Capstone Commences Exploration Drilling at its Cozamin Mine, Mexico
– Testing Targets Along High Grade Mala Noche Vein, in Parallel
Structures & Satellite Targets
Capstone Mining Corp. (CS: TSX) today announced that it has commenced
exploration diamond drilling at its Cozamin Mine in Zacatecas State,
The immediate focus for this drilling is to explore areas along the Mala
Noche vein system (which hosts all of the current mineral resources and
mineral reserves at the Cozamin mine) that are in close proximity to the
current workings and existing mine infrastructure. A second phase of drilling
is planned for later in the year to test targets that lie off the Mala Noche
vein structure, and away from the mine workings. As reported on
2010
in 2010.
Limited drilling has already been conducted on one target located in the
footwall of the Mala Noche vein, adjacent to the current production areas,
called the “Mala Noche Footwall Zone”. Using a small diamond drill owned by
the mine, several significant intercepts of copper mineralization have
already been located. A second high priority target lies immediately east of
the Avoca stopes currently being mined, where mineral reserve grades and
thicknesses are greatest. This target lies beyond the limits of the current
mineral resources and mineral reserves, which have an artificial boundary at
a historic claim boundary, on claims that were purchased.
“Four priority targets in close proximity to our Cozamin Mine will be
drill tested in the coming months,” said
Capstone Mining. “These targets represent the first of a number of targets
generated from a sustained 12-month property-wide assessment of the
exploration potential of the Cozamin Mine property and suggest significant
potential for the discovery of new mineral resources within the principal
known vein system that hosts all the currently known mineral resources and
mineral reserves, as well as in parallel hydrothermal systems.”
2010 Exploration Plan
The 2010 exploration plan is proceeding along two parallel tracks. The
immediate focus is on targets within the Mala Noche vein system that are
within close proximity to the current mine workings of haulages, ramps and
drifts. Any mineral resources discovered in these areas could easily be drill
defined and accessed via extensions from existing workings. The second
exploration priority in 2010 will be to start testing standalone targets that
lay within Capstone’s current claims, near to the Cozamin mill , but which
cannot be accessed through the current system of mine workings.
Phase 1 Priority Targets
————————
Four targets have been identified for immediate testing; three lie on
strike within the Mala Noche vein structure and a fourth is in a sub-
parallel structure hosting a vein and breccias complex. From west to east the
four targets are identified as the Mala Noche West, Mala Noche Footwall ,
Avoca Extension and San Rafael Deep. The Mala Noche Footwall target is
located in the footwall rocks of the Mala Noche Vein, within tens of metres
to a few hundred metres of the current mine workings. Due to the proximity of
and access to existing mine workings, this target will be drill tested first,
over a 200m by 600m area. Drilling of the highest priority target, the Avoca
Extension target, will start once a new underground cross-cut and drill
stations are completed. Surface drilling will examine the San Rafael Deep
target, below the mineral resources defined in the
and then the Mala Noche West target, a new area identified through
exploration conducted by Capstone in 2009-10 that may represent the western
extension of the Mala Noche vein system. Surface drilling is expected to
commence in
Capstone is currently focused on exploration of the most obvious targets
reaching close proximity to the current underground infrastructure. However,
in addition to the four targets mentioned above and described below, Capstone
is also advancing multiple additional stand-alone exploration targets on its
Cozamin claims based upon geophysics, geochemistry (rock and soil) and
geological mapping. Some of these other targets may be drill tested from
surface later in the year, after the near mine drilling is completed, and/or
in future years.
For target locations relative to the current mine workings please view
the accompanying long-section view:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin01.pdf
Avoca Extension
The Avoca Extension target is located immediately adjacent to active
mining areas of the Cozamin Mine, where Avoca-style bulk mining is being
utilized to extract ore from the widest and highest grade sections of the
Mala Noche vein. The current mineral resource model suggests that the
mineralization is open toward the east, but was not drilled in the past
because Capstone did not own the claims over the target area. Capstone has
since acquired these claims, as announced on
obvious potential and proximity to an important and active part of the mine,
Capstone considers the Avoca Extension a priority target and drifting will
commence shortly to provide an approximately 300m cross-cut into the Mala
Noche hanging wall to facilitate access for underground drill testing.
For target location relative to the current mine workings please view the
accompanying long-section view:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin02.pdf
Mala Noche Footwall
The Mala Noche Footwall target is a composite vein and breccia body
hosted in a parallel to sub-parallel structure adjacent to the main
production horizon at Cozamin, the Mala Noche vein. The Mala Noche Footwall
structure follows a rhyolite dyke that lies in the footwall strata of the
Mala Noche vein at a variable distance from the main mine workings. Insofar
as is currently known, the Mala Noche Footwall zone appears to have a
similar, moderately north inclination as the Mala Noche vein. Mineralization
in the Mala Noche Footwall zone is strongly chalcopyrite dominated, as
compared to the Mala Noche vein proper, which is predominantly zoned
polymetallic mineralization. The Mala Noche Footwall mineralization
intercepts to date are comprised of massive to semi-massive stringers within
quartz veins or as coarse grained disseminations within associated
hydrothermal breccias.
The zone was discovered in drill hole CG-04-27 drilled in 2004 when a
significant interval of quartz stockworking with chalcopyrite mineralization
hosted in rhyolite dike was cut 30m below the Mala Noche vein. This intercept
was not followed up at the time since exploration work was concentrated on
developing a mineral resource within the Mala Noche vein prior to
constructing the present mining operation. Subsequent deepening of the
central internal ramp, below Level 10 in the mine, cut significant
chlorite-epidote alteration in the footwall to the Mala Noche vein.
Subsequently, further development in the footwall on Level 12 exposed strong
chlorite-epidote alteration and local chalcopyrite mineralization over a
distance of 200m. These results rekindled interest in the footwall target and
drilling in 2010 (using the Company’s small underground rig from drill
stations in the ramp) cut mineralization in four holes. Assays have been
received from two of these holes and are presented below.
2010 Mala Noche Footwall Drilling
-------------------------------------------------------------------------
Hole ID Target From To Interval Silver Copper Lead Zinc
Area (m) (m) (m)(x) (g/t) (%) (%) (%)
-------------------------------------------------------------------------
MN
UG-ING-14 Footwall 57.00 59.00 2.00 11.0 0.67 0.01 0.19
-------------------------------------------------------------------------
including 58.25 59.00 0.75 21.0 1.21 0.01 0.49
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MN
UG-ING-15 Footwall 35.25 37.75 2.50 30.6 2.09 0.01 0.06
-------------------------------------------------------------------------
including 36.00 36.50 0.50 97.5 6.71 0.01 0.21
-------------------------------------------------------------------------
MN
And Footwall 63.00 65.00 2.00 52.1 2.63 0.07 0.17
-------------------------------------------------------------------------
including 63.25 63.75 0.50 179.5 9.36 0.22 0.33
-------------------------------------------------------------------------
(x)There is currently insufficient drill data to determine the geometry
of this zone and estimate true thicknesses of these mineralized
intercepts.
Capstone used its small production oriented underground core drill, which
has limited capacity, to obtain the drill intercepts listed above in an
initial “proof of concept” drill program. Given the encouraging results,
noted in the above table, Capstone is bringing in a drill contractor with a
rig of sufficient capacity to test this zone along a strike length of 600
metres and a dip extent of 200 metres using the existing mine workings for
drill platforms.
For proposed drillhole plan including completed holes please view the
accompanying long-section:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin03.pdf
Mala
The Mala Noche West target is an area located to the west of the current
mine workings. On surface, the area is a recessive weathering valley, with no
bedrock exposure, and little is known about the prospective geology. Capstone
intends to drill this area from surface, targeting the projected location of
the Mala Noche vein, and stepping out incrementally from the last know
location in the mineral resource model. Capstone considers this a
particularly interesting area since several other vein systems (located to
the south of the Mala Noche Vein) that have seen past production project into
this area. The intersection point of these various systems lies in the
vicinity of the recessive feature mentioned above, which has coincident soil
geochemical and geophysical anomalies.
San Rafael Deep
The San Rafael Deep program is a continuation of the successful drilling
conducted in 2008 that led to a new mineral resource estimate for
as initially announced by the Company on
holes are planned from surface to drill down dip from the previously
announced mineral resource in order to probe the Mala Noche system and gain
knowledge about the potential for mineralization in an area not previously
tested.
For target location relative to the current mine workings and current
mineral resources please view the accompanying long-section view:
http://www.capstonemining.com/i/photos/cozamin/2010-13Cozamin04.pdf
Quality Assurance/Quality Control
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
for Capstone Mining Corporation. The exploration activities at the Cozamin
Mine are carried out under the supervision of
Exploration for Capstone. The following employees of Capstone, each a
Qualified Person, reviewed Technical Information contained in this news
release:
geologist
technical content of this news release. Analyses for copper, zinc, lead,
silver and gold were completed by ALS Chemex using the following method. The
entire sample is crushed to a minimum of 70% minus 10 mesh. A 250g subsample
of the crushed material is then pulverized to 85% minus 200 mesh. Gold and
silver grades are determined by gravimetric fire assay using a 50g charge
taken from the pulverized material. Copper, zinc and lead are determined by
ICP analysis after 4 acid digestion of a 0.4g subsample of the pulverized
material.
The TSX does not accept any responsibility for the adequacy or accuracy
of this press release.
Forward-Looking Information
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”) does not intend, and does not assume
any obligation, to update these forward-looking statements, except as
required under applicable securities legislation.
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
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forward-looking statements can be identified by the use of words such as
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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 mineral 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.
For further information: about Capstone, please contact:
Vice Chairman & CEO,
Zobeida Slogan at +1-(604)-684-8894 or +1-(866)-684-8894,
zslogan@capstonemining.com/
SOURCE Capstone Mining Corp.