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Capstone Intersects 20.1 Meters Grading 5.53% Copper, Including 6.4 Meters of 11.32% Copper at Cozamin Mine

VANCOUVER, British Columbia, Nov. 5, 2019 /CNW/ - Capstone Mining Corp. ("Capstone" or the "Company") (TSX:CS) announces high grade copper and silver results from 103 infill and step-out drill holes at its Cozamin Mine, as well as an expansion to the exploration program into 2020. The results represent half of the 200 hole program, which aims to more than double the current reserve base. Results to date support the Company's recently disclosed increase to Cozamin's annual production guidance to 50 to 55 million pounds of copper and 1.4 to 1.5 million ounces of silver starting in early 2021. Mineral Resources and Mineral Reserves estimates will be updated in late 2020.

"Highlight holes in Figure 1 and Table 1, are comprised of both infill and step-outs. They have shown excellent grade and thickness, including a test into the middle of the recently acquired Portree claimblock (U499)," said Brad Mercer, Capstone's Senior Vice President of Operations and Exploration. "We now see a much larger target and we intend to infill drill the expanded area before re-estimating mineral reserves. On average, the vein is approximately 60% wider up dip from the current reserve, while the copper and silver grades are higher as well. Additionally, having access to the Portree claimblock will give us a platform to extend mineralization to the west."

Figure 1 – High grade infill and step-out holes on the periphery of the recently acquired Portree claimblock

Figure 1. High grade infill and step-out holes on the periphery of the recently acquired Portree claimblock. For full details refer to the November 5, 2019 news release. (CNW Group/Capstone Mining Corp.)

"Capstone has owned and operated Cozamin for 15 years and never have I been this excited about its future," said Darren Pylot, Capstone's President and CEO. "The continued exploration success achieved by our team is a paradigm shift for an already low cost and highly profitable tier one mine. I don't know of another project that can leverage 50% organic production growth with expansionary capital of less than $5 million dollars. Cozamin has delivered cumulative free cash flow of over $400 million for Capstone and with our plan to more than double the current mine life, it is incredible to think that over the next decade the best is yet to come."

Tables and Figures:

  • Figure 1 shows the location of select intervals.
  • Select intervals are summarized in Table 1 and full results for all previously unreleased holes since the October 24, 2018 Mineral Resource estimate are in Table 2.
  • For the long-section of the MNFWZ showing copper % * estimated true width and silver g/t * estimated true width, see Figures 2 and 3.
  • Figure 4 shows a sample of the chalcopyrite mineralization in drill core from hole CG-18-S372.


Figure 2 – Long-section of the Mala Noche Footwall Zone Showing Copper % * Estimated True Width (m)

Figure 2. Long-section of the Mala Noche Footwall Zone showing Copper %*Estimated True Width (m) at Capstone's Cozamin Mine. For full details refer to the November 5, 2019 news release. (CNW Group/Capstone Mining Corp.)

The best grade*thickness intercepts at Cozamin lie outside of the current Mineral Reserve, some of which are step-out holes beyond the previous Mineral Resource estimate.

Figure 3 – Long-section of the Mala Noche Footwall Zone Showing Silver g/t * Estimated True Width (m)

Figure 3. Long-section of the Mala Noche Footwall Zone showing Silver g/t*Estimated True Width (m) at Capstone's Cozamin Mine. For full details refer to the November 5, 2019 news release. (CNW Group/Capstone Mining Corp.)

The strong positive correlation between copper and silver grades is clear when comparing Figure 2 to Figure 1.

Figure 4 – Image of Drill Core from Hole CG-18-S372

Figure 4. Image of drill core from hole CG-18-S372. For full details refer to the November 5, 2019 news release. (CNW Group/Capstone Mining Corp.)

Coarse grained, high grade chalcopyrite mineralization along with a positive copper-silver correlation underpins high copper and silver recoveries.

Table 1 – Selected MNFWZ Drilling Completed Since September 17, 2018 News Release













Section
ID #

Drill hole ID

Type

In
Resource

From
(m)

 To
(m)

Width
(m)

True
Width*
(m)

Cu
(%)

Zn
(%)

Pb
(%)

Ag
(g/t)

53

CG-19-U499

step-out

no

519.7

524.5

4.8

4.4

1.75

0.06

0.01

28.9


including



523.0

524.5

1.5

1.4

2.74

0.07

0.00

38.1

56

CG-19-U498

step-out

no

511.1

523.5

12.4

12.3

5.02

0.38

0.01

71.6


including



516.5

522.5

6.0

5.9

9.02

0.67

0.01

126.7

59

CG-19-S384

step-out

no

566.0

571.1

5.1

4.5

3.56

0.10

0.00

59.0

71

CG-18-S365

step-out

no

491.6

508.5

16.9

15.7

1.93

0.07

0.01

34.2


including



499.2

508.5

9.3

8.6

2.88

0.08

0.01

50.2

75

CG-18-S376

step-out

no

542.9

549.2

6.3

5.4

3.86

0.14

0.01

70.7


including



542.9

546.3

3.4

2.9

6.80

0.18

0.01

120.3

91

CG-18-S381

step-out

no

526.2

531.9

5.7

5.1

7.27

0.32

0.05

219.7

3

CG-18-S351

infill

yes

927.2

939.3

12.1

10.2

2.95

1.14

0.10

138.0

10

CG-18-U476

infill

yes

679.7

697.0

17.3

13.6

1.56

0.14

0.09

47.4


including



692.7

697.0

4.3

3.4

4.74

0.42

0.35

163.8

18

CG-18-U478

infill

yes

629.9

645.8

15.9

9.9

1.79

0.08

0.01

25.3


including



640.0

643.5

3.5

2.2

4.66

0.14

0.01

68.5

21

CG-18-S380

infill

no

726.0

734.0

8.0

7.7

3.34

2.48

0.10

86.7


including



726.0

730.5

4.5

4.3

4.62

2.84

0.15

118.4

44

CG-19-S412

infill

no

651.6

660.4

8.8

7.6

3.52

0.73

0.03

68.5


including



653.2

655.9

2.7

2.3

10.67

0.63

0.03

193.8

50

CG-19-U492

infill

no

474.5

483.8

9.3

8.5

1.94

0.12

0.01

28.3


including



480.2

483.8

3.5

3.2

4.63

0.27

0.01

64.1

55

CG-19-U490

infill

no

494.8

509.6

14.8

12.3

2.67

0.19

0.01

40.7


including



499.6

509.6

10.0

8.3

3.66

0.21

0.01

52.7

74

CG-18-S372

infill

no

567.3

590.4

23.1

20.1

5.53

0.18

0.02

116.8


including



579.0

586.4

7.4

6.4

11.32

0.28

0.04

242.2

81

CG-18-S369

infill

no

556.6

561.6

5.0

4.4

6.31

0.19

0.01

108.1

83

CG-18-S355

infill

yes

533.1

554.3

21.2

18.6

2.67

0.09

0.01

53.5


including



542.0

549.5

7.5

6.6

5.90

0.19

0.02

117.7

 

*estimated true width of vein intercept for inclined drill holes

For drill hole location and context please view the long-section of the MNFWZ at https://capstonemining.com/files/images/maps/MNFWZ_20_T1-Model.pdf.

Table 2 – All MNFWZ Drilling Completed Since September 17, 2018 News Release













Section

ID #

Drill hole ID

Type

In
Resource

From
(m)

 To
(m)

Width
(m)

True
Width*
(m)

Cu
(%)

Zn
(%)

Pb
(%)

Ag
(g/t)

1

CG-19-S400

step-out

no

877.4

879.3

1.9

1.7

1.49

1.61

0.03

31.1

23

CG-18-S352

step-out

yes

no significant intercepts

24

CG-19-S399

step-out

no

599.5

606.0

6.5

6.3

0.40

0.21

0.01

13.2

52

CG-19-U500

step-out

no

in progress

53

CG-19-U499

step-out

no

519.7

524.5

4.8

4.4

1.75

0.06

0.01

28.9


including



523.0

524.5

1.5

1.4

2.74

0.07

0.00

38.1

56

CG-19-U498

step-out

no

511.1

523.5

12.4

12.3

5.02

0.38

0.01

71.6


including



516.5

522.5

6.0

5.9

9.02

0.67

0.01

126.7

57

CG-19-S402

step-out

no

no significant intercepts

58

CG-19-S388

step-out

no

no significant intercepts

59

CG-19-S384

step-out

no

566.0

571.1

5.1

4.5

3.56

0.10

0.00

59.0

60

CG-19-S387

step-out

no

no significant intercepts

61

CG-18-U485

step-out

no

559.6

565.2

5.6

5.0

1.39

0.07

0.00

30.8

62

CG-18-S383

step-out

no

no significant intercepts

63

CG-19-S398

step-out

no

485.7

488.9

3.2

2.3

0.98

0.87

0.01

61.5


including



486.9

488.9

2.0

1.4

1.55

0.08

0.01

92.8

71

CG-18-S365

step-out

no

491.6

508.5

16.9

15.7

1.93

0.07

0.01

34.2


including



499.2

508.5

9.3

8.6

2.88

0.08

0.01

50.2

75

CG-18-S376

step-out

no

542.9

549.2

6.3

5.4

3.86

0.14

0.01

70.7


including



542.9

546.3

3.4

2.9

6.80

0.18

0.01

120.3

87

CG-18-S356

infill

yes

no significant intercepts

88

CG-19-S392

step-out

no

no significant intercepts

89

CG-18-S353

infill

yes

552.7

556.6

3.9

3.8

1.00

0.15

0.00

30.5

90

CG-18-S373

step-out

no

500.7

504.5

3.8

3.4

1.04

0.82

0.01

24.7

91

CG-18-S381

step-out

no

526.2

531.9

5.7

5.1

7.27

0.32

0.05

219.7

92

CG-19-S391

step-out

no

539.2

543.2

4.0

3.5

0.66

0.07

0.05

20.3


including



539.2

540.0

0.8

0.7

2.76

0.05

0.02

67.5

93

CG-19-S393

step-out

no

no significant intercepts

94

CG-19-S397

step-out

no

560.7

561.7

1.0

0.9

1.91

0.07

0.02

90.8

95

CG-18-S379

step-out

no

515.3

525.9

10.6

9.5

1.16

0.16

0.02

42.0


including



520.8

525.9

5.1

4.5

2.09

0.20

0.01

64.3

96

CG-18-S375

step-out

no

471.1

473.6

2.5

2.2

4.88

0.18

0.02

131.3

97

CG-19-S389

step-out

no

394.0

396.5

2.5

2.1

0.37

0.50

0.01

11.7

98

CG-19-S386

step-out

no

367.8

368.6

0.8

0.8

0.82

0.04

0.03

39.4

99

CG-19-S385

step-out

no

362.8

363.8

1.0

0.9

0.74

0.06

0.01

29.1

101

CG-18-S370

step-out

no

446.6

449.1

2.5

2.2

1.96

0.06

0.01

49.1

102

CG-19-S390

step-out

no

303.9

309.0

5.0

3.7

0.22

0.23

0.01

12.2

103

CG-18-S382

step-out

no

466.8

471.2

4.4

3.9

2.29

0.44

0.06

96.5

2

CG-18-S374

infill

no

930.1

931.7

1.6

1.3

2.38

0.87

0.06

68.3

3

CG-18-S351

infill

yes

927.2

939.3

12.1

10.2

2.95

1.14

0.10

138.0

4

CG-19-S394

infill

no

957.7

962.9

5.2

4.4

0.77

0.05

0.01

15.6


including



958.2

961.2

3.0

2.5

1.18

0.08

0.01

24.5

5

CG-18-S367

infill

no

944.0

947.4

3.4

2.9

1.05

0.05

0.01

13.0

6

CG-18-U484

infill

no

751.7

755.6

3.9

3.2

0.78

0.08

0.01

18.0

7

CG-18-U477

infill

yes

720.9

743.2

22.3

18.0

1.11

0.08

0.03

21.5


including



728.0

735.3

7.3

5.9

2.07

0.16

0.02

36.8

8

CG-18-U482

infill

no

719.6

720.4

0.8

0.6

1.03

0.02

0.01

16.0

9

CG-18-U480

infill

no

695.2

702.9

7.7

7.2

2.05

0.09

0.01

72.1


including



700.6

702.9

2.3

2.1

6.21

0.26

0.03

154.6

10

CG-18-U476

infill

yes

679.7

697.0

17.3

13.6

1.56

0.14

0.09

47.4


including



692.7

697.0

4.3

3.4

4.74

0.42

0.35

163.8

11

CG-19-U496

infill

no

685.8

693.9

8.1

6.8

0.83

0.05

0.01

12.5


including



685.8

690.7

4.9

4.1

1.14

0.07

0.02

17.0

12

CG-19-U493

infill

no

604.0

604.6

0.6

0.4

0.21

0.02

0.00

3.0

13

CG-18-U487

infill

no

572.7

579.0

6.3

6.0

0.30

0.04

0.01

4.8

14

CG-19-U491

infill

no

no significant intercepts

15

CG-19-U489

infill

no

529.7

532.0

2.3

2.2

0.14

0.01

0.00

12.1

16

CG-18-U479

infill

yes

570.7

572.7

2.0

1.8

0.28

0.02

0.00

36.5

17

CG-18-U475

infill

yes

646.4

651.7

5.3

4.5

1.70

0.57

0.01

38.8

18

CG-18-U478

infill

yes

629.9

645.8

15.9

9.9

1.79

0.08

0.01

25.3


including



640.0

643.5

3.5

2.2

4.66

0.14

0.01

68.5

19

CG-18-S361

infill

no

891.0

892.6

1.6

1.1

0.29

0.02

0.00

12.2

20

CG-18-S358

infill

yes

848.4

856.3

7.9

6.5

2.09

0.39

0.01

29.9

21

CG-18-S380

infill

no

726.0

734.0

8.0

7.7

3.34

2.48

0.10

86.7


including



726.0

730.5

4.5

4.3

4.62

2.84

0.15

118.4

22

CG-19-S395

infill

no

776.6

783.3

6.7

6.0

3.55

0.26

0.01

60.2

25

CG-18-S364

infill

no

608.5

610.5

2.0

1.9

0.47

0.02

0.00

8.2

26

CG-18-S348

infill

yes

635.7

642.7

7.0

6.0

2.10

0.17

0.13

44.3

27

CG-19-S421

Infill

no

641.3

648.0

6.7

6.1

1.25

0.20

0.04

25.5

28

CG-19-S425

infill

no

in progress

29

CG-18-S347

infill

yes

682.5

683.3

0.8

0.8

0.40

0.12

0.01

9.0

30

CG-19-S420

infill

no

no significant intercepts

31

CG-19-S417

Infill

No

no significant intercepts

32

CG-18-S366

infill

no

723.3

724.5

1.2

1.2

2.64

0.07

0.00

36.4

33

CG-19-S413

infill

no

736.9

739.2

2.3

2.3

2.20

0.06

0.00

30.0

34

CG-19-S409

infill

no

728.8

733.4

4.6

3.9

2.53

0.38

0.02

106.5

35

CG-19-S419

infill

no

assays pending

36

CG-19-S423

infill

no

assays pending

37

CG-19-S424

infill

no

in progress

38

CG-19-S415

infill

no

660.2

661.7

1.5

1.4

2.82

0.12

0.01

78.3

39

CG-19-S410

infill

no

666.2

668.5

2.3

1.8

0.94

0.43

0.02

21.8

40

CG-19-S396

infill

no

717.6

724.3

6.7

6.0

1.86

0.54

0.01

46.7

41

CG-19-S422

infill

no

assays pending

42

CG-19-S418

infill

no

557.4

569.9

12.5

11.6

2.99

0.65

0.02

63.3

43

CG-19-S407

infill

no

no significant intercepts

44

CG-19-S412

infill

no

651.6

660.4

8.8

7.6

3.52

0.73

0.03

68.5


including



653.2

655.9

2.7

2.3

10.67

0.63

0.03

193.8

45

CG-19-S408

infill

no

590.6

592.9

2.3

1.8

2.88

0.29

0.01

48.9

46

CG-19-S406

infill

no

574.5

576.3

1.8

1.4

0.33

0.03

0.01

8.0

47

CG-18-U481

infill

no

545.3

545.8

0.5

0.4

1.77

0.06

0.01

32.0

48

CG-19-U497

infill

no

524.3

526.7

2.4

2.2

3.34

0.11

0.02

72.8

49

CG-19-U495

infill

no

499.6

503.1

3.5

3.2

0.46

0.09

0.00

11.5

50

CG-19-U492

infill

no

474.5

483.8

9.3

8.5

1.94

0.12

0.01

28.3


including



480.2

483.8

3.5

3.2

4.63

0.27

0.01

64.1

51

CG-19-U494

infill

no

470.0

474.1

4.1

3.7

6.47

0.69

0.05

108.5

54

CG-19-U488

infill

no

499.2

499.9

0.7

0.6

0.33

0.23

0.02

9.0

55

CG-19-U490

infill

no

494.8

509.6

14.8

12.3

2.67

0.19

0.01

40.7


including



499.6

509.6

10.0

8.3

3.66

0.21

0.01

52.7

64

CG-19-S411

infill

no

557.5

564.4

6.9

5.8

3.09

0.83

0.01

60.6

65

CG-18-U483

infill

no

547.8

549.9

2.1

2.0

6.23

0.68

0.01

100.6

66

CG-19-S414

infill

no

546.3

549.7

3.4

3.3

1.60

0.26

0.01

30.1

67

CG-19-S416

infill

no

543.2

547.0

3.8

3.3

2.23

0.21

0.01

43.4

68

CG-18-S362

infill

yes

472.1

488.3

16.2

14.4

0.88

0.04

0.00

20.3

69

CG-18-U486

infill

no

566.9

571.2

4.3

4.0

7.31

0.23

0.01

117.6

70

CG-18-S368

infill

no

525.0

531.8

6.8

6.2

1.48

0.22

0.01

30.0


including



525.7

528.1

2.4

2.2

3.83

0.60

0.01

76.8

72

CG-18-S377

infill

no

678.2

697.4

19.2

17.4

0.64

0.02

0.00

12.0


including



686.3

696.4

10.1

9.2

0.98

0.03

0.00

17.6

73

CG-18-S349

infill

yes

510.0

510.8

0.8

0.7

1.67

0.05

0.00

33.0

74

CG-18-S372

infill

no

567.3

590.4

23.1

20.1

5.53

0.18

0.02

116.8


including



579.0

586.4

7.4

6.4

11.32

0.28

0.04

242.2

76

CG-19-S426

infill

no

in progress

77

CG-18-S359

infill

yes

589.1

595.0

5.9

4.8

3.43

0.11

0.01

61.4

78

CG-18-S354

infill

yes

571.1

571.6

0.5

0.4

0.07

0.09

0.00

9.8

79

CG-18-S363

infill

yes

538.1

550.6

12.5

11.0

1.46

0.05

0.01

39.0

80

CG-19-S401

infill

no

615.1

626.0

10.9

8.6

2.40

0.08

0.06

68.4


including



620.3

626.0

5.7

4.5

4.09

0.12

0.11

114.4

81

CG-18-S369

infill

no

556.6

561.6

5.0

4.4

6.31

0.19

0.01

108.1

82

CG-19-S427

infill

no

in progress

83

CG-18-S355

infill

yes

533.1

554.3

21.2

18.6

2.67

0.09

0.01

53.5


including



542.0

549.5

7.5

6.6

5.90

0.19

0.02

117.7

84

CG-18-S371

infill

no

512.1

514.1

2.0

2.0

0.22

0.11

0.01

12.8

85

CG-18-S360

infill

yes

592.9

596.3

3.4

3.2

1.39

0.05

0.00

28.5

86

CG-18-S378

infill

no

518.5

521.1

2.6

2.4

0.04

1.16

0.17

3.6

100

CG-18-S357

infill

yes

451.5

455.6

4.1

3.6

1.69

0.07

0.03

62.8

 

*estimated true width of vein intercept for inclined drill holes

Methodology

All samples were submitted for preparation by ALS at its facilities in Zacatecas, Mexico, followed by analysis at the ALS Laboratory in North Vancouver, Canada. The entire sample is crushed to a minimum of 70% passing 2 millimetres. A 250g subsample of the crushed material is then pulverized to 85% passing 75 microns. Copper, zinc, lead and silver are determined by ICP analysis after 4 acid digestion of a 0.4g subsample of pulverized material. QAQC samples in each batch of 20 samples include a blank, a certified reference material and a duplicate (one of a field, coarse reject or pulp reject).

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 has the large scale 70% owned copper-iron Santo Domingo development 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). Further information is available at www.capstonemining.com.

Cautionary Note Regarding Forward-Looking Information

This news release, and the documents incorporated by reference herein, may contain "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 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, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, 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, aboriginal title claims and rights to consultation and accommodation, 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.

National Instrument 43-101 Compliance

Unless otherwise indicated, Capstone has prepared the technical information in this news release ("Technical Information") based on information contained in the technical reports, news releases and MD&A's (collectively the "Disclosure Documents") available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by, or under the supervision of, a qualified person (a "Qualified Person") as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.

The Technical Information in this news release has been prepared in accordance with NI 43-101 and reviewed and approved by Brad Mercer, P. Geol., Capstone's Senior Vice President, Operations and Exploration, a Qualified Person and the person who oversees exploration activities on the Cozamin Mine property.

Jerrold Annett, VP, Strategy and Capital Markets, 416-572-2272, jannett@capstonemining.com; Virginia Morgan, Manager, IR and Communications, 604-674-2268, vmorgan@capstonemining.com