June 14, 2010
Capstone Reports Operations Resume at Minto Mine, Yukon
Burn out Completed in Critical Areas Substantially Reducing Fire Risk
VANCOUVER, BRITISH COLUMBIA
-- Capstone Mining Corp. ("Capstone") (CS: TSX) today announced that Yukon Wildland Fire Management ("YWFM") successfully completed the burn out around the southern and eastern perimeters of its Minto Mine, closest to the wildfire, substantially reducing the risk of the fire spreading into the mine area. As a result, a staged return of personnel to the site commenced on Friday and full operations will recommence Monday June 14. Due to changes in weather conditions, the burn out could not be completed on the northern and western perimeters, but these areas are well away from the existing fire and are deemed to be lower risk to the mine site. However, YWFM expects to complete the burn out as conditions allow, in order to eliminate future fire risk.
"Yukon's Wildland Fire Management personnel have worked with our personnel and Selkirk First Nation to successfully manage the wildfire risk for the Minto Mine," said Stephen Quin, President of Capstone. "We greatly appreciate the responsiveness and expertise of the Yukon Government and its fire management personnel in addressing this threat to our operations."
Capstone owns and operates two high grade copper mines and has an advanced high grade copper-zinc development project, all located in favourable mining jurisdictions in North America. The Cozamin Mine is a high grade, relatively shallow, mechanized underground copper mine in Zacatecas, Mexico, with significant by-product credits of zinc, lead and silver. The Minto Mine is a high grade open pit copper-gold mine, and is located in the Yukon, Canada. In addition, Capstone owns the high grade Kutcho Copper Project in British Columbia, Canada, which is being advanced towards a production decision, and could produce significant by-products of zinc, silver and gold. Capstone aims to grow both organically through its existing projects, and through mergers and acquisitions. Capstone's growth ambitions are backed up by a successful track record of growth through both avenues, and supported by a strong balance sheet and significant equity investments.
For further information about Capstone, please contact:
Darren Pylot, Vice Chairman & CEO or Stephen Quin, President
Or Zobeida Slogan
, Investor Relations, at (604) 684-8894 or toll free at (866) 684-8894
Forward-Looking Information and Statements
This document contains "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 anticipated period of suspended operations for its Minto Mine, Capstone's future plans for the Minto Mine, 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", "perhaps", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. In this news release, forward-looking statements can be identified by the use of words (or variations of words) such as "resulting", "further" "planning", "planned", "could", "will", "proposed", "would", "scenario", "may", "intends", "opportunities", "potential", and relate to the Company's expectations with respect to the operation of the Minto Mine. 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 can 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. Specific risks identified in this news release are risks related to the timing and receipt of permit amendments required to implement the mine expansion; exchange rates, metal prices and external influences; and grade control in mining the Phase IV pits. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) the length of time operations are suspended at the Minto Mine will be five to seven days; (2) the back burn will be successful and not damage mine infrastructure or facilities; (3) the back burn will protect the mine in the future and (4) there will be no future fire related incidents. Other assumptions are discussed throughout this news release. 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.