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Capstone Mining 2018 Second Quarter Production Results

VANCOUVER, Jul 11, 2018 (Canada NewsWire via COMTEX) --

Capstone Mining Corp. ("Capstone") (TSX: CS) today announced production results for the three and six months ended June 30, 2018. Combined production totalled 20,000 and 39,200 tonnes of copper in the second quarter and year-to-date periods, respectively, with additional by-products of zinc, molybdenum, lead, silver and gold.

Q2 and YTD 2018 Copper Production (tonnes)


                                     Q1    Q2  YTD 2018
                                    ---   ---  --------

    Pinto Valley                 11,400 13,400     24,800
    ------------                 ------ ------     ------

    Cozamin                       4,300  3,500      7,800
    -------                       -----  -----      -----

    Total copper production from
     continuing operations (1)   15,700 16,900     32,600
    ---------------------------- ------ ------     ------

    Minto                         3,500  3,100      6,600
    -----                         -----  -----      -----

    Total copper production (1)  19,200 20,000     39,200
    --------------------------   ------ ------     ------

              (1)    Total production includes
                       copper in concentrate and
                       cathode production.

"Copper production in the second quarter from Pinto Valley and Cozamin was within our guided range," said Darren Pylot, President and CEO of Capstone. "An optimization review at Pinto Valley is underway, with a number of opportunities identified that are expected to have a positive impact on production going forward."

"The Minto sale to Pembridge Resources Plc is expected to close later this month," continued Mr. Pylot.

Operational Summary

    --  At Pinto Valley, production increased compared with the first
        quarter as result of higher than planned grade and improved
        recoveries. Production remains within the guided range at the
        mid point of the year, with the mine plan calling for rising
        grade in the second half of the year versus the first half.
    --  At Cozamin, copper production for the quarter was as planned.
        Zinc production increased from the prior quarter as processing
        of zinc development ore began to ramp up from the San Rafael
        zinc zone.
    --  At Minto, production for the quarter was lower than planned as
        a number of modifications to the mine plan were made. The
        transaction for the sale of Minto to Pembridge Resources is
        expected to be completed within the next few weeks.


Q2 and YTD 2018 Operating Details


                                                       Pinto Valley                 Cozamin                   Minto
                                                       ------------                 -------                   -----

                                   Q2              YTD 2018         Q2       YTD 2018       Q2       YTD 2018
                                   ---             --------        ---       --------       ---      --------

    Contained Production (1)
    -----------------------

    - Copper (tonnes)                               13,420         24,841        3,519        7,805        3,090       6,621
    ----------------                                ------         ------        -----        -----        -----       -----

    - Zinc (tonnes)                            -           -         1,548        2,342            -           -
    --------------                           ---         ---         -----        -----          ---         ---

    -Molybdenum
     (tonnes)                                 19           48              -           -           -           -
    -----------                              ---          ---            ---         ---         ---         ---

    - Lead (tonnes)                            -           -           308          329            -           -
    --------------                           ---         ---           ---          ---          ---         ---

    -Silver (ounces)
     (2)                                            76,920        147,355      252,922      503,097       29,583      64,987
    ----------------                                ------        -------      -------      -------       ------      ------

    -Gold (ounces)
     (2) (3)                                 401          575              -           -       2,605        5,059
    --------------                           ---          ---            ---         ---       -----        -----

    Payable Copper
     Production (1)
     (tonnes)                                       12,963         24,000        3,373        7,488        2,990       6,406

      (in concentrate and cathode)
      ---------------------------                                                                                   ---

    Mine
    ----

    -Ore (tonnes) -
     open pit                          4,562,092    9,627,796              -           -      72,402      546,951
    ---------------                    ---------    ---------            ---         ---      ------      -------

    - Waste (tonnes)                   6,815,118   13,604,255              -           -       1,991    1,314,504
    ---------------                    ---------   ----------            ---         ---       -----    ---------

    -Ore (tonnes) -
     underground                               -           -       227,643      442,585       79,588      170,509
    ---------------                          ---         ---       -------      -------       ------      -------

    Mill
    ----

    -Tonnes
     processed                                   4,627,904      9,462,338      224,216      437,127      288,432     655,011
    ----------                                   ---------      ---------      -------      -------      -------     -------

    -Tonnes
     processed per
     day                                            50,856         52,278        2,464        2,415        3,170       3,619
    --------------                                  ------         ------        -----        -----        -----       -----

    -Copper grade
     (%) (4)                                          0.33           0.30         1.66         1.87         1.23        1.19
    -------------                                     ----           ----         ----         ----         ----        ----

    - Zinc grade (%)                          -           -          1.04         0.84            -           -
    ---------------                          ---         ---          ----         ----          ---         ---

    -Molybdenum
     grade (%)                            0.006        0.006              -           -           -           -
    -----------                            -----        -----            ---         ---         ---         ---

    - Lead grade (%)                          -           -          0.29         0.18            -           -
    ---------------                          ---         ---          ----         ----          ---         ---

    -Silver grade
     (g/t)                                     *           *         45.28        45.11          4.2          4.1
    -------------                            ---         ---         -----        -----          ---          ---

    -Gold grade (g/
     t)                                        *           *             -           -        0.38         0.36
    ---------------                          ---         ---           ---         ---        ----         ----

    Recoveries
    ----------

    - Copper (%)                       86.2 (4)    84.8 (4)         94.61        95.51         86.8         84.7
    -----------                          -------     -------         -----        -----         ----         ----

    - Zinc (%)                                -           -         66.44        64.01            -           -
    ---------                                ---         ---         -----        -----          ---         ---

    - Lead (%)                                -           -         48.10        40.69            -           -
    ---------                                ---         ---         -----        -----          ---         ---

    - Silver (%)                              *           *         77.49        79.36         76.4         75.7
    -----------                              ---         ---         -----        -----         ----         ----

    - Gold (%)                                *           *             -           -        63.8         59.2
    ---------                                ---         ---           ---         ---        ----         ----

    Concentrates
    ------------

    -Copper
     concentrate
     (dmt)                                          47,881         91,728       13,581       29,391        8,152      17,142
    ------------                                    ------         ------       ------       ------        -----      ------

                        Copper (%)                     27.3           26.2        25.91        26.55         37.9        38.6
                        ---------                       ----           ----        -----        -----         ----        ----

                        Silver (g/t)                       *             *         517          501          113         118
                        ------------                     ---           ---         ---          ---          ---         ---

                        Gold (g/t)                         *             *           -           -         8.6         8.2
                        ----------                       ---           ---         ---         ---         ---         ---

    -Zinc
     concentrate
     (dmt)                                     -           -         3,259        4,926            -           -
    ------------                             ---         ---         -----        -----          ---         ---

                        Zinc (%)                          -             -       47.48        47.55            -          -
                        -------                          ---           ---       -----        -----          ---        ---

    -Molybdenum
     concentrate
     (dmt)                                    38           96              -           -           -           -
    ------------                             ---          ---            ---         ---         ---         ---

    -Lead
     concentrate
     (dmt)                                     -           -           494          532            -           -
    ------------                             ---         ---           ---          ---          ---         ---

                        Lead (%)                          -             -       62.32        61.75            -          -
                        -------                          ---           ---       -----        -----          ---        ---

                        Silver (g/t)                       -             -       1,717        1,745            -          -
                        ------------                     ---           ---       -----        -----          ---        ---

    Payable Copper
     Shipped (tonnes)                               11,190         23,321        3,194        7,025            -      3,984
    -----------------                               ------         ------        -----        -----          ---      -----


               (1) Adjustments based on final
                settlements will be made in
                future periods. (2) Silver and
                gold at Pinto Valley and gold
                at Minto are not assayed on
                site, resulting in a
                significant lag time in
                receiving this data. As such,
                these figures are estimates and
                for Minto includes gold
                contained in copper concentrate
                and gold contained in gold
                concentrate produced. (3) Pinto
                Valley gold production reaches
                payable levels from time to
                time. Any payable gold
                production will be reported in
                the period revenue is received.
                (4) Grade and recoveries were
                estimated based on concentrate
                production and may be impacted
                by settlements from prior
                production periods. *Silver and
                gold have not been estimated in
                the Pinto Valley resource
                model. Only recovered silver
                and payable gold is reported
                for this mine.

Operating Outlook

Capstone's 2018 copper production guidance for Pinto Valley and Cozamin remains unchanged at (tonnes +/-5%) 56,000 and 15,000, respectively. Capstone has entered into a definitive agreement for the sale of the Minto mine, with the transaction expected to close in July 2018.

Financial Results Timing

Capstone will report Q2 2018 financial results on Tuesday, July 31, 2018 after market close, followed by a conference call and webcast for investors and analysts on Wednesday, August 1, 2018 at 11:30 am Eastern Time (8:30 am Pacific Time).

Conference Call and Webcast Details

    Date:      Wednesday, August 1, 2018

    Time:      11:30 am Eastern Time (8:30 am Pacific Time)

    Dial in:   North America: 1-888-390-0546, International: +416-764-8688

    Webcast:   https://event.on24.com/wcc/r/1679032/50134473A997CEF460B4AB58062FF714

    Replay:    North America: 1-888-390-0541, International: +416-764-8677

    Replay
     Passcode: 519478#

The conference call replay will be available until Wednesday, August 8, 2018. The conference call audio and transcript will be available on Capstone's website within 48 hours of the call at http://capstonemining.com/investors/events-and-presentations/default.aspx.

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has the large scale 70% owned copper-iron Santo Domingo development project in Region III, Chile, in partnership with Korea Resources Corporation as well as a portfolio of exploration properties. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.

Cautionary Note Regarding Forward-Looking Information

This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Capstone does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.

Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "expected", "potentially", "guidance" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including "guidance", "planned", "expected" and "expectations". By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations, assumptions related to geotechnical condition of tailings facilities, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, counterparty risks associated with sales of our metals, use of financial derivative instruments and associated counterparty risks, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions on our Pinto Valley, Cozamin and Minto operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Santo Domingo Project, increased operating and capital costs, challenges to title to our mineral properties, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats and other risks of the mining industry as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

National Instrument 43-101 Compliance

Unless otherwise indicated, Capstone has prepared the technical information in this news release ("Technical Information") based on information contained in the technical reports, news releases and MD&A's (collectively the "Disclosure Documents") available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by, or under the supervision of, a qualified person (a "Qualified Person") as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.

The technical information in this news release ("Technical Information") was prepared by, or under the supervision of, a qualified person (a "Qualified Person") as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). The disclosure of the Technical Information contained in this news release has been reviewed and approved by Gregg Bush, P.Eng., Capstone Senior Vice President and Chief Operating Officer, a Qualified Person under NI 43-101.

View original content:http://www.prnewswire.com/news-releases/capstone-mining-2018-second-quarter-production-results-300679065.html

SOURCE Capstone Mining Corp.

View original content: http://www.newswire.ca/en/releases/archive/July2018/11/c1448.html

SOURCE: Capstone Mining Corp.

Cindy Burnett, VP, Investor Relations and Communications, 604-637-8157,
cburnett@capstonemining.com

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