VANCOUVER, BRITISH COLUMBIA – Capstone Mining Corp. (CS: TSX) today released a report on recent Titan-24 deep earth imaging induced polarization survey carried out at its high grade Minto copper-gold mine located in the Yukon.
After a successful test of the survey technology at Minto in 2009, which led to the discovery of the Minto East deposit, Capstone completed an expanded survey in 2010 over most of its Minto Mine property. Based on its interpretation of the survey results, Quantec Geosciences Ltd. identified 73 targets for follow-up drill testing, including 19 high priority, 26 medium priority and 28 low priority targets, including Minto East and the recent high grade Wildfire area, where a new discovery was announced on July 15, 2010. Capstone has now received Quantec Geosciences’ final report on the 2D inversion modelling of the data and is integrating this new information with its prior geological, geochemical and geophysical information in order to further refine its targeting of anomalies. Drill testing of the Wildfire discovery continues and testing of various new targets identified in this expanded survey has commenced.
“Capstone’s integrated, multifaceted approach to the exploration of the Minto Mine property has yielded seven new discoveries since 2006,” said Stephen Quin, President of Capstone Mining Corp. “This new geophysical tool represents another opportunity to refine and expand our targeting at Minto and we hope it will assist us in continuing to build on our exceptional rate of discovery.”
The principal findings of the 2009-2010 Titan-24 DCIP program conducted by Quantec Geosciences Ltd. are encouraging as, not only did the survey detect the four known mineral resources (Main, Area 2/118, Minto North and Ridgetop), but it quickly led to the discovery of two previously unknown mineralized areas (Minto East and Wildfire). These results give a reasonably high degree of confidence that the survey is able to detect and locate in 3D mineralization from near surface (e.g. Ridgetop) and to significant depths (e.g. Minto East), and from relatively small (e.g. Minto North) to relatively large (e.g. Area 2) deposits.
Key points from the Quantec report as follows:
The objective of both surveys was to delineate chargeability anomalies potentially corresponding to copper-gold mineralization similar to those found at several known deposits in close vicinity of the currently producing Minto Mine.
The Induced Polarization (IP) method relies on electrical capacitance and is a near direct indicator of the presence of mineralization, but is not an indicator of specific mineral type, quantity or grade. Detecting the presence of disseminated sulphide minerals is the ultimate goal of this survey and, at Minto, the high ratio of copper sulphide minerals (chalcopyrite, bornite and chalcocite) to barren iron sulphide (pyrite) minerals improves the chance that a chargeability response is due to copper mineralization. However the reader should understand that IP anomalies are not ore bodies and are not even an indication that a discovery will result from drill testing.
The combined 2009 — 2010 Titan-24 DCIP survey covers approximately 80%-85% of the Minto Mine Property.
The survey method has been demonstrated to be valid for Minto-style mineralization as the 2009 test survey over four known deposits successfully detected all four deposits in the correct spatial location and, subsequently, two new discoveries have been made by testing Titan-24 anomalies. The main tool of identification of targets that are blind to surface is the chargeability signature, making DC‐IP surveys the method of choice for this property, while the highest priority targets also have moderate resistivity signatures.
Quantec Geosciences identified 73 targets for follow-up drill testing, including 19 high priority, 26 medium priority and 28 low priority drill holes. Follow the link at the end of this news release to see the report from Quantec Geoscience, including maps and sections identifying the targets. The recent discoveries at Minto East and Wildfire are, in part based upon geological analysis, and, in part, based upon drill testing of Titan 24 anomalies IP-18 and IP-17, respectively.
Exploration drilling on other targets will continue in 2010 and beyond, and will be based upon a combination of target priority defined by Quantec, other technical information available and on accessibility for drilling. Targets in low lying areas may need to be tested in winter, when access is more feasible. It should be noted that the tenor or intensity of a chargeability response is not a reliable indicator of the size or grade of a mineralized zone. For example, on Line 0 Central, the chargeability response for the near surface and very high grade Minto North deposit is muted while, on Line 1E, the response associated with a smaller and more deeply buried deposit, Minto East, is much stronger. Therefore priority ranking of targets is not based solely of the tenor of IP response or upon the aerial extent of the anomaly.
Quantec Geosciences just recently completed a 3D inversion model of the IP data set as well. This 3D model should allow better targeting of anomalies between survey lines, and can more easily be correlated with 3D geological models of the Minto property, such as mineral resource block models.
Follow the link below to the Quantec Geosciences report describing the method and results of the survey and identifying the priority exploration targets: http://www.capstonemining.com/i/pdf/MintoTitan24Report.pdf
For further information about Capstone, please contact:
Darren Pylot, Vice Chairman & CEO
Stephen Quin, President Or
Investor Relations’ Zobeida Slogan at
(604) 684-8894 or (866) 684-8894
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 and Brad Mercer, P.Geol. VP Exploration, both for Capstone Mining Corp. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., VP Exploration for Capstone. The geophysical information in this news release has been reviewed by Evelio Martinez del Pino, P.Geo. Senior Geophysicist with Quantec Geosciences Ltd.
This document 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. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “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 which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.