Petaquilla

Petaquilla – News, Capstone Mining finds more high-grade ore

Tue Sep 7, 2010 8:54am EDT

* Expects to raise grade of overall Esso mineral resource

* Says approved an additional $500,000 in expenditures

Sept 7 (Reuters) – Canada’s Capstone  Mining Corp (CS.TO) said on Tuesday it found additional high grade copper-zinc deposits at its Kutcho project in northwestern British Columbia.

In July, a preliminary assessment of the project had showed that the mine could eventually produce, on average, 35.5 million pounds of copper and 39.8 million pounds of zinc annually. [ID:nN13237663]

The junior miner said the discovery will increase the grade of the overall Esso mineral resource. The Esso deposit is one of three volcanogenic massive sulphide deposits that comprise the Kutcho project.

The company has approved an additional $500,000 in expenditures to allow further in-fill and step-out drilling along the margins of the Esso deposit, it said in a statement.

Shares of the Vancouver, British Columbia-based company, which fell 8 percent on July 19 when it lowered its full-year production view, have since gained 25 percent in value and closed at C$2.79 Friday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Unnikrishnan Nair)

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