Capstone Mining Corp.

Capstone Mining Corp.

April 16, 2007 18:00 ET

Capstone Reports Quarterly Operating Profit of $4.8 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) - Capstone Mining Corp. ("Capstone") (TSX:CS) announces its financial results for the quarter ending February 28, 2007, including production and sales for the Cozamin Mine located in Zacatecas, Mexico.

Capstone had earnings of $10.3 million and earnings per share of $0.13 for the six month period ending February 28, 2007.

The following are the second quarter results:

- Revenues of $10.6 million, operating profit of $4.8 million and earnings were $3.8 million (2006 - $Nil).

- Earnings per share $0.05 ($0.08 in Q1-2007), compared to earnings per share of ($0.01) in Q2-2006.

- Total throughput was 95,439 tonnes (96% of planned throughput of 1,100 tpd). Production included:

- 2.8 million pounds of copper,

- 1.2 million pounds of zinc,

- 500,000 pounds of lead,

- 149,000 ounces of silver.

- 90% of copper and lead concentrates sold during the quarter were priced when loaded on the vessel, for realized prices of US$2.84 per pound copper and US$0.78 per pound lead.

- On-site copper cash costs net of by-product credits were US$(0.02)/lb (US$(0.04)/lb in Q1-2007). Cash costs (the aggregate of smelter, refinery, transportation and all site costs) were US$0.39/lb (US$0.44 in Q1-2007).

- Total costs (the aggregate of cash costs, depletion, amortization and royalty allowance) were US$0.88/lb (US$0.85/lb in Q1-2007).

- Working capital was $26.5 million at February 28, 2007.

2007 Metal Production

The forecasted copper, silver, lead and zinc production for the fiscal year 2007 is estimated to be 13 - 14 million pounds of copper, 750,000 ounces of silver, 3.5 million pounds of lead and 8 million pounds of zinc.


During the quarter, Capstone continued the expansion of the mine capacity to 750,000 tonnes per year. Approximately US$3.5 million has been spent to date of the total cost of expansion US$15 million which will be funded from operating cash flow. Expansion capacity will incrementally increase throughout the year with 2,200 tpd capacity expected to be achieved by the 4th calendar quarter. The expansion will increase the 2008 production at Cozamin to 26 million pounds of copper, 1.3 million ounces of silver, 4.0 million pounds of lead and 11.0 million pounds of zinc.


Capstone has an exploration budget of US$6 million for the fiscal year 2007. A 20,000 m Phase 5 underground infill drill program and a 5,000m Phase 4 surface exploration program are currently underway. To date, the Company has drilled 38 holes from underground, totaling 12,000 m and 5 holes from surface, totaling 4,800 m. The definition drilling program is planned to be completed by the end of June and an updated resource estimate by the end of September 2007.

The information in this news release should be read in conjunction with the Interim Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended February 28, 2007, which will be available on the Companies web site and at


Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.8 million shares outstanding and is well financed with no bank debt. More information is available online at:

Contact Information