Capitan Mining Expands Known Gold Mineralization at the Penoles Gold Project in Durango, Mexico; Drills 45.7 Metres of 0.63 g/t Gold Within Larger Interval of 111.3 Metres of 0.34 g/t Gold
Capitan Mining Expands Known Gold
Mineralization at the Penoles Gold Project in
Durango, Mexico; Drills 45.7 Metres of 0.63 g/t
Gold Within Larger Interval of 111.3 Metres of
0.34 g/t Gold
Vancouver, British Columbia--(Newsfile Corp. - November 30, 2020) -
Capitan Mining Inc.
(TSXV:
CAPT)
("Capitan" or the "Company")
is pleased to report results for the first seven drill holes from the
current and on-going 6,000 metre reverse circulation (RC) drill program at the Peñoles Project (the
"Project") in Durango, Mexico. This initial drill campaign is focused on testing the continuity of known
gold-silver zones at the Capitan Hill Deposit, both along strike and down-dip of the March 2015, 43-101
compliant, inferred resource outline, as well as infill significant gaps within the resource model. The first
seven drill holes of the program are presented herein, all of which intersected Capitan Hill style
mineralization that is consistent in grade and width with previous drilling.
Drill Highlights:
RC Hole (20-CARC-06):
intersected
45.7 m of 0.63 g/t gold
within a larger interval of
111.3 m of
0.34 g/t gold;
RC Hole (20-CARC-05):
intersected
76.2 m of 0.41 g/t gold and 21 g/t silver
including
16.8 m
of 0.68 g/t gold and 28.5 g/t silver;
RC Hole (20-CARC-03):
intersected
68.6 m of 0.4 g/t gold and 11 g/t silver
including
16.8 m of
0.74 g/t gold and 15.9 g/t silver;
RC Hole (20-CARC-02):
intersected
56 m of 0.4 g/t gold
including
25.9 m of 0.53 g/t gold;
New
gold zones discovered
in the hanging wall of Capitan Main zone, that provide an
additional, near surface
opportunity to expand
the March 2015 resource
within the
conceptual, open-pit shell;
Drill results support management's view that there
is significant room to expand
the existing
oxide resource;
Drilling is ongoing and the company anticipates completion of the 6,000 meter RC drill program in
March/April 2021.
Capitan's CEO, Alberto Orozco, stated:
"We are very excited to receive the first batch of drill hole
assays from our program on Capitan Hill at the Peñoles Project. This first batch of drill holes
demonstrates strong continuity of gold-silver mineralization, particularly down- and up-dip; and they
are also showing silver mineralization at depth to be more significant than previously thought. Drill
hole 20-CARC-05 had a wider and richer intercept of silver mineralization than we had anticipated,
demonstrating there is still much more to understand about the potential of the mineralization at
Capitan Hill. It is important for Capitan Mining to be delivering on its program as scheduled; from the
permitting stage to the commencement of our drill program, and to provide steady news flow as
promised. We will continue working through the end of the year to complete the remaining of our
planned 3,000 metres of drilling, which will be followed by an additional 3,000 metres of drilling in
early 2021."
Figure 1: Fall/Winter 2020 Drill Program Map at the Capitan Hill Target
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7373/69142_1f2f70548410cabc_002full.jpg
Expansion Drilling, Capitan Main Zone
RC holes 20-CARC-01, 03, and 05 located on sections 100, 400, and 250 respectively, tested the
continuity of the gold-silver mineralization down dip of the 2015 Inferred Resource (See drill results in
Table 1
and
Figure 1
for plan map).
All of the RC drill holes above successfully intersected the Capitan Hill Main Zone, with results being
consistent with the grade and width of the previous drilling. These new holes extended the Capitan Hill
Main gold-silver mineralization down-dip between 50 to 120 m. Drill results include 76.2 m of 0.41 g/t
gold in hole 20-CARC-05, 68.58 m of 0.4 g/t gold in hole 20-CARC-03 and 51 m of 0.439 g/t gold in hole
20-CARC-01.
Click here for link to cross-sections
.
RC Hole 20-CARC-01, located on section 100, collared near the eastern edge of the Capitan Hill Main
Zone (see
Figure 1
). The hole was mineralized through its entire length starting from surface and was
ended in mineralization. This hole extended the Capitan Hill Main Zone by 120 m down dip from previous
drilling.
In addition to intersecting the Capitan Hill Main Zone, RC holes 20-CARC-05 and 20-CARC-03, also cut
significant values of silver mineralization, expanding the continuity of silver mineralization at depth. Silver
values in RC hole 20-CARC-05 include 60.96 m of 25.15 g/t silver that includes a higher-grade zone of
33.5 m of 33.67 g/t silver.
All of the expansion holes were oxidized through their entire length, with RC holes 20-CARC-01 and 03
getting into sulphide mineralization at drill hole depths of 173.7 m and 184.4 m respectively.
Infill Drilling, Capitan Main Zone
Infill drilling in the current program was designed to confirm the presence of the Capitan Hill Main zone in
areas where significant gaps (75-100 m ) existed in the 2015 Inferred Resource model. All holes
presented below successfully confirmed the presence of the Capitan Hill Main
Zone.
RC hole 20-CARC-06 was drilled on section 250 and was designed to test a roughly 100-metre wide
gap between previously drilled diamond drill holes CDDH-12-10 and CDDH-08-02 (See
Figure 1
). Hole
20-CARC-06 intersected the main Capitan Hill Zone from 35.1 m to 146 m, with a total drilled width of
111.25 m grading 0.342 g/t gold, including 45.7 m of 0.626 g/t gold. (See
Table 1
)
RC Hole 20-CARC-07 was drilled on section 300, between previously drilled diamond drill holes CDDH-
08-05 and CDDH-12-12 to infill a large >100 m wide gap. The hole cut the main mineralized zone in
three, narrowly separated, intercepts that are bound by anomalous gold mineralization. These include
22.9 m of 0.2 g/t gold, 35.1 m of 0.27 g/t gold and 50.3 m of 0.22 g/t gold. The hole bottomed in
anomalous mineralization and could not be drilled to its completed depth due to technical issues.
RC Hole 20-CARC-02 was drilled on section 000 and designed to test a >100 m wide gap between
CDDH-12-17 and surface. The hole successfully intersected the Capitan Hill Main Zone and confirmed
its presence up-dip, to surface, and was mineralized almost over its entire length. Significant values
include 0.284 g/t gold over 29 m and 56.4 m of 0.398 g/t gold.
New, Near Surface Hanging Wall Gold Zones
Drilling prior to the March 2015 resource statement at Capitan Hill indicated the possibility of additional
zones of oxidized, gold-silver mineralization located in the hanging wall to the
Capitan Hill Main Zone.
However, due to a lack of drilling, the significance of these zones was poorly understood and precluded
from being captured in the March 2015 resource estimate.
In the current program, RC holes 20-CARC-03, 05 and 07 confirmed the presence and continuity of
these "Hanging Wall Zones", highlighting the potential to enhance the existing resource. The most
significant results include 30.5 m of 0.22 g/t gold starting from surface in RC hole 20-CARC-03; 22.9 m
of 0.199 g/t gold in RC hole 20-CARC-07, and 35.05 m of 0.15 g/t gold in RC hole 20-CARC-05.
Figure 2: Cross Section Diagram of Drill Holes 20-CARC-05 & 20-CARC-06
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/7373/69142_1f2f70548410cabc_003full.jpg
Table 1.
Table of drill results
Hole Name
Azimuth
Dip
Section
Zone
From (m)
To (m)
Interval
(m)
True Width
(m)
Au (ppm)
Ag (ppm)
OX-SUL
20-CARC-
01
Interval
28
70°
100
Capitan
Main
0
10.7
10.7
10.5
0.112
0.15
OX
Interval
Capitan
Main
22.9
41.1
18.3
18.0
0.115
0.15
OX
Interval
Capitan
Main
45.7
64
18.3
18.0
0.196
0.2
OX
Interval
Capitan
Main
70.1
97.5
27.4
27.0
0.248
0.26
OX
Interval
Capitan
Main
100.6
115.8
15.2
15.0
0.139
0.25
OX
Interval
Capitan
Main
121.9
173.7
51.8
51.0
0.439
1.64
OX
Including
135.6
173.7
38.1
37.5
0.546
2.01
OX
Interval
Capitan
Main
173.7
201.2
27.4
27.0
0.282
2.13
SUL
20-CARC-
02
Interval
28
40°
000
Capitan
Main
0
42.7
42.7
42.5
0.245
0.18
OX
Interval
Capitan
Main
50.3
79.2
29
28.9
0.284
0.15
OX
Interval
Capitan
Main
83.8
140.2
56.4
56.2
0.398
0.81
OX
Including
112.8
138.7
25.9
25.8
0.526
1.56
OX
Interval
Capitan
Main
144.8
160
15.2
15.1
0.281
1.62
OX
20-CARC-
03
Interval
28
50°
400
Hanging
Wall
0
30.5
30.5
30.5
0.222
0.15
OX
Interval
Hanging
Wall
59.4
67.1
7.6
7.6
0.12
0.15
OX
Interval
Hanging
Wall
77.7
83.8
6.1
6.1
0.12
0.15
OX
Interval
Hanging
Wall
97.5
102.1
4.6
4.6
0.143
0.93
OX
Interval
Capitan
Main
115.8
184.4
68.6
68.6
0.398
11.01
OX
Including
Capitan
Main
117.3
134.1
16.8
16.8
0.741
15.88
OX
Interval
Capitan
Main
184.4
189
4.6
4.6
0.138
3.73
SUL
Interval
Capitan
Main
202.7
207.3
4.6
4.6
0.111
1.57
SUL
20-CARC-
04
Interval
28
60°
400
Hanging
Wall
0
10.7
10.7
10.7
0.132
0.3
OX
Interval
Captian
Main
16.8
22.9
6.1
6.1
0.157
0.31
OX
Interval
Captian
Main
30.5
68.6
38.1
38.1
0.341
1.78
OX
20-CARC-
05
Interval
0
90°
250
Hanging
Wall
0
3
3
2.6
0.133
0.15
OX
Interval
Hanging
Wall
15.2
18.3
3
2.6
0.126
0.15
OX
Interval
Hanging
Wall
47.2
82.3
35.1
30.4
0.146
0.15
OX
Interval
Capitan
Main
135.6
138.7
3
2.6
0.253
0.73
OX
Interval
Capitan
Main
149.4
225.6
76.2
66.0
0.414
21.02
OX
Including
167.6
184.4
16.8
14.5
0.68
28.49
OX
20-CARC-
06
Interval
28
70°
250
Hanging
Wall
18.3
29
10.7
10.7
0.236
0.15
OX
Interval
Capitan
Main
35.1
146.3
111.3
111.3
0.342
1.69
OX
Including
89.9
135.6
45.7
45.7
0.626
2.88
OX
20-CARC-
07
Interval
208
75°
300
Hanging
Wall
6.1
33.5
27.4
19.4
0.114
0.15
OX
Interval
Hanging
Wall
67.1
70.1
3
2.1
0.193
0.15
OX
Interval
Capitan
Main
91.4
114.3
22.9
16.2
0.199
1.35
OX
Interval
Capitan
Main
120.4
155.4
35.1
24.8
0.266
5.2
OX
Interval
Capitan
Main
160
210.3
50.3
35.6
0.216
4.83
OX
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the Peñoles Project was
reviewed and approved by Marc Idziszek, P.Geo, a non-independent qualified person to Capitan Mining,
who is responsible for ensuring that the technical information provided in this news release is accurate
and who acts as a "qualified person" under National Instrument 43-101 Standards of Disclosure for
Mineral Projects.
Capitan Mining Inc. has a Quality Assurance/Quality Control program that includes insertion and
verification of control samples including standard reference material, blanks and duplicates consistent
with industry standards.
RC drill samples from the Peñoles Project are collected and split at the drill site using a Gilson Universal
Splitter. The samples
are stored in either plastic bags (dry) or micropore bags (wet) and secured with
plastic zip-ties and then transported to the preparation laboratory of Bureau Veritas in Hermosillo,
Sonora. The sample pulps are then transported to the Bureau Veritas' laboratory in Vancouver, where
they are assayed for gold by fire assay with atomic absorption finish (FA430 assay method code; 0.005
to 10 ppm detection limit). Samples over 10 ppm Au are assayed with gravimetric finish (Assay code
FA530). All samples are also assayed by ICP-ES (code AQ300) for a suite of 33 elements.
All summarized intervals reported in this press release were calculated using a 0.10 ppm Au cut-off
grade. Intervals contain no more than 3 metres of internal dilution.
High grades have not been capped.
About Capitan Mining Inc.:
Capitan Mining is a well-funded junior exploration company focused on its 100% owned gold and silver
Peñoles Project in Durango, Mexico. The company is led by a management team that has successfully
advanced and developed several heap leach operations in Mexico over the past 16 years. More
information for the Company can be found at
www.capitanmining.com
.
ON BEHALF OF CAPITAN MINING INC.
"Alberto Orozco"
Alberto Orozco, CEO
For additional information contact:
Alberto Orozco
CEO
Capitan Mining Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
Web:
www.capitanmining.com
Raffi Elmajian
Corporate Communications
Capitan Mining Inc.
Phone: (604) 358-2601
Web:
www.capitanmining.com
Certain statements in this press release may be considered forward-looking information. These
statements can be identified by the use of forward-looking terminology (e.g., "expect"," estimates",
"intends", "anticipates", "believes", "plans"). Such information involves known and unknown risks --
including the availability of funds, the results of financing and exploration activities, the interpretation
of exploration results and other geological data, or unanticipated costs and expenses and other risks
identified by Capitan in its public securities filings that may cause actual events to differ materially
from current expectations. Readers are cautioned not to place undue reliance on these forward-
looking statements, which speak only as of the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
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