New Copper Giant Announces Exploration Targets

The newly formed Canada-based Capstone Copper has announced the drill results from its exploration program at the Cozamin mine in Zacatecas, Mexico. In addition, the company announced the new targets that it will explore during the remainder of 2022.

Capstone explained that since the acquisition of Cozamin in 2006, the company has constantly sought to extend the mineral resources and its mine life. Consequently, the company highlighted that it has focused primarily on its exploration programs. These have yielded highly positive results, such as the discovery of higher copper grades and the extension of the mine life, which went from 4 to 10 years in 2020.

Capstone explained that in 2021, its exploration program, focusing on the Mala Noche vein, has delivered great results, further showing the mining potential of Cozamin. Last year’s drilling program focused on surface levels, with underground drilling added after the West cross section competition in 1Q22. The company highlighted that since the program began in 2021, around 40km has been drilled in 47 holes.

In addition, Capstone said that for the remainder of 2022 it will drill 9km via 12 holes. The company explained that the proposed lower elevation crosscut is expected to accelerate infill drilling in 2023, which will help to support an updated resource estimate planned in 2Q23.

Additionally, the company announced that its 2022 exploration program will also include surface drill tests at other targets such as MNV Far West, MNV Far East and Vanadio. Capstone noted that all three targets have significant mining potential, as they have not been extensively drilled. For MNV Far East and Vanadio, the company plans to drill below historic works that have encountered areas rich in silver. Meanwhile, at MNV Far West, drilling will take place where the MNV system "is inferred to have been down-dropped."

Brad Mercer, Senior Vice President Exploration and Strategic Projects, Capstone Copper said “we have an exploration team with a proven track record of excellence and this update highlights the exciting path forward for continued value to be generated through the drill bit. Capstone Copper has significant brownfield exploration potential that points to mine life extensions and expansion opportunities. Our exploration portfolio has never been as robust as it is today which will keep us on a sustainable growth path well into the future.”

Last year, Capstone Mining and Chile-based Mantos Copper announced the merger of both companies to create a new copper company called Capstone Copper, which would focus on high-quality assets. Capstone Copper's projects include Pinto Valley in the US, Cozamin in Mexico, as well as Mantos Blancos, Mantoverde and Santo Domingo in Chile. The company is expected to become a copper giant in the region, driven by the heightened relevance of copper as an important metal for the global energy transition.