999 WEST HASTINGS STREET, SUITE 900
VANCOUVER
British Columbia
Canada,
V6C 2W2
Phone: +1 (604) 684-8894
Fax: +1 (604) 688-2180
Toll Free: 1 866 684 8894
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Capstone Mining Corp. (CS:TSX) is a TSX listed company focused on growing production from its two high-grade, low-cost mines located in mining friendly jurisdictions. Sustained resource growth at its mines has justified staged production expansions at both operations, which generate robust cash flow supported by a valuable hedge book and strong balance sheet, allowing for continued growth through M&A.
The Minto Mine is a high-grade, open pit copper-gold mine located in Yukon, Canada, forecast to produce approximately 60-65 million pounds of copper in 2009.
The Cozamin Mine is a high-grade, shallow underground copper-silver-zinc-lead mine located in Zacatecas, Mexico, forecast to produce approximately 40 million pounds of copper in 2009.
The Kutcho project is a high-grade, near surface copper-zinc-silver deposit in British Columbia, Canada, being advanced towards a production decision.
As of March 31, 2009, the company had over 87 million pounds of copper forward sold at an average price of US$2.49/lb.
Highlights
- High-grade, low-cost copper production
- Significant by-products of gold, silver, zinc and lead
- North American operations in mining friendly jurisdictions
- Strong cashflow from production supported by robust hedge book
- Significant holding in
Silver Wheaton Corp after tendering 22% holding in Silverstone Resources
- Track record of growing resources and production
- Proven ability to discover, acquire, develop and operate
- Strong management team with proven ability to deliver
Above: Cozamin Mine, and Mining in the Main Minto pit
Production Forecast
| |
Cozamin |
Minto |
Combined |
| Geography |
Mexico |
Canada |
N. America |
| Commodities |
Cu (+Zn, Ag, Pb) |
Cu (+Au, Ag) |
Cu (+Zn, Au, Ag, Pb) |
2008 Actual Production
(Copper in concentrates) |
26.4M lbs Cu |
47.7M lbs Cu |
74.1M lbs Cu |
| 2009 Forecast Production |
~35-40M lbs Cu |
~60-65M lbs Cu |
~95-105M lbs Cu |
| 2009 Forecast Cash Costs* |
~US$1.00/lb |
~US$1.00/lb |
~US$1.00/lb |
Plant Expansions
Completed in 2008 |
To 3,000 tpd |
To 3,200 tpd |
To 6,200 tpd |
Summary
CAPSTONE - PURSUIT OF VALUE
- Building a mid-tier copper producer focused in the Americas
- Two operating copper mines
- Cozamin & Minto mines
- Significant by-products of gold, silver, lead & zinc
- High grade and low cost
- 2009 forecast: 95-105 million pounds of copper with cash costs of ~US$1.00/lb
- Q1/09: 25.1 million pounds of payable copper with total cash costs* of US$1.05/lb
- Additional high grade copper development project
- Kutcho copper project, BC
- 100% North American assets
- Canada & Mexico
- Low political risk
CAPSTONE – FOCUSED ON GROWTH
- Strong organic growth potential
- Significant mineral resource growth supporting staged mill expansions
- Financial strength to support further M&A
- Cash
- Strong cash flow from production
- Q1/09: Cash flow from mining operations* of US$26.3 million
- Robust forward sales book
- Significant holding in Silver Wheaton
- After tendering 22% holding in Silverstone
- Strong management team
- Proven ability to deliver M&A, mine development, operations & exploration discoveries
For more information visit our website at:
www.capstonemining.com
Company NewsTuesday, June 09, 2009 Capstone Mining announced the results of an NI 43-101 compliant mineral resources estimates for the Minto copper-gold mine in Yukon, Canada. New mineral resource estimates were completed for the combined Area 2/Area 118 deposit, the Ridgetop deposit and the Minto North deposit and are current to today’s date, while mineral resources and mineral reserves for the Minto Main deposit (current open pit) were adjusted to reflect mining activity up to December 31, 2008. Measured resources consist of 14.1 million tonnes at a grade of 1.39% Cu, 0.51g/t Au and 5.1g/t Ag, Indicated resources consist of 15.8 million tonnes at 1.06% Cu, 0.42g/t Au and 3.9g/t Ag and with additional Inferred resources of 6.47 million tonnes at 1.00% Cu, 0.32g/t Au and 3.3g/t Ag. Map Legend: Producer Past Producer  Development  Exploration |
