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Capstone Mining Corp
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Shares Issued 399,597,765
Close 2019-12-02 C$ 0.56
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Capstone Mining drills 20 m of 2.2% Cu at Cozamin

2019-12-02 17:39 ET - News Release

Mr. Darren Pylot reports

CAPSTONE INTERCEPTS 20M OF 2.2% CU INCLUDING 5M OF 5.3% CU: EXPLORATION PROGRAM POINTING TO HIGHER GRADES AND WIDER INTERCEPTS THAN IN CURRENT RESERVE

Capstone Mining Corp. has released additional high-grade copper and silver results from 20 infill drill holes at its Cozamin mine, further to its update of Nov. 5, 2019. These, along with an additional 15 holes pending assays, bring the total holes drilled to date to 138 holes of a 200-hole program, aiming to more than double the current reserve base. Drill results to date continue to demonstrate greater widths and grades than current mineral reserves. Mineral resource and mineral reserve estimates will be updated in late 2020.

"These recent drill results continue a theme we saw in the last results, released in early November, of better grade times thickness on average than the current reserve," said Brad Mercer, Capstone's senior vice-president of operations and exploration. "With each additional hole we are more confident that Cozamin will be an even greater mine for the next decade, with 50-per-cent-higher copper and silver production compared to today. The Mala Noche footwall zone (MNFWZ) is still open in two directions, and we continue to keep six drills running to expand the resource and eventually the mineral reserves with a new technical report next year."

Darren Pylot, Capstone's president and chief executive officer, said: "Our exploration team has done a fantastic job in surfacing huge NAV [net asset value] for shareholders. Not long ago we were facing a sunset operation, and with exploration excellence, we are now looking forward to higher production and higher margins than what we have ever realized at this mine. Cozamin is the type of operation all mining companies want to have but are extremely rare to find."

Cozamin is expected to produce 50 million to 55 million pounds of copper and 1.4 million to 1.5 million ounces of silver starting in early 2021, upon completion of the underground debottlenecking development project, which is on schedule.

Select intervals are summarized in the first attached table, and full results for all previously unreleased holes since the Nov. 5, 2019, exploration update are in the second attached table.

                     SELECTED MNFWZ DRILLING COMPLETED SINCE THE NOV. 5, 2019, NEWS RELEASE
  
                                              In                               True
Section ID       Drill hole      Type   resource     From      To   Width     width*    Cu     Zn      Pb       Ag
                                                       (m)     (m)     (m)       (m)    (%)    (%)     (%)    (g/t)

2                CG-19-S434    infill         no    527.5   550.9    23.4      20.3   2.20   0.08    0.04     43.6
                  including                         536.5   542.3     5.8       5.0   5.28   0.14    0.01     96.8
3                CG-19-S427    infill         no    626.9   633.1     6.2       6.1   4.01   0.10    0.01     67.3
9                CG-19-S429    infill         no    569.3   588.1    18.8      18.5   1.49   0.05    0.01     50.7
                  including                         582.5   588.1     5.6       5.5   1.92   0.06    0.01     69.5
10               CG-19-S433    infill         no    550.5   577.6    27.1      24.6   1.27   0.05    0.01     31.1
                  Including                         550.5   558.3     7.8       7.1   2.99   0.09    0.01     62.4
18               CG-19-S426    infill         no    584.0   598.2    14.2      12.2   3.15   0.10    0.01     58.2
                  including                         592.0   596.8     4.8       4.1   6.97   0.20    0.01    121.0
24               CG-19-S418    infill         no    557.4   566.5     9.1       8.4   3.98   0.83    0.02     84.2

* Estimated true width of vein intercept for inclined drill holes.

For drill hole locations and context, please view the long section of the MNFWZ on Capstone's website.

                        ALL MNFWZ DRILLING COMPLETED SINCE THE NOV. 5, 2019, NEWS RELEASE
  
                                              In                               True
Section ID       Drill hole      Type   resource     From      To   Width     width*    Cu     Zn      Pb       Ag
                                                       (m)     (m)     (m)       (m)    (%)    (%)     (%)    (g/t)

1                CG-19-S439    infill         no                          assays pending
2                CG-19-S434    infill         no    527.5   550.9    23.4      20.3   2.20   0.08    0.04     43.6
                  including                         536.5   542.3     5.8       5.0   5.28   0.14    0.01     96.8
3                CG-19-S427    infill         no    626.9   633.1     6.2       6.1   4.01   0.10    0.01     67.3
4                CG-19-S444    infill         no                          assays pending
5                CG-19-S447    infill         no                           in progress
6                CG-19-S438    infill         no                          assays pending
7                CG-19-S421    infill         no    647.0   648.0     1.0       0.9   5.91   1.14    0.08    111.0
8                CG-19-S430    infill         no    633.7   639.1     5.4       5.3   3.25   0.09    0.01     53.5
                  including                         636.7   639.1     2.4       2.3   6.31   0.16    0.01    101.8
9                CG-19-S429    infill         no    569.3   588.1    18.8      18.5   1.49   0.05    0.01     50.7
                  including                         582.5   588.1     5.6       5.5   1.92   0.06    0.01     69.5
10               CG-19-S433    infill         no    550.5   577.6    27.1      24.6   1.27   0.05    0.01     31.1
                  including                         550.5   558.3     7.8       7.1   2.99   0.09    0.01     62.4
11               CG-19-S442    infill         no                          assays pending
12               CG-19-S446    infill         no                           in progress
13               CG-19-S425    infill         no                     no significant intercepts
14               CG-19-S431    infill         no    652.1   654.8     2.7       2.0   7.86   0.28    0.02    132.0
15               CG-19-S420    infill         no                     no significant intercepts
16               CG-19-S435    infill         no                          assays pending
17               CG-19-S419    infill         no    636.0   639.7     3.7       2.7   3.26   1.23    0.17     80.1
18               CG-19-S426    infill         no    584.0   598.2    14.2      12.2   3.15   0.10    0.01     58.2
                  including                         592.0   596.8     4.8       4.1   6.97   0.20    0.01    121.0
19               CG-19-S440    infill         no                          assays pending
20               CG-19-S428    infill         no    582.5   586.4     3.9       2.7   4.55   0.17    0.01    107.4
21               CG-19-S423    infill         no    623.5   628.4     4.9       4.2   1.37   0.64    0.04     42.9
22               CG-19-S424    infill         no    603.4   606.0     2.6       2.1   3.07   0.75    0.06     96.5
23               CG-19-S422    infill         no    558.7   568.8    10.1       9.2   2.29   0.51    0.01     55.6
24               CG-19-S418    infill         no    557.4   566.5     9.1       8.4   3.98   0.83    0.02     84.2
25               CG-19-S437    infill         no                          assays pending
26               CG-19-S432    infill         no    510.1   515.0     4.9       3.9   1.26   0.06    0.01     27.2

27               CG-19-S441    infill         no                          assays pending
28               CG-19-S445    infill         no                           in progress
29               CG-19-U504    infill         no                           in progress
30               CG-19-U503    infill         no                          assays pending
31               CG-19-U502    infill         no                     no significant intercepts
32               CG-19-U501    infill         no                     no significant intercepts
33               CG-19-U500    infill         no                     no significant intercepts
34               CG-19-S436    infill         no                          assays pending
35               CG-19-S443    infill         no                           in progress

* 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 per cent passing two millimetres. A 250-gram subsample of the crushed material is then pulverized to 85 per cent passing 75 microns. Copper, zinc, lead and silver are determined by ICP analysis after four-acid digestion of a 0.4-gram subsample of pulverized material. Quality assurance/quality control 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).

Scotiabank conference, Dec. 4, 2019, Toronto, Ont.

Capstone management will be attending the Scotiabank Mining Conference in Toronto, Ont. Darren Pylot, president and CEO, will be presenting on Wednesday, Dec. 4, 2019, and drill core from Cozamin will be featured at the Core Shack. Capstone's most recent corporate presentation is available on its website.

National Instrument 43-101 compliance

The technical information in this news release has been prepared in accordance with NI 43-101 and has been reviewed and approved by Brad Mercer, PGeol, Capstone's senior vice-president, operations and exploration, a qualified person and the person who oversees exploration activities on the Cozamin mine property.

About Capstone Mining Corp.

Capstone is a Canadian base metals mining company, focused on copper. Its two producing mines are the Pinto Valley copper mine in Arizona, United States, and the Cozamin copper-silver mine in Zacatecas state, Mexico. In addition, Capstone has the large-scale, 70-per-cent-owned copper-iron Santo Domingo development project in Region III, Chile, in partnership with Korea Resources Corp., 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 seek Safe Harbor.

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