Capstone Mining Corp.
TSX : CS

Capstone Mining Corp.

November 25, 2008 06:00 ET

Capstone Reports Minto Mine Connected to Yukon Electrical Grid

Connection Reduces Energy Costs, Increases Benefits to Yukon Stakeholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 25, 2008) - Capstone Mining Corp. (TSX:CS) announced that its Minto copper-gold mine in the Yukon was officially connected to Yukon Energy's electrical grid at a ceremony attended by the Premier of the Yukon, the Minister of Economic Development, the Minister of Energy Mines & Resources and Stephen Quin, President & COO of Capstone.

"Connection to Yukon Energy's electrical grid represents the culmination of a two-year cooperative effort between the Minto Mine, Yukon Energy, Yukon Government and the three First Nations along the path of the transmission line: Little Salmon Carmacks First Nation, Selkirk First Nation and Na-Cho Nyak Dun," said Stephen Quin, President & COO of Capstone Mining. "The economic benefits of this project are widespread, with the construction effort having generated employment and opportunities for Yukon citizens and businesses and, now the grid is connected, lower energy costs are helping to enhance the economic viability of the Minto Mine, the elimination of fuel purchases for power generation is keeping significant dollars within the Yukon economy, increased power sales of surplus hydro energy for Yukon Energy is supporting a recent application for reduced electricity rates to Yukoners while Yukon's electrical infrastructure is being enhanced, increased margins for the Minto Mine are increasing the tax and royalty base for Yukon and Selkirk First Nation as deductible expenses are reduced, and the Minto Mine and community of Pelly Crossing have been taken off diesel generated power, thereby significantly reducing greenhouse gas emissions."

Electrical Grid Connection

The connection of the Minto Mine to Yukon Energy's electrical grid completes a two-year process whereby the Minto Mine and Yukon Government made contributions toward the capital cost of extending the Yukon Electrical grid approximately 80km north from Carmacks to Minto Landing, and also involving the construction of three substations and a 27km dedicated spur line from Minto Landing to the Minto Mine at Minto's cost. "During this two-year period, the grid extension concept was conceived, negotiated, agreed, designed, assessed, permitted, approved, funded, constructed and commissioned," said Mr. Quin. "Considering this process involved Minto, Yukon Energy, Yukon Government, three First Nations, the Yukon Utilities Board and Yukon's first executive committee screening under the Yukon Environmental and Socio-economic Assessment Act, this timing is a reflection of the willing and supportive efforts by all parties, without which this rapid progress would not have been possible."

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Company'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.

Neither the TSX Venture Exchange nor the TSX accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Capstone Mining Corp.
    Darren Pylot
    Vice Chairman & CEO
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Chris Tomanik
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Mark Patchett
    (604) 684-8894 or 1-866-684-8894
    Email: info@capstonemining.com
    or
    Capstone Mining Corp.
    Stephen Quin
    President & COO
    (604) 687-7545 or 1-888-338-2200
    or
    Capstone Mining Corp.
    Chris Curran
    (604) 687-7545 or 1-888-338-2200
    Email: info@sherwoodcopper.com
    Website: www.capstonemining.com