VANCOUVER, July 15 /PRNewswire-FirstCall/ --
- 49.2 Million pounds of Copper in Concentrates With an Estimated Total
Cash Cost(1) of US$0.93 per Pound of Payable Copper
Capstone Mining Corp. (CS: TSX) today announced its operating results for
the three and six months ended June 30, 2009, with strong production and
operating costs from its two operations, the Cozamin and Minto mines.
Combined production totalled 23.1 and 49.2 million pounds of copper in
concentrates in the second quarter and first six months, respectively, with
additional significant by-products of lead, zinc, silver and gold. The total
cash costs(1), net of estimated by-product credits and selling costs, were
US$0.97 and US$0.93 per pound of payable copper produced, respectively.
'Capstone's two operations, the Cozamin and Minto mines, turned in
another strong quarter, bringing first half production to 49.2 million pounds
of copper in concentrates at a total cash cost of just US$0.93 per pound of
payable copper,' said Stephen Quin, President & COO of Capstone Mining Corp.
'These results are a reflection of the quality of our operating teams and our
assets.'
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Q1 2009 Q2 2009 YTD 2009
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Copper in concentrates
(millions of pounds)
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- Cozamin 9.8 9.9 19.7
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- Minto 16.3 13.2 29.5
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Total 26.1 23.1 49.2
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Total Cash Costs(1)
(US$/lb)
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- Cozamin $1.00 $0.81 $0.90
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- Minto((x)) $0.86 $1.08 $0.96
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Average $0.91 $0.97 $0.93
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((x)) Minto's operating costs are adjusted to exclude mining of ore and
waste not related to concentrate produced in the period, these
costs are capitalized or inventoried in the financial statements,
then expensed when the associated ore is processed.
Operational Highlights for the three and six months ended June 30, 2009
The following is a summary of operational highlights for Capstone during
the second quarter and six months, respectively, ended June 30, 2009:
- Production of 23.1 and 49.2 million pounds of contained copper,
respectively, which is within previously reported guidance of 95-105
million pounds of copper in concentrates for 2009.
- By-product production of 3.3 and 5.7 million pounds of zinc, 2.3 and
3.5 million pounds of lead and 455,566 and 875,520 ounces of silver in
concentrates, for the second quarter and first six months,
respectively. Final gold production is not available since assaying is
done off site, but is estimated at 7,564 and 16,091 ounces.
- Production of 22.2 and 47.4 million pounds of payable copper in
concentrate for the second quarter and first six months of 2009,
respectively.
- Total cash cost per pound of payable copper produced(1) of US$0.97 and
US$0.93 in the second quarter and first six months, respectively,
versus previously published guidance of approximately US$1.00 per
pound, which represents good progress in cost reductions since year end
2008 as the expansions at both operations ramped up to design capacity
(and more). Readers should note that some stripping in excess of that
needed to sustain operations at the Minto Mine was inadvertently not
capitalized in accordance with Capstone's (and formerly Sherwood's)
policy in the first quarter of 2009 and costs for this period have been
adjusted to make the first quarter comparable to all prior reporting
periods.
- Cozamin Mine results for the three and six months ended June 30, 2009,
respectively, were:
- Produced 9.9 and 19.7 million pounds of copper contained in
concentrates, along with by-products of 3.3 and 5.7 million pounds of
zinc, 2.3 and 3.5 million pounds of lead and 390,639 and 708,602 ounces
of silver, respectively, for the second quarter and first six months of
2009;
- Processed 249,975 tonnes (2,741 tpd) and 498,300 tonnes (2,753 tpd) of
ore averaging 1.92% and 1.94% copper, 1.01% and 0.91% zinc, 0.61% and
0.47% lead, with 66 and 61 grams per tonne ('g/t') silver respectively,
for the second quarter and first six months;
- Total tonnes processed was below potential capacity of the mine because
of (1) the five day shutdown related to Mexican government order aimed
to slow the spread of the H1N1 flu virus and (2) slower than
anticipated timing for bringing the high grade, large scale stopes on
line, which resulted in the plant running out of feed on some days.
When feed was available, the plant typically averaged 3,200 to 3,500tpd
and achieved a single day throughput record of 4,088 tonnes processed
in June.
- Produced 17,595 and 36,056 dry metric tonnes ('dmt') of copper
concentrate averaging 25.5% and 24.8%, 3,312 and 5,727 dmt of zinc
concentrate averaging 45.5% and 45.2% and 1,500 and 2,282 dmt of lead
concentrate averaging 70.5% and 69.4%;
- Estimated total cash cost(1), net of estimated by-product credits and
estimated selling costs, was US$0.81 and $0.90 per pound of payable
copper produced; and
- Announced a new life-of-mine plan and mineral reserve estimate for the
Cozamin Mine on June 1, 2009. However, the process plant has
Demonstrated sustained ability to exceed the assumptions used in the
life of mine plan for throughput, copper recoveries and copper
concentrate grades, suggesting potential for sustained higher than
planned copper production, once the larger stopes discussed above are
brought on line.
- Minto Mine results for second quarter and the six months ended June 30,
2009, respectively, were:
- Produced 13.2 and 29.4 million pounds of copper contained in
concentrates, along with by-product 64,927 and 166,918 ounces of silver
and gold estimated at 7,564 and 16,091 ounces, respectively, for the
second quarter and first six months;
- Processed 267,254 tonnes (2,937 tpd) and 500,783 tonnes (2,767 tpd) of
ore averaging 2.41% and 2.86% copper, an estimated 1.0g/t and 1.3g/t
gold and 9.6g/t and 12.7g/t silver;
- Plant throughput exceeded budget during the second quarter, and
continued to trend upwards during the three month period, typically
averaging 3,200 to 3,500 tonnes per operating day (excluding
maintenance days) and reaching up to 3,700 tonnes processed on
individual days;
- Produced 14,667 and 31,950 dmt of copper concentrate averaging 40.8%
and 41.6%;
- Produced 12.7 and 28.5 million pounds of payable copper at an estimated
total cash cost(1) of US$1.08 and $0.96 per pound of payable copper;
- Copper production in Q2/09 was somewhat reduced as compared to Q1/09 as
a result of excess spring run-off waters being diverted into the open
pit to ensure no non-compliant discharges occurred, thereby restricting
access to higher grade ore in the pit. This was anticipated in the
budget for 2009 and milling operations continued uninterrupted from
stockpiled material, albeit of somewhat lower grade than in prior
months. However, freshet began a few days earlier than budgeted and
more water than was anticipated was diverted into the pit.
