Capstone to boost production at Cozamin

Capstone Mining (CS-T, CSFFF-O) has started an expansion of its Cozamin polymetallic mine, in Zacatecas state, Mexico, aimed at increasing production by 36% to 40 million lbs. copper per year by 2009.

Capstone will increase mill throughput to 3,000 tonnes of ore per day from 2,200 tonnes, totalling 1 million tonnes per year. Upgrades completed this year at Cozamin will help to bring copper production in 2008 to 30 million lbs.

The company plans to spend US$9.5 million in total on mining upgrades, which will bring annual production to 1.5 million oz. silver, 10 million lbs. zinc and 5 million lbs. lead by 2009.

The company has made good progress since production started at Capstone in mid-2006 at around 16 million lbs. copper per year. But even then, the company was making plans to double production to 2,000 tonnes per day by 2008.

To meet its new production goals, Capstone is adding a new, larger production ramp driven 1,400 metres from surface down to the level-8 decline ramp in the mine. Ramps from levels 8 to 12 will be enlarged and the underground crusher will be moved to a new dump pocket at level 11.5. The larger ramps will allow larger trucks to transport more ore to surface.

Capstone is also adding a new 115-kilovolt high-tension power line and substation to supply up to 7.5 megawatts to the operation, and a 1.5-megawatt generator for emergencies.

In the plant, the company is going to increase belt sizes within the crushing area and make larger flotation cells to handle the increase in concentrates.

Capstone plans to spend US$2.5 million at the mine to complete 18,000 metres of underground drilling and 650 metres of drifting to upgrade inferred resources to measured and indicated and explore at depth.

The company has earmarked another US$1.7 million for 6,500 metres of surface drilling to explore the Mala Noche vein, located outside the current resource area.

Proven and probable reserves currently stand at 3.7 million tonnes grading 2.37% copper, 82 grams silver per tonne, 0.4% lead and 1.18% zinc.

Measured, indicated and inferred resources total 8.7 million tonnes grading 2.47% copper, 84.35 grams silver, 1.11% zinc, 0.3% lead and 0.04 gram gold.