VANCOUVER - Capstone Mining Corp. ('Capstone' or the 'Company') (TSX: CS) announces an updated Technical Report for its Cozamin Mine in Zacatecas, Mexico and extends mine life to 2031.
Mineral Reserves increased by 39% to 14.1 million tonnes grading 1.77% copper and 44 grams per tonne (g/t) silver and Measured and Indicated Mineral Resources increased by 10% to 29.7 million tonnes grading 1.52% copper and 44 g/t silver. The new reserve mine plan is projected to produce 512 million pounds of copper and 16.0 million ounces of silver over the next 10 years.
HIGHLIGHTS
Updated life of mine plan ('LOMP') released. Average annual copper production of 51.2 million pounds of copper and 1.6 million ounces of silver production over 10 years at average C1 costs, including the 50% silver stream, of $1.02 per payable pound of copper. From 2021 to 2027, average annual production is 58.8 million pounds of copper and 1.7 million ounces of silver. Average projected C1 costs over this period are $0.96 per payable pound of copper.
Ramp-up to 3,780 tonnes per day ('tpd'), or 1.38 million tonnes per annum ('tpa'), by the end of Q1 2021 is on track. A new section of ramp to open the one-way traffic circuit to debottleneck the mine was completed in early December 2020, ahead of schedule.
Estimated Reserves increased by 39% to 14.1 million tonnes, relative to April 30, 2020; contained copper and silver increased by 37% and 49%, respectively. Approximately half of this increase is due to recovery of high-grade pillars using paste backfill.
Tailings management transformation activities are progressing on schedule, including feasibility level design and studies in support of permitting a filtered (dry stack) tailings storage facility. This conversion from a slurry tailings impoundment aligns with industry leading socio-environmental best practice for tailings management.
A pre-feasibility study ('PFS') for an underground paste backfill system was completed in December 2020. The study indicates a paste backfill system will allow ore extraction containing over 100 million pounds of copper and 3.1 million ounces of silver between 2023 and 2031, that would have otherwise been left as unmined pillars. The PFS design has a capital cost estimate ranging from $41 million to $45 million and an increase in operating costs of approximately $7.50 per tonne of ore mined. Capstone management has approved the paste backfill project and work has commenced on procurement of long lead items.
Initiating 'Impact23' Growth Project: exploration excellence, innovative mining techniques and enhanced pillar recovery are areas identified to have growth potential for Cozamin. By 2023, the goal is to further extend mine life, increase environmental and safety standards, and improve operational efficiencies at Cozamin, utilizing mineral resources already discovered in addition to testing new targets.
Brad Mercer, Capstone's SVP and Chief Operating Officer said, 'The LOMP announced today maximizes extraction of the orebody's high grade core by deferring stoping in this area until the paste backfill plant is in operation in 2023. Projected production averages nearly 60 million pounds of copper per year for seven years at first quartile costs. The Impact23 Growth Project that we are kickstarting today is aiming to demonstrate in a 2023 technical report how Cozamin can sustain these levels of performance well into the 2030s.'
Darren Pylot, Capstone's President and CEO said, 'After 14 years in operation, the best years of Cozamin are ahead. The mine is world-class with sustainable low costs and leading safety and environmental performance entrenched throughout the organization. The growth initiatives are supported by an entrepreneurial fabric at Capstone, as we embrace innovation and technology to create high impact value for our shareholders.'
ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 70% of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. We are committed to the responsible development of our assets and the environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release, and the documents incorporated by reference herein, 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. ('Capstone' or the 'Company') does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the continuing success of mineral exploration, Capstone's ability to fund future exploration activities, the estimation of mineral resources and mineral reserves, the expected success of the underground paste backfill system study, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, the estimations for potential quantities and grade of inferred resources and exploration targets, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'aiming', 'approximately', 'guidance', 'scheduled', 'target', 'estimates', 'forecasts', 'extends', 'convert', 'potential', 'intends', 'anticipates', 'believes' or variations of such words and phrases, or statements that certain actions, events or results 'may', 'could', 'should', 'would', 'will', '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 that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations and closure of mining, projects, the inherent uncertainty of mineral exploration and estimations of exploration targets, potential delays in exploration due to COVID-19 or governmental action, increase to operating costs directly or indirectly related to due to COVID-19 including but not limited to supply chain issues, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital or fund explorations, Capstone's ability to acquire properties for growth, counterparty risks associated with sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions on our operations, title or royalty claims and rights to mineral tenure, increased taxes on mining activities, interruption of production due indirectly or directly to criminal activity land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Cozamin project, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, and other risks of the mining industry as well as those factors detailed from time to time in the Company's interim and annual financial statements and MD&A of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.
Contact:
Jerrold Annett
Tel: 647-273-7351
Email: jannett@capstonemining.com
CAPSTONE MINING 
