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FOR IMMEDIATE RELEASE
January 26, 2009 #09-02
Capstone Commences US$ 3 Million Resource Expansion Drill Program at Minto Copper-Gold Mine
Step-out Drilling Underway at Area 118, Ridgetop & Evaluation of 2008 High Grade Copper Keel Discovery
VANCOUVER, BRITISH COLUMBIA - Capstone Mining Corp. (CS: TSX) today announced that its 2009 exploration drilling at the high grade Minto copper-gold mine located in the Yukon commences. The principal exploration objectives for 2009 include resource definition drilling at the Area 118 and Ridgetop deposits in support of Capstone?s proposed Phase IV expansion study (targeting increased daily throughput of 4,000-5000tpd), and exploration drilling at the 2008 high grade Copper Keel discovery.
?Three years of consistently strong exploration results, which are rapidly being converted into resources and, once the Phase IV study is complete, hopefully reserves, clearly justify a sustained commitment to continued exploration,? said Stephen Quin, President & COO of Capstone Mining Corp. ?When we stopped drilling in 2008, the northern side of the Area 2/118 deposit and eastern side of the Ridgetop deposit remained open to expansion, which potential will be tested in the coming months. The Copper Keel discovery opens up a whole new opportunity for high grade mineralization that clearly warrants follow-up drilling.?
Updated mineral resource estimates for the entire Minto project, incorporating the results of the very successful 24,000m, 120-hole 2008 drill program, are on schedule and are expected be complete within the next three months.
2009 Exploration Priorities
The principal priorities for the 2009 exploration program will be to:
- Continue step out drilling to the east and southeast at the Ridgetop deposit, and infill drilling at southeast Ridgetop, with the objective of defining and extending near surface, thick zones of mineralization outlined in 2008;
- Evaluate potential for additional high grade mineralization along the north flank of the Area 118 deposit, immediately west of Area 2, where previous drill holes may have stopped short of depth required to intercept the high grade mineralization defined immediately to the south;
- Conduct preliminary, wide spaced drilling of the highly prospective Copper Keel area, where three previous drill holes intersected high grade copper-gold mineralization within a strong magnetic anomaly that measures over 600m by 250m;
- Conduct geotechnical drilling to gain detailed rock quality and pit wall stability data at Ridgetop and Area 2/Area 118 in support of the ongoing Phase IV expansion study.
2009 Drill Program
Capstone has approved a budget of approximately US$3 million to conduct a 10,000m drill program during the winter/spring season of 2009. The principal targets are:
- Ridgetop - Drilling at Ridgetop in 2008 built off an inferred mineral resource outlined in 2007. Drilling on the east flank of the deposit in 2008 discovered thicker and higher grade mineralization than indicated by the 2007 resource model and, as a result of this success, a significant increase in mineral resources is expected for Ridgetop. A new mineral resource estimate is in progress incorporating all of the 2008 drill holes, while the 2009 program will continue to step out to the east and southeast, with the aim of expanding the mineralization further. Because of the increased drill hole density from 2008, the classification of this resource should be much improved as well. While the grades in the Ridgetop area are more moderate, when compared to the main Minto and Area 2 deposits, the near surface nature of this mineralization (within a few metres of surface), combined with significantly greater thicknesses, present an opportunity for the definition of comparatively low strip ratio reserves.
- Area 2/Area 118 - Drilling in 2006 to 2008 discovered and delineated an extensive mineralized system and a large combined mineral resource, including mineral reserves in the core of the Area 2 portion of the combined deposit. However, the last announced resource estimate does not include any of the 2008 drill holes that in-filled the resource area and should significantly upgrade the mineral resource classification. A recently completed 3D geologic model suggests that the mineralization may be open to the north, on the Area 118 side, and to the east on the Area 2 side; in the latter case potentially extending all the way to the Copper Keel mineralization. An updated mineral resource estimate for the combined Area 2/Area 118 (incorporating the 2008 drill holes) is in process.
- Copper Keel ? The last drill hole of the 2008 season, 08SWC-389, intersected a thick horizon of high grade mineralization, grading 2.1% Cu over 24.5m including 2.6% Cu over 8.6m and 3.1% Cu over 9.1m. Capstone believes that this hole may link up with several intercepts within the Copper Keel trend, suggesting potential for a large, high grade deposit in the area. The dimensions of the Copper Keel target, an interpreted synform fold axis, is further supported by a magnetic high anomaly measuring more than 600m by 230m in aerial extent, nearly double the extent of the magnetic anomaly associated with the Main Minto deposit (which is currently being mined). It is notable that all of the known, near surface deposits on the mine property, including the Main, Area 2/Area 118 and Ridgetop deposits are associated with distinct magnetic high anomalies. Abundant magnetite is associated with high grade copper-gold sulphide mineralization throughout the Minto area.
- The 2009 drill program will also supply orientated, geotechnical drilling to gather detailed rock quality and structural data to support preliminary pit wall and/or underground development design, as well as aiding in studies of blasting and crushing characteristics, all in support of the current Phase IV expansion study incorporating all of the known mineral resource areas on the Minto mine property.
Please follow the link below to a map identifying the priority exploration areas for 2008:
For further information about Capstone, please contact:
Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO
Or Investor Relations? Chris Tomanik or Mark Patchett at (604) 684-8894 or (866) 684-8894
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.
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.