VANCOUVER – Capstone Mining Corp. says poor market conditions are to blame for its decision to cut site operating costs by US$20 million over the second half of 2015 and to suspend work on the Santo Domingo copper project in Chile.
At Santo Domingo (70% Capstone and 30% Korea Resources Corp.) work will stop at the site and offices in Santiago and Diego de Almagro will be downsized. The move will save US$2.4 million, leaving $17.0 in the 2015 budget there. Ongoing community relations and other costs are expected to be in the range of US$2.0 million per year for the entire project.
Overall production guidance of 90,000 tonnes of copper this year remains unchanged. However, it has been adjust by site to reflect the over performance at the Minto mine in Yukon Territory and underperformance at the Cozamin project in Mexico.
All budgets are getting the chop. The capital expenditure budget at operating mines – Minto , Cozamin and Pinto Valley in Arizona – will be cut by US$17.9 million to US$118.9. Likewise, the development and exploration budgets are being reduced to US$17.0 million (Capstone’s share of various projects).
Complete information about each of Capstone’s projects is available at CapstoneMining.com.