VANCOUVER, Sept. 12, 2017 /CNW/ - Capstone Mining Corp. ("Capstone" or the "Company") (TSX: CS) today announced drill results of step-out drilling at its Cozamin mine in Mexico. A half kilometre step-out drill hole intercepted 2.2% copper over 14.4 metres ("m") estimated true width ("ETW"); including 4.4% copper over 6.3m ETW in hole S285.
"Based on confidence gained in several consecutive, annual underground drilling campaigns on the Mala Noche Footwall Zone ("MNFWZ"), we recently added two surface rigs to step up the pace of exploration and facilitate better long-range planning. Our furthest step-out hole to date intercepted strong copper mineralization 580 metres along strike to the southeast from the limits of the current MNFWZ Indicated Mineral Resource," said Brad Mercer, Capstone's Senior Vice President, Exploration. "We encountered copper grades in excess of 4% immediately adjacent to Endeavour Silver Corp. ("Endeavour") claims over larger than average widths than typical of the MNFWZ (see table below). As a result, we have entered into an agreement with Endeavour which allows us to follow the footwall structure beyond the boundary of our concession."
The agreement Capstone has entered into (the "Agreement") with Endeavour Silver Corp. ("Endeavour") allows for the two companies to exchange access to certain of each other's mining concessions that abut at the southern boundary of Capstone's Cozamin mine property. The agreement provides Capstone with exploration and exploitation rights on the Endeavour concessions below 2,000 metres above sea level ("masl"), a depth where copper rich mineralization has historically been found and mined by Capstone, and provides Endeavor with exploration and exploitation rights on the Capstone concessions above 2,000 masl, where more precious metal dominant mineralization has historically been mined, in the historic Zacatecas silver district.
The Agreement provides for both parties to share various information on the concessions covered by the Agreement and to jointly have access to explore for and exploit mineralization appropriate to each company's core business; being base metals for Capstone and precious metals for Endeavour. In certain instances it also provides for a net smelter returns royalty for the entity electing not to produce. Additionally, and under certain well-defined instances, it provides flexibility around the 2,000 masl division.
Capstone has completed four surface holes with an additional two holes in progress near the claim boundary, and as a result of the recent success has approved a further $1.3 million to Cozamin's 2017 capitalized exploration guidance to continue wide-spaced testing of the MNFWZ structure on both sides of the Capstone/Endeavour boundary.
A summary of assay results of the step-out hole intercepts underpinning Capstone's decision to enter into this agreement are summarized in the table below. For drill hole location and context please view the long-section of the MNFWZ at: http://capstonemining.com/files/images/maps/MNFWZ.jpg
| Section ID |
Drill hole ID | From (m) |
To (m) | Width (m) |
True Width* (m) |
Cu (%) | Zn (%) | Pb (%) | Ag (g/t) |
Au (g/t) |
| #1 | CG-17-S284 including including including |
773.0 777.0 777.0 777.0 |
792.9 791.7 782.8 779.4 |
19.9 14.7 5.8 2.4 |
15.0 11.0 4.4 1.8 |
1.01 1.24 2.42 5.37 |
0.37 0.48 0.43 0.33 |
0.12 0.15 0.01 0.01 |
19.1 22.8 33.7 70.9 |
0.006 0.005 0.008 0.012 |
| #2 | CG-17-S285 including including including |
733.1 733.1 735.4 739.3 |
752.5 744.7 743.9 742.7 |
19.4 11.6 8.5 3.4 |
14.4 8.7 6.3 2.5 |
2.19 3.41 4.43 7.65 |
0.76 1.13 1.36 1.08 |
0.35 0.55 0.73 0.90 |
52.4 79.9 104.3 182.1 |
0.015 0.018 0.022 0.023 |
| #3 | CG-17-S287 | - | - | - | - | Assays Pending | ||||
| #4 | CG-17-S289 including |
731.2 731.2 |
736.8 733.9 |
5.6 2.7 |
4.6 2.3 |
3.03 5.05 |
0.55 0.98 |
0.01 0.01 |
53.8 87.0 |
0.022 0.022 |
| #5 | CG-17-S291 | - | - | - | - | In Progress | ||||
| #6 | CG-17-S292 | - | - | - | - | In Progress | ||||
*estimated true width of vein intercept for inclined drill holes
All samples were submitted for preparation by ALS at its facilities in Zacatecas, Mexico, followed by analysis at the ALS Laboratory in North Vancouver, Canada. The entire sample is crushed to a minimum of 70% passing -10 mesh. A 250g subsample of the crushed material is then pulverized to 85% passing -200 mesh. Copper, zinc, lead and silver are determined by ICP analysis after 4 acid digestion of a 0.4g subsample of pulverized material. Gold is determined by fire assay of a 30g sub-sample with AA finish. QAQC samples in each batch of 20 samples include a blank, a certified reference material and a duplicate (one of a field, coarse reject or pulp reject).
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two development projects; the large scale 70% owned copper-iron Santo Domingo project in Region III, Chile, in partnership with Korea Resources Corporation, and the 100% owned Kutcho copper-zinc project in British Columbia, Canada, as well as exploration properties in Chile and US. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.
