NI 43-101 responsible for the
MSD mineral resource estimate and has reviewed the information in this
release in respect of the MSD mineral resource estimate. The database
used to estimate the Wildfire/Copper Keel deposit was audited by SRK.
SRK is of the opinion that the current drilling information is
sufficiently reliable to extend with confidence the boundaries of the
mineralized domains from Area 2 into Wildfire/Copper Keel, and that the
assaying data is sufficiently reliable to support estimating mineral
resources. The mineral resources presented herein have been estimated
in conformity with generally accepted CIM 'Estimation of Mineral
Resource and Mineral Reserves Best Practices' guidelines and are
reported in accordance with Canadian Securities Administrators'
National Instrument 43-101. Mineral resources are not mineral reserves
and do not have demonstrated economic viability. In the opinion of SRK,
the block model resource estimate and resource classification reported
herein are a reasonable representation of the mineral resources at
Wildfire/Copper Keel deposit at the current level of sampling.
With respect to the MSD mineral resource estimate, the analytical method
for the copper and silver analyses is aqua regia digestion of the
samples followed by atomic absorption spectroscopy. Gold is analysed by
fire assay fusion with atomic absorption spectroscopy finish. Analyses
are carried out by ALS Chemex in North Vancouver. When visible gold is
noted in drill core samples or regular fire assay values appear
abnormally high, screen metallic assay method is used to determine the
total gold content and gold content of different size fractions. This
is considered industry best practice when dealing with coarse gold
mineralization where a nugget effect is suspected. This determination
is accepted as the most representative value and is used in the assay
database for resource calculations. Blank and standard samples are used
for quality assurance and quality control. Where more than two check
samples assay outside expected ranges, the entire batch is re-assayed.
After the completion of planned drill programs at Minto, random check
assays will be carried out by Acme Analytical of Vancouver.
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 mineral
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.
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Capstone Mining Corp.
Cindy Burnett, VP, Investor Relations
Telephone: 604-637-8157
Email: cburnett@capstonemining.com
Website: www.capstonemining.com