Capstone Steps Out Into 6.3m of 5.3% Cu: Expansion and Infill Drilling Amongst the Best Results Ever at Cozamin
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January 16, 2020
Capstone Steps Out Into 6.3m of 5.3% Cu: Expansion and Infill Drilling
Amongst the Best Results Ever at Cozamin
Vancouver, British Columbia - Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) announce s
additional high grade copper and silver results from 21 infill and 6 step out drill holes at its Cozamin Mine, further to
the update of December 2, 2019. This brings the total drilled to date to 150 holes of a 200 hole program, aiming to
double the current reserve base. Drill results to date continue to demonstrate greater widths and grades than
current Mineral Reserves, as well as the potential for an expanded high grade resource. Mineral Resource and
Mineral Reserve estimates will be updated 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.
“The most recent drill results are exceeding our expectations for the Mala Noche Footwall Zone (“MNFWZ”). We
continue to see wide intercepts of high copper-silver grades, and now step outs to the northwest in undrilled
territory are delivering some of the highest grades ever drilled at Cozamin. The two-year drilling initiative is more
than two months ahead of schedule, allowing us to add more holes for a new mineral resource and mineral reserve
estimate and Technical Report by the end of 2020,” said Brad Mercer, SVP Exploration and Operations.
Darren Pylot, Capstone’s President and CEO said, “Our exploration team continues to push the boundaries at
Cozamin. After 13 years since we started mining, we continue to surface incredible value for all stakeholders with
the drill bit. These results will ensure that this mine will remain a first quartile cost, cornerstone asset well into the
future. The entire Cozamin team is doing a wonderful job in setting the mine up to be bigger and higher grade in
2021 and beyond. Development work on both the underground one-way ramp and ventilation are both on budget
and ahead of schedule to be completed by the end of 2020.”
Figure 1 – Select High Grade Step-out and Infill Holes at Cozamin Mine
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 2 – Long-section of the Mala Noche Footwall Zone Showing Copper % * Estimated True Width (m)
The best grade*thickness intercepts lie outside of the current Mineral Reserve.
Figure 3 – Long-section of the Mala Noche Footwall Zone Showing Silver g/t * Estimated True Width (m)
Comparing Figure 3 to Figure 2, the strong positive correlation between copper and silver grades is clearly
demonstrated.
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Figure 4 – Image of Drill Core from Hole CG-19-S445
Coarse grained, high grade chalcopyrite mineralization along with a positive copper -silver correlation underpins
high copper and silver recoveries.
Select intervals are summarized in Table 1 and full results for all previously unreleased holes since the Decem ber
2, 2019 exploration update are in Table 2.
Table 1 – Selected MNFWZ Drilling Completed Since the December 2, 2019 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)
9 CG-19-S445 step-out no 553.5 563.4 9.9 6.3 5.31 0.15 0.01 78.8
including 553.5 557.8 4.3 2.8 9.80 0.26 0.01 139.0
2 CG-19-S443 step-out no 588.7 591.0 2.3 1.8 4.95 0.15 0.01 103.7
4 CG-19-S436 step-out no 642.8 645.2 2.4 1.7 6.13 0.24 0.02 97.9
10 CG-19-S441 step-out no 516.8 523.2 6.4 5.4 3.35 0.34 0.01 62.4
11 CG-19-S455 infill no 487.8 493.5 5.7 5.4 7.65 0.35 0.10 141.3
12 CG-19-S437 infill no 504.9 525.8 20.9 19.3 1.94 0.15 0.01 45.2
including 522.8 525.8 3.0 2.8 5.90 0.33 0.02 134.2
14 CG-19-S440 infill no 597.5 603.2 5.7 4.9 8.29 0.25 0.02 133.1
including 597.5 601.5 4.0 3.4 10.75 0.32 0.02 165.9
23 CG-19-S444 infill no 522.3 535.0 12.7 11.8 3.31 0.11 0.01 82.3
including 531.0 535.0 4.0 3.7 7.89 0.20 0.02 198.5
*estimated true width of vein intercept for inclined drill holes
For drill hole location and context please view the long-section of the MNFWZ at
https://capstonemining.com/files/images/maps/Cozamin-Long-Section-Jan2020-Update.pdf.
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Table 2 – All MNFWZ Drilling Completed Since the December 2, 2019 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-19-S449 step-out no 572.5 577.5 5.0 3.9 1.96 0.07 0.01 48.4
2 CG-19-S443 step-out no 588.7 591.0 2.3 1.8 4.95 0.15 0.01 103.7
3 CG-19-S453 step-out no 598.7 603.3 4.6 3.7 3.65 0.10 0.00 79.2
4 CG-19-S436 step-out no 642.8 645.2 2.4 1.7 6.13 0.24 0.02 97.9
5 CG-19-U503 infill no 481.8 487.9 6.1 6.0 1.92 0.07 0.01 37.1
including 485.8 487.9 2.1 2.1 2.56 0.12 0.01 48.2
6 CG-19-U505 infill no 501.7 502.8 1.1 1.0 0.96 0.04 0.01 14.9
7 CG-19-U504 infill no 512.3 519.7 7.4 7.1 2.53 0.07 0.01 50.4
including 516.4 519.7 3.3 3.2 4.92 0.13 0.02 101.5
8 CG-19-U506 infill no 520.0 523.6 3.6 3.4 2.25 0.09 0.01 34.1
including 522.8 523.6 0.8 0.7 7.87 0.31 0.02 109.0
9 CG-19-S445 step-out no 553.5 563.4 9.9 6.3 5.31 0.15 0.01 78.8
including 553.5 557.8 4.3 2.8 9.80 0.26 0.01 139.0
10 CG-19-S441 step-out no 516.8 523.2 6.4 5.4 3.35 0.34 0.01 62.4
11 CG-19-S455 infill no 487.8 493.5 5.7 5.4 7.65 0.35 0.10 141.3
12 CG-19-S437 infill no 504.9 525.8 20.9 19.3 1.94 0.15 0.01 45.2
including 522.8 525.8 3.0 2.8 5.90 0.33 0.02 134.2
13 CG-19-S450 infill no 496.6 510.3 13.7 12.5 1.50 0.15 0.00 32.6
including 506.2 510.3 4.1 3.8 2.61 0.14 0.01 54.2
14 CG-19-S440 infill no 597.5 603.2 5.7 4.9 8.29 0.25 0.02 133.1
including 597.5 601.5 4.0 3.4 10.75 0.32 0.02 165.9
15 CG-19-S435 infill no 626.2 630.2 4.0 3.1 2.87 0.07 0.01 55.6
16 CG-19-S452 infill no 568.4 571.6 3.2 2.8 6.82 0.20 0.02 125.3
17 CG-19-S456 infill no 568.3 577.0 8.7 6.9 3.39 0.10 0.01 93.0
18 CG-19-S442 infill no 551.7 577.7 6.0 5.6 1.88 0.06 0.01 44.5
including 551.7 553.5 1.8 1.7 4.92 0.14 0.02 109.3
19 CG-19-S446 infill no 625.2 629.5 4.3 3.4 5.16 0.18 0.02 101.1
including 625.2 626.7 1.5 1.2 13.04 0.38 0.02 236.5
20 CG-19-S457 infill no 537.0 538.3 1.3 1.2 0.51 0.03 0.01 16.4
21 CG-19-S447 infill no 533.6 541.0 7.4 7.2 4.99 0.13 0.01 117.6
including 535.2 540.4 5.2 5.1 6.41 0.17 0.01 151.6
22 CG-19-S438 infill no 559.2 561.5 2.3 2.3 3.85 0.10 0.02 111.9
and 575.7 577.2 1.5 1.5 5.25 0.16 0.01 95.3
23 CG-19-S444 infill no 522.3 535.0 12.7 11.8 3.31 0.11 0.01 82.3
including 531.0 535.0 4.0 3.7 7.89 0.20 0.02 198.5
24 CG-19-S454 infill no 509.0 510.4 1.4 1.4 0.42 0.03 0.01 11.0
25 CG-19-S451 infill no no significant intercepts
26 CG-19-S448 infill no no significant intercepts
27 CG-19-S439 infill no 526.9 527.4 0.5 0.5 0.76 0.28 0.03 46.7
*estimated true width of vein intercept for inclined drill holes
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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 0.4g 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).
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. In
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, future prices of copper and other metals, compliance with financial
covenants, surety bonding, our ability to raise capital, Capstone’s ability to acquire properties for growth,
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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 Cozamin project, 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, limitat ions 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 forward-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.
For further details refer to the Company’s NI 43-101 Technical Report on Cozamine Mine, Zacatacas, Mexico
published January 24, 2019. 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 Scientific and 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.