Capstone Intercepts 20m of 2.2% Cu Including 5m of 5.3% Cu: Exploration Program Pointing to Higher Grades and Wider Intercepts than in Current Reserve
VANCOUVER, Dec. 2, 2019 /CNW/ - Capstone Mining Corp. ("Capstone" or the "Company") (TSX:CS) announces additional high grade copper and silver results from 20 infill drill holes at its Cozamin Mine, further to the update of November 5, 2019. These, plus an additional 15 holes pending assays, bring the total drilled to date to 138 holes of a 200 hole program, aiming to more than double the current reserve base. Drill results to date continue to demonstrate greater widths and grades than current Mineral Reserves. Mineral Resources and Mineral Reserves estimates will be updated in late 2020.
"These recent drill results continue a theme we saw in the last results, released in early November, of better grade times thickness on average than the current reserve," said Brad Mercer, Capstone's Senior Vice President of Operations and Exploration. "With each additional hole we are more confident that Cozamin will be an even greater mine for the next decade, with 50% higher copper and silver production compared to today. The Mala Noche Footwall Zone ("MNFWZ") is still open in two directions and we continue to keep six drills running to expand the resource and eventually the mineral reserves with a new technical report next year."
Darren Pylot, Capstone's President and CEO said, "Our exploration team has done a fantastic job in surfacing huge NAV for shareholders. Not long ago we were facing a sunset operation and with exploration excellence we are now looking forward to higher production and higher margins than what we have ever realized at this mine. Cozamin is the type of operation all mining companies want to have but are extremely rare to find."
Cozamin is expected to produce 50 to 55 million pounds of copper and 1.4 to 1.5 million ounces of silver starting in early 2021, upon completion of the underground debottlenecking development project which is on schedule.