Capstone reports copper-gold intercepts at Minto

Capstone Mining (CS-T) has reported drilling results from its Minto mine in Yukon. The latest batch includes 21 holes south of the Minto open pit. Of these, 15 holes are from infill drilling on the Ridgetop deposit, five holes are from area 118, and one is an exploration hole.

Capstone highlights five holes from the Ridgetop deposit, numbered 415, 432, 440, 441 and 444. The highest gold grade was intersected in hole 441, which cut 8.1 metres grading 7.8 grams gold per tonne, 18 grams silver and 2.7% copper from a depth of 73 metres. Holes 432, 440 and 444 returned intercepts 11-17 metres long, grading 0.5-0.9 gram gold per tonne, 4-7 grams silver, and 1.1-1.8% copper. Hole 415 cut 7 metres of 1.3 gram gold, 11 grams silver and 2.5% copper. The mineralization was found at depths of 70-100 metres, but mineralization in hole 440 started at 36 metres depth.

Results from drilling in area 118 returned some mineralization, but it is not considered high priority. This year 15,000 metres were drilled, and Capstone plans to drill another 9,000 metres, focusing on Minto North, with a resource estimate for Minto North anticipated by year-end.

Capstone has 165 million shares outstanding, or 179 million shares fully diluted. At presstime, the shares were trading at $2.28. The shares have been trading in a 65¢-$4.47 range over the past 12 months.

In the year to December 31, Capstone had net income of US$132 million on revenues of US$123 million. On December 31, Capstone had working capital of US$36 million, long-term debt of US$22 million, and capital lease obligations of US$17 million. In January, Capstone redeemed convertible debentures for US$31 million. Results for the first quarter of 2009 are expected on May 14.

In mid-April Capstone announced a bought-deal private placement of 27 million shares at $1.85, for $50 million. On closing, there will be 192 million shares outstanding, or 206 million shares fully diluted.