CAPSTONE DECLARES EXPANDED COMMERCIAL PRODUCTION AT COZAMIN AND
HIGHLIGHTS Q4 PRODUCTION AND SALES
October
11, 2007
VANCOUVER,
B.C. – Capstone Mining Corp. (“Capstone”) is pleased to
report that it has completed the expansion and commissioning of the 120%
increase in production at its Cozamin mine located in Zacatecas State,
Mexico.
Commissioning
of the mine expansion from the initial 350,000 tonnes per year (1,000 tonnes
per day) to 750,000 tonnes per year (2,200 tonnes per day) began in late May,
with start up commencing in mid-June. Production in July and August
averaged 1,900 tonnes per day or 86% of planned throughput. Production
in September has averaged 1,977 tonnes per day or 90% of planned throughput
and has achieved over 2,200 tonnes on successive days. During the first
week of October the mine has operated at designed throughput.
“Having
declared commercial production at the 2,200 tonne per day rate in just 12
months from our initial production at Cozamin, will provide our
shareholder’s with increased cash flow and earnings from the Cozamin
Mine,” said Darren Pylot, President and CEO.
As announced
on July 19, 2007, the expansion was completed under budget and ahead of its
scheduled completion date of October 2007. 100% of the capital was provided
from internal cash flow.
PRODUCTION
AND SALES FROM THE COZAMIN MINE IN FISCAL 2007
(all figures unaudited)
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Milled tonnes
|
93,055
|
95,439
|
112,277
|
161,162
|
461,883
|
Copper Produced (lbs)
|
2.7M
|
2.8M
|
3.5M
|
4.8M
|
13.8M
|
Copper Sales (lbs)
|
2.9M
|
2.1M
|
2.9M
|
3.9M
|
11.8M
|
|
|
|
|
|
|
Zinc Produced (lbs)
|
1.9M
|
1.2M
|
1.6M
|
2.1M
|
6.8M
|
Zinc Sales (lbs)
|
1.9M
|
Nil
|
1.5M
|
1.6M
|
5.0M
|
|
|
|
|
|
|
Lead Produced (lbs)
|
0.9M
|
0.5M
|
0.6M
|
1.0M
|
3.0M
|
Lead Sales (lbs)
|
Nil
|
1.4M
|
0.7M
|
0.7M
|
2.8M
|
Note: Audited
results for the fiscal year ended August 31, 2007 will be reported in
November 2007.
NORMAL
COURSE ISSUER BID
Further to the
news release dated July 12, 2007 Capstone purchased 484,100 common shares at
an average price of $2.38. The shares have been returned to the transfer
agent and subsequently cancelled. Capstone has 81,732,351 shares
outstanding after the cancellation of the above share purchases.
ABOUT CAPSTONE
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 81.7 million shares outstanding and is well financed with no
bank debt. More information is available online at: www.capstonemining.com.
For further
information about the Company, please contact:
Chris Tomanik, Telephone: (604) 684-8894 / Facsimile: (604) 688-2180
Email: ctomanik@capstonemining.com
This press
release contains “forward-looking information” that is based on
Capstone’s current expectations, estimates, forecasts and
projections. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
Capstone’s actual results, level of activity, performance or
achievements to be materially different from those expressed or implied by
such forward-looking information. Such factors include, but are not
limited to: projected sales or production rates; uncertainties related
to drilling results; the ability to raise sufficient capital to fund exploration;
changes in economic conditions or financial markets; changes in prices for
costs; litigation, legislative, environmental and other judicial, regulatory,
political and competitive developments; technological or operational
difficulties or inability to obtain permits encountered in connection with
exploration activities; and labor relations matters.
This list is
not exhaustive of the factors that may affect our forward-looking
information. These and other factors should be considered carefully and
readers should not place undue reliance on such forward-looking
information. Capstone disclaims any intention or obligation to update
or revise forward-looking information, whether as a result of new
information, future events or otherwise.
|