Capstone Mining Corp.
Profitable Growth Producing Copper, Gold, Silver and Zinc in Canada and Mexico
Message: Robust Mineral Resource Update for High Grade Kutcho Copper Project
| February 9, 2009 | ||||
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Capstone Announces Robust Mineral Resource Update for High Grade Kutcho Copper Project
Measured & Indicated Resource of 10.4 million tonnes at a 3.7% Copper-Equivalent Grade (2) |
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2009) - Capstone Mining Corp. (TSX:CS) today announced results of an independent NI43-101 compliant mineral resource estimate for the three known deposits that comprise the high grade Kutcho Copper Project in NW British Columbia. This update incorporates the 2008 drill intercepts that were designed to better define the high grade mineralization within the Main deposit and provides the basis for evaluating options for the optimal development of the Kutcho Copper Project, including smaller tonnage, lower cost options and consideration of both open pit and/or underground extraction. Highlights of the resource estimates are tabulated below at a 1.5% copper cut-off for all three deposits combined, while those for the individual deposits are tabulated below at the same 1.5% copper cut-off. Data tables for each mineral resource estimate and the combined estimate for all three deposits at a range of copper cut-offs are attached. No determination has yet been made as to the appropriate cut-off to be used, which will depend on the development options selected. Kutcho Project - Mineral Resource Estimate at a 1.5% Copper Cut-Off
for All Deposits (1)
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Grade Contained Metal
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Cop-
Cop- per Zinc Sil-
Cop- Sil- per (mil- (mil Gold ver
Tonnes per Zinc Gold ver Equiv. lions lions (000s (000s
Class (000's) (%) (%) (g/t) (g/t) (%)(2) lb) lb) oz) oz)
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Meas-
ured (M) 5,421 2.15 2.86 0.34 31.4 3.70 256.6 341.8 59 5,482
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Indicat-
ed (I) 4,994 2.14 2.83 0.39 33.5 3.74 235.8 312.0 62 5,376
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M & I 10,415 2.14 2.85 0.36 32.4 3.72 492.4 653.8 121 10,857
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Inferred 1,893 2.09 2.93 0.46 33.6 3.78 87.3 122.4 28 2,047
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(1) Numbers may not total due to rounding.
(2) Equivalent copper grade calculated using these metal prices in US$: Cu
equals $1.50/lb, Zn equals $0.50/lb, Ag equals 12.00/oz, Au equals
$700.00/oz.
Mineral Resource Estimates The mineral resource estimate for the Main, Esso and Sumac deposits were completed by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd., using industry standard methods that conform with National Instrument 43-101 and utilizing MineSight(TM) Software. The choice of interpolator was ordinary kriging for the Main deposit and inverse distance to the 3rd power for the Esso and Sumac deposits. Nearest neighbour, inverse distance and ordinary kriging estimates were run for all deposits for comparison and validation purposes. Resource estimates for each deposit were standardized as much as possible; however the choice to use ordinary kriging or inverse distance methods for a specific deposit was based solely upon the density of data available for the interpolation along with the availability of specific gravity measurements. Main Deposit The mineral resource estimate for the Main deposit was based upon historical data from 241 drill holes, 1 adit and 83 new drill holes drilled in 2008. It is tabulated using a copper cut-off of 1.50% and is presented in the table below. The Main deposit is near surface, with the high grade mineralization extending from subcrop to depths of approximately 300m, dips at an average of 50 degrees to the north, with topography sloping down in the same direction, so that the valley floor is just 150m above the base of the higher grade mineralization. The effectiveness of the 2008 drill program at the Main deposit is evident by comparing the metal grades and tonnages in the measured and indicated categories of the current mineral resource estimate with Capstone's previous estimate (reported on June 12, 2008). This comparison shows that, at a copper cut-off of 1.5%, tonnes have increased 5%, copper grade is 8% higher, zinc grade is 10% higher, silver grade is 8% higher and gold grade is 12% higher. More than 57% of the current measured and indicated (M&I) mineral resource at the 1.5% copper cut-off is in the measured class. These increases in grades result in a very high grade copper equivalent mineral resource, as tabulated below: Main Deposit - Mineral Resource Estimate at a 1.5% Copper Cut-Off (1)
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Grade Contained Metal
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Cop-
Cop- per Zinc Sil-
Cop- Sil- per (mil- (mil Gold ver
Tonnes per Zinc Gold ver Equiv. lions lions (000s (000s
Class 000's (%) (%) (g/t) (g/t) (%)(2) lb) lb) oz) oz)
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Meas-
ured (M) 5,421 2.15 2.86 0.34 31.4 3.70 256.6 341.8 59 5,482
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Indicat-
ed (I) 4,043 2.04 2.54 0.35 31.2 3.48 181.4 226.0 45 4,049
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M & I 9,464 2.10 2.72 0.34 31.3 3.60 438.0 567.8 104 9,531
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Inferred 464 1.84 2.83 0.43 31.6 3.44 18.8 29.0 6 471
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(1) Numbers may not total due to rounding.
(2) Equivalent copper grade calculated using these metal prices in US$: Cu
equals $1.50/lb, Zn equals $0.50/lb, Ag equals 12.00/oz, Au equals
$700.00/oz.
The mineral resource estimate for the Esso deposit based upon historical data from 58 drill holes is tabulated using a copper cut-off of 1.50% in the table below. The Esso deposit lies 1,400m west of the western end of the Main deposit and the top of the Esso deposit lies approximately 225m below the bottom of the Main deposit. Esso Deposit - Mineral Resource Estimate at a 1.5% Copper Cut-Off (1)
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Grade Contained Metal
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Cop-
Cop- per Zinc Sil-
Cop- Sil- per (mil- (mil Gold ver
Tonnes per Zinc Gold ver Equiv. lions lions (000s (000s
Class 000's (%) (%) (g/t) (g/t) (%)(2) lb) lb) oz) oz)
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Meas-
ured (M) - - - - - - - - - -
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Indicat-
ed (I) 951 2.60 4.10 0.56 43.4 4.85 54.4 85.9 17 1,336
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M & I 951 2.60 4.10 0.56 43.4 4.80 54.4 85.9 17 1,336
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Inferred 803 2.57 4.15 0.61 37.6 4.80 45.4 73.4 16 970
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(1) Numbers may not total due to rounding.
(2) Equivalent copper grade calculated using these metal prices in US$: Cu
equals $1.50/lb, Zn equals $0.50/lb, Ag equals 12.00/oz, Au equals
$700.00/oz.
The mineral resource estimate for the Sumac deposit based upon historical data from 17 drill holes and is tabulated using a copper cut-off of 1.50% in the table below. The Sumac deposit is approximately midway between the Main and Esso deposits, at depths of 160m to 440m below surface. While relatively lower grade, the Sumac deposit is also relatively under explored and represents an excellent exploration target that could readily be evaluated from underground in the future, were underground development to be extended from the Main deposit to the Esso deposit. Sumac Deposit - NI43-101 Mineral Resource Estimate at a 1.5%
Copper Cut-Off (1)
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Grade Contained Metal
---------------------------------------------------------
Cop-
Cop- per Zinc Sil-
Cop- Sil- per (mil- (mil Gold ver
Tonnes per Zinc Gold ver Equiv. lions lions (000s (000s
Class (000's) (%) (%) (g/t) (g/t) (%)(2) lb) lb) oz) oz)
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Meas-
ured (M) - - - - - - - - - -
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Indicat-
ed (I) - - - - - - - - - -
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M & I - - - - - - - - - -
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Inferred 626 1.67 1.46 0.29 30.1 2.70 23.1 20.1 6 606
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(1) Numbers may not total due to rounding.
(2) Equivalent copper grade calculated using these metal prices in US$: Cu
equals $1.50/lb, Zn equals $0.50/lb, Ag equals 12.00/oz, Au equals
$700.00/oz.
Resource Estimation Methodology The data and methodology utilized for the resource estimate is as follows: - The database consists of a total of 429 drill holes which includes all holes prior to the drilling performed by Western Keltic Mines and the drilling performed in 2004 for 40 drill holes, 2005 for 27 drill holes, 2006 for 23 drill holes and 81 drill holes from 2008. Drill hole data was composited to 2.5 meter intervals. - Bulk densities were estimated on a block-by-block basis for the Main Deposit based on 1,326 measurements taken during from drill core. An average bulk density of 3.14 was used for tonnage calculations for the Esso and the Sumac deposits. - Sectional interpretations were created for each on the Main, Esso and Sumac Deposits. These sections were then wireframed to form a solid which were then edited to match the drill hole intercepts precisely in 3D. The solids were used to then code the drill hole assays and composites for subsequent geostatistical analysis and for block matching in the grade interpolation process. - 15% copper, 17.5% zinc, 100 g/t silver and 3 g/t gold was chosen as the most reasonable threshold at which to cut grades for Main and 15% copper, 20% zinc, 100 g/t silver and 8 g/t gold for Esso and Sumac. In addition, the range chosen at which to limit grades greater than threshold was 12 meters. - The block size chosen was 5m x 5m x 5m oriented orthogonally in an effort to adequately descretize the mineralized zones so as not to inject an inordinate amount of internal dilution and to somewhat reflect drill hole spacing available. - The choice of interpolator was ordinary kriging for the Main deposit and inverse distance to the 3rd power for the Esso and Sumac deposits. Nearest neighbour, inverse distance and ordinary kriging were run for all deposits for comparison and validation purposes. - The three estimation passes were used to estimate the Resource Model because a more realistic block-by-block estimation can be achieved by using more restrictions on those blocks that are closer to drill holes, and thus better informed. Kirkham Geosystems Ltd. prepared the mineral resource estimate for the Kutcho deposit. Mr. Kirkham has reviewed pertinent geological information in sufficient detail to support the data incorporated in the resource estimate. Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd. the Independent Qualified Person under National Instrument 43-101 responsible for the resource estimate has reviewed this release. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied. Quality Assurance The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & COO for Capstone Mining Corporation and Mr. Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd., the Independent Qualified Person under National Instrument 43-101 responsible for the resource estimate. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration (Canada) for Capstone. |
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