COPPER-ZINC STUDY: Improved PEA filed for Kutcho project

BRITISH COLUMBIA - Capstone Mining of Vancouver has improved the economic outlook for its Kutcho copper-zinc project 120 km east of Dease Lake, according to the latest preliminary economic assessment (PEA). The report was prepared by JDS Energy & Mining.

The project has a net present value (NPV) after tax of C$77 million using a copper price of US$2.25/lb. The after tax internal rate of return (IRR) is 22% with a payback period of 3.7 years. Development will require a pre-production capital investment of C$134.2 million.

Kutcho development would include a small starter pit and underground mine. A 2,500-t/d mill will produce separate copper and zinc with byproduct gold and silver reporting to the copper concentrate. Average annual output over a 12-year mine life will be 35.5 million lb of copper, 39.8 million lb of zinc, 5,425 oz of gold and 480,000 oz of silver. The measured and indicated resource totals 10.4 million tonnes grading 2.14% Cu, 2.85% Zn, 0.36 g/t Au and 32.4 g/t Ag or a copper equivalent of 3.72%.

The entire technical report is available at SEDAR or www.CapstoneMining.com.