Capstone releases â€˜best ever’ Cozamin results
Capstone Mining Corp. [CS-TSX] on Thursday January 16 released additional high grade copper and silver results from 21 infill and six step-out drill holes from its Cozamin polymetallic mine in Zacatecas, Mexico. The highlight intercept from the latest batch of results includes 6.3 metres of 5.3% copper.
The expansion and infill drilling results released on Thursday morning includes some of the best ever drilling results from the Cozamin Mine, the company said in a news release. This brings the total drilled to date to 150 holes out of a 200-hole program. The aim of the program is to double the existing reserve base.
Drill results to date continue to demonstrate greater widths and grades than current mineral reserves, as well as the potential for an expanded high-grade resource. Mineral resources and mineral reserves will be updated in late 2020.
Cozamin is expected to achieve a 50% increase to annual copper and silver production of 50-55 million pounds and 1.5 million ounces respectively by 2021.
Capstone shares advanced on the news, rising 3.7% or $0.03 to 84 cents on volume of 258,530. The shares are currently trading in a 52-week range of 41 cents and 87 cents.
Capstone is a Canadian base metals mining company with a focus on copper. Its two producing mines are the Pinto Valley copper mine in Arizona, and the Cozamin Mine in Mexico. In addition, Capstone has the large scale 70%-owned copper-iron Santo Domingo development project in Chile as well as a portfolio of exploration properties.
The Santo Domingo Project is located 50 km southwest of Codelco’s El Salvador copper mine. The project is expected to be ready for a construction start in 2020.
Cozamin is located 3.6 km northwest of Zacatecas City. It is a copper-silver underground mine with a surface milling facility. In 2019, the mine was expected to produce 30-35 million pounds of copper at a cash cost of between US$0.90 and US$1.05/oz.
“The most recent drill results are exceeding our expectations for the Mala Noche Footwall Zone,” said Brad Mercer, senior vice-president exploration and operations with Capstone. “The two-year drilling initiative is more than two months ahead of schedule, allowing us to add more holes for a new mineral resource and mineral reserve estimate and technical report by the end of 2020,” he said.
“These results will ensure that this mine will remain a first quartile cost, cornerstone asset well into the future,” added Capstone President and CEO Darren Pylot. “Development work on both the underground one-way ramp and ventilation are both on budget and ahead of schedule to be completed by the end of 2020,” he said.