Capstone Reports More High Grade Copper-Gold Intercepts in Wildfire
Discovery, Minto Mine

Hole 10SWC642 intercepts 2.5% Cu & 1.9g/t Au over 9.8m (including 3.0% Cu & 2.0g/t Au over 5.2m)

VANCOUVER, Aug. 17 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced assay results for three new holes from Wildfire, the most recent high grade copper-gold discovery at its Minto Mine. Follow-up drilling continues with two drills on Wildfire and the 2010 exploration budget has been increased by a further $1.5 million to allow systematic drill testing of this prospective discovery and other targets generated from a deep penetrating IP survey completed in 2010. Highlights from the most recent holes drilled at Wildfire are summarized in the table below.

    
                  Highlights of Recent Drilling at Wildfire

    -------------------------------------------------------------------------
                Target   From    To  Interval  Interval  Copper  Gold  Silver
    Hole ID      Area     (m)    (m)   (m)       (ft)     (%)    (g/t)  (g/t)
    -------------------------------------------------------------------------
    10SWC-639  Wildfire   76.7   93.7  17.0      55.8    1.60    0.72    5.0
    -------------------------------------------------------------------------
    10SWC-640  Wildfire   86.8   96.1   9.3      30.5    1.75    0.84    6.6
    -------------------------------------------------------------------------
    including             86.8   93.4   6.6      21.6    2.38    1.16    9.1
    -------------------------------------------------------------------------
    10SWC-642  Wildfire  105.5  115.3   9.8      32.1    2.49    1.88   10.4
    -------------------------------------------------------------------------
    including            105.5  110.7   5.2      17.1    2.99    1.98   13.6
    -------------------------------------------------------------------------
    

"The high grade Wildfire copper-gold discovery at Minto continues to spread," said Stephen Quin, President of Capstone. "With an additional $1.5 million in exploration funds, we are positioned to systematically drill test the entire anomaly, as well as begin the evaluation of a number of other prospective targets identified during the recent geophysical survey," he added.

Wildfire Discovery - Minto Mine

As reported on July 15, 2010, Capstone commenced construction of a network of drill roads over the Wildfire-Copper Keel area in order to facilitate the evaluation of the Wildfire Titan-24 chargeability anomaly that measures more than 900 metres north-south by more than 250 metres east-west. With drill roads now established, two drills are systematically drilling on four east-west orientated sections across the Wildfire-Copper Keel chargeability anomaly, with each section line spaced approximately 80 metres apart (north-south). The objective of this program is (a) establish the geographic extent of the Wildfire mineralization and (b) to attempt to link the Wildfire mineralization to that at Copper Keel, to the northwest. To date 23 holes have been completed and, including this news release, results released for four holes. The third drill continues delineation drilling at Minto East, but is expected to complete this work within two weeks, and will then move on to testing other targets.

Additional Minto Drilling

Also, as reported on June 23, 2010, Capstone undertook a property-wide Titan-24 deep penetrating Induced Potential ("IP") survey. Due to the discovery of, and the subsequent expanded testing at Wildfire, funds that were intended to drill test these other Titan-24 anomalies were diverted to evaluating the Wildfire discovery. In order to ensure that Capstone can still drill test several other new and untested anomalies identified in the survey, an additional $1.5 million dollars in exploration spending has been approved, the second increase this year. This brings the total exploration commitment to $7.0 million, the highest annual exploration commitment for the Minto Mine and a reflection of the Company's belief that significant opportunities exist for continued increases of mineral resources and mineral reserves.

Report on Titan 24 Survey

Capstone is awaiting the final report on inversion modelling of the Titan-24 data and intends to make it available shortly.

Drill hole Location Maps

For current drillhole locations please view the accompanying map:

http://www.capstonemining.com/i/photos/minto/2010-33MintoWildfire.jpg

For a current view of drill results in priority areas across the property please view the accompanying map:

http://www.capstonemining.com/i/photos/minto/2010-33MintoProperty.jpg

Quality Assurance

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President of Capstone Mining Corp. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration of Capstone.

The analytical method for the copper and silver analyses is aqua regia digestion of the samples followed by atomic absorption spectroscopy. Gold is analysed by fire assay fusion with atomic absorption spectroscopy finish for gold. Analyses are carried out by ALS CHEMEX in North Vancouver. When visible gold is noted in drill core samples or regular fire assay values appear abnormally high, the pulp and screen metallic assay method is used to determine the total gold content and gold contents of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. This determination is accepted as the most representative value and is used in the assay database for mineral resource calculations. Blank and standard samples are used for quality assurance and quality control. Where more than two check samples assay outside expected ranges, the entire batch is re-assayed. After the completion of planned drill programs at Minto, random check assays will be carried out by Inspectorate-IPL of Vancouver.

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 Capstone Mining Corp. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

SOURCE Capstone Mining Corp.

For further information: For further information: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President Or Investor Relations' Zobeida Slogan at (604) 684-8894 or (866) 684-8894 or e-mail Capstone at info@capstonemining.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890