Capstone Mining Corp.
TSX : CS

Capstone Mining Corp.

February 17, 2009 07:00 ET

Capstone Reports 5th New High Grade Copper-Gold Discovery at Minto Mine in Three Years

Intercept of 2.7% Cu over 26.4m, including 7.1% Cu over 4.1m, opens up Whole New Exploration Area

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 17, 2009) - Capstone Mining Corporation (TSX:CS) today announced the discovery of another high grade copper-gold zone at its Minto Mine in the Yukon, the 5th such discovery since acquiring the project in June 2005. The "Minto North" target, located approximately 600 metres north-northwest of the current open pit mine, yielded high grade mineralization at relatively shallow depths, similar in grade, thickness and style of mineralization to that found in the open pit, the highest grade of all the deposits identified at the Minto Mine to date. This new prospect lies directly on a linear trend that includes, from south to north: the Ridgetop, Area 2/Area 118, Main (open pit mine) deposits and now Minto North.

All three discovery drill holes intersected thick intervals of bornite-rich, high grade copper-gold mineralization. Highlights of assays from these holes are summarized in the table immediately below; while the potential significance of this new discovery is discussed following the table and the full results for all three holes are in the attached table.



Assay Highlights from Drill holes 09SWC-390; 09SWC-392 & 09SWC-393

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Target From To Interval Interval Copper Gold Silver
Hole ID Area (m) (m) (m) (ft) (%) (g/t) (g/t)
--------------------------------------------------------------------------
09SWC-390 "Minto 60.6 88.7 28.1 92.2 2.59 0.59 7.1
North"
--------------------------------------------------------------------------
including 74.4 88.1 13.7 44.9 3.50 0.72 10.4
--------------------------------------------------------------------------
09SWC-392 "Minto 61.2 91.6 30.4 99.7 2.40 1.16 8.6
North"
--------------------------------------------------------------------------
including 83.9 88.5 4.6 15.1 5.00 3.13 20.4
--------------------------------------------------------------------------
09SWC-393 "Minto 54.0 80.4 26.4 86.6 2.69 1.22 10.4
North"
--------------------------------------------------------------------------
including 58.5 62.6 4.1 13.4 7.11 1.03 26.3
--------------------------------------------------------------------------


"The style of this mineralization at Minto North, including the impressive copper grades and thicknesses, is reminiscent of the current open pit at the Minto Mine," said Stephen Quin, President & COO of Capstone Mining. "The Minto North discovery marks the first success north of the DEF fault, which previously marked the northern limit of economically significant mineralization on the Minto Mine property. This discovery opens up the potential of the underexplored northern half of the Minto Mine property, an area that had largely been ignored by past explorers and has seen little exploration drilling."

The Minto Main deposit is cut-off by the DEF fault, and previous exploration back to the early 1970's had attempted to locate a continuation of mineralization north of the fault, without success. Capstone's discovery announced today, in the first drill holes of the 2009 exploration program, is a result of applying successful exploration techniques developed over the past three years south of the open pit. "Full credit for the discovery at Minto North is due to our outstanding exploration team at the Minto Mine," said Mr. Quin. "Five discoveries in three years is a testament to their tenacity and determination to pursue targets in areas previously ignored or written off by prior explorers." Further drilling at Minto North is already underway.

Minto North Target

The Minto North copper-gold discovery is a result of the careful application of geophysical and geochemical surveys, in combination with 3D geologic modelling. The Minto North target is centered on a magnetic anomaly measuring approximately 600m by 230m in aerial extent, very similar in aerial extent to the magnetic anomaly associated with the Minto Main deposit, which is currently being mined. Targeting was further refined by gradient array induced polarization (GAIP) and geochemical surveys, and geologic modelling.

The intercepts in holes 09SWC-390, -392 and -393 lie at depths of approximately 50-60m below surface, significantly shallower than most of the other high grade deposits at Minto. In the area between Minto North and Minto Main there is only one historic drill hole within 500m of these intercepts, drilled in 1974 off the edge of the principal geophysical targets.

For current drill hole locations, please view the accompanying map: http://www.capstonemining.com/

For a current view of drill results in priority areas please view the accompany map: http://www.capstonemining.com/

For a cross section from Minto North to Minto Main, please click on the following link: http://www.capstonemining.com/

Core from the new discovery at Minto North will be on display at the "Core Shack" at the Prospectors and Developers Convention in Toronto from March 1 to 4, 2009.

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 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.



Details of Drill Results
To accompany Capstone Mining News Release Dated Feb. 17, 2009

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Hole ID & From To Interval Interval Copper Gold Silver
Interval Target (m) (m) (m) (feet) (%) (g/t) (g/t)
--------------------------------------------------------------------------
08SWC-390 "Minto 60.6 88.7 28.1 92.2 2.59 0.59 7.1
North"
--------------------------------------------------------------------------
including 74.4 88.1 13.7 44.9 3.50 0.72 10.4
--------------------------------------------------------------------------
including 79.2 88.1 8.9 29.2 4.27 0.82 13.1
--------------------------------------------------------------------------

--------------------------------------------------------------------------
08SWC-392 "Minto 61.2 91.6 30.4 99.7 2.40 1.16 8.6
North"
--------------------------------------------------------------------------
including 61.2 71.8 10.6 34.8 2.55 0.62 7.8
--------------------------------------------------------------------------
including 62.1 67.3 5.2 17.1 3.36 0.57 10.6
--------------------------------------------------------------------------
and 76.2 91.6 15.4 50.5 2.95 1.85 11.4
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including 83.9 91.6 7.7 25.3 4.29 2.74 18.2
--------------------------------------------------------------------------
including 83.9 88.5 4.6 15.1 5.00 3.13 20.4
--------------------------------------------------------------------------

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08SWC-393 "Minto 54.0 80.4 26.4 86.6 2.69 1.22 10.4
North"
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including 58.5 77.3 18.8 61.7 3.12 1.24 12.0
--------------------------------------------------------------------------
including 58.5 62.6 4.1 13.4 7.11 1.03 26.3
--------------------------------------------------------------------------


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
    or
    Capstone Mining Corp.
    Stephen Quin
    President & COO
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Chris Tomanik
    Investor Relations
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Mark Patchett
    Investor Relations
    (604) 684-8894 or 1-866-684-8894
    Email: info@capstonemining.com
    Website: www.capstonemining.com