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Capstone Mining Corp. (CS: TSX) today
reported that operating activities at its Cozamin
Mine recommenced on a limited scale on the morning of Friday December
3. Production levels are expected to ramp up to Cozamin's
nominal design capacity of 3,000tpd over the next week to 10 days, extracting
ore from areas outside of the Avoca stopes.
Limited mining in the Avoca stopes will resume in
January and is expected to return to full capacity in February 2011, after
the completion of measures to ensure the stability of the zone and the safety
of our employees. The addition of production from the Avoca stopes should allow production at Cozamin
to be sustained at design capacity, as has been the situation for extended
periods in 2010. This return to production follows an evaluation of the
geotechnical stability of the areas of the mine currently being worked by
Capstone's staff and independent mining and geotechnical consultants, which
review will extend into the Avoca area before production resumes from those
areas.
"We are taking appropriate and
measured steps to return our Cozamin Mine to normal
operations," said Gregg Bush, COO of Capstone Mining Corp.
"The tragic accident that occurred last week warrants a continued high
degree of caution in our approach to the mining of the Avoca area and we are
utilizing both the experience of our staff and that of independent
consultants to ensure the stability of the mining areas and the safety of our
personnel."
Capstone is committed to the highest
safety standards at each of its operations. With the assistance of
independent geotechnical and mining consultants, Capstone is conducting
reviews of each of the areas of the mine and will ensure that any additional
safety measures are fully implemented before activities resume in any area.
The operations are expected to return to full capacity over the next several
days. This accident has obviously affected the production for the Cozamin Mine and Capstone's ability to meet its guidance
objectives for 2010, but the safety of Capstone's personnel comes
first. The anticipated range of production for 2010 is estimated at
37-38 million pounds of copper in concentrates, but with increased by-product
production as ore is extracted from areas with higher lead and zinc
grades. The actual production achieved will depend on the rate of
return to full production.
As a result of this revised production
plan for the Cozamin Mine, Capstone anticipates
that it will not meet its amended guidance of 80-85 million pounds of copper
in concentrate in 2010, but some of the revenue lost as a result of producing
from lower copper grade areas at Cozamin should be
offset by higher lead and zinc production from these areas. Depending
on the timing and rate of ramp up and the performance of the Minto Mine, production guidance is provisionally amended
to 78-80 million pounds of copper in concentrate in 2010.
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 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.
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