Exploration
Exploration forms part of Capstone's strategy to grow our production profile. In addition to the ongoing exploration at our Cozamin and Minto mines aimed at increasing mine life and throughput, we have a portfolio of early stage base metals exploration projects that have the potential to add to production over the longer term.
Our exploration focus is in mining friendly jurisdictions, with preference given to areas where a team is in place and the permitting process is well understood. In addition to our own exploration properties, investments have been made in exploration partnerships and joint ventures with exploration-focussed companies and we continue to evaluate additional opportunities on an ongoing basis.
Australia
As part of the acquisition of Far West Mining in 2011, Capstone acquired property in Queensland, Australia. The Georgetown Project comprises four tenements that cover approximately 185 square kilometres located approximately 300 kilometres west of the port city of Townsville.
Capstone is currently exploring for Broken Hill Type ("BHT") silver-lead-zinc deposits at the Mount Mist property, with three other untested properties in the portfolio. The Capstone (70%) and KORES (30%) joint venture company owns of the Georgetown Project, with three of the four properties (but only about one half of the total area) subject to a 2% royalty to BHP.
Chile
Following the discovery of Santo Domingo in 2005, an additional prospective land package was acquired along the IOCG belt both north and south of Santo Domingo. There are 17 exploration properties that cover approximately 460 square kilometres stretching over a 200 kilometre section of the IOCG belt, from south of Copiapó to north of the town of Diego de Almagro.
Using the knowledge obtained through the Santo Domingo discovery, Capstone is continuing exploration activities. The Capstone (70%) and KORES (30%) joint venture company owns the portfolio of Chilean exploration properties.
Other Projects
Capstone has earn-in agreements for several properties located in North America whereby we may earn further interests by funding ongoing exploration activities.