VANCOUVER, British Columbia, March 8, 2013 /PRNewswire/ --
- Moves 92 million pounds of copper from Inferred to Indicated Resource Classification
Capstone Mining Corp. ("Capstone") (TSX: CS) today announced the results of an updated National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Mala Noche Footwall Zone ("MNFWZ") at the Cozamin Mine in Zacatecas, Mexico. Drilling in the MNFWZ since the last resource update in February of 2012 has converted 92 million pounds of copper from the Inferred category to the Indicated category. This reflects drilling that was completed in the latter half of 2011 and most of 2012 that was not included in the last estimate. At a US$35 net smelter return ("NSR") cut-off grade ("COG"), the Cozamin Mine's total Measured and Indicated ("M&I") mineral resources at December 31, 2012, including adjustments for mining, were 430 million pounds of copper.
"We are pleased to report another successful year of drilling at Cozamin, which targeted the MNFWZ Inferred resource for classification upgrade," said Brad Mercer, Capstone's Vice President of Exploration. "The M&I copper resource at the MNFWZ now stands at 189 million pounds, 87 million pounds of which have already been converted into a mineral reserve. This additional 92 million pounds of mineral resource now in the M&I class will be targeted by mine engineering for potential conversion into mineral reserves during 2013. Both the Mala Noche Vein and MNFWZ remain open and are the target of 20,000 metres of drilling from underground this year in a US$4.5 million exploration program."Mineral Resource Estimate by Class for the MNFWZ, Dec. 31, 2012, at a US$35 NSR COG*
Contained Contained Contained Tonnes Copper Silver Zinc Copper Silver Zinc (000's) (%) (g/t) (%) (M lbs) (M oz) (M lbs) Measured (M) 400 2.09 44.9 0.43 18.4 0.6 3.8 Indicated (I) 4,400 1.75 33.7 0.25 169.8 4.8 24.1 Total M&I 4,810 1.78 34.7 0.26 188.6 5.4 27.9 Inferred 1,410 1.80 29.7 0.21 56.0 1.3 6.6* Metal Price assumptions (in USD) used to calculate the NSR COG for all deposits are: Cu= $2.50; Zn= $0.80; Ag= $20.00. Processing recoveries used to calculate the NSR COG for the MNFWZ Resource are: Cu=92%; Zn=69%; Ag=72%. Totals may not sum exactly due to rounding.