Capstone Mining Corp.
TSX : CS

Capstone Mining Corp.

April 07, 2009 07:30 ET

Capstone Reports 2nd Batch of Minto Drill Results-New High Grade Area Identified at Ridgetop

1.9% Cu over 17.7m, incl. 4.2% Cu over 7.1m (starting at 30.2m) in area previously thought to be low grade

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2009) - Capstone Mining Corporation (TSX:CS) today announced the assay results for 18 new exploration drill holes completed in areas south of the Minto open pit. Included in these results are several high grade copper-gold intersections from the southeast portion of the Ridgetop deposit, an area not previously known for high grade mineralization. Many of these new drill intercepts are at shallow depths and are much higher grade than expected; they are anticipated to positively impact the Minto Mine Phase IV expansion study slated for completion later this year.



Highlights for 2nd Batch of 2009 Exploration Assays

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From To Interval Interval Copper Gold Silver
Hole ID Target Area (m) (m) (m) (ft) (%) (g/t) (g/t)
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09SWC-395 Copper Keel 241.2 245.5 4.3 14.1 3.12 2.44 22.4
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09SWC-405 Ridgetop 48.0 99.3 51.3 168.3 1.10 pending 1.4
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including 59.2 66.9 7.7 25.3 3.61 pending 5.5
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09SWC-407 Ridgetop 45.8 64.9 19.1 62.7 1.31 0.30 2.1
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including 60.6 64.9 4.3 14.1 4.21 1.13 5.8
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09SWC-409 Ridgetop 43.1 53.4 10.3 33.8 2.17 0.99 4.5
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09SWC-416 Ridgetop 48.5 72.1 23.6 77.4 1.51 0.82 5.8
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including 51.8 58.7 6.9 22.6 3.64 2.30 16.6
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09SWC-417 Ridgetop 34.4 46.6 12.2 40.0 2.49 1.46 13.6
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including 34.4 39.7 5.3 17.4 4.76 3.17 29.5
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09SWC-419 Ridgetop 30.2 47.9 17.7 58.1 1.95 0.95 14.1
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including 30.2 37.3 7.1 23.3 4.17 2.28 30.3
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"The latest results from the high grade Minto Mine in the Yukon continue to build on the successes of 2008," said Stephen Quin, President & COO of Capstone Mining. "We have expanded the main high grade portion of the Ridgetop deposit, discovered in 2008, to the east and have now discovered a second, previously unknown high grade area, to the southeast of the previous Ridgetop resource. These impressive copper-gold intercepts, at such shallow depths, are anticipated to positively impact our mining assessment of this area as a shallow, open pit source of mill feed for our Phase IV expansion project that is currently being evaluated."

Drill Program

To date in 2009, two drill rigs have completed 13,400m of drilling in 74 holes, including 6 oriented core holes in support of a pit wall stability study as part of the Phase IV expansion study, to assess potential new open pit mining centres in and around the Area 2/Area 118 and Ridgetop deposits. Drill assessment in support of the Phase IV study is now complete and both drill rigs have moved to the Minto North discovery area to begin systematically drilling off a mineral resource on this 2009 discovery. Both rigs will remain at Minto North for the completion of the Phase 1 exploration program and budget. After a brief shut down for freshet, both drills will infill the Minto North deposit in support of a National Instrument 43-101 mineral resource estimation before year end. Several drill holes have also been completed in the Copper Keel area, the results of four of which are reported herein. However, with the discovery of the shallower mineralization at Minto North, further evaluation of Copper Keel (likely an underground mining target) has been deferred until the potential of Minto North is more fully defined.

For current drill hole locations, please view the accompanying map: http://capstonemining.com/_resources/images/2009-04-06_Minto_Expl_Drill_Hole_Collars.jpg

For a current view of drill results in priority areas please view the accompany map: http://capstonemining.com/_resources/images/2009-04-06_Minto_Expl_Corridor_Red_dots.jpg

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 and reviewed by Stephen P. Quin, P. Geo., President & COO for Capstone Mining Corporation. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration (Canada) for Capstone.

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 for gold. 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, the pulp and screen metallic assay method is used to determine the total gold content and gold contents 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.

Forward-Looking Statements

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") 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 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 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.



Details of Drill Results
To accompany Capstone Mining News Release Dated April 7, 2009

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Hole ID From To Interval Interval Copper Gold Silver
& Interval Target (m) (m) (m) (feet) (%) (g/t) (g/t)
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09SWC-391 Copper Keel 212.2 214.7 2.5 8.2 1.40 0.54 4.6
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09SWC-394 Copper Keel 230.3 233.8 3.5 11.5 1.42 1.06 10.3
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09SWC-395 Copper Keel 241.2 245.5 4.3 14.1 3.12 2.44 22.4
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and 251.5 253.6 2.1 6.9 1.46 1.10 13.3
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09SWC-396 Copper Keel 245.0 250.9 5.9 19.4 0.39 0.16 2.3
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09SWC-397 Ridgetop 48.1 55.4 7.3 24.0 2.31 0.53 3.9
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86.1 88.0 1.9 6.2 1.37 0.03 0.8
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09SWC-398 Ridgetop 37.2 106.1 68.9 226.0 0.69 0.20 1.6
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including 46.9 63.5 16.6 54.5 1.54 0.56 3.3
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including 57.3 63.5 6.2 20.3 3.13 1.28 7.2
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09SWC-399 Copper Keel 202.9 217.2 14.3 46.9 1.31 0.67 4.8
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including 202.9 208.7 5.8 19.0 1.55 0.52 4.1
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and 214.0 217.1 3.1 10.2 2.35 1.61 10.9
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09SWC-400 Ridgetop 30.0 65.0 35.0 114.8 0.45 pending 1.0
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including 58.8 63.8 5.0 16.4 0.94 pending 1.2
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and 91.9 95.6 3.7 12.1 0.97 pending 3.9
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09SWC-401 Ridgetop 17.7 22.1 4.4 14.4 1.72 0.14 3.2
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and 52.3 57.5 5.2 17.1 0.95 0.23 2.3
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and 74.4 79.9 5.5 18.0 1.28 0.54 4.1
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09SWC-403 Ridgetop 6.1 16.5 10.4 34.1 0.53 pending 1.0
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and 25.5 31.5 6.0 19.7 0.80 pending 1.3
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and 65.7 74.9 9.2 30.2 0.48 pending 1.1
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and 114.7 119.2 4.5 14.8 1.83 pending 7.4
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09SWC-405 Ridgetop 48.0 99.3 51.3 168.3 1.10 pending 1.4
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including 59.2 66.9 7.7 25.3 3.61 pending 5.5
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and 85.6 99.3 13.7 44.9 1.68 pending 0.7
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including 85.6 90.6 5.0 16.4 3.36 pending 1.1
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09SWC-407 Ridgetop 45.8 64.9 19.1 62.7 1.31 0.30 2.1
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including 60.6 64.9 4.3 14.1 4.21 1.13 5.8
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09SWC-409 Ridgetop 43.1 53.4 10.3 33.8 2.17 0.99 4.5
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09SWC-411 Ridgetop 51.3 105.5 54.2 177.8 0.44 0.10 1.1
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09SWC-412 to Assays pending
09SWC-415
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09SWC-416 Ridgetop 48.5 72.1 23.6 77.4 1.51 0.82 5.8
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including 50.0 59.7 9.7 31.8 2.84 1.64 11.9
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including 51.8 58.7 6.9 22.6 3.64 2.30 16.6
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09SWC-417 Ridgetop 34.4 46.6 12.2 40.0 2.49 1.46 13.6
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including 34.4 39.7 5.3 17.4 4.76 3.17 29.5
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09SWC-418 Assays pending
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09SWC-419 Ridgetop 30.2 47.9 17.7 58.1 1.95 0.95 14.1
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including 30.2 37.3 7.1 23.3 4.17 2.28 30.3
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09SWC-420 to Assays pending
09SWC-433
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09SWC-434 Ridgetop 33.8 46.0 12.2 40.0 1.13 0.39 4.9
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including 33.8 37.7 3.9 12.8 2.64 1.11 13.6
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Contact Information

  • Capstone Mining Corp.
    Darren Pylot
    Vice Chairman & CEO
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Stephen Quin
    President & COO
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Mark Patchett
    Investor Relations
    (604) 684-8894 or 1-866-684-8894
    (604) 688-2180 (FAX)
    Email: info@capstonemining.com
    Website: www.capstonemining.com