VANCOUVER, BRITISH COLUMBIA - Capstone Mining Corp. (CS: TSX) today announced results for the final 28 drill holes from its 2008 exploration program at the high grade Minto copper-gold mine in the Yukon. 

 

Highlights from this latest batch of results are tabulated below and include multiple, thick intercepts of near surface, good grade copper-gold mineralization at Ridgetop, included in which are significant sub-intervals of much higher grades. Complete assay results for all of the final twenty-eight holes reported herein are attached.

 

 

?These results wrap up a successful exploration program at the Minto Mine in 2008,? said Stephen Quin, President & COO of Capstone Mining.  ?During the year, we expanded, upgraded and increased the confidence levels for the Area 2, Area 118 and Ridgetop deposits.  These latest results both infill and expand the Ridgetop deposit to the east, defining two high grade zones of copper-gold mineralization within a broader envelope of more moderate grades, typically 40-60 metres thick, and ranging from outcropping to relatively shallow depths, which offers potentially low strip ratios,? he said.  ?The Ridgetop deposit remains open (to the east), as do some of the other deposits, plus the Copper Keel discovery remains wide open, offering additional upside opportunities to be tested in 2009.?

 

The 2008 drill program is complete, with 120 holes (118 complete and 2 abandoned) drilled for a total of 23,840 metres, accomplishing the primary objective of (a) expanding the known resources at the Area 2, Area 118 and Ridgetop deposits and (b) increasing the confidence in those mineral resources in support of a pre-feasibility study for an expanded operation.  Work on the pre-feasibility study has commenced and is planned for completion by mid-2009.  The study will incorporate new resources estimates, including the results of 2008 drilling for all deposits, evaluate development options for these resources, determine optimal throughput levels (including a possible mill throughput expansion to the range of 4,000 to 5,000 tpd) and maximizing conversion of  resources to reserves.

 

Copper and gold assay results have now been received for all of the 2008 drill holes; results for the last 28 of which are reported herein.  Interpretation work is also complete on new geology models to support the new resource estimates for Area 118, Area 2 and Ridgetop, and resource estimation has commenced.  The new resource estimates are expected to be released by the end of the first quarter, 2009, and will provide the basis for the updated pre-feasibility study discussed above.

 

Please follow the link below to a map identifying the priority exploration areas for 2008.

 

For current drill hole locations, please view the accompanying map:

 

Capstone Mining?s objective is the profitable production of base and precious metals from high grade low cost mines in mining-friendly jurisdictions.  The Minto Mine in Yukon and Cozamin Mine in Mexico meet these objectives and both mines have undergone staged expansions, the most recent of which were completed in late 2008, the benefits of which will be fully realized in 2009.  In parallel with expanding production, major exploration programs conducted in 2008 have been completed and are anticipated to result in increased mineral resources and, subject to demonstrated economics, conversion to mineral reserves, potentially supporting further increases in production levels.  In addition, Capstone controls the high grade Kutcho copper project in British Columbia, were on-going activities aim to advance the project towards a production decision.  In addition to its low cost copper production, Capstone has a strong balance sheet and a significant copper hedge book priced well above current spot prices for copper.

 

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.  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.

 

The analytical method for copper and silver performed by SGS Laboratories under a contract arrangement at the Minto Mine Site, Yukon includes digestion in aqua regia followed by absorption spectroscopy.  Gold is measured using fire assay with atomic absorption spectroscopy; analysis is performed by SGS Laboratories at Red Lake, Ontario.  When visible gold is noted in drill core samples or regular analytical values exceed 5 grams per tonne, the pulp and screen metallic assay method is used to determine total gold content and gold content of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. The result of the pulp and screen metallic assay is accepted as the most representative value and used in the assay database for resource calculations. Blank and standard samples are added to all sample shipments prior to submittal to the lab for quality assurance and quality control.  If more than two check samples assay outside of expected ranges, the work order is re-assayed. After the completion of planned drill programs, random check assays will be carried out by ALS Chemex of North Vancouver, BC.

 

Assay intervals reported herein are drill core lengths unless otherwise stated.  Because the known deposits are essentially flat lying and most drill holes reported to date are vertical, true widths are generally expected to be the same as reported core lengths unless otherwise stated. 

 

Additional information on Capstone and its Minto Mine can be obtained on Capstone?s website at http://www.capstonemining.com or on the former Sherwood Copper website at www.sherwoodcopper.com.

 

 

 

 

 

 

 

The TSX does not accept any responsibility for the adequacy or accuracy of this press release.

 

 

 

 

 

                                                                * Including two holes that were abandoned and restarted for technical reasons.