VANCOUVER, Jan. 16, 2012 /CNW/ - Capstone Mining Corp.'s (TSX: CS)
("Capstone") 70% owned Chilean operating subsidiary has awarded the
contract for the preparation of a Feasibility Study ("FS") for its
Santo Domingo Iron Oxide-Copper-Gold project in Chile to AMEC, with the
mining package awarded to NCL Ingeniería y Construcción Ltd. ("NCL").
The project is owned 70% by Capstone and 30% by Korea Resources
AMEC is an international engineering and project management services
company in the natural resources, nuclear, clean energy, water and
environmental sectors, employing 27,000 people in 40 countries. AMEC's
global Mining & Metals business has developed some of the most
challenging projects in the world and is recognised for its mining and
process technical expertise. The FS will be overseen by AMEC's
Santiago office, one of the largest project delivery firms in Chile
with over 1,000 employees. AMEC has been established in Chile since
NCL is a Chilean mining engineering firm, employing 70 people, which has
completed projects in over 25 countries on five continents,
specializing in mine design and mine planning. NCL has been operating
in Chile since 1985 and in Brazil since 2001.
The firms were selected based on their technical expertise and
additionally both firms were able to offer proven teams of people to
meet Capstone's timeline.
Work will start immediately on the FS with completion currently
scheduled for early 2013. In addition, the AMEC scope of work includes
the basic engineering package to be completed in parallel with the FS,
which will provide specifications and bid documents for all major and
long lead time equipment items prior to the end of 2012. Production
from Santo Domingo is expected to start in late 2015.
The Santo Domingo project is owned 70% by Capstone and 30% by KORES.
Upon completion of the Feasibility Study and board approval, KORES has
three months to arrange a debt financing package for 65% of the project
capital cost as estimated in the FS. The remainder of the capital cost
will be in the form of equity, split 70% Capstone and 30% KORES.
In addition to the FS, the 2012 work plan at Santo Domingo also includes
preparation of an Environmental Impact Study, filing of the permit
application and completion of in-fill and geotechnical drilling
programs that are currently underway. The bidding process for the power
contract is also scheduled for 2012, with the contract expected to be
awarded early in 2013.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian mining company with two producing
copper mines, the Cozamin copper-silver-zinc-lead mine located in
Zacatecas State, Mexico and the Minto copper-gold-silver mine in Yukon,
Canada. In addition, Capstone has two development projects, the large
scale 70% owned Santo Domingo copper-iron-gold project in Chile in
partnership with Korea Resources Corporation and the 100% owned Kutcho
copper-zinc-gold-silver project in British Columbia, as well as
exploration at properties in Chile, British Columbia and Australia.
Using its cash flow and strong balance sheet as a springboard, Capstone
aims to grow organically through continued mineral resource and reserve
expansions and through acquisitions in politically stable,
mining-friendly regions. Capstone is included in the S&P/TSX Composite
Index and S&P/TSX Global Mining Index. Additional information is
available at www.capstonemining.com.
Cautionary Note Regarding Forward-Looking Information
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, except as required under applicable
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, dependence on key personnel, labour pool constraints,
labour disputes; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; and other risks of the mining industry 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:
Capstone Mining Corp.
Cindy Burnett, VP, Investor Relations