Jan. 26, 2011 (PR Newswire) --
2010 Production of 76.0 million pounds of Copper in Concentrates
VANCOUVER - Capstone Mining Corp. (CS: TSX) today announced its operating results for the three and twelve months ended December 31, 2010 from its two operations, the Cozamin and Minto mines. Combined production totalled 18.9 million and 76.0 million pounds of copper in concentrates in the three and twelve months, respectively, with additional significant by-products of lead, zinc, silver and gold. At December 31, 2010 Capstone had a cash balance of US$192.4 million (including restricted cash of US$6.4 million and a short-term deposit balance of US$20 million), a significant increase primarily attributable to the cash generated from sales at higher metal prices as well as the sale of some investments. As press released on December 17, 2010 Capstone reiterates its 2011 guidance of 80-85 million pounds of copper in concentrates.
Q4 and 2010 Annual Production
| |
Q4 2010 |
Total 2010 |
Copper in concentrates
(millions of pounds) |
|
|
| - Cozamin |
8.2 |
35.5 |
| - Minto |
10.7 |
40.5(*) |
| Total |
18.9 |
76.0 |
(*) Minto realized negative adjustments to previously reported copper production based on the final settlement of copper sales from previous quarters in the amount of one million pounds. The adjustments are only reflected in the year to date column.
Operational Highlights for the three and twelve months ended December 31, 2010
The following is a summary of operational highlights for Capstone during the three and twelve months, respectively, ended December 31, 2010:
- Production of 18.9 million and 76.0 million pounds of copper contained in concentrates, respectively.
- By-product production of 3.7 million and 17.3 million pounds of zinc, 1.5 million and 9.1 million pounds of lead and 371,177 and 1,610,008 ounces of silver in concentrates, for the three and twelve months, respectively. Final gold production is not available since assaying is done off site, but is estimated at 2,234 and 22,284 ounces for the respective periods.
- Detailed operating statistics for both operating mines are provided in the tables below.
Cozamin Highlights and Outlook
Cozamin Mine results for the three and twelve months ended December 31, 2010, respectively, were:
| |
Q4 2010 |
Total 2010 |
Production (2)
(contained in concentrates) |
|
|
| - Copper (000s pounds) |
8,209 |
35,552 |
| - Lead (000s pounds) |
1,496 |
9,142 |
| - Zinc (000s pounds) |
3,694 |
17,348 |
| - Silver (ounces) |
334,751 |
1,403,170 |
| Mine |
|
|
| - Tonnes of ore mined |
214,689 |
978,954 |
| Mill |
|
|
| - Tonnes processed |
215,503 |
981,682 |
| - Tonnes processed per day |
2,342 |
2,690 |
| - Copper grade (%) |
1.88 |
1.80 |
| - Lead grade (%) |
0.42 |
0.63 |
| - Zinc grade (%) |
1.15 |
1.27 |
| - Silver grade (g/t) |
67.1 |
62 |
| Recoveries |
|
|
| - Copper (%) |
92.0 |
91.2 |
| - Lead (%) |
74.1 |
67.6 |
| - Zinc (%) |
67.8 |
63.0 |
| - Silver (%) |
72.0 |
71.7 |
| Concentrate (2) |
|
|
| - Copper (dmt) |
14,187 |
64,356 |
| - Copper (%) |
26.2 |
25.1 |
| - Silver (g/t) |
582 |
536 |
| - Lead (dmt) |
1,015 |
6,282 |
| - Lead (%) |
66.9 |
66.0 |
| - Silver (g/t) |
2,119 |
1,391 |
| - Zinc (dmt) |
3,534 |
16,448 |
| - Zinc (%) |
47.4 |
47.8 |
(2) Adjustments based on final settlements will be made in future periods
- Mine and mill production for Cozamin for the last 5 weeks of the year came in at less than 50% of plan as a consequence of the stability assessments being carried out in the high grade Avoca area. Production was further hampered by a shutdown in the main ore haulage ramp while repairs were made in a cross faulting zone.
- As a result of the geomechanical evaluation of the Avoca Zone, remediation and additional development activities are required, though production levels continue to increase as new support standards are implemented, they will not return to plan levels until late-February.
Minto Highlights and Outlook
Minto Mine results for three and twelve months ended December 31, 2010, respectively, were:
| |
Q4 2010 |
Total 2010(4) |
Production (3)
(contained in concentrates) |
|
|
| - Copper (000s lbs) |
10,672 |
40,454 |
| - Gold (oz) (2) |
2,234 |
22,284 |
| - Silver (oz) |
36,426 |
206,838 |
| Mining |
|
|
| - Waste (tonnes) |
1,764,509 |
7,873,049 |
| - Ore (tonnes) |
484,907 |
1,494,752 |
| - Total material mined (tonnes) |
2,249,416 |
9,367,801 |
| Milling |
|
|
| - Tonnes processed |
258,121 |
915,051 |
| - Tonnes processed per day |
2,806 |
2,507 |
| - Copper grade (%) |
2.03 |
2.22 |
| - Gold grade (g/t) (2), (3) |
0.46 |
0.93 |
| - Silver grade (g/t) |
6.6 |
8.7 |
| Recoveries |
|
|
| - Copper (%) |
92.5 |
90.3 |
| - Gold (%) (2), (3), |
58.1 |
81.1 |
| - Silver (%) |
66.1 |
80.6 |
| Concentrate |
|
|
| - Dry tonnes produced |
12,082 |
47,065 |
| - Copper grade (%) |
40.1 |
39.0 |
| - Gold grade (g/t) (2), (3) |
5.8 |
14.7 |
| - Silver grade (g/t) |
94 |
137 |
(2) Gold is not assayed on site, resulting in a significant lag in receiving this data. Data for Q4 is an estimate based on prior production experience.
(3) Adjustments based on final settlements will be made in future periods.
(4) Adjustments are only reflected in year to date column relating to negative adjustments of previously reported
copper production.
- Mill throughput increased during November and December with installation of higher performance tailings filter cloths.
- With the completion of the dewatering of the Minto Main pit in October higher grade ore was mined from the Stage 4 push-back resulting in higher grades being processed.
- Mining in Stage 4 of the Minto Main pit was essentially complete at year-end. Mining of the final stage of the Minto Main pit is on schedule to complete in early Q2 of 2011.
- All critical permitting activities for initiation of mining in Area 2 and initial development of the Area 2 underground resources is on track for completion in Q1 of 2011
2010 Financial Results Timing
Capstone will report its 2010 financial results on Monday, March 14, 2011 after market close and will host a conference call and webcast to discuss these results as noted below.
Conference call and webcast details are as follows:
