Capstone Gold Corp.
COMPANY DATA | INTRODUCTION
| PROJECTS IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE
| Address: | Suite 401 - 750 West Pender Street Vancouver, B.C. Canada V6C 2T8 |
| Tel No.: | (604) 684-8894 |
| Fax No.: | (604) 688-2180 |
| Web Site: | www.capstonegold.com |
| Corporate Email: | info@capstonegold.com |
| Contact Person: | Chris Tomanik |
| Position: | Investor Relations |
| Traded Market: | TSX |
| Traded Symbol: | CSG |
| Outstanding Shares: | 41,147,556 |
| 52 Week High: | $ 1.42 |
| 52 Week Low: | $ 0.41 |
| Present Price: | Click Here |
INTRODUCTION
Capstone Gold Corp. is a Canada based mineral exploration company with a strong focus on Mexico. The Company has
an option to acquire a 90% interest in five advanced projects. Each project is a past producer with an existing resource base and the Company is committed to expanding and developing these resources. The Cozamin Mine is a priority part of the 2005 plan of operations and is developing in a very positive way towards production.
PROJECTS IN HAND
(1) Cozamin Copper, Silver and Zinc Project, Mexico
The Cozamin Project is located just 3 km north of Zacatecas City in the mineral rich State of Zacatecas, Mexico. Work on the project in 2004 was concentrated on the San Roberto Mine which was in production at a rate of 750 tpd from 1997 to 1999. The San Roberto Mine covers a 1.5 km section of the Mala Noche vein which outcrops for over 5 km on the Cozamin property. The vein strikes EW and dips 65o to the N.
Production from the San Roberto Mine from 1997 to 1999 averaged 1.2% copper, 90 g/t silver, and 1.8% zinc. The remaining resource as reported by the vendor and defined by underground sampling is 2,795,000 tonnes grading 1% copper, 85 g/t silver, and 3.2% zinc.
Drilling in 2004 targeted the Mala Noche vein beneath the historical workings at San Roberto. Results from the drilling indicate that the vein mineralization has a mesothermal origin. Grades for copper are increasing with depth and those for zinc and lead are decreasing with depth. Silver grades are remaining relatively constant and are relatively independent of zinc and lead values.
Initial drilling at San Roberto started in 2004. Seventeen of the first twenty holes cut an average true width of 6.6 metres with weighted average grades of 2.6% copper, 91 g/t silver, and 1.4% zinc. The value of mineralization appears to be increasing with depth and is open in all directions. More importantly, the mineralization is all coarse grained sulfides that should yield high recoveries from flotation separation.
A Phase II US$2 million exploration and pre-development program started in September 2004. This program includes an additional 17,500 metres of surface drilling to explore the Mala Noche vein at deeper levels and along strike from the San Roberto mine and thereby increase the eventual tonnage available for mining.
SGS Lakefield has been contracted to undertake a preliminary metallurgy study of drill core from the 2004 drilling. Lakefield will study mineralogy, grindability, and flotation characteristics in order to develop applicable copper, lead and zinc flotation circuits in the existing plant.
Underground pre-development work at Cozamin has also begun. Capstone has contracted Mincanmex S.A. de C.V., a Mexican contract mining company, to recondition and develop the underground infrastructure.
Underground definition drilling commenced in March 2005. This work allows Capstone to define a resource sufficient for at least 2 years of mining and also provide sample material for advanced metallurgical studies. A resource estimate is scheduled for June 2005.
Capstone's 2005 development budget for Cozamin is US$12 million. Following the completion of the 2005 program, Capstone is planning to begin production at Cozamin within the first quarter of 2006.
Cozamin's Engineering Team
John Wright, B.Sc., P.Eng. is responsible for the development, pre-production and mining operations involved in the re-opening of the San Roberto Mine.
Michel Robert, B.A., M.A.Sc., P.Eng. will be the technical advisor on the development of the San Roberto Mine. His recognized expertise in metallurgy will be used in the design of the upgraded flotation plant at Cozamin.
Robert Barnes, B.Sc., MBA, P.Eng. is the on-site project manager at Cozamin. He will be responsible for executing underground and surface development at the San Roberto Mine.
John Wigle, B.Sc., P.Eng. is the Engineering Construction Project Manager for the Cozamin project.
Jenna L. Hardy, M.Sc., MBA, P.Geo. is responsible for all environmental issues and operations involved with the re-opening of the San Roberto mine.
(2) Claudia Gold and Silver Project, Mexico
The Claudia Project is located 135 km NNW of Durango City within the municipality of Santiago Papasquiaro in Durango State. A paved highway provides easy access to the project.
Previous exploration by Grupo Bacis included 3,100 metres of diamond drilling producing drill intercepts grading up to 2.6 g/t gold and 114 g/t silver over 5.5 metres on the Guadalupana vein and up to 3.6 metres of 11.6 g/t gold and 62 g/t silver on the Aguilarena vein. A 90 metre shaft and a total 3,400 metres of drifting and raising have been completed on the project. A limited tonnage is reported by Grupo Bacis grading 200 g/t silver and 3.8 g/t gold cover a shallow and restricted part of the Aguilarena vein.
In 2004, Capstone completed a property-wide program of mapping and sampling that showed high grade and anomalous gold and silver grades to be widespread on the property. The 2005 program will consist of about 2,500 metres of drilling. The program will be focused on testing the extent of mineralization below existing underground workings.
(3) Promontorio Silver and Gold Project, Mexico
The Promontorio Project is located 140 km N of Durango City in the municipality of El Oro, Durango State, Mexico. Five NW-striking vein systems lie within the property. Historic production from these veins is estimated at 250,000 tonnes
grading 3,500 g/t silver and 20 g/t gold. These narrow but high grade veins have each been traced for over 3 km on Capstone's Property. They display excellent continuity along strike and to depth.
A mapping and sampling program that started in 2004 will be continued in 2005.
(4) Copala Silver and Gold Project, Mexico
The Copala Project is located 60 km outside of Mazatlan in the State of Sinaloa, Mexico. The project is easily accessible by the paved highway running from Mazatlan to the city of Durango.
Previous exploration completed by Grupo Bacis included mapping, underground and surface sampling, drifting and drilling. A total of 3,200 metres of drilling by Grupo Bacis was completed on the Animas-Refugio vein structure producing drill intercepts of up to 11.8 g/t gold and 2,534 g/t silver over 3.2 metres.
Preliminary metallurgical flotation and cyanidation tests have also been completed by the previous operator, producing recoveries of 92.2% silver and 76.2% gold.
In 2004, Capstone undertook additional mapping and sampling which defined 3 drill targets. A 2,500 metre surface drill program is planned for 2005 to explore for additional mineralization below some of the historic workings on the property.
(5) Montoros Gold and Silver Project, Mexico
The Montoros Project is located 190 km NW of Durango City. Within the property, there are four vein systems.
Mineralization occurs in the form of argentite, native gold, electrum, and base metals.
Previous sampling in trenches, old mine workings and outcropping veins returned positive exploration results.
The nearby La Cienega vein deposit contains 8.5 million tonnes of resources grading 5.5 g/t gold and 120 g/t silver and occurs in a similar geological environment. A program of rock sampling and mapping is planned for 2005.
MANAGEMENT
Capstone Gold Corp. has a well management team with experience in different areas.
Darren Pylot, President & CEO, Director
Mr. Pylot has been the President of Capstone Gold since 1994, and has been responsible for negotiating all of the Company's property acquisitions. Mr. Pylot has over 15 years experience in the management, administration and financing of public companies focusing on the junior resource sector.
Hugh Willson, M.Sc., P.Geo., Vice President - Exploration
Mr. Willson is a professional geologist with a M.Sc. from the University of Toronto. His 30 years of hands-on experience as an exploration geologist throughout the Americas, have given him extensive skills in the management of all phases of exploration for base and precious metals. The companies for which Mr. Willson has worked include Hanna Mining, Getty Minerals, Newmont Mining, FMC Gold, Hecla Mining, Magma Copper and Cyprus Mining. He was part of the three-man team that identified the exploration target that became the Penon Mine. Mr. Willson supervises Capstone's exploration programs which are located in Mexico.
Jason Howe, CA, CFO
Mr. Howe has been appointed as Chief Financial Officer at Capstone Gold. Mr. Howe has spent the past 8 years in public practice, with the last 4 years at PricewaterhouseCoopers based in Vancouver, B.C.
Jack Marr, P.Geo., Director
Mr. Marr, is a geologist with more than 30 years experience in the financing, administration and management of resource companies. Mr. Marr spent more than 13 years of his career in various roles with Esso Minerals Canada. He was also the Regional Exploration Manager of Kennecott Canada Inc. He is currently a director and Vice-President of Exploration for Geodex Minerals Ltd., a Vancouver based mineral exploration company.
Peter M. Kuhn, Director
Mr. Kuhn has a Master of Engineering in Mining and has over 20 years of experience in mining development and operations both underground and open-pit. Mr. Kuhn was named President at BLM Service Group in 1999. Previously, he worked with Thyssen Mining Construction of Canada from 1987 to 1999. Mr. Kuhn held several executive positions with Thyssen Mining including President and Vice President.
Tony Chan, Director
Mr. Chan has worked in the securities industry since 1983. He was a co-founder of Golden Capital Securities Ltd. in 1990 and retired from the firm in 2004. Mr. Chan helped build Golden Capital into a successful boutique firm encompassing retail, institutional and corporate finance activities. During his time as a principal of Golden Capital, Mr. Chan sat on the Board of Governors of the Vancouver Stock Exchange for two terms and was chairman of the membership committee.
Ken R. Thorsen, B.Sc., P.Eng., Director
Mr. Thorsen has 35 years of experience in the exploration business having spent most of his career in various positions with Teck-Cominco. He has extensive experience in the exploration of many commodities, including gold, silver, copper, lead and zinc. He has also been involved in exploration programs in over the world including Mexico, Canada, USA, Peru, Chile and Argentina.
Sarah Papetti, Secretary
NEWS UPDATE
On November 25, 2005, Capstone Gold Corp. reported the copper assay results from 10 underground core holes at Capstone's Cozamin copper-silver-zinc mine located in Zacatecas, Mexico. Core hole G-05-U75 intersects 8.0 m of 147.7 g/t silver and 8.3% copper. The unreported silver values will be reported when the pending assays are received. These reported drill holes continue to confirm that the grade of copper mineralization increases with depth. The Mala Noche vein mineralization remains open along strike (E-W) and down dip.
On March 31, 2005, Capstone Gold Corp. announced that the Phase III, 15,000 m underground definition drill program has started at its Cozamin copper-silver-zinc project located in Zacatecas State, Mexico. Capstone has completed 200 m of the planned initial 1,000 m of new crosscuts and openings for underground drill stations on level 8 within the San Roberto zone. About 15,000 m of drilling will be completed from 18 underground drill stations. This work is targeted at defining resources to be developed from levels 9, 10 and 11 where surface exploration drilling has indicated some of the best mineralization to date.