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Capstone Mining Corp. (CS: TSX) today
announced its operating results for the three and twelve months ended December 31, 2010 from its two operations, the Cozamin and Minto mines.
Combined production totalled 18.9 million and 76.0
million pounds of copper in concentrates in the three and twelve months,
respectively, with additional significant by-products of lead, zinc, silver
and gold. At December 31, 2010 Capstone had
a cash balance of US$192.4 million (including restricted cash of US$6.4
million and a short-term deposit balance of US$20 million), a significant
increase primarily attributable to the cash generated from sales at higher
metal prices as well as the sale of some investments. As press released
on December 17, 2010 Capstone reiterates its 2011
guidance of 80-85 million pounds of copper in concentrates.
Q4 and 2010 Annual Production
|
Q4 2010
|
Total 2010
|
Copper in concentrates
(millions of pounds)
|
|
|
- Cozamin
|
8.2
|
35.5
|
- Minto
|
10.7
|
40.5(*)
|
Total
|
18.9
|
76.0
|
(*) Minto
realized negative adjustments to previously reported
copper production based on the final settlement of copper sales from previous
quarters in the amount of one million pounds. The adjustments are only
reflected in the year to date column.
Operational Highlights for the three and
twelve months ended December 31, 2010
The following is a summary of
operational highlights for Capstone during the three and twelve months,
respectively, ended December 31, 2010:
- Production of 18.9 million and 76.0 million pounds of copper
contained in concentrates, respectively.
- By-product production of 3.7 million and 17.3 million pounds of
zinc, 1.5 million and 9.1 million pounds of lead and 371,177 and
1,610,008 ounces of silver in concentrates, for the three and twelve
months, respectively. Final gold production is not available since
assaying is done off site, but is estimated at 2,234 and 22,284 ounces
for the respective periods.
- Detailed operating statistics for both operating mines are
provided in the tables below.
Cozamin Highlights and Outlook
Cozamin Mine results for the three and twelve
months ended December 31, 2010, respectively,
were:
|
Q4 2010
|
Total 2010
|
Production (2)
(contained in concentrates)
|
|
|
-
Copper (000s pounds)
|
8,209
|
35,552
|
-
Lead (000s pounds)
|
1,496
|
9,142
|
-
Zinc (000s pounds)
|
3,694
|
17,348
|
-
Silver (ounces)
|
334,751
|
1,403,170
|
Mine
|
|
|
-
Tonnes of ore mined
|
214,689
|
978,954
|
Mill
|
|
|
-
Tonnes processed
|
215,503
|
981,682
|
-
Tonnes processed per day
|
2,342
|
2,690
|
-
Copper grade (%)
|
1.88
|
1.80
|
-
Lead grade (%)
|
0.42
|
0.63
|
-
Zinc grade (%)
|
1.15
|
1.27
|
-
Silver grade (g/t)
|
67.1
|
62
|
Recoveries
|
|
|
-
Copper (%)
|
92.0
|
91.2
|
-
Lead (%)
|
74.1
|
67.6
|
-
Zinc (%)
|
67.8
|
63.0
|
- Silver (%)
|
72.0
|
71.7
|
Concentrate (2)
|
|
|
- Copper (dmt)
|
14,187
|
64,356
|
- Copper (%)
|
26.2
|
25.1
|
- Silver (g/t)
|
582
|
536
|
- Lead (dmt)
|
1,015
|
6,282
|
- Lead (%)
|
66.9
|
66.0
|
- Silver (g/t)
|
2,119
|
1,391
|
- Zinc (dmt)
|
3,534
|
16,448
|
- Zinc (%)
|
47.4
|
47.8
|
(2) Adjustments based on final
settlements will be made in future periods
- Mine and mill production for Cozamin
for the last 5 weeks of the year came in at less than 50% of plan as a
consequence of the stability assessments being carried out in the high
grade Avoca area. Production was further hampered by a shutdown in
the main ore haulage ramp while repairs were made in a cross faulting
zone.
- As a result of the geomechanical
evaluation of the Avoca Zone, remediation and additional development
activities are required, though production levels continue to increase
as new support standards are implemented, they will not return to plan
levels until late-February.
Minto Highlights and Outlook
Minto Mine results for three and twelve
months ended December 31, 2010, respectively,
were:
|
Q4 2010
|
Total 2010(4)
|
Production (3)
(contained in concentrates)
|
|
|
- Copper (000s lbs)
|
10,672
|
40,454
|
- Gold (oz) (2)
|
2,234
|
22,284
|
- Silver (oz)
|
36,426
|
206,838
|
Mining
|
|
|
- Waste (tonnes)
|
1,764,509
|
7,873,049
|
- Ore (tonnes)
|
484,907
|
1,494,752
|
- Total material mined (tonnes)
|
2,249,416
|
9,367,801
|
Milling
|
|
|
- Tonnes
processed
|
258,121
|
915,051
|
- Tonnes
processed per day
|
2,806
|
2,507
|
- Copper grade (%)
|
2.03
|
2.22
|
- Gold grade (g/t) (2),
(3)
|
0.46
|
0.93
|
- Silver grade (g/t)
|
6.6
|
8.7
|
Recoveries
|
|
|
- Copper (%)
|
92.5
|
90.3
|
- Gold (%) (2), (3),
|
58.1
|
81.1
|
- Silver (%)
|
66.1
|
80.6
|
Concentrate
|
|
|
- Dry tonnes
produced
|
12,082
|
47,065
|
- Copper grade (%)
|
40.1
|
39.0
|
- Gold grade (g/t) (2),
(3)
|
5.8
|
14.7
|
- Silver grade (g/t)
|
94
|
137
|
(2) Gold is not assayed on site,
resulting in a significant lag in receiving this data. Data for
Q4 is an estimate based on prior production experience.
(3) Adjustments based on final
settlements will be made in future periods.
(4) Adjustments are only reflected in
year to date column relating to negative adjustments of previously reported
copper production.
- Mill throughput increased during November and December with
installation of higher performance tailings filter cloths.
- With the completion of the dewatering of the Minto
Main pit in October higher grade ore was mined from the Stage 4
push-back resulting in higher grades being processed.
- Mining in Stage 4 of the Minto Main pit
was essentially complete at year-end. Mining of the final stage of
the Minto Main pit is on schedule to complete
in early Q2 of 2011.
- All critical permitting activities for initiation of mining in
Area 2 and initial development of the Area 2 underground resources is on
track for completion in Q1 of 2011
2010 Financial Results Timing
Capstone will report its 2010 financial
results on Monday, March 14, 2011 after market
close and will host a conference call and webcast to discuss these results as
noted below.
Conference call and webcast details are
as follows:
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 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.
43-101 Compliance
Unless otherwise indicated, Capstone has
prepared the technical information in this news release ("Technical
Information") based on information contained in the technical reports
and news releases (collectively the "Disclosure Documents")
available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com.
Each Disclosure Document was prepared by or under the supervision of a qualified
person (a "Qualified Person") as defined in National Instrument
43-101 Standards of Disclosure for Mineral Projects of the Canadian
Securities Administrators ("NI 43-101"). Readers are
encouraged to review the full text of the Disclosure Documents which
qualifies the Technical Information. Readers are advised that mineral
resources that are not mineral reserves do not have demonstrated economic
viability. The Disclosure Documents are each intended to be read as a
whole, and sections should not be read or relied upon out of context.
The Technical Information is subject to the assumptions and qualifications
contained in the Disclosure Documents.
The following employees of Capstone,
each a Qualified Person, reviewed Technical Information contained in this
news release: Robert Barnes, Professional
Engineer, reviewed all Technical Information in this news release. In
addition, Gregg Bush, Chief Operating Officer
for Capstone, reviewed Technical Information related to the Minto Mine and the Cozamin
Mine.
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