49.2 million pounds of Copper in Concentrates with an Estimated Total
Cash Cost(1) of US$0.93 per pound of payable copper
VANCOUVER, July 15 /PRNewswire-FirstCall/ - 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(*) $0.86 $1.08 $0.96
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Average $0.91 $0.97 $0.93
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(*) 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.
