Capstone Declares Expanded Commercial Production at Cozamin and
Highlights Q4 Production and Sales
VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/11/07 -- Capstone
Mining Corp. ("Capstone")(TSX: CS) is pleased to report that it has
completed the expansion and commissioning of the 120% increase in
production at its Cozamin mine located in Zacatecas State, Mexico.
Commissioning of the mine expansion from the initial 350,000 tonnes
per year (1,000 tonnes per day) to 750,000 tonnes per year (2,200
tonnes per day) began in late May, with start up commencing in
mid-June. Production in July and August averaged 1,900 tonnes per day
or 86% of planned throughput. Production in September has averaged
1,977 tonnes per day or 90% of planned throughput and has achieved
over 2,200 tonnes on successive days. During the first week of
October the mine has operated at designed throughput.
"Having declared commercial production at the 2,200 tonne per day
rate in just 12 months from our initial production at Cozamin, will
provide our shareholder's with increased cash flow and earnings from
the Cozamin Mine," said Darren Pylot, President and CEO.
As announced on July 19, 2007, the expansion was completed under
budget and ahead of its scheduled completion date of October 2007.
100% of the capital was provided from internal cash flow.
PRODUCTION AND SALES FROM THE COZAMIN MINE IN FISCAL 2007
(all figures unaudited)
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Q1 Q2 Q3 Q4 Total
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Milled tonnes 93,055 95,439 112,277 161,162 461,883
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Copper Produced (lbs) 2.7M 2.8M 3.5M 4.8M 13.8M
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Copper Sales (lbs) 2.9M 2.1M 2.9M 3.9M 11.8M
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Zinc Produced (lbs) 1.9M 1.2M 1.6M 2.1M 6.8M
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Zinc Sales (lbs) 1.9M Nil 1.5M 1.6M 5.0M
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Lead Produced (lbs) 0.9M 0.5M 0.6M 1.0M 3.0M
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Lead Sales (lbs) Nil 1.4M 0.7M 0.7M 2.8M
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Note: Audited results for the fiscal year ended August 31, 2007 will
be reported in November 2007.
NORMAL COURSE ISSUER BID
Further to the news release dated July 12, 2007 Capstone purchased
484,100 common shares at an average price of $2.38. The shares have
been returned to the transfer agent and subsequently cancelled.
Capstone has 81,732,351 shares outstanding after the cancellation of
the above share purchases.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the
100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas
State, Mexico. Capstone has approximately 81.7 million shares
outstanding and is well financed with no bank debt. More information
is available online at: www.capstonemining.com.
This press release contains "forward-looking information" that is
based on Capstone's current expectations, estimates, forecasts and
projections. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
Capstone's actual results, level of activity, performance or
achievements to be materially different from those expressed or
implied by such forward-looking information. Such factors include,
but are not limited to: projected sales or production rates;
uncertainties related to drilling results; the ability to raise
sufficient capital to fund exploration; changes in economic
conditions or financial markets; changes in prices for costs;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological or
operational difficulties or inability to obtain permits encountered
in connection with exploration activities; and labor relations
matters.
This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be
considered carefully and readers should not place undue reliance on
such forward-looking information. Capstone disclaims any intention or
obligation to update or revise forward-looking information, whether
as a result of new information, future events or otherwise.
Contacts:
Capstone Mining Corp.
Chris Tomanik
(604) 684-8894
(604) 688-2180 (FAX)
Email: ctomanik@capstonemining.com
Website: www.capstonemining.com
