VANCOUVER, British Columbia--(BUSINESS WIRE)--
Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) today announced brownfield drill results
from the 2021-2022 exploration program at the Cozamin mine in Mexico, and at the Santo Domingo Project in Chile
as well as greenfield results at the Planalto Project in Brazil, and provided an update of activities at Copper
Cities in Arizona, USA.
Figure 1 – MNV West Copper Target Area Open in Multiple Directions (Photo: Business
Wire)
This press release should be read in conjunction with the June 2022 exploration update presentation available at
Capstone Copper - Exploration Excellence. To view an interactive
presentation including a 3D model of Cozamin, please visit https://vrify.com/decks/11666?auth=6c97245b-87d3-4cb0-8354-c5483be80d0e
Brad Mercer, SVP, Exploration and Strategic Projects said, “We have an exploration team with a proven track
record of excellence and this update highlights the exciting path forward for continued value to be generated
through the drill bit. Capstone Copper has significant brownfield exploration potential that points to mine life
extensions and expansion opportunities, as well as greenfield potential in Brazil within a great mining
jurisdiction. Our exploration portfolio has never been as robust as it is today which will keep us on a
sustainable growth path well into the future”.
Cozamin – Underground Resource Expansion Update
Capstone’s 2021-2022 exploration program has focused on the Mala Noche Vein (“MNV”) West copper target, which is
located down-dip of historical workings. Drilling in 2021 was performed from surface, with underground drilling
added following completion of the West cross-cut in the first quarter of 2022. Since the program started in
2021, approximately 40,000 meters (“m”) of drilling have been completed from 47 holes from surface with an
additional 9,000m from 12 holes planned for the remainder of 2022. A proposed lower elevation mine cross-cut
will allow expedited infill drilling in 2023 to support an updated resource estimate during the second quarter
of 2023. The area can be accessed by refurbishing and deepening existing historic ramps at MNV or laterally from
existing Mala Noche Foot Wall Zone haulage ramps and levels.
The 2022 Cozamin exploration program will also include surface drill testing of other targets along strike from
San Roberto and San Rafael mine areas at MNV Far West and MNV Far East respectively and at the Vanadio target
located north of the San Rafael mine area. All three targets (see Figure 2 for the location of each target) have
limited to no previous drilling by Capstone. Both MNV Far East and Vanadio will be drilled below historical
workings that mined silver-rich portions of the epithermal system. At MNV Far West, drilling will be located in
a covered plateau where the MNV system is inferred to have been down-dropped and not exposed at surface.
A summary of select intervals is shown in Figure 1 and summarized in Table 1.
| Table 1 – Cozamin Select Drill Holes |
| |
| |
|
|
Map ID
|
DDH ID
|
Vein ID
|
In
Resource
|
From(m)
|
To(m)
|
Width(m)
|
True Width(m)
|
Cu %
|
ZN %
|
Pb %
|
Ag g/t
|
|
1
|
CG-21-S538
|
MNV West
|
no
|
992.1
|
993.7
|
1.6
|
1.5
|
0.11
|
0.04
|
0.03
|
11
|
|
2
|
CG-21-S533
|
MNV West
|
no
|
1072.3
|
1074.2
|
1.9
|
1.7
|
2.52
|
1.01
|
0.08
|
69
|
|
3
|
CG-21-S553
|
MNV West
|
no
|
no significant intercepts
|
|
4
|
CG-20-U514
|
MNV West
|
no
|
359.5
|
360.7
|
1.2
|
1.0
|
2.77
|
0.20
|
0.11
|
120
|
|
5
|
CG-21-S550
|
MNV West
|
no
|
1035.2
|
1036.7
|
1.5
|
1.4
|
0.35
|
0.02
|
0.01
|
11
|
|
6
|
CG-21-S541
|
MNV West
|
no
|
no significant intercepts
|
|
7
|
CG-20-U515
|
MNV West
|
no
|
361.8
|
364.2
|
2.4
|
2.1
|
0.71
|
0.11
|
0.08
|
54
|
|
8
|
CG-21-S535
|
MNV West
|
no
|
1017.0
|
1020.0
|
3.0
|
2.9
|
0.54
|
0.05
|
0.01
|
24
|
|
9
|
CG-20-U516
|
MNV West
|
no
|
383.8
|
392.6
|
8.8
|
5.1
|
1.12
|
0.05
|
0.01
|
23
|
|
|
|
and
|
396.5
|
400.6
|
4.1
|
2.4
|
0.87
|
0.07
|
0.01
|
82
|
|
10
|
CG-21-S567
|
MNV West
|
no
|
1006.3
|
1009.6
|
3.3
|
3.0
|
1.22
|
0.17
|
0.03
|
44
|
|
11
|
CG-21-S530
|
MNV West
|
no
|
1057.1
|
1057.7
|
0.6
|
0.5
|
2.20
|
0.15
|
0.00
|
26
|
|
12
|
CG-21-S557
|
MNV West
|
no
|
1003.6
|
1006.6
|
3.0
|
2.9
|
0.55
|
0.14
|
0.03
|
41
|
|
13
|
.CG-21-S561
|
MNV West
|
no
|
1023.9
|
1029.8
|
5.9
|
5.6
|
1.51
|
0.05
|
0.01
|
25
|
|
14
|
CG-21-S551
|
MNV West
|
no
|
1111.4
|
1115.4
|
4.0
|
3.7
|
0.18
|
0.01
|
0.00
|
3
|
|
15
|
CG-21-S536
|
MNV West
|
no
|
989.8
|
996.4
|
6.6
|
6.2
|
0.95
|
0.05
|
0.00
|
27
|
|
|
|
including
|
993.8
|
995.8
|
2.0
|
1.9
|
1.90
|
0.12
|
0.01
|
52
|
|
|
|
and
|
1006.7
|
1008.2
|
1.5
|
1.4
|
1.68
|
0.15
|
0.00
|
21
|
|
16
|
CG-21-S531
|
MNV West
|
no
|
1009.8
|
1012.7
|
2.9
|
2.6
|
2.00
|
0.14
|
0.02
|
134
|
|
17
|
CG-22-U517
|
MNV West
|
no
|
501.4
|
503.4
|
2.0
|
1.8
|
2.24
|
0.11
|
0.02
|
56
|
|
18
|
CG-22-U523
|
MNV West
|
no
|
assays pending
|
|
19
|
CG-21-S543
|
MNV West
|
no
|
1073.6
|
1077.7
|
4.1
|
3.9
|
0.71
|
0.04
|
0.01
|
30
|
|
20
|
CG-22-U524
|
MNV West
|
no
|
in progress
|
|
21
|
CG-21-S540
|
MNV West
|
no
|
951.7
|
955.8
|
4.1
|
4.0
|
0.34
|
0.27
|
0.00
|
8
|
|
|
|
including
|
951.7
|
952.9
|
1.2
|
1.1
|
0.71
|
0.02
|
0.00
|
17
|
|
|
|
and
|
1005.5
|
1006.2
|
0.7
|
0.6
|
3.89
|
0.07
|
0.01
|
39
|
|
22
|
CG-22-U520
|
MNV West
|
no
|
470.8
|
474.0
|
3.2
|
3.1
|
0.21
|
0.03
|
0.01
|
13
|
|
23
|
CG-21-S532
|
MNV West
|
no
|
1003.1
|
1012.6
|
9.5
|
8.5
|
1.54
|
0.08
|
0.02
|
51
|
|
|
|
including
|
1005.1
|
1009.3
|
4.2
|
3.8
|
2.83
|
0.11
|
0.02
|
75
|
|
24
|
CG-21-S555
|
MNV West
|
no
|
1023.2
|
1024.6
|
1.4
|
1.3
|
6.39
|
0.39
|
0.06
|
112
|
|
|
|
and
|
1035.5
|
1036.5
|
1.0
|
0.9
|
2.55
|
0.10
|
0.02
|
39
|
|
|
|
and
|
1043.8
|
1048.1
|
4.3
|
3.8
|
0.38
|
0.24
|
0.02
|
15
|
|
25
|
CG-22-U522
|
MNV West
|
no
|
assays pending
|
|
26
|
CG-21-S559
|
MNV West
|
no
|
1081.4
|
1085.6
|
4.2
|
3.7
|
1.22
|
0.05
|
0.00
|
21
|
|
|
|
including
|
1083.4
|
1084.0
|
0.6
|
0.5
|
6.08
|
0.20
|
0.01
|
94
|
|
27
|
CG-22-S571
|
MNV West
|
no
|
1168.6
|
1171.7
|
3.1
|
2.8
|
0.83
|
0.20
|
0.09
|
61
|
|
|
|
including
|
1168.6
|
1169.7
|
1.1
|
1.0
|
1.87
|
0.40
|
0.21
|
140
|
|
28
|
CG-22-U519
|
MNV West
|
no
|
486.1
|
492.3
|
6.2
|
5.6
|
2.09
|
0.10
|
0.01
|
33
|
|
|
|
including
|
486.1
|
489.2
|
3.1
|
2.8
|
3.09
|
0.10
|
0.01
|
41
|
|
29
|
CG-22-S573
|
MNV West
|
no
|
in progress
|
|
30
|
CG-22-U518
|
MNV West
|
no
|
537.7
|
543.7
|
6.0
|
4.9
|
1.23
|
0.06
|
0.07
|
27
|
|
|
|
including
|
539.4
|
542.0
|
2.6
|
2.1
|
2.22
|
0.09
|
0.01
|
45
|
|
|
|
and
|
546.4
|
550.5
|
4.1
|
3.3
|
2.02
|
0.16
|
0.02
|
35
|
|
|
|
including
|
546.4
|
547.9
|
1.5
|
1.2
|
4.84
|
0.32
|
0.02
|
77
|
|
31
|
CG-21-S554
|
MNV West
|
no
|
no significant intercepts
|
|
32
|
CG-21-S565
|
MNV West
|
no
|
1068.0
|
1074.9
|
6.9
|
4.9
|
1.23
|
0.10
|
0.01
|
42
|
|
|
|
including
|
1070.9
|
1073.5
|
2.6
|
1.8
|
2.77
|
0.21
|
0.02
|
89
|
|
|
|
and
|
1111.5
|
1114.2
|
2.7
|
1.9
|
1.24
|
3.19
|
0.01
|
24
|
|
|
|
including
|
1112.0
|
1113.4
|
1.4
|
1.0
|
2.19
|
6.06
|
0.01
|
42
|
|
33
|
CG-22-S569
|
MNV West
|
no
|
1111.6
|
1114.1
|
2.5
|
1.9
|
0.52
|
0.04
|
0.02
|
13
|
|
|
|
and
|
1124.3
|
1126.6
|
2.3
|
1.8
|
0.51
|
0.06
|
0.01
|
11
|
|
34
|
CG-22-U521
|
MNV West
|
no
|
559.8
|
570.0
|
10.2
|
9.0
|
0.56
|
0.02
|
0.01
|
23
|
|
|
|
including
|
562.2
|
566.3
|
4.1
|
3.6
|
1.00
|
0.04
|
0.01
|
44
|
|
35
|
CG-22-S572
|
MNV West
|
no
|
assays pending
|
|
36
|
CG-22-S570
|
MNV West
|
no
|
1029.1
|
1030.6
|
1.5
|
1.3
|
0.36
|
0.05
|
0.03
|
19
|
|
|
|
and
|
1099.5
|
1100
|
0.5
|
0.4
|
1.19
|
5.14
|
0.02
|
43
|
|
37
|
CG-21-S560
|
MNV West
|
no
|
no significant intercepts
|
|
38
|
CG-21-S556
|
MNV West
|
no
|
1251.2
|
1262.8
|
11.6
|
6.8
|
2.00
|
4.59
|
0.01
|
55
|
|
|
|
including
|
1253.1
|
1258.4
|
5.3
|
3.1
|
2.81
|
7.55
|
0.02
|
90
|
|
39
|
CG-21-S554
|
MNV West
|
no
|
no significant intercepts
|
Santo Domingo Exploration Program
Capstone’s 2021-2022 Santo Domingo exploration program is the first to be undertaken at the project since 2012.
To date, eight holes have identified over 1.5 kilometers (“km”) of mineralization at approximately 500m depth
containing lower-grade copper and high-grade cobalt associated with magnetic iron. The Company believes that
further drilling could potentially expand the resource and join the mineralized sequence across the planned
Santo Domingo and Iris Norte pits.
Santo Domingo’s oxide mineralization (Figure 3), which is located above the sulphide ore body and is part of the
Santo Domingo and Iris Norte’s pre-stripping material, could potentially be processed at the Mantoverde mine’s
SX-EW plant, located approximately 35 km southwest of the project. Preliminary metallurgical test results
suggest the viability to process oxides in Mantoverde’s existing facilities and if ongoing tests continue to
return positive results, a drill program would follow shortly with the aim to complete Santo Domingo’s first
oxide mineral resource in the second half of 2023, to be followed by an updated Santo Domingo Feasibility Study.
Additional near-mine brownfields targets have been identified outside the Santo Domingo and Iris Norte current
pit designs.
| Table 2 – Santo Domingo Assay
Intervals: |
| |
|
|
DH ID
|
From (m)
|
To (m)
|
Width (m)
|
Cu %
|
Au g/t
|
Fe %
|
Co ppm
|
|
4a3-21-489DD
|
368.0
|
424.0
|
56.0
|
0.17
|
-
|
10.2
|
52
|
|
492.0
|
704.0
|
212.0
|
0.10
|
-
|
26.3
|
341
|
|
including
|
658.0
|
682.0
|
24.0
|
0.42
|
0.026
|
33.2
|
497
|
|
4a3-21-490DD
|
438.0
|
474.0
|
36.0
|
0.24
|
0.023
|
17.6
|
86
|
|
480.0
|
504.0
|
24.0
|
-
|
-
|
29.9
|
168
|
|
524.0
|
690.0
|
166.0
|
-
|
-
|
30.2
|
344
|
|
4a3-21-491DD
|
548.2
|
802.1
|
253.9
|
-
|
-
|
21.6
|
272
|
|
including
|
628.0
|
686.0
|
58.0
|
-
|
-
|
30.3
|
530
|
|
4a3-21-492DD
|
350.0
|
364.0
|
14.0
|
0.15
|
0.015
|
10.2
|
91
|
|
446.0
|
622.0
|
176.0
|
-
|
-
|
25.2
|
321
|
|
including
|
466.0
|
496.0
|
30.0
|
-
|
-
|
37.6
|
590
|
|
4a3-21-493
|
68.0
|
106.0
|
38.0
|
0.15
|
-
|
-
|
-
|
|
148.0
|
162.0
|
14.0
|
0.14
|
-
|
-
|
-
|
|
220.0
|
226.0
|
6.0
|
0.18
|
-
|
-
|
-
|
|
4a3-21-494
|
90.0
|
98.0
|
8.0
|
0.24
|
0.039
|
-
|
-
|
|
4a3-21-495
|
74.0
|
88.0
|
14.0
|
0.26
|
0.078
|
17.3
|
63
|
|
98.0
|
154.0
|
56.0
|
0.17
|
0.017
|
17.3
|
221
|
|
including
|
108.0
|
130.0
|
22.0
|
0.29
|
0.036
|
25.3
|
398
|
|
4a3-21-496DD
|
10.0
|
28.0
|
18.0
|
0.32
|
0.048
|
10.7
|
38
|
|
368.0
|
392.0
|
24.0
|
0.15
|
0.005
|
12.6
|
16
|
|
510.0
|
578.0
|
68.0
|
-
|
0.010
|
21.7
|
53
|
|
578.0
|
816.0
|
238.0
|
-
|
0.010
|
27.6
|
318
|
|
including
|
584.0
|
616.0
|
32.0
|
-
|
0.010
|
27.8
|
735
|
|
including
|
638.0
|
650.0
|
12.0
|
-
|
-
|
35.8
|
580
|
|
including
|
682.0
|
700.0
|
18.0
|
-
|
-
|
36.9
|
543
|
|
including
|
798.0
|
816.0
|
18.0
|
0.16
|
-
|
22.4
|
180
|
|
4a3-21-497
|
|
|
no significant mineralization
|
|
|
|
4a3-21-498
|
28.0
|
74.0
|
46.0
|
0.15
|
-
|
-
|
-
|
|
4a3-21-499
|
36.0
|
80.0
|
44.0
|
0.16
|
-
|
-
|
-
|
|
including
|
68.0
|
78.0
|
10.0
|
0.35
|
-
|
-
|
-
|
|
4a3-21-500DD
|
1.2
|
16.0
|
14.8
|
0.25
|
-
|
-
|
-
|
|
126.0
|
134.0
|
8.0
|
0.17
|
0.024
|
-
|
88
|
|
180.0
|
192.0
|
12.0
|
0.39
|
0.050
|
19.9
|
204
|
|
296.47
|
322.0
|
25.5
|
0.40
|
0.057
|
26.3
|
334
|
|
4a3-21-501
|
|
|
no significant mineralization
|
|
|
|
4a3-21-502DD
|
278
|
328
|
50.0
|
0.23
|
0.031
|
14.5
|
156
|
|
including
|
306
|
324
|
18.0
|
0.37
|
0.045
|
12.3
|
180
|
|
376
|
384
|
8.0
|
0.25
|
0.024
|
25.5
|
186
|
|
420.5
|
433.85
|
13.4
|
-
|
-
|
24.2
|
347
|
|
4a3-21-503DD
|
22
|
36
|
14.0
|
0.16
|
-
|
-
|
-
|
|
261
|
278
|
17.0
|
0.28
|
-
|
-
|
-
|
|
428
|
456
|
28.0
|
0.91
|
-
|
-
|
-
|
|
including
|
437.5
|
446
|
8.5
|
2.62
|
0.013
|
-
|
-
|
|
490
|
502
|
12.0
|
0.24
|
-
|
-
|
-
|
|
4a3-21-504DD
|
58
|
68
|
10.0
|
0.13
|
0.017
|
17.4
|
137
|
|
124
|
138
|
14.0
|
-
|
-
|
25.8
|
371
|
|
188
|
264
|
76.0
|
-
|
-
|
20.3
|
-
|
|
292
|
344
|
52.0
|
0.23
|
0.023
|
14.0
|
-
|
|
including
|
300
|
308
|
8.0
|
0.42
|
0.036
|
-
|
-
|
|
including
|
330
|
344
|
14.0
|
0.35
|
0.034
|
18.7
|
-
|
|
514
|
632.1
|
118.1
|
-
|
0.013
|
27.9
|
313
|
|
including
|
566.4
|
602
|
35.6
|
-
|
0.029
|
35.9
|
540
|
|
4a3-21-505DD
|
424.6
|
442
|
17.4
|
-
|
-
|
20.5
|
164
|
|
4a3-21-506
|
132
|
146
|
14.0
|
0.97
|
-
|
-
|
-
|
|
4a3-21-507
|
128
|
134
|
6.0
|
0.30
|
0.047
|
25.7
|
461
|
GREENFIELD EXPLORATION
Planalto Project (Carajás, Brazil)
Capstone optioned the Planalto project, in Northern Brazil’s State of Pará, from Lara Exploration Ltd. (“Lara”)
and the Company has invested over $4.6 million in the property thus far. Capstone can earn a 70% interest in
Planalto by investing up to $5 million, making an additional payment of $400,000, completing a Feasibility Study
and subsequently arranging for project financing for Lara. Planalto is located in the Carajás mineral province,
one of Brazil’s most prolific mining belts which produces high-grade iron ore, copper, nickel, manganese and
gold. To date, 41 holes have been drilled, with a best drill hole intercept of 341m from 13m at 0.60% copper,
including 108m at 1.05% copper. PEA-level metallurgical tests indicate +90% copper recovery to a +25% copper
concentrate using conventional flotation. In 2021, Lara and Capstone secured options on the Tariana and Zaspir
licenses, located on adjoining lands to the north to test open mineralization. At the Cupuzeiro target, five
holes with long intervals of over 0.2% copper and significant intervals of over 0.4% copper have been completed.
Copper Cities (Arizona, USA)
As announced on January 20, 2022, Capstone entered into an 18-month access agreement to conduct drill and
metallurgical test work at BHP Copper Inc’s Copper Cities project, located approximately 10 km east of the Pinto
Valley Mine. The two-phase 2021-2022 exploration program has been completed. Phase I, comprising approximately
5,500m in 19 twin holes was completed in early April; Phase II, comprising approximately 3,514m in eight geology
model confirmation holes, was completed in early May. Assaying and Metallurgical studies are underway pointing
to a mineral resource estimate tentatively slated for late Q3 2022. To date, the Company has spent approximately
$4.3 million of the $6.7 million programmed.
FUTURE OPPORTUNITIES
Mantos Blancos District and Near Mine Exploration – Oxides & Sulphides
The Mantos Blancos mine’s geology is well understood and Capstone’s team has a long history of mineral resource
discovery and conversion into mineral reserves. Near-mine opportunities exist to add additional oxides and
sulphides mineral resources, as well as to upgrade existing high-grade inferred resources through additional
drilling below the current pit limit.
In addition, many mineralized outcrops have been identified at the Rosario prospect, approximately 15 km south
of Mantos Blancos. Exploration targets have been identified through the intersection of faults, geological
mapping, geophysics and geochemistry, but limited drilling has been performed to date with the most recent
activity in 2017 returning the presence of sub-economic oxide mineralization.
Mantoverde District and Near Mine Exploration – Oxides & Sulphides
Mantoverde has a history of mineral reserves and resources growth through successful exploration. The current
mineral resource is open at depth in multiple locations along the main Mantoverde, Santa Clara and Montecristo
faults. Future drilling programs will focus on deeper high-grade zones and on sulphide areas in the northern
portion of the deposit near the Celso and Manto Russo pits, which are less explored.
Mantoverde also has significant potential to develop a larger mining district and several near-mine resource
expansion opportunities exist within the mine’s 23 km land package along the Atacama Fault System. District
targets identified to date include the Las Animas, Paloma, Las Juntas, San Manuel and Santa Clara targets, north
of the current pit design.
METHODOLOGY
Cozamin drill core samples are analyzed at ALS in North Vancouver, Canada after preparation at its facilities in
Zacatecas, Mexico. The entire sample is crushed to a minimum of 70% passing 2 millimetres. A 250g subsample of
the crushed material is then pulverized to 85% passing 75 microns. Copper, zinc, lead and silver are determined
by ICP analysis after 4 acid digestion of a 0.25g or 0.4g subsample of pulverized material. QAQC 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).
Santo Domingo drill core and reverse circulation chip samples are analyzed at ALS in Lima, Peru after
preparation at its facilities in Copiapó and La Serena, Chile. The entire sample is crushed to a minimum of 70%
passing 2 millimetres. A 1000g subsample of the crushed material is then pulverized to 85% passing 75 microns.
Copper, cobalt and sulphur are determined by ICP analysis after 4 acid digestion of a 0.25g or 0.4g subsample of
pulverized material and gold is determined by fire assay fusion and an ICP-AAS finish on a 30-gram charge. Iron
is determined by ICP-AES after sodium peroxide fusion. QAQC with each batch of 40 samples includes a blank, two
to three certified reference materials and a duplicate (one each of a field, coarse reject and pulp reject).
Planalto drill core samples are analyzed at ALS in Lima, Peru after preparation at its facilities in
Parauapebas, Brazil. The entire sample is crushed to a minimum of 70% passing 2 millimetres. A 250g subsample of
the crushed material is then pulverized to 85% passing 75 microns. Copper is determined by ICP analysis after 4
acid digestion of a 0.25g or 0.4g subsample of pulverized material and gold is determined by fire assay fusion
and an ICP-AES finish on a 30-gram charge. Blank, duplicate core or certified gold and copper reference
materials were inserted at approximately every 10th sample.
ABOUT CAPSTONE COPPER
Capstone Copper Corp. is an Americas-focused copper mining company headquartered in Vancouver, Canada. We own
and operate the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in
Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile, and 70% of
the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, we own the fully permitted
Santo Domingo copper-gold project, located approximately 30 km northeast of Mantoverde in the Atacama region,
Chile, as well as a portfolio of exploration properties in the Americas.
Capstone Copper’s strategy is to unlock transformational copper production growth while executing on cost and
operational improvements through innovation, optimization and safe and responsible production throughout our
portfolio of assets. We focus on profitability and disciplined capital allocation to surface stakeholder value.
We are committed to creating a positive impact in the lives of our people and local communities, while
delivering compelling returns to investors by sustainably producing copper to meet the world’s growing needs.
Further information is available at www.capstonecopper.com
COMPLIANCE WITH NI 43-101
The disclosure of Scientific and Technical Information in this document was reviewed and approved by Brad
Mercer, P. Geo., Senior Vice President Exploration and Strategic Projects (technical information related to
mineral exploration activities and to Mineral Resources at Cozamin), Clay Craig, P.Eng, Manager, Mining &
Evaluations (technical information related to Mineral Reserves and Mineral Resources at Pinto Valley and
Cozamin), Carlos Guzmán, RM CMC, FAusIMM, Principal, Project Director, NCL, Gustavo Tapia, RM CMC, Metallurgical
and Process Consultant, GT Metallurgy, and Ronald Turner, MAusIMM CP(Geo), Golder Associates (technical
information related to Mineral Reserves and Mineral Resources at Mantos Blancos and Mantoverde), and Cashel
Meagher, P.Geo., President and COO (technical information related to project updates at Santo Domingo) all
Qualified Persons under NI 43-101.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document may contain “forward-looking information” within the meaning of Canadian securities legislation
and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform
Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the
date of this document and the Company does not intend, and does not assume any obligation, to update these
forward-looking statements, except as required under applicable securities legislation.
Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs
regarding future events and the impacts of the ongoing and evolving COVID-19 pandemic. Forward-looking
statements include, but are not limited to, statements with respect to the estimation of Mineral Resources and
Mineral Reserves, the Company’s strategy, plans and expected project exploration and de velopment, including
exploration drilling plans and results from the Company’s drilling and explorations programs to potentially
stend mine lives , new signigivant near-mine areas for explorations, ability to leverage existing infrastructure
and plants, results supporting strategic plans; future conversion of mineral resources to mineral reserves;
potential to add mineral resources at the Company’s projects; and potential of Company’s interest in the
Planalto Project., the timing and cost of the Mantoverde Development Project,the timing and results of the PV4
study, the timing and success of the Cobalt Study for Santo Domingo, the timing and results of the integrated
plan for Mantoverde - Santo Domingo, the realization of Mineral Reserve estimates, the timing and amount of
estimated future production, the costs of production and capital expenditures and reclamation, the budgets for
exploration at Cozamin, Santo Domingo, Pinto Valley, Mantos Blancos, Mantoverde and other exploration projects,
the timing and success of the Copper Cities project, the success of our mining operations, the continuing
success of mineral exploration, the estimations for potential quantities and grade of inferred resources and
exploration targets, our ability to fund future exploration activities, our ability to finance the Santo Domingo
project and other current or future projects and expansions, environmental risks, unanticipated reclamation
expenses and title disputes. The potential effects of the COVID-19 pandemic on our business and operations are
unknown at this time, including Capstone Copper’s ability to manage challenges and restrictions arising from
COVID-19 in the communities in which Capstone Copper operates and our ability to continue to safely operate and
to safely return our business to normal operations. The impact of COVID-19 to Capstone Copper is dependent on a
number of factors outside of our control and knowledge, including the effectiveness of the measures taken by
public health and governmental authorities to combat the spread of the disease, global economic uncertainties
and outlook due to the disease, supply chain delays resulting in lack of availability of supplies, goods and
equipment, and evolving restrictions relating to mining activities and to travel in certain jurisdictions in
which we operate.
In certain cases, forward-looking statements can be identified by the use of words such as “anticipates”,
“approximately”, “believes”, “budget”, “estimates”, expects”, “forecasts”, “guidance”, intends”, “plans”,
“scheduled”, “target”, or variations of such words and phrases, or statements that certain actions, events or
results “be achieved”, “could”, “may”, “might”, “occur”, “should”, “will be taken” or “would” or the negative of
these terms or comparable terminology. In this document certain forward-looking statements are identified by
words including “anticipated”, “expected”, “guidance” and “plan”. By their very nature, forward-looking
statements involve known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to
inherent hazards associated with mining operations and closure of mining projects, future prices of copper and
other metals, compliance with financial covenants, surety bonding, our ability to raise capital, Capstone
Copper’s ability to acquire properties for growth, counterparty risks associated with sales of our metals, use
of financial derivative instruments and associated counterparty risks, foreign currency exchange rate
fluctuations, market access restrictions or tariffs, changes in general economic conditions, availability and
quality of water, accuracy of Mineral Resource and Mineral Reserve estimates, operating in foreign jurisdictions
with risk of changes to governmental regulation, compliance with governmental regulations, compliance with
environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities
and potential legal challenges to permit applications, contractual obligations, impact of climate change and
changes to climatic conditions at our operations and projects, changes in regulatory requirements and policy
related to climate change and greenhouse gas ("GHG") emissions, land reclamation and mine closure obligations,
aboriginal title claims and rights to consultation and accommodation, risks relating to widespread epidemics or
pandemic outbreak including the COVID-19 pandemic; the impact of COVID-19 on our workforce, risks related to
construction activities at our operations and development projects, suppliers and other essential resources and
what effect those impacts, if they occur, would have on our business, including our ability to access goods and
supplies, the ability to transport our products and impacts on employee productivity, the risks in connection
with the operations, cash flow and results of Capstone Copper relating to the unknown duration and impact of the
COVID-19 pandemic, impacts of geopolitical events and the effects of global supply chain disruptions,
uncertainties and risks related to the potential development of the Santo Domingo project, factors detailed from
time to time in the Company’s interim and annual financial statements and MD&A of those statements and
Management Information Circular, all of which are filed and available for review under the Company’s profile on
SEDAR at www.sedar.com. Although the Company has attempted to identify important
factors that could cause our actual results, performance or achievements to differ materially from those
described in our forward-looking statements, there may be other factors that cause our results, performance or
achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking
statements will prove to be accurate, as our actual results, performance or achievements could differ materially
from those anticipated in such statements. The forward-looking information contained herein is presented for the
purpose of assisting readers in understanding the Company’s palsn and objectives in connection with its
exploration programs and results of exploration and may not be appropriate for other purposes. Accordingly,
readers should not place undue reliance on our forward-looking statements.
SUPPLEMENTAL DRILL HOLE INFORMATION
Cozamin drill hole collar details:
|
DDH ID
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
Depth (m)
|
|
|
CG-20-U514
|
747,061
|
2,524,435
|
1,983
|
302
|
-74
|
800.0
|
|
|
CG-20-U515
|
747,067
|
2,524,433
|
1,983
|
86
|
-84
|
570.0
|
|
|
CG-20-U516
|
747,067
|
2,524,431
|
1,984
|
114
|
-65
|
558.0
|
|
|
CG-21-S530
|
747,567
|
2,524,774
|
2,478
|
223
|
-66
|
1360.0
|
|
|
CG-21-S531
|
747,737
|
2,524,643
|
2,474
|
222
|
-65
|
1193.0
|
|
|
CG-21-S532
|
747,737
|
2,524,644
|
2,475
|
195
|
-66
|
1353.0
|
|
|
CG-21-S533
|
747,302
|
2,524,860
|
2,475
|
240
|
-66
|
1415.0
|
|
|
CG-21-S535
|
747,304
|
2,524,859
|
2,475
|
202
|
-66
|
1187.0
|
|
|
CG-21-S536
|
747,736
|
2,524,644
|
2,477
|
222
|
-60
|
1500.0
|
|
|
CG-21-S538
|
747,299
|
2,524,858
|
2,475
|
236
|
-55
|
1237.0
|
|
|
CG-21-S540
|
747,737
|
2,524,644
|
2,477
|
203
|
-59
|
1111.5
|
|
|
CG-21-S541
|
747,301
|
2,524,858
|
2,475
|
217
|
-74
|
1476.0
|
|
|
CG-21-S543
|
747,737
|
2,524,644
|
2,476
|
218
|
-73
|
1322.0
|
|
|
CG-21-S550
|
747,301
|
2,524,859
|
2,475
|
216
|
-69
|
1190.0
|
|
|
CG-21-S551
|
747,737
|
2,524,644
|
2,476
|
248
|
-70
|
1328.0
|
|
|
CG-21-S553
|
747,301
|
2,524,858
|
2,475
|
229
|
-62
|
1188.0
|
|
|
CG-21-S554
|
748,335
|
2,524,558
|
2,488
|
175
|
-80
|
1403.0
|
|
|
CG-21-S555
|
747,737
|
2,524,644
|
2,476
|
200
|
-72
|
1223.0
|
|
|
CG-21-S556
|
747,897
|
2,524,503
|
2,476
|
156
|
-80
|
1340.4
|
|
|
CG-21-S557
|
747,303
|
2,524,860
|
2,475
|
174
|
-52
|
1082.0
|
|
|
CG-21-S559
|
747,738
|
2,524,644
|
2,476
|
198
|
-75
|
1138.0
|
|
|
CG-21-S560
|
747,898
|
2,524,503
|
2,475
|
151
|
-72
|
1324.0
|
|
|
CG-21-S561
|
747,303
|
2,524,860
|
2,475
|
172
|
-60
|
1208.0
|
|
|
CG-21-S564
|
747,738
|
2,524,644
|
2,476
|
178
|
-68
|
1103.0
|
|
|
CG-21-S565
|
747,898
|
2,524,505
|
2,476
|
205
|
-78
|
1224.0
|
|
|
CG-21-S567
|
747,303
|
2,524,860
|
2,475
|
182
|
-63
|
1170.0
|
|
|
CG-22-S569
|
747,900
|
2,524,503
|
2,476
|
216
|
-83
|
1350.0
|
|
|
CG-22-S570
|
747,899
|
2,524,504
|
2,476
|
173
|
-73
|
1154.0
|
|
|
CG-22-S571
|
747,900
|
2,524,503
|
2,476
|
271
|
-78
|
1364.0
|
|
|
CG-22-S572
|
747,900
|
2,524,503
|
2,476
|
190
|
-72
|
1091.0
|
|
|
CG-22-S573
|
747,900
|
2,524,503
|
2,476
|
244
|
-80
|
In progress
|
|
|
CG-22-U517
|
747,524
|
2,524,512
|
1,993
|
182
|
-68
|
630.0
|
|
|
CG-22-U518
|
747,527
|
2,524,512
|
1,992
|
147
|
-49
|
621.7
|
|
|
CG-22-U519
|
747,527
|
2,524,512
|
1,992
|
161
|
-51
|
546.0
|
|
|
CG-22-U520
|
747,523
|
2,524,512
|
1,993
|
174
|
-58
|
800.0
|
|
|
CG-22-U521
|
747,525
|
2,524,512
|
1,993
|
151
|
-40
|
591.0
|
|
|
CG-22-U522
|
747,524
|
2,524,513
|
1,992
|
151
|
-72
|
598.0
|
|
|
CG-22-U523
|
747,527
|
2,524,512
|
1,992
|
181
|
-74
|
561.0
|
|
|
CG-22-U524
|
747,526
|
2,524,513
|
1,993
|
120
|
-82
|
660.0
|
|
|
Table Notes: Collar coordinates are surveyed in UTM NAD27 Zone 13 with elevations in meters
above sea level.
|
Santo Domingo drill hole collar details:
|
DH ID
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
Depth (m)
|
|
4a3-21-489DD
|
399,616
|
7,073,286
|
1,099
|
360
|
-90
|
708.4
|
|
4a3-21-490DD
|
399,747
|
7,073,686
|
1,087
|
360
|
-90
|
692.3
|
|
4a3-21-491DD
|
399,670
|
7,073,867
|
1,084
|
360
|
-90
|
835.6
|
|
4a3-21-492DD
|
399,346
|
7,073,380
|
1,121
|
360
|
-90
|
689.2
|
|
4a3-21-493
|
400,089
|
7,074,388
|
1,039
|
360
|
-90
|
280.0
|
|
4a3-21-494
|
400,342
|
7,073,843
|
1,062
|
360
|
-90
|
150.0
|
|
4a3-21-495
|
400,417
|
7,073,215
|
1,101
|
360
|
-90
|
200.0
|
|
4a3-21-496DD
|
399,622
|
7,073,505
|
1,097
|
65
|
-70
|
846.5
|
|
4a3-21-497
|
400,419
|
7,072,894
|
1,132
|
360
|
-90
|
276.0
|
|
4a3-21-498
|
400,317
|
7,072,729
|
1,138
|
360
|
-90
|
230.0
|
|
4a3-21-499
|
400,139
|
7,074,631
|
1,027
|
360
|
-90
|
300.0
|
|
4a3-21-500DD
|
400,126
|
7,072,864
|
1,148
|
360
|
-90
|
347.4
|
|
4a3-21-501
|
400,692
|
7,073,563
|
1,093
|
360
|
-90
|
400.0
|
|
4a3-21-502DD
|
399,779
|
7,074,574
|
1,036
|
360
|
-90
|
500.4
|
|
4a3-21-503DD
|
399,716
|
7,072,350
|
1,168
|
360
|
-90
|
520.0
|
|
4a3-21-504DD
|
399,681
|
7,074,304
|
1,058
|
360
|
-90
|
632.1
|
|
4a3-21-505DD
|
399,752
|
7,073,684
|
1,086
|
65
|
-60
|
540.2
|
|
4a3-21-506
|
400,734
|
7,073,251
|
1,105
|
360
|
-90
|
200.0
|
|
4a3-21-507
|
400,468
|
7,073,460
|
1,085
|
360
|
-90
|
198.0
|
|
Table Notes: Collar coordinates are surveyed in UTM PSAD56 19S with elevations in meters above
sea level. Holes are reverse circulation, reverse circulation pre-collar with diamond drill
tails (noted as DD) and by diamond drill only for holes 4a3-21-500DD and 4a3-21-503DD.
|
|
Planalto drill hole collar details:
|
DDH ID
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
Depth (m)
|
|
21-001
|
636,801
|
9,295,541
|
184
|
84
|
-61
|
312.80
|
|
21-002
|
636,952
|
9,295,551
|
181
|
89
|
-59
|
354.10
|
|
21-003
|
636,651
|
9,295,600
|
189
|
88
|
-59
|
404.65
|
|
21-004
|
636,950
|
9,295,450
|
181
|
97
|
-56
|
453.40
|
|
21-005
|
636,899
|
9,295,635
|
180
|
90
|
-60
|
451.80
|
|
Table Notes: Collar coordinates are surveyed in UTM WGS84 with elevations in meters above sea
level.
|
|
Source: Capstone Copper Corp.