Pre-feasibility Work Program At Kutcho Project

VANCOUVER - Capstone Mining Corporation reported that it has commenced a work program on its Kutcho Copper-Zinc Project designed to advance the project towards completion of a pre-feasibility study. As recommended in the recently completed Preliminary Economic Assessment ("PEA"), the major components of the work program are: (1) in fill and step out drilling on the Esso deposit, (2) continued metallurgical optimization test work, and (3) other capital and operating cost optimizations. Drilling on the Esso deposit, one of three known massive sulphide deposits that comprise the Kutcho Project, is already in progress and results of the first two drill holes have been received.

"The Kutcho Project comprises three high grade copper-zinc deposits with significant gold and silver by-products, the combination of which represents a significant value opportunity for Capstone," said Stephen Quin, President. "The recently completed preliminary economic assessment demonstrated potentially robust project economics and the recently initiated work program is designed to more fully define the project to standards suitable for inclusion in a pre-feasibility study. "The results of the first two holes confirm the presence of exceptional grades within the Esso deposit, which remains open to expansion."