Capstone extends Mala Noche vein

Vancouver — Drilling by Capstone Gold (CSG-T) at its Cozamin project in Zacatecas state, Mexico, has extended copper, silver and zinc mineralization more than 5.5 km along strike and at least 650 metres downdip.

The mineralization is in the Mala Noche vein, which remains open in all directions.

Highlights from the recent program are as follows:

— Hole 21 — 8.5 metres grading 0.2% copper, 11.1 grams silver and 5.9% zinc;

— Hole 22 — 1.4 metres grading 1.7% copper, 30.2 grams silver and 0.1% zinc;

— Hole 23 — 0.6 metre grading 30.5 grams silver, 3.8% zinc and no copper;

— Hole 24 — 0.8 metre grading 0.1% copper, 18.2 grams silver and 9.4% zinc;

— Hole 26 — 4.6 metres grading 2% copper, 32 grams silver and 0.1% zinc;

— Hole 27 — 5.9 metres grading 1.8% copper, 62.1 grams silver and 0.8% zinc;

— Hole 28 — 3.8 metres grading 2% copper, 40.8 grams silver and 0.1% zinc;

— Hole 29 — 3.2 metres grading 5.5% copper, 158.9 grams silver and 1.1% zinc.

Cozamin last produced in 1997, though a 750-tonne-per-day flotation plant remains on-site.

The San Roberto zone, near the mill, is where underground production previously occurred. Capstone has renovated the San Roberto hoist, headframe and shaft, and dewatered the workings to allow for underground development.

Sampling and diamond drilling by previous operators indicated potential sulphide resources at San Roberto.

Measured and indicated re-sources include 2.7 million tonnes grading 85 grams silver and half a gram of gold per tonne, plus 0.95% copper, 3.16% zinc and 0.88% lead. There is also an inferred resource of 3.1 million tonnes grading 103 grams silver, 0.5 gram gold, 1.41% copper, 3.21% zinc and 0.85% lead.

Drilling to date indicates an average width of 6.6 metres and grades of 2.61% copper, 1.38% zinc, and 91.2 grams silver per tonne.

The company recently selected a team of Canadian advisors and consultants for Cozamin, including three who worked at Pan American Silver‘s (PAA-T) La Colorada silver mine, in the same state.

Capstone will carry out metallurgical studies and underground definition drilling as part of a scoping study, which is due in June.

Plans call for Cozamin to start up in the first half of 2006 at a capital cost of US$15-20 million.

The property is one of five that were optioned to the junior for a 90% interest from Mexican mining conglomerate Grupo Bacis late in 2003. Bacis retains a 1.5% net smelter royalty and a 10% interest in the properties.