Capstone Mining Corp.

Capstone Mining Corp.

April 06, 2009 17:15 ET

Capstone Mining Welcomes Three Members to Its Newly Created Advisory Board

Advisory Board Brings a Wealth of Experience to Capstone as it Continues its Growth Strategy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2009) - Capstone Mining Corp. (TSX:CS) is pleased to announce that Mr. Dale Peniuk, Mr. George Brack and Dr. John Gammon have been appointed to Capstone's newly created advisory board. Capstone also intends that Mr. Brack and Mr. Peniuk will become management nominees on the slate for Capstone's expanded board of directors at the Company's Annual General Meeting on May 19, 2009.

Mr. Peniuk is a chartered accountant that provides financial consulting services to a number of mining companies and currently serves on the Board and as Audit Committee Chair of Lundin Mining Corporation, Corriente Resources Inc., Quest Capital Corp., Rainy River Resources Ltd. and Reservoir Capital Corp. Mr. Peniuk also served on the Board and as Audit Committee Chair of EuroZinc Mining Corporation, until completion of its merger with Lundin Mining, and Rio Narcea Gold Mines, Ltd., following the acquisition of a controlling interest in the company by Lundin Mining until the takeover of Rio Narcea was completed. Mr. Peniuk obtained a B.Comm from the University of British Columbia in 1982 and spent more than 20 years with KPMG LLP, Chartered Accountants and predecessor firms, the last 10 of which as an assurance partner. Mr. Peniuk's financial experience and expertise will benefit Capstone as it continues to grow.

Mr. Brack's 24-year career in the mining industry working in investment banking and corporate development has focused on the identification, evaluation and execution of strategic mergers and acquisitions and the provision of equity financing. Mr. Brack was most recently Managing Director and Industry Head, Mining Group of Scotia Capital. Prior to joining Scotia Capital in 2006, he served seven years as President of Macquarie North America Ltd., an investment banking firm specializing in mergers and acquisitions advice to the global mining industry. Previously, Mr. Brack held the position of Vice President, Corporate Development at Placer Dome Inc., worked for CIBC Wood Gundy, where he was a Vice President of the Investment Banking Group and worked in Rio Algom's corporate development department. Mr. Brack started his career as an exploration geologist with Sherritt-Gordon Mines. Mr. Brack holds an MBA from York University, a BASc in Geological Engineering from the University of Toronto and the CFA designation. George serves as a director of Alexco Resource Corp. (and is a member of the audit committee and the compensation committee). Mr. Brack's extensive experience in both completing and advising on merger and acquisition opportunities will be of considerable experience to Capstone as it continues on with its accretive growth strategy.

Dr. Gammon holds a B.Sc. (honours) degree in Geology from the University of Leicester, UK, and a Ph.D. in geology from Durham University, UK. Dr. Gammon first worked at New Jersey Zinc and then Falconbridge, where he conducted and later managed exploration activities across Canada and overseas, ultimately as exploration manager for SE Asia and then Western North America. John was then appointed Director, Mineral Development and Lands Branch for the Ministry of Northern Development and Mines in Toronto, Ontario and then promoted to Assistant Deputy Minister, Mines and Minerals Division for the Ministry of Northern Development and Mines, based in Sudbury, Ontario. Dr. Gammon served as a director of Sherwood Copper from February 26, 2006 until Sherwood's business combination with Capstone in November 2008 and Capstone looks forward to continuing its relationship with Dr. Gammon, both for his experience as a director and his background in exploration and the project regulatory environment.

Welcoming the new members to Capstone's advisory board, Darren Pylot, Vice-Chairman and CEO said, "We are extremely pleased to welcome Dale, George and John to our advisory board. Their expertise and counsel will help us further consolidate and develop our leadership position as a mid-tier copper producer and enhance shareholder value as we continue our organic and acquisitive growth strategy."

About Capstone

Capstone Mining Corp. owns and operates two high grade copper mines and has an advanced high grade development project. The Cozamin Mine is a high grade, relatively shallow mechanized underground copper mine in Zacatecas, Mexico, with significant by-product credits of zinc, lead and silver. The Minto Mine is one of the world's highest grade open pit copper-gold mines, and is located in Yukon, Canada. Both mines have recently undergone significant production expansions and the mines are forecast to produce a total of 95-105 million pounds of copper in 2009 at a total cash cost of approximately US$1.00 per pound, net of by-product credits. In addition, Capstone owns the high grade Kutcho Copper Project in British Columbia, Canada, which is being advanced towards a production decision, and could produce significant by-products of zinc, silver and gold. Financially, Capstone is well positioned and its operations are supported by a robust hedge book that totalled 105 million pounds of copper forward sold at an average of US$2.52 per pound as of December 31, 2008, most of which is deliverable in 2009-2011.

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 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.

The TSX does not accept any 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
    Capstone Mining Corp.
    Stephen Quin
    President & COO
    (604) 684-8894 or 1-866-684-8894
    Capstone Mining Corp.
    Mark Patchett
    Investor Relations
    (604) 684-8894 or 1-866-684-8894
    (604) 688-2180 (FAX)