Capstone Mining Corp.
TSX : CS

Capstone Mining Corp.

November 07, 2006 07:30 ET

Capstone Provides October Production Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2006) - CAPSTONE MINING (TSX:CS) is pleased to report an update from its 100% owned Cozamin copper-silver-zinc mine located in Zacatecas State, Mexico.

Highlights

- During the month of October the Cozamin mine and mill continued to operate at 100% of design capacity, 1,000 tonnes per day.

- As of October 31, 2006 the following saleable concentrates have been produced since start-up, and are currently being transported to the port for shipping during November 2006.

- 5,200 tons of copper grading 25% (2,865,200 lbs)

- 2,000 tons of zinc grading 46% (2,027,680 lbs)

- 680 tons of lead grading 66% (989,155 lbs)

- 176,181 ounces of silver contained in concentrates

Cozamin Plant

During the month of October the mill operated at full capacity and averaged a rate of 1,000 tpd. Total throughput for the month of October was 31,100 tons. Concentrate production included 1,831 tons of copper concentrate grading 25% copper, 700 tons of zinc concentrate grading 46% zinc, and 250 tons of lead concentrate grading 68% lead. Recoveries for copper were 84%, zinc 51%, lead 66% and silver 75%. The average head grade for the mill tonnage was 1.73% copper, 2.01% zinc, 0.83% lead and 80.0 g/t silver.

Preliminary design and engineering plans for the doubling of capacity at Cozamin have started. A construction schedule and budgets are expected to be complete by the end of December, 2006. All of the expansion costs will be funded from cash flow.

Cozamin Mine

In October, the mine produced in excess of 30,000 tons of ore from 5 operating stopes and development ore. The new level 10 dump pockets and loading station will now be completed by the end of November. These will allow the tonnage from level 10 to be hoisted from the mine, permitting operation above the designed rate of 1,000 tpd.

ABOUT CAPSTONE

Capstone is a Canadian based mining company currently operating the Cozamin copper-silver-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 80.5 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.


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