Capstone Steps Out Into 5.1m of 7.6% Cu at Cozamin: Drilling Continues to Deliver Amongst the Best Results Ever
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April 23, 2020
Capstone Steps Out Into 5.1m of 7.6% Cu at Cozamin: Drilling Continues to
Deliver Amongst the Best Results Ever
Vancouver, British Columbia - Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) announce s
additional high grade copper and silver results from five infill and 22 step-out drill holes at its Cozamin Mine, further
to the update of January 16, 2020. The drilling program, aiming to double the current reserve base, is three months
ahead of schedule with 177 holes of the 200 hole program completed. The results continue to demonstrate greater
widths and higher grades than current Mineral Reserves, as well as the potential for an expanded high grade
resource. An updated Mineral Resource and Mineral Reserve estimates will be completed in late 2020. Cozamin is
expected to achieve a 50% increase to annual copper and silver production of 50 to 55 million pounds and 1.5
million ounces, respectively, by 2021.
“These drill results, as well as the set released in January, are amongst the best ever drilled at Cozamin. Despite
the temporary ramp down of operations at Cozamin, due to COVID-19 restrictions in Mexico, we are well ahead of
schedule and still expect to deliver an updated Mineral Resource and Mineral Reserve estimate and Technical
Report by the end of this year,” said Brad Mercer, SVP Exploration and Operations.
Darren Pylot, Capstone’s President and CEO said, “Challenging times highlight the importance of having a safe,
high grade, low cost and efficiently managed mining operation within your portfolio. These results support our belief
that Cozamin will remain a crown jewel asset for this decade and longer.”
Highlighted drill results are summarized in Table 1 and full results for all previously unreleased holes since the
January 16, 2020 news release are in Table 2.
Table 1 – Selected MNFWZ Drilling Completed Since the January 16, 2020 News Release
Section
ID # Drill hole ID Type In
Resource
From
(m)
To
(m)
Width
(m)
True
Width*
(m)
Cu
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
25 CG-20-S471 step-out no 567.5 574.1 6.6 5.1 7.58 0.26 0.01 113.1
including 567.5 572.3 4.8 3.7 9.61 0.32 0.01 140.8
16 CG-20-S473 step-out no 629.9 635.8 5.9 5.2 5.16 0.15 0.00 92.2
including 629.9 633.8 3.9 3.4 7.38 0.21 0.01 130.8
21 CG-20-S466 step-out no 614.7 625.1 10.4 7.3 3.70 0.12 0.01 64.1
including 620.9 625.1 4.2 2.9 6.16 0.19 0.01 105.3
23 CG-20-S476 step-out no 603.2 607.4 4.2 3.2 5.94 0.18 0.01 100.7
3 CG-20-S470 infill no 552.5 572.5 20.0 16.7 4.87 0.23 0.02 131.0
including 563.8 572.5 8.7 7.2 6.95 0.40 0.04 213.3
*estimated true width of vein intercept for inclined drill holes
Suite 2100 – 510 West Georgia Street
Vancouver, BC, V6B 0M3, Canada
Tel: 604-684-8894 Fax: 604-688-2180
www.capstonemining.com
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Figure 1 – Select High Grade Step-out and Infill Holes at Cozamin Mine: April 2020 Drill Results
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The best grade*thickness intercepts lie outside of the current Mineral Reserve. There is a strong correlation
between copper and silver grades.
Figure 2 – Long-section of the Mala Noche Footwall Zone Showing Copper % * Estimated True Width (m)
Figure 3 – Image of Drill Core from Hole CG-20-S471 (7.58% Cu; 113.1 g/t Ag, TW 5.1m)
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For drill hole location and context please view the long-section of the MNFWZ at
https://capstonemining.com/files/images/maps/April-23-PR-Long-Section-Full.pdf.
Table 2 – All MNFWZ Drilling Completed Since the January 16, 2020 News Release
Section
ID # Drill hole ID Type In Resource From
(m)
To
(m)
Width
(m)
True
Width*
(m)
Cu
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
1 CG-20-S475 step-out no 431.0 441.7 10.7 8.6 1.55 0.16 0.05 65.7
including 432.3 438.5 6.2 5.0 2.30 0.25 0.08 95.4
2 CG-20-S479 step-out no 534.4 535.1 0.7 0.7 3.94 0.29 0.02 102.0
3 CG-20-S470 infill no 552.5 572.5 20.0 16.7 4.87 0.23 0.02 131.0
including 563.8 572.5 8.7 7.2 6.95 0.40 0.04 213.3
4 CG-20-S458 infill no 548.1 578.0 29.9 21.3 2.06 0.20 0.01 52.7
including 562.5 567.1 4.6 3.3 7.11 0.43 0.02 217.2
5 CG-20-S465 infill no 551.8 569.8 18.0 15.5 1.34 0.05 0.01 24.3
including 552.3 566.7 14.4 12.4 1.59 0.05 0.01 28.5
6 CG-20-S461 step-out no 480.9 484.8 3.9 3.7 3.45 0.16 0.02 67.6
including 481.8 484.3 2.5 2.3 5.06 0.23 0.02 92.0
7 CG-20-S472 step-out no 402.5 403.3 0.8 0.7 1.09 0.03 0.01 27.2
8 CG-20-S468 step-out no 378.9 384.5 5.6 4.9 0.88 0.11 0.01 40.6
including 378.9 380.8 1.9 1.6 1.92 0.26 0.02 97.6
9 CG-20-S464 step-out no 468.8 473.1 4.3 4.1 2.80 0.39 0.02 58.1
including 469.9 471.5 1.6 1.5 6.86 0.68 0.02 122.4
10 CG-20-S469 step-out no 457.8 466.8 9.0 8.3 1.78 0.06 0.01 38.4
including 458.4 460.4 2.0 1.8 6.29 0.16 0.01 123.7
11 CG-20-S480 step-out no 399.0 403.0 4.0 3.6 2.76 0.10 0.01 58.4
including 399.0 401.2 2.2 2.0 4.17 0.15 0.01 78.4
12 CG-20-S463 step-out no 381.5 384.0 2.5 2.3 0.67 0.07 0.01 22.0
including 381.5 383.2 1.7 1.6 0.89 0.08 0.01 28.7
13 CG-20-S459 step-out no 393.7 394.4 0.7 0.6 0.88 0.06 0.07 44.5
14 CG-20-S474 step-out no 459.2 461.9 2.7 2.5 8.28 0.22 0.02 157.0
15 CG-20-S478 step-out no 439.5 452.5 13.0 12.3 2.33 0.08 0.01 51.6
16 CG-20-S473 step-out no 629.9 635.8 5.9 5.2 5.16 0.15 0.00 92.2
including 629.9 633.8 3.9 3.4 7.38 0.21 0.01 130.8
17 CG-20-U507 infill no 522.1 522.8 0.7 0.6 2.36 0.11 0.01 40.0
18 CG-20-U508 infill no 496.5 501.9 5.4 5.1 0.94 0.04 0.01 16.6
including 500.8 501.9 1.1 1.0 2.93 0.09 0.01 53.0
19 CG-20-U509 step-out no no significant intercepts
20 CG-20-U510 step-out no no significant intercepts
21 CG-20-S466 step-out no 614.7 625.1 10.4 7.3 3.70 0.12 0.01 64.1
including 620.9 625.1 4.2 2.9 6.16 0.19 0.01 105.3
22 CG-20-S460 step-out no 552.2 552.8 0.6 0.5 0.53 0.47 0.04 18.7
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Section
ID # Drill hole ID Type In Resource From
(m)
To
(m)
Width
(m)
True
Width*
(m)
Cu
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
23 CG-20-S476 step-out no 603.2 607.4 4.2 3.2 5.94 0.18 0.01 100.7
24 CG-20-S462 step-out no 549.4 552.4 3.0 2.9 0.36 0.01 0.00 10.4
25 CG-20-S471 step-out no 567.5 574.1 6.6 5.1 7.58 0.26 0.01 113.1
including 567.5 572.3 4.8 3.7 9.61 0.32 0.01 140.8
26 CG-20-S467 step-out no 521.8 522.8 1.0 0.9 2.24 0.66 0.01 41.2
27 CG-20-S477 step-out no 528.5 531.8 3.3 2.7 2.58 0.17 0.01 43.7
including 530.9 531.8 0.9 0.7 7.39 0.27 0.01 125.0
*estimated true width of vein intercept for inclined drill holes
Following are the select high grade step-out and infill holes from the January 2020 drill results, shown in the same
format as April’s results for reference. For full details, refer to the Company’s news release of January 16, 2020.
Figure 4 – Select High Grade Step-out and Infill holes at Cozamin: January 2020 Drill Results
METHODOLOGY
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 2
millimetres. A 250g subsample of the crushed material is then pulverized to 85% passing 75 microns . Copper, zinc,
lead and silver are determined by ICP analysis after 4 acid digestion of a 0.25 to 0.4g subsample of pulverized
material. 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).
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ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines
are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper -silver mine in Zacatecas State,
Mexico. In addition, Capstone has the large scale 70% owned copper-iron Santo Domingo development project in
Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties.
Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining- friendly
regions, centred in the Americas. We are committed to the responsible development of our assets and the
environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto
Stock Exchange (TSX). Further information is available at www.capstonemining.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jerrold Annett, VP, Strategy and Capital Markets
416-572-2272
Virginia Morgan, Manager, IR and Communications
604-674-2268
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release, and the documents incorporated by reference herein, may contain “forward- looking information”
within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 (collectively, “forward- looking statements”). These
forward-looking statements are made as of the date of this document and Capstone Mining Corp. (“Capstone” or
the “Company”) does not intend, and does not assume any obligation, to update these forward- looking statements,
except as required under applicable securities legislation. Forward-looking statements relate to future events or
future performance and reflect our expectations or beliefs regarding future events. Forward- looking statements
include, but are not limited to, statements with respect to the continuing success of mineral exploration, Capstone’s
ability to fund future exploration activities, the estimation of mineral resources and mineral reserves, the realization
of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital
expenditures, the success of our mining operations, the estimations for potential quantities and grade of inferred
resources and exploration targets, environmental risks, unanticipated reclamation expenses and title disputes. I n
certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”,
“aiming”, “approximately”, “guidance”, “scheduled”, “target”, “estimates”, “forecasts”, “extends”, “convert”,
“potential”, “intends”, “anticipates”, “believes” or variations of such words and phrases, or statements that certain
actions, events or results “may”, “could”, “should”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”
or the negative of these terms or comparable terminology. By their very nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause our actual results, performance or
achievements to be materially different from any future results, performance or achievements expressed or implied
by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards
associated with mining operations and closure of mining projects, the inherent uncertainty of mineral exploration
and estimations of exploration targets, potential delays in exploration due to COVID -19 or governmental action,
future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise
capital or fund explorations, Capstone’s ability to acquire properties for growth, counterparty risks associated with
sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy
of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to
governmental regulation, compliance with governmental regulations, compliance with environmental laws and
regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic
conditions on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation
and mine closure obligations, uncertainties and risks related to the potential development of the Cozam in project,
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increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social
license to operate, dependence on key management personnel, potential conflicts of interest involving our directors
and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing
energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate
new acquisitions into our operations, cybersecurity threats, legal proceedings, and other risks of the mining industry
as well as those factors detailed from time to time in the Company’s interim and annual financial statements and
MD&A of those statements, all of which are filed and available for review under the Company’s profile on SEDAR
at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual
results, performance or achievements to differ materially from those described in our forwar d-looking statements,
there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated
or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our
actual results, performance or achievements could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on our forward-looking statements.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Unless otherwise indicated, Capstone has prepared the technical information in this news release (“Technical
Information”) based on information contained in the technical reports, news releases and MD&A’s (collectively the
“Disclosure Documents”) available under Capstone Mining Corp.’s company profile on SEDAR at www.sedar.com.
Each Disclosure Document was prepared by, or under the supervision of, a qualified person (a “Qualified Person”)
as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators (“NI 43-101”). Readers are encouraged to review the full text of the Disclosure Documents which
qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do
not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole,
and sections should not be read or relied upon out of context. The Technical Information is subject to the
assumptions and qualifications contained in the Disclosure Documents.
The Technical Information in this news release has been prepared in accordance with NI 43-101 and reviewed and
approved by Brad Mercer, P. Geol., Capstone's Senior Vice President, Operations and Exploration, a Qualified
Person and the person who oversees exploration activities on the Cozamin Mine property.