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Capstone Mining Announces Assay Results from Cozamin Mine in Mexico

Capstone Mining Corp. (CS: TSX) today announced assay results from three new drill holes representing a major step-out on the newly discovered high grade copper-silver Mala Noche Footwall Zone at its Cozamin Mine in Zacatecas State, Mexico.

Exploration drilling along the Mala Noche system is outlining a significant new mineralized system on a structure that is adjacent to the one that hosts the current mineral reserves at Cozamin. As stated in a news release dated September 20, 2010, this new mineralized system has been extensively drilled along a panel measuring approximately 700m (strike) by 200m (dip), with numerous copper-silver rich intercepts. Two of the three holes reported today represent a major step- out to the east and down dip from the previous drilling. Hole CG-10-U235 intercepted the highest grade copper-silver mineralization to date in the MNFWZ and represents a 200m east and 200m vertical step out from earlier drilling on this new zone.

"The latest intercepts from the recently discovered MNFWZ are very encouraging, with copper-silver grades increasing with depth and the zone open in most directions," said Stephen Quin. "Drilling is continuing with the objective of defining a National Instrument 43-101 compliant mineral resource estimate which, given proximity to the existing mine workings, could be brought to production quickly, should economics warrant."

Mala Noche Footwall Zone

The MNFWZ is associated with the margins of a rhyolitic dyke intruding into the footwall rocks of the Mala Noche system and has been traced in drill holes over 700 metres along strike and now, with these latest intercepts, more than 350 metres in the dip direction. This subsidiary structure intersects the main Mala Noche vein system west of the San Roberto shaft, at about a 30 degree angle, and is still open to the east, up-dip and down-dip. The current mineral resources and mineral reserves at the Cozamin Mine are entirely hosted in the main Mala Noche vein and this discovery of the MNFWZ represents a new style of mineralization not previously identified at Cozamin. The discovery of this new style of mineralization presents an opportunity for the identification and discovery of new, similar, mineralization in other areas where similar intersecting structures are known. The mineralization in this new zone is coarse grained chalcopyrite, which should have good metallurgical characteristics and yield a clean concentrate.

Quality Assurance/Quality Control

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President of Capstone Mining Corp. The exploration activities at the Cozamin Mine are carried out under the supervision of Brad Mercer, P. Geo., V.P. Exploration of Capstone. The following employees of Capstone, each a Qualified Person, reviewed Technical Information contained in this news release: Robert Barnes, Professional Engineer and consulting geologist Hugh Willson, Professional Geologist, respectively reviewed the technical content of this news release. Analyses for copper, zinc, lead, silver and gold were completed by ALS Chemex using the following method. The entire sample is crushed to a minimum of 70% minus 10 mesh. A 250g subsample of the crushed material is then pulverized to 85% minus 200 mesh. Gold and silver grades are determined by gravimetric fire assay using a 50g charge taken from the pulverized material. Copper, zinc and lead are determined by ICP analysis after 4 acid digestion of a 0.4g subsample of the pulverized material.

Source: Capstone Mining Corp.


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