Excellent possibilities exist for increasing Mineral Reserves and Resources since the Mala Noche vein has only been partially exploited and not systematically explored to depth or along strike. Capstone's deepest holes in the Mala Noche vein indicated that the copper-silver phase of mineralization extends to greater depths than the current mineral resources.
Capstone has a surface and underground exploration program underway to target new mineralized zones. We believe there is potential along strike and down dip of existing resources and historic mines and in parallel structures. In 2010 and 2011, Capstone had success in the Mala Noche Footwall Zone (MNFWZ), a splay off the main Mala Noche vein that hosts the current mineral reserves. The MNFWZ potentially provides a near term opportunity to add high grade mineral resources and potential high grade mill feed for the Cozamin operation.
Capstone continues to explore the MNFWZ and the Mala Noche Main Vein in 2012 with a program of approximately 32,000 metres and budget of US$6.5 million. The Company anticipates re-estimating the Footwall Zone mineral resource when a crititcal mass of new drill data is attained.