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Capstone Reports Final Phase 1, Drill Results - More High Gold Grades at Minto North

Posted on: Tuesday, 26 May 2009, 06:15 CDT

VANCOUVER, May 26 /PRNewswire-FirstCall/ - Capstone Mining Corporation (CS: TSX) today announced the assay results for 18 new exploration drill holes completed at its high grade Minto copper-gold mine in the Yukon. Included in these results are more high grade copper-gold intercepts from the recently discovered Minto North deposit, and significant intercepts from Area 118 and from the south end of the Copper Keel trend. Some of the best new intercepts at Minto North were at shallow depths and, overall, these results should enhance the Minto Mine Phase IV expansion study currently well underway and slated for completion later this year. Highlights from this latest batch of results are tabulated below, while complete results are attached.

Highlights of Minto Drill Results ------------------------------------------------------------------------- Hole ID Target From To Interval Interval Copper Gold Silver Area (m) (m) (m) (ft) (%) (g/t) (g/t) ------------------------------------------------------------------------- 09SWC-420* Area 118 241.6 247.9 6.3* 20.7* 3.65 1.43 17.4 ------------------------------------------------------------------------- including 242.9 246.3 3.4* 11.2* 6.12 2.38 30.1 ------------------------------------------------------------------------- 09SWC-447 Copper Keel S 70.4 90.7 20.3 66.6 1.84 1.61 8.2 ------------------------------------------------------------------------- including 78.3 87.8 9.5 31.2 2.96 2.80 13.9 ------------------------------------------------------------------------- 09SWC-468 Minto North 22.3 48.8 26.5 86.9 1.53 3.49** 4.9 ------------------------------------------------------------------------- including 22.3 32.5 10.2 33.5 2.19 8.57** 6.7 ------------------------------------------------------------------------- 09SWC-474 Minto North 61.3 93.6 32.3 106.0 3.04 5.99** 12.6 ------------------------------------------------------------------------- including 78.1 82.1 4.0 13.1 3.96 19.23** 20.0 ------------------------------------------------------------------------- and 84.8 93.6 8.8 28.9 4.71 9.85** 21.2 ------------------------------------------------------------------------- * Geotechnical drill hole inclined from vertical. The estimated true thickness would be approximately 87% of the intercept length, except SWC09-449 where it would be approximately 82%. ** Reported intersections contain samples with coarse visible gold.

"These excellent results wrap up a very successful exploration program completed in the first four months of 2009," said Stephen Quin, President & COO of Capstone Mining. "The 2009 program discovered and delineated the exceptional Minto North deposit, discovered and delineated a high grade extension to the Ridgetop deposit, and continued to advance the Copper Keel trend," he added. "However, the outstanding results of the year are those from Minto North, where our exploration team discovered a thick, high grade, shallow zone of copper mineralization with some exceptional gold grades."

Drill Program

To date in 2009, 14,966m of diamond drilling in 86 holes have been completed, including six oriented geotechnical holes in support of a pit wall stability study as part of the Phase IV expansion study, which will assess potential new open pit mining centres on the Minto North, Area 2/Area 118 and the Ridgetop deposits. Drilling and geophysical surveying is set to resume at Mino North and the surrounding region in late June. New mineral resource estimates for the entire Minto property, including Minto North, are nearing completion, the results of which are expected to be announced in June 2009. These estimates will include all drilling completed to date, including almost all 2009 drilling.

For current drill hole locations, please view the accompanying map: http://capstonemining.com/_resources/2009-05-25-drill-hole.jpg. For a current view of drill results in priority areas please view the accompany map. http://capstonemining.com/_resources/2009-05-25-red-dot.jpg. The TSX does not accept any responsibility for the adequacy or accuracy of this press release.

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 May 26, 2009 ------------------------------------------------------------------------- Hole ID Target From To Interval Interval Copper Gold Silver & Interval (m) (m) (m) (feet) (%) (g/t) (g/t) ------------------------------------------------------------------------- 09SWC-390 to 419 Assays Previously Released ------------------------------------------------------------------------- 09SWC-420* Area 118 51.1 57.8 6.7* 22.0* 0.60 0.08 1.4 ------------------------------------------------------------------------- and 241.6 247.9 6.3* 20.7* 3.65 1.43 17.4 ------------------------------------------------------------------------- including 242.9 246.3 3.4* 11.2* 6.12 2.38 30.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-421 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-422* Area 118 255.5 262.0 6.5* 21.3* 0.40 0.06 1.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-423 Area 118 26.4 40.3 13.9 45.6 0.44 0.08 1.2 ------------------------------------------------------------------------- and 69.5 77.5 8.0 26.2 0.76 0.10 1.6 ------------------------------------------------------------------------- and 290.2 320.3 30.1 98.8 0.55 0.06 1.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-424* Area 118 89.7 95.0 5.3* 17.4* 1.24 0.21 3.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-425 Area 118 82.2 90.9 8.7 28.5 0.60 0.18 2.3 ------------------------------------------------------------------------- and 110.0 114.2 4.2 13.8 0.68 0.00 0.8 ------------------------------------------------------------------------- and 261.8 291.4 29.6 97.1 0.49 0.06 1.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-426 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-427* Ridgetop 22.3 51.7 29.4* 96.5* 0.65 0.10 1.1 ------------------------------------------------------------------------- including 22.3 28.5 6.2* 20.3* 1.47 0.05 1.0 ------------------------------------------------------------------------- and 42.7 50.2 7.5* 24.6* 0.95 0.32 2.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-428 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-429* Ridgetop 47.1 79.0 31.9* 104.7* 0.56 0.07 0.6 ------------------------------------------------------------------------- including 47.1 53.1 6.0* 19.7* 1.24 0.18 1.1 ------------------------------------------------------------------------- and 171.0 177.7 6.7* 22.0* 2.14 0.62 8.0 ------------------------------------------------------------------------- including 171.0 172.9 1.9* 6.2* 6.12 1.42 22.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-430 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-431* Ridgetop 34.7 51.5 16.8* 55.1* 0.32 0.07 1.1 ------------------------------------------------------------------------- including 35.7 38.4 2.7* 8.9* 0.94 0.29 3.4 ------------------------------------------------------------------------- and 93.6 103.4 9.8* 32.2* 2.23 1.61 10.7 ------------------------------------------------------------------------- including 100.6 103.4 2.8* 9.2* 4.45 3.44 24.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-432 to 441 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-442 Copper Keel S 40.2 42.5 2.3 7.5 1.13 1.00 1.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-443 to 445 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-446 Copper Geochemically Anomalous - No Significant Keel S Intersections ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-447 Copper Keel S 70.4 90.7 20.3 66.6 1.84 1.61 8.2 ------------------------------------------------------------------------- including 78.3 87.8 9.5 31.2 2.96 2.80 13.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-448 Copper Geochemically Anomalous - No Significant Keel S Intersections ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-449* Minto DEF 140.6 144.7 4.1* 13.5* 0.51 0.16 2.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-450 Copper Keel S 71.8 80.9 9.1 29.9 0.40 0.12 0.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-451 Copper Keel 74.1 77.8 3.7 12.1 1.56 0.91 7.8 ------------------------------------------------------------------------- and 203.2 218.6 15.4 50.5 0.56 0.23 2.0 ------------------------------------------------------------------------- including 212.2 218.6 6.4 21.0 1.13 0.54 4.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-452 Copper Keel 173.9 176.7 2.8 9.2 2.84 1.44 12.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-453 to 467 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-468 Minto North 22.3 48.8 26.5 86.9 1.53 3.49** 4.9 ------------------------------------------------------------------------- including 22.3 32.5 10.2 33.5 2.19 8.57** 6.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-469 to 473 Assays Previously Released ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-474 Minto North 61.3 93.6 32.3 106.0 3.04 5.99** 12.6 ------------------------------------------------------------------------- including 78.1 82.1 4.0 13.1 3.96 19.23** 20.0 ------------------------------------------------------------------------- and 84.8 93.6 8.8 28.9 4.71 9.85** 21.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 09SWC-475 Assays Previously Released ------------------------------------------------------------------------- * Geotechnical Drill hole inclined from vertical. The estimated true thickness would be approximately 87% of the intercept length, except SWC09-449 where it would be approximately 82%. ** Reported intersections contain samples with coarse visible gold.

SOURCE Capstone Mining Corp.

Source: PR Newswire

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