Capstone Gold Corp.
TSX : CSG

Capstone Gold Corp.

September 27, 2005 09:45 ET

Capstone Intersects 12 Meters Grading 193.2 g/t Silver and 3.4% Copper at Cozamin, Zacatecas State, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 27, 2005) - CAPSTONE GOLD (TSX:CSG) is pleased to report results from an additional 21 underground core holes at the Cozamin Copper-Silver-Zinc deposit located in Zacatecas, Mexico. Eighty-one definition drill holes have been completed to date with assays pending on the unreported holes. Results from these deeper holes confirm and exceed the results obtained during surface exploration. High grade mineralization in the Mala Noche vein is open to the east, west, and down dip.



Highlights:

CG-05-U45 - 10.5 meters grading 106.6 g/t Ag, 2.9% Cu & 1.3% Zn
CG-05-U46 - 12.0 meters grading 193.2 g/t Ag, 3.4% Cu & 1.0% Zn
CG-05-U54 - 7.7 meters grading 70.6 g/t Ag and 3.9% Cu
CG-05-U62 - 16.2 meters grading 90.2 g/t Ag and 3.3% Cu

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NQ Core From To Intersection Ag Cu Zn Pb
Hole # (m) (m) True Width g/t % % % Zone
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CG-05-U40 143.3 149.3 3.8 75.9 2.4 2.9 0.1 Lower
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CG-05-U42 123.5 132.3 6.7 52.5 1.5 1.5 0.6 Lower
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CG-05-U43 129.3 134.3 3.1 81.2 2.7 0.5 0.1 Lower
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CG-05-U44 110.0 115.3 3.6 58.8 2.1 0.1 Lower
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CG-05-U45 114.0 127.0 10.5 106.6 2.9 1.3 0.3 Lower
Including 114.5 120.5 4.9 151.7 3.4 2.4 0.7
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CG-05-U46 113.5 128.8 12.0 193.2 3.4 1.0 1.8 Lower
Including 120.8 126.8 4.7 360.9 5.9 0.5 3.2
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CG-05-U47 104.0 112.8 7.2 46.4 1.8 0.1 Lower
Including 108.3 112.3 3.3 78.0 3.1 0.1
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CG-05-U48 141.3 155.0 11.3 93.4 2.0 0.7 0.9 Lower
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CG-05-U51 93.8 96.8 2.8 54.3 1.3 0.1 0.1 Upper
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CG-05-U52 115.5 122.0 5.5 34.1 1.0 5.1 0.2 Lower
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CG-05-U53 170.0 179.8 2.3 98.7 2.0 1.6 0.9 Lower
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CG-05-U54 169.0 184.5 7.7 70.6 3.9 0.1 Lower
Including 177.5 184.0 3.2 114.4 6.7 0.2
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CG-05-U55 77.5 80.5 2.0 47.5 0.3 3.0 0.9 Upper
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CG-05-U56 54.0 59.0 4.8 100.2 1.3 3.5 0.4 Upper
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CG-05-U58 67.3 79.0 7.9 96.3 2.4 2.9 0.2 Upper
Including 74.5 79.0 3.0 175.4 4.6 2.2 0.1
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CG-05-U59 60.5 64.0 2.7 54.5 1.2 4.5 0.4 Upper
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CG-05-U60 75.5 79.3 2.0 145.5 1.6 5.2 4.9 Upper
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CG-05-U61 134.8 138.0 1.5 212.7 1.8 3.6 19.0 Lower
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CG-05-U62 122.0 147.0 16.2 90.2 3.3 0.8 0.2 Lower
Including 127.5 137.0 6.1 123.0 5.0 0.4
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- Holes U41 and U49 intersected the vein and were anomalous but
did not encounter strong mineralization.
- Assay results for U50 and U57 have not been received from the
laboratory.
- 4 drill rigs are currently underground, a total of 9,000 meters
of definition drilling has been drilled to date (81 holes), with
an additional 9,000 meters of deeper drilling (29 holes) planned
to be completed by December 2005.
- Underground drifting to the east on level 9 is now in the
mineralized vein. Drifting will continue for an additional
400 meters.
- An underground decline ramp to extend down from level 9 (at 2214
elevation) to the future level 10 (at elevation 2154) has been
completed to the 2180 elevation level 34 meters down. This ramp
is expected to be completed to the level 10 level by mid December
2005.
- The portal of the San Ernesto surface ramp has been prepared, and
the ramp to level 8 has advanced 30 meters.
- A construction and operating team has been assembled to design
and supervise mine development, plant rehabilitation and tailings
dam expansion.


Capstone anticipates completing the current 18,000 m underground definition drill program by the end of December 2005. A geological model is currently being constructed by qualified person Gary Giroux as a basis for a 43-101 compliant resources estimate to be completed by the year end.

To view Figure 1 please click on the following link: http://www.ccnmatthews.com/docs/csg927.pdf

A longitudinal section with current and previous drill hole pierce points and grades may be found on Capstone's website at www.capstonegold.com.

Drill results from the initial holes CG-05-U01 to U20 and U21 to U39 were reported in the July 6 and August 3, 2005 news releases.

Sample preparation was conducted by SGS Lakefield Laboratories ("SGS") in Durango, Mexico and assays were completed by SGS in Toronto, Canada. Duplicate pulps, duplicates from sample rejects, blanks, standards and duplicate core samples were assayed by SGS and ALS Chemex in Vancouver, Canada.

Copala Silver-Gold Project

Elsewhere, drilling is underway on the Copala Silver-Gold Project located near the city of Mazatlan, Mexico. This phase I drill program will consist of about 2,500 meters distributed in 14 core holes. To date, the first 3 holes have intersected the Animas-Refugio vein beneath the historical workings of the San Carlos mine. Initial assay results will be reported in early October 2005.

Hugh Willson, Vice President of Exploration for Capstone, a qualified person under NI 43-101, supervised and directed all work associated with the drilling programs and this news release.

ABOUT CAPSTONE

Capstone is a mineral exploration company focused on the exploration and development of five advanced projects in Mexico. All of the projects have existing tonnage and grade defined by underground workings. Cozamin is the most advanced of these projects and is being readied for production in 2006. Capstone has approximately 40 million shares outstanding and is well financed with no long term debt.

ON BEHALF OF THE BOARD

Darren M. Pylot, President & CEO


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