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A Leading Intermediate Copper ProducerOctober 2015
22
This presentation, and the documents incorporated by reference herein, 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 Company 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 Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “outlook”, “guidance”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, 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”, “may”, “future”, “expected”, “intends” and “estimates”. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents; dependence on key personnel; labour pool constraints; labour disputes; availability of infrastructure required for the development of mining projects; delays or inability to obtain governmental and regulatory approvals for mining operations or financing or in the completion of development or construction activities; counterparty risks associated with sales of our metals; increased operating and capital costs; operating in foreign jurisdictions with risk of changes to governmental regulation; impact of climatic conditions on our Pinto Valley, Cozamin and Minto operations; compliance with debt covenants, 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 actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Alternative Performance Measures“C1 cash cost”, “cash cost”, “all-in sustaining cost”, “all-in cost”, “fully-loaded all-in cost”, “adjusted net earnings/loss”, adjusted EBITDA”, “operating cash flow before changes in working capital” and “net debt” are Alternative Performance Measures. Alternative performance measures are furnished to provide additional information. These performance measures are used by management to monitor performance, to assess how the Company is performing to assess the overall effectiveness and efficiency of mining operations. These performance measures may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance included in the Company’s unaudited condensed interim consolidated financial statements prepared in accordance with IFRS.
CurrencyAll amounts are in US$ unless otherwise specified.
Cautionary Note On Forward Looking Information
3
Cash flow generation from a portfolio of three mines
Financial flexibility
Proven track record of sustainable growth
Low-risk copper producer focused on the Americas
About Capstone
A leading intermediate copper producer
44
Portfolio
PRODUCTION
Three operating mines
Production assets located in stable geographies in the
Americas producing 90 k tonnes1 of copper in 2015
Santo DomingoRegion III, ChileCS 70%; KORES 30%
DEVELOPMENT
Portfolio
Robust project offering optionality for significant
organic growth
ChileSQM - option to earn up to 70% of Project Providencia
OtherPortfolio approach to base metals exploration projects
EXPLORATION
Portfolio
Early-stage base metals exploration properties
Sho
rt t
erm
Lon
gte
rm
Pinto ValleyArizona, US
CozaminZacatecas State, Mexico
MintoYukon, Canada
1.±5%; see news release dated January 20, 2015.
55
Two-Tiered Operating and Growth Strategy
Capstone has considerable financial flexibility
1. Maintain financial and operating flexibility
Maintain disciplined, balanced approach with ample liquidityand a conservative and flexible balance sheet
Sustain core operations at the bottom of the cycle
2. Robust organic growth potential
Potential low cost brownfield expansion at Pinto Valley; PFS underway
Maintain optionality on Santo Domingo project
Prudently progress the exploration portfolio
Criteria for growth through strategic acquisition - low-risk, mining-friendly jurisdictions in the Americas, copper asset in or near production
66
Pinto Valley Mine
Open Pit Mine in Arizona, US
Mine life remaining (years) 11
Q3 2015 Production (k tonnes)
Q3 2015 C1 cash cost1 ($/payable lb produced)
14.0$2.18
YTD 2015 Production (k tonnes)
YTD 2015 C1 cash cost1 ($/payable lb produced)
44.0$2.05
By-products Mo, Ag
Optimization underway
Key Points Continuing to reduce operating variability to optimize daily throughput
Increase in throughput and possibility of mine life extension being considered in PV3 PFS due in Q1 2016
Potential low cost opportunities for the mill to potentially run in excess of 52,000 tpd
Advancing work to permit tailings facility for expanded production and mine life extension ahead of PFS
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
77
PV2 Pre-Feasibility Summary & Mine Plan – March 2014
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
0.50%
0
5
10
15
20
25
30
35
40
45
50
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Co
pp
er
Gra
de
%
Mat
eri
al M
ined
(M
t/y
ear) Total Material Moved
Capital Expenditure ($M) 47 62 12 12 9 11 14 6 5 5 3 2 0
Payable Copper (k tonnes) 64.1 54.8 65.1 55.8 56.2 54.1 57.0 56.1 54.7 52.3 59.7 41.0 12.0
Summary of March 2014 PV2 PFS1
Mine Life (years) 12.3
Mineral Resources 1,[email protected]%
Mineral Reserves [email protected]%
Planned Throughput (ktpd) 50 - 52
Avg. Annual Production Cu (Mt) 57.1
Est. LOM C1 Cash Costs $2.00
LOM Sustaining Capital ($ millions) $187.9
After-tax NPV, 8% ($M) $738
1. Pinto Valley Mine 2014 Pre-Feasibility Study, Mineral Reserves and Resources take into account mining activities until January 1, 2014, and are reported above 0.18% Cu Cut-off Grade. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
8
Pinto Valley Strategy
Upcoming Catalysts
Stabilized mill reliability
Pre-Feasibility Study for PV3 underway with the potential to:
Extend mine life
Expand production
Town of Miami
Pinto Valley
FreeportMiami
KGHMCarlota
BHP Copper Cities
BHP Miami
Source: Google maps.
Ramp-up to 50 ktpd Stabilizing at 50 - 52 ktpd
2012/13 Restart
2014/H1 2015 Stabilize
Optimize beyond 52 ktpd
2016+ Potential Extension/Expansion
H2 2015 Optimize
Optimize throughput
99
Cozamin Mine
Underground Mine in Zacatecas State, Mexico
Mine life remaining (years) 6
Q3 2015 Production (k tonnes)
Q3 2015 C1 cash cost1 ($/payable lb produced)
4.3$1.24
YTD 2015 Production (k tonnes)
YTD 2015 C1 cash cost1 ($/payable lb produced)
10.8$1.55
By-products Zn, Pb, Ag
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
Improving mining procedures; infill drilling
2015 2016
Silver stream sale expires April 2017 to significantly
improve economics (currently ~1.5M oz/year)
2017+
Ongoing exploration targets once market conditions allow
10101. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. See Forward-Looking Statements and Cautionary Note for NI 43-101 information. 2. During Q3 and the 9 months ending September 30, 2015, the reported C1 cash cost figures of $2.10 and $2.52 include $0.15/lb and $0.22/lb, respectively spent in prior periods.
Mine life remaining (years) 7
Q3 2015 Production (k tonnes)
Q3 2015 C1 cash cost1,2 ($/payable lb produced)
3.8$2.10
YTD 2015 Production (k tonnes)
YTD 2015 C1 cash cost1,2 ($/payable lb produced)
12.1$2.52
Life of mine projected C1 cash cost1 $1.92
By-products Au, Ag
Open Pit & Underground Mine in Yukon, Canada
Minto Mine
Processing underground and stockpiled ore while
pre-stripping Minto North
Minto North open pit high-grade ore to be milled
Dec 2015 to Dec 2016
2015 2016
Underground mining continues
2017+
1111
Santo Domingo Provides Future Growth Potential
Diego de Almagro
Project Area
(Lundin)
A long-life, low cost copper project in a community showing strong support
Superior infrastructure
7 kms from town, power lines & sub-station
110 kms from port
Low elevation (~1,000 masl)
Paved road access
Approved EIA
Port concession pending
Owned 70% Capstone and 30% Korea Resources Corporation (KORES)
KORES largest Capstone shareholder (11%)
KORES to participate in arranging debt financing
65% Project Debt
CS Equity
KORES Equity
Partnership & Funding Structure
Copper-Iron Development Project in Region III, Chile
12121. Does not include by-product metal production at any mine or project. 2. C1 cash costs for 2016 and beyond do not factor in deferred stripping at Minto and Pinto Valley and movements in ore stockpile for Minto. 3. C1 Cash Cost is an Alternative Performance Measure. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
Cu P
roducti
on (
k t
onnes)
C1
Cas
h C
ost
/lb
3 o
f Pa
yab
le C
u P
rod
uce
d
2,3,4
Proven Track Record of Reliable Copper Production1
Stable production profile and optionality on future organic growth
$0.00
$0.50
$1.00
$1.50
$2.00
0
25
50
75
100
125
2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E 2020E
Cozamin Minto Pinto Valley C1 Cash Costs 32
1313
Financial Position
At September 30, 2015 ($M)
Cash and cash equivalents $108.5
LESS: Long Term Debt & Leases $324.6
Net Debt $216.1
Conservative and flexible financial position
Corporate Revolving Credit Facility revised in January 2015 has a four year term with no scheduled amortization payments.
Zero-cost collars at $2.60-$3.10/lb for 36,000 tonnes of copper (to Feb. 2016) in addition to reductions in operating and capital expenditures contribute to financial flexibility
Other levers to ensure covenant compliance in adverse market conditions if required
$139.5
$15.4
$74.4
$10.7
$3.5
$7.8
$10.6
$17.0
$0.1
Sustaining Development Total
2015 Capital Guidance ($M) (including capitalized stripping in development costs)
Pinto Valley Cozamin Minto Santo Domingo Kutcho
2
3 4
1
1.Reflects capital spent to date and includes all costs associated with the suspension of the Santo Domingo project, representing Capstone’s 70% share ($14.8M to be capitalized and $2.2M to be expensed in 2015). 2. Approximately $10 million of capitalized stripping at Minto, originally planned for 2015, will be pushed into 2016 due to the delay in accessing the Minto North pit 3. Includes $21.4M of capitalized stripping. 4. Does not include $5.4M budgeted as an expense for greenfield exploration.
Undrawn Credit Facilities $111.1
Total Liquidity $219.6
1414
Sho
rt t
erm Financial Flexibility
Strong balance sheet and sufficient liquidity in current copper market
Pinto ValleyFocus on optimization, cost efficiencies and potential mine life extension
CozaminReliable production with exploration upside
MintoMinto North 2016 catalyst
Santo DomingoMaintaining optionality for future organic growth
ExplorationDrilling at large property in Chile
2015 and beyond
Capstone Is Well-Positioned For The Future
A leading intermediate copper producer
1515
Appendix
1. Board of Directors
2. Senior Management Team
3. Financial & Operating Results
4. Revolving Credit Facility
5. 2015 Operating & Capital Guidance
6. C1 Cash Costs
7. Mine Cost Breakdown
8. Historical Operating Performance
9. Historical Financial Performance
10. History of Pinto Valley Mine
11. Minto Mineral Reserve and Mineral Resource Areas
12. Minto Mineral Resources and Underground Development
13. Santo Domingo July 2014 Feasibility Study Summary
14. Providencia Exploration Project
15. Track Record of Growth in Mineral Resource Base
16. Consolidated Mineral Reserve Estimate
17. Consolidated Mineral Resource Estimate
18. Notes on Consolidated Mineral Reserves and Resources Estimates
19. NI 43-101 Information
1616
Board of Directors
Name Experience
Lawrence Bell Former Chairman & CEO of BC Hydro, former Chairman UBC Board of Directors and Canada Line (Rapid Transit) Project, served as Deputy Minister of Finance and Secretary to Treasury Board of BC. Former Director of Goldcorp and Matrix Asset Management, current Director of Silver Wheaton.
George Brack - Non-Executive ChairmanMining and investment banking, former industry head of Scotia Capital and former President and CEO of Macquarie North America. Current Director of Silver Wheaton, Timmins Gold and Geologix.
Chantal GosselinFormer VP & Portfolio Manager of Goodman Investment Counsel. Previously senior mining analyst with Sun Valley Gold LLP and Genuity Capital Markets, and held mine site management positions in Canada, Peru and Nicaragua. Currently a Director of Silver Wheaton.
Soon Jin Kwon Director & COO of KORES Canada Corporation.
Kalidas MadhavpeddiOverseas CEO for China Molybdenum, former Senior VP Business Development of Phelps Dodge. Current Director and Chair of Compensation Committee of NovaGold Resources.
Dale Peniuk - Audit Committee Chairman Former Partner with KPMG. Director & Audit Committee Chair of Lundin Mining & Argonaut Gold.
Darren Pylot - President, CEO & Director Founder of Capstone Mining.
Richard ZimmerFormer President & CEO of Far West Mining, previously with Teck & Bow Valley Industries. Current Director of Alexco Resources.
1717
Senior Management Team
Name ExperienceYears
ExperienceYears Mining Experience
Darren Pylot, President, CEO & Director Founder of Capstone Mining 21 21
Jim Slattery, Senior VP & CFO Former CFO of Inmet Mining, Wescast Industries & Canadian General Tower 34 10
Gregg Bush, Senior VP & COOFormer COO of Minefinders, Mine GM & Operations of Barrick/Placer Dome,12 years in Chile
31 31
Brad Mercer, Senior VP Exploration Formerly with Sherwood Copper, Miramar Mining, Royal Oak & US Borax 31 31
Robert Blusson, VP Finance Formerly with Lundin Mining & EuroZinc 13 9
Cindy Burnett, VP Investor RelationsFormerly with Western Lithium, Skye Resources, Ivanhoe Energy & Nova Chemicals
36 7
Peter Hemstead, VP Marketing & Treasurer
Formerly with Sherwood Copper & PricewaterhouseCoopers LLP 19 9
Jason Howe, VP Business DevelopmentCo-founder & former CFO of Silverstone Resources. Formerly with PricewaterhouseCoopers LLP
21 11
Tomas Iturriaga, VP North American Operations
Formerly with Goldcorp as VP and GM for Mexico 21 11
Wendy King,VP Legal, Risk & Governance
Former Sr. VP General Counsel, Government Relations, Chief Compliance Officer and Corporate Secretary with Central 1 Credit Union & Weyerhaeuser Company
19 2
Guy Le Bel, VP Evaluations Formerly with Quadra Mining, BHP Billiton Base Metals, Rio Algom & Cambior 31 31
Gillian McCombie, VP Human Resources
Formerly with Placer Dome, Hunter-Dickinson & TELUS 19 15
David Sinitsin, VP Technical Services Formerly with Canaco Resources, Silver Standard & Freeport-McMoRan 31 31
1818
Financial & Operating Results
1. These are Alternative Performance Measures. See Forward-Looking Statements and Cautionary Note for NI 43-101 information. 2. Q3 2015 includes a negative provisional pricing adjustment of $8.0 million (2014 – negative $3.9 million) related to prior shipments, equivalent to $(0.15) per pound (2014 – $(0.06) per pound) of copper sold during the quarter. 3. Adjusted realized copper price includes the realized gain of $5.7 million related to the put contracts the Company exercised in Q3 2015.
Q3 2015 Q3 2014
Revenue ($M) 113.0 183.9
Copper produced (tonnes) 22,109 26,178
Payable copper produced (tonnes) 21,340 24,818
C1 cash cost1 ($ per payable lb of Cu produced) 1.98 1.87
Copper sold (tonnes) 24,645 29,031
Realized copper price per pound sold2 ($/lb)Adjusted realized copper price per pound sold3 ($/lb)C1 cash cost per payable pound sold1 ($/lb)All-in sustaining cost per payable pound sold1 ($/lb)All-in cost per payable pound sold1 ($/lb)Fully loaded all-in cost per payable pound sold1 ($/lb)
2.242.352.162.562.952.80
2.982.981.902.232.512.72
Net (loss) ($M)Per common share:
(216.0)(0.44)
(0.1)(0.00)
Adjusted net income (loss)1 ($ M)Per common share:
(16.3)(0.04)
11.40.03
Adjusted EBITDA1 ($M)Per common share:
19.60.05
70.00.18
Operating cash flow before changes in working capital1 ($M)Per common share:
9.20.02
59.00.15
Cash and cash equivalents ($M) 108.5 176.1
Net debt1 ($M) 216.1 121.1
19
Senior Secured
Amount $500M credit facility ($440M committed plus a $60M accordion)
Term 4 years from January 2015
Interest Rate US Libor + 3.0% (adjustable in certain circumstances)
Standby Fee 0.675% on undrawn balance (adjustable in certain circumstances)
Payment Schedule Interest only
Covenants EBITDA/Interest Expense ≥ 2.5:1Senior Secured Net Debt/EBITDA not more than 3.0:1Total Net Debt/EBITDA not more than 4.0:1
Use Replaced borrowings initially drawn to support PV acquisition. Eliminated scheduled amortization payments attached to previous reducing
credit facility. Provides financial flexibility to meet operating requirements and to address
potential market or operational disruptions.
Revolving Credit Facility
Ensures financial flexibility in challenging pricing environment
2020
2015 Operating & Capital Guidance
Pinto Valley Cozamin Minto Total
Operating Guidance
Copper Production (tonnes) 59,000 15,500 15,500 90,000
C1 cash cost1 ($ per payable lb of Cu produced net of by-product credits and selling costs)
$1.90 - $2.00 $1.50 - $1.60 $2.55 - $2.65 $1.95 - $2.05
1. This is an alternative performance measure, please see “Alternative Performance Measure” definition at the beginning of this presentation. 2. Note PV2 capital is slightly higher than PFS estimate for 2015 as it includes capitalized stripping and component replacements on mining fleet. 3. Reflects capital spent to date and includes all costs associated with the suspension of the Santo Domingo project, representing Capstone’s 70% share ($14.8M to be capitalized and $2.2M to be expensed in 2015). 4. Does not include $5.4M budgeted as an expense for greenfield exploration at the Providencia project in Chile in 2015.
Pinto Valley2 Cozamin Minto Santo Domingo Kutcho Total4
Capital Expenditure (US$ millions)
Sustaining $15.4 $10.7 $7.8 - - $33.9
PV2 Capital $45.0 - - - - $45.0
PV3 Study $8.0 - - - - $8.0
Brownfield Exploration - $3.5 - - - $3.5
Capitalized Stripping $21.4 - $10.6 - - $32.0
Development Projects - - - $17.03 $0.1 $17.1
Total $89.8 $14.2 $18.4 $17.0 $0.1 $139.5
21
C1 Cash Cost per payable pound produced 1 Q3 2015
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs.
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
OperatingCosts
Treatment &Selling Costs
By-ProductCredits
C1 CashCost/lb
Cozamin
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
OperatingCosts
Treatment &Selling Costs
By-ProductCredits
C1 CashCost/lb
Consolidated Total
$0.44
$1.66
$1.98($0.12)
$1.13
$0.40($0.29) $1.24
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
OperatingCosts
Treatment &Selling Costs
By-ProductCredits
C1 CashCost/lb
Minto
$1.94
$0.32($0.16)
$2.10
$2.10
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
OperatingCosts
Treatment &Selling Costs
By-ProductCredits
C1 CashCost/lb
Pinto Valley
$1.75
$0.48 ($0.05)$2.18
2222
9 Months 2015 Mine Cost Breakdown 1
1. Cost of production in US$ for the 9 months ended as at September 30, 2015. Excluding by-product credits and TCRCs.
Pinto Valley
Cozamin Minto
Salaries Contractors & ConsultantsMaintenanceDiesel, Gas & LubricantsPowerConsumablesMinesite G&A
Consolidated
28%
22%16%
6%
9%
13%
6%
26%
42%
8%
7%
5%9%
4%
28%
14%
18%
7%
11%
16%
6%
31%
28%
16%
3%7%
9%5%
2323
$1.11 $1.28
$2.02
$2.45 $2.16
$1.58
$1.10
$0.40
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2008 2009 2010 2011 2012 2013 2014 9 Months2015
59% 59% 48%63% 36%55%47% 16%
Historical Operating Performance
29,892 38,691
33,022 35,879 35,834 45,405
103,901
65,200
0
20,000
40,000
60,000
80,000
100,000
120,000
2008 2009 2010 2011 2012 2013 2014 9 Months2015
Copper Sold (tonnes)
$2.36 $2.31
$3.42 $3.90 $3.66
$3.30 $3.03
$2.45
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
2008 2009 2010 2011 2012 2013 2014 9 Months2015
Realized Price/lb of Copper Sold ($)
$1.25 $1.03
$1.40 $1.45 $1.50 $1.72
$1.93 $2.05
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2008 2009 2010 2011 2012 2013 2014 9 Months2015
C1 Cash Cost1,2
($ per payable lb of Cu produced) Cash Margin/lb of Copper Sold ($)
* Commencing in 2011, financial results in accordance with IFRS. 1. This is an Alternative Performance Measure. 2. The total 2008 information only includes results from the Cozamin Mine from November 24, 2008 to December 31, 2008, except for the C1 Cash Cost per pound of payable copper produced, which is for the full year.
2424
Historical Financial Performance
$162
$250 $301
$353 $306 $332
$656
$328
$0
$100
$200
$300
$400
$500
$600
$700
2008 2009 2010 2011 2012 2013 2014 9 Months2015
Revenue1 ($M)
$36
$117 $103
$146 $142
$106
$232
$71
$0
$50
$100
$150
$200
$250
2008 2009 2010 2011 2012 2013 2014 9 Months2015
Adjusted EBITDA1,2 ($M)
$0
$20
$40
$60
$80
$100
$120
$140
2008 2009 2010 2011 2012 2013 2014 9 Months2015
$103
Capital Additions1,3($M)
1. The total 2008 information only includes results from the Cozamin Mine from November 24, 2008 to December 31, 2008. Year end 2010, 2011 and 2012 in accordance with IFRS. 2008 figures pro forma for combination with Sherwood Copper to include Cozamin and Minto for the full year. 2.This is an Alternative Performance Measure. 3. Includes deferred stripping at Minto and Pinto Valley. 2008 capital additions include $13 million from old Capstone for 9 months in 2008.
$28
$94 $75
$120 $114
$86
$199
$48
$0
$50
$100
$150
$200
$250
2008 2009 2010 2011 2012 2013 2014 9 Months2015
Operating Cash Flow Before Changes in Working Capital1 ($M)
$33
$59 $56
$85
$121 $123
Deferred Stripping
Capital Additions
$94
2525
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
0
25
50
75
100
125
150
175
200
225
250
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
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19
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19
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19
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19
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19
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19
91
19
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19
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19
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19
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19
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19
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19
98
19
99
20
00
20
01
20
02
20
03
20
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20
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14
Histo
rical Cu
Price (U
S$/lb
)H
isto
rica
l Cu
Pro
du
ctio
n (
mlb
s)
PV Cu Production Average Cu Price
BHP restarts
PV
Capstone acquires PV
History of Pinto Valley Mine
PV acquired by Newmont subsidiary and placed PV on
care and maintenance
Source: BHP Copper.
Pinto Valley Historical Production/Copper Prices
PV production commenced by owner Cities Service (formerly
Tennessee Corporation)
Newmont announced plans to restart PV
BHP acquired PV
BHP placed PV on care and maintenance due to
temporarily low copper prices
PV operations restarted
BHP placed PV on care and maintenance
due to temporarily low copper prices
Mine Fleet $63.8 (33%)
Processing $43.7 (22%)
Owner Cost $27.1 (14%)
Infrastructure $21.2 (11%)
EPCM $14.2 (7%)
SMARRCO $11.4 (6%)
Contractors' Indirect
$8.9 (5%)
Mine$3.9 (2%)
2012 Re-start Capital Cost
BHP Billiton US$194M re-start capital incorporated lessons learned from previous re-start
Acquired new mining fleet
Upgraded electrical and controls
Significantly improved plant conditions to HSEC standards
In-sourced mining
2626
Minto Mineral Reserve & Mineral Resource Areas
>3% Cu over ≥5m
>2% Cu over ≥5m
>1% Cu over ≥5m
>0.5% Cu over ≥5m
All other drill holes >50
Deposit Area
Exploration Corridor
Fault
All Weather Gravel Road
Creeks and Streams
Mineral Reserves &Resources
Other Deposits
Mining Complete
LEGEND
MillCamp
N
500
meters
Inferno North (extension of Minto North)
Minto North
Inferno
Minto East 2
Minto South
Minto Main
Area 2/118
Copper Keel
A’
A
Wildfire/Copper Keel NE
Minto East
Key Points Current Mineral Resource/Reserve
has a 3.5 km strike length
Other underground geophysical and geological targets exist
Ridgetop
2727
Minto Mineral Resources & Underground Development
Mineral Reserves and Resources
Minto Main
Area 2/118
Copper Keel
Minto East
WildfireN S
Minto East 2
Mining Complete
Inferno North
700masl
500masl
900masl
RidgetopMinto North
Minto Permitting and Mining Phases
I – III: Minto Main pit mining completed Q2 2011, stockpiles processed until Q2 2012
IV: Current Mining - Area 2/118 mined by underground (open pit mining completed Q4 2014)
V: Minto North and Area 2 Stage 3 to be mined by open pit; Minto East by underground
VI: 2012 PFS added Copper Keel and Wildfire underground Mineral Reserves
Other Deposits
2828
Santo Domingo – July 2014 Feasibility Study Summary
Summary of July 2014 FS1,2
Mine life (years) 18
Average annual production
LOM Avg: 128M lbs Cu, 4.2 Mt Fe, 16 koz AuFirst 5 years: 248M lbs Cu, 3.3 Mt Fe, 35 koz Au
*Off-take agreements committed for 50% of Cu and Fe LOM
Planned throughput (tpd)
LOM Avg: 60,500 First 5 Years: 65,000
Development capital $1.7B
Investment return (after tax)
IRR: 17.9%(27.3% assuming $1B project debt or 60% leverage)
NPV @ 8% discount rate: $797MPayback: 4.2 years
By-products Fe, Au
1. Source: Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. 2. The report was compiled by AMEC’s Santiago office with an accuracy range of -10% to +15% for capital and operating costs. The estimates presented in the FS are current as of October 2013. 3. C1 Cash Cost is an Alternative Performance Measure. C1 Cash Cost on a by-product basis includes gold and iron credits. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
Estimated C1 cash cost3
By-product Basis (Cu)LOM Average ($/payable lb Cu): First 5 years ($/payable lb Cu):
($0.06)$0.49
Co-product Basis (Cu & Fe)LOM Average ($/payable lb Cu): LOM Average ($/payable t Fe):
$1.50$43.00
Metal Price Assumptions
Cu: $2.85/lb
Fe: $1.31/dmtu ($85/t conc. @ 65% Fe)
Au: $1,275/oz
2929
Providencia Exploration Project – Region II, Chile
Metallogeny
1. Jurassic IOCG (Iron Oxide Copper Gold) Deposits
Mantoverde
Santo Domingo
Julia Reventon
2. Cretaceous Manto & Porphyry Deposits
Candelaria
Mantos Blancos
La Casualidad
Tersa de Colmo
Franke
Altamira
3. Cretaceous – Paleocene Porphyry Deposits
Spence
Virgo – Sierra La Overa
Providencia Project lies ~80 kms North of Santo Domingo
3030
Proven Track Record of Growth in Mineral Resource Base
Minto
Cozamin
CS Total
1. Includes Mineral Resources and Reserves as reported in Annual Information Forms for each respective year. 70% share of Santo Domingo Mineral Resources as at August 31, 2012 and Mineral Reserves as at May 2, 2014. Kutcho as at Dec. 31, 2010. See Forward-Looking Statements and Cautionary Note for NI 43-101 information
Minto
Kutcho
SantoDomingo
Minto
Cozamin
CS Total
Kutcho
Minto
Cozamin
SantoDomingo
CS Total
CS Total
CS Total
CS Total
SantoDomingoSanto
Domingo
CozaminCozamin
Cu tonnes in Mineral Reserves1 Per Share
Cu
to
nn
es/s
har
e (b
asic
)
KutchoKutcho
SantoDomingo
Kutcho
Minto
Cozamin
PintoValley
0.000
0.004
0.008
0.012
0.016
0.020
2008 2009 2010 2011 2012 2013 2014
Cu tonnes in M&I Mineral Resources1 Per Share
Cu
to
nn
es/s
har
e (b
asic
)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008 2009 2010 2011 2012 2013 2014
0
500
1,000
1,500
2,000
2,500
2008 2009 2010 2011 2012 2013 2014
Tho
usa
nd
s (t
on
nes
)
Cu tonnes in Mineral Reserves1 Cu tonnes in M&I Mineral Resources1
Tho
usa
nd
s (t
on
nes
)
Minto
Kutcho
Minto
Kutcho
Minto
Cozamin
SantoDomingo
SantoDomingo
CozaminCozamin
Kutcho
SantoDomingo
Kutcho
MintoCozamin
PintoValley
SantoDomingo
Kutcho
MintoCozamin
SantoDomingo
PintoValley
SantoDomingo
Kutcho
CozaminMintoCozamin Cozamin Cozamin
Minto Minto
Kutcho
Minto
Cozamin
KutchoMinto
0
0.001
0.002
0.003
0.004
0.005
0.006
2008 2009 2010 2011 2012 2013 2014
Cozamin
Minto
Kutcho
SantoDomingo
PintoValley
SantoDomingo
Cozamin
Kutcho
Minto
CozaminCozaminMinto MintoKutcho Kutcho
806%1,034%
208%355%
31
Consolidated Mineral Reserve Estimate
See corresponding Notes on Consolidated Mineral Reserve Estimate at the end of this presentation.
MINERAL RESERVES CONTAINED METAL
Category ktCu Zn Pb Mo Ag Au Fe Cu Zn Pb Mo Ag Au Fe6
% % % % g/t g/t % kt kt kt kt koz koz Mt
Pinto Valley1 Proven 199,212 0.33 - - 0.008 - - - 651 - - 16 - - -
31-Dec-14 Probable 9,682 0.24 - - 0.008 - - - 23 - - 1 - - -
Total 208,894 0.32 - - 0.008 - - - 675 - - 17 - - -
Cozamin2 Proven 4 1.23 1.18 0.21 - 38 - - 0 0 0 - 5 - -
31-Dec-14 Probable 6,971 1.49 0.79 0.17 - 42 - - 104 55 12 - 9,394 - -
Total 6,975 1.49 0.79 0.17 - 42 - - 104 55 12 - 9,398 - -
Minto3 Proven 2,857 1.82 - - - 6 0.93 - 52 - - - 586 86 -
31-Dec-14 Probable 4,802 1.64 - - - 6 0.63 - 79 - - - 889 98 -
Total 7,659 1.71 - - - 6 0.74 - 131 - - - 1,475 183 -
Santo Domingo4
(100%)Proven 65,300 0.61 - - - - 0.08 30.9 398 - - - - 170 8
31-Dec-14 Probable 326,400 0.24 - - - - 0.03 27.6 783 - - - - 336 67
Total 391,700 0.30 - - - - 0.04 28.2 1,175 - - - - 506 75
Kutcho5 Probable 10,441 2.01 3.19 - - 35 0.37 - 210 333 - - 11,618 124 -
31-Dec-14 Total 10,441 2.01 3.19 - - 35 0.37 - 210 333 - - 11,618 124 -
TOTAL MINERAL RESERVES 2,295 388 12 17 22,491 814 75
32
Consolidated Mineral Resource Estimate
See corresponding Notes on Consolidated Mineral Resource Estimate at the end of this presentation.
MINERAL RESOURCES – Inclusive of Mineral Reserves CONTAINED METAL
Category ktCu Zn Pb Mo Ag Au Fe Cu Zn Pb Mo Ag Au Fe6
% % % % g/t g/t % kt kt kt kt koz koz kt
Pinto Valley1 Measured 665,233 0.34 - - 0.008 - - - 2,291 - - 56 - - -
31-Dec-14 Indicated 939,033 0.28 - - 0.006 - - - 2,605 - - 60 - - -
M&I 1,604,266 0.31 - - 0.007 - - - 4,896 - - 116 - - -
Inferred 58,615 0.23 - - 0.005 - - - 137 - - 3 - - -
Cozamin2 Measured 4 1.23 1.18 0.21 - 38 - - 0 0 0 - 5 - -
31-Dec-14 Indicated 12,724 1.34 1.32 0.23 - 45 - - 170 168 29 - 18,239 - -
M&I 12,728 1.34 1.32 0.23 - 45 - - 170 168 30 - 18,244 - -
Inferred 7,151 1.19 1.15 0.18 - 33 - - 85 82 13 - 7,682 - -
Minto3 Measured 10,867 1.28 - - - 4 0.53 - 139 - - - 1,426 186 -
31-Dec-14 Indicated 37,091 1.02 - - - 4 0.36 - 380 - - - 4,437 435 -
M&I 47,958 1.08 - - - 4 0.40 - 519 - - - 5,863 621 -
Inferred 16,205 0.92 - - - 3 0.30 - 149 - - - 1,649 157 -
Santo Domingo4 Measured 64,800 0.62 - - - - 0.08 31.2 402 - - - - 171 -
(100%)31-Dec-14
Indicated 449,000 0.27 - - - - 0.03 25.0 1,212 - - - - 491 -
M&I 513,000 0.31 - - - - 0.04 25.8 1,590 - - - - 660 -
Inferred 58,100 0.20 - - - - 0.03 24.3 116 - - - - 49 -
Kutcho5 Measured 5,421 2.15 2.86 - - 31 0.34 - 116 155 - - 5,482 59 -
31-Dec-14 Indicated 5,859 2.24 3.67 - - 42 0.45 - 131 215 - - 7,831 84 -
M&I 11,280 2.19 3.28 - - 37 0.39 - 248 370 - - 13,313 143 -
Inferred 1,090 1.74 2.04 - - 31 0.35 - 19 22 - - 1,077 12 -
TOTAL MEASURED & INDICATED MINERAL RESOURCES 7,423 538 30 116 37,420 1,423 0
TOTAL ADDITIONAL INFERRED MINERAL RESOURCES 506 104 13 3 10,408 217 0
33
Notes: Consolidated Mineral Reserve Estimate
NOTES: Mineral Reserves take into account mining activities (where applicable) until December 31, 2014. Gregg Bush, P.Eng., Senior Vice President and Chief Operating Officer at Capstone, is the Qualified Person for the disclosure of Capstone's consolidated Mineral Reserves table. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. All Mineral Reserve estimates are inclusive of dilution and mining recovery factors. Contained ounces (oz) are troy ounces. COG is cut-off grade. NSR is net smelter return. All amounts in US$ unless otherwise specified. Stockpiled material is treated as Proven Mineral Reserves. See Technical Reports filed under Capstone’s profile on SEDAR for further information.
1. Gregg Bush, P.Eng., Senior Vice President and Chief Operating Officer at Capstone, is the Qualified Person responsible for the disclosure of the Pinto Valley Mine Mineral Reserves taking into account ongoing mine production. John Marek, PE, SME-RM, is an independent Qualified Person responsible for the preparation of the Mineral Reserves estimate with an effective date of January 1, 2014. Economic inputs to the block model were $2.75/lb copper, mining $2.02/t moved, mill $5.50/t processed, G&A $1.65/t processed and an average copper recovery of 88%. Mineral reserves are reported above a total copper (TCu) COG of 0.18% TCu between years 2014-2022. An internal COG of 0.17% TCu was applied between years 2023-2025.
2. Gregg Bush, P.Eng., Senior Vice President and Chief Operating Officer at Capstone, is the Qualified Person responsible for the disclosure of the Cozamin Mine Mineral Reserves taking into account ongoing mine production. Mel Lawson, SME-RM, and Allan Schappert, SME-RM, are independent Qualified Persons responsible for the preparation of the Mineral Reserves estimate with an effective date of December 31, 2013. A NSR COG of $42.50/t was used for the San Roberto and MNFW zones and $38.00/t was used for San Rafael. Metal prices used in reserve estimate for copper, silver, zinc, and lead, respectively, are $2.50/lb, $20/oz, $0.80/lb, and $0.85/lb. The exchange rate used is MEX12.50 to US$1.00.
3. Pooya Mohseni, P.Eng., Chief Engineer at Minto, is the Qualified Person responsible for the disclosure of the Minto Mine Mineral Reserves taking into account ongoing mine production, in addition to the preparation of the Mineral Reserves estimate of the Minto deposits. The open-pit Mineral Reserves at Minto North, and the underground Mineral Reserves at Area 2, Area 118, and Minto East have an effective date of January 1, 2011. The open-pit Mineral Reserves at Minto South Deposit (MSD) and Ridgetop, and the underground Mineral Reserves at Copper Keel and Wildfire have an effective date of January 1, 2012. Metal Price assumptions used to calculate the NSR COG for all deposits are: Cu=$2.50, Au=$300, Ag=$3.90. Processing recoveries for all deposits are: Cu=91%, Au=70%, Ag=78%. Open pit mineral reserves are reported above 0.5% Cu COG. Underground mineral reserves are reported above a $64.40 NSR COG.
4. Santo Domingo Project Mineral Reserves shown on 100% basis (Capstone’s share is 70%). Carlos Guzman, FAusIMM, CMC, is the independent Qualified Person responsible for the preparation of the Mineral Reserves estimate with an effective date of May 2, 2014. Mineral Reserves are reported as constrained within Measured and Indicated pit designs, and supported by a mine plan featuring variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of $2.75/lb Cu, $1,275/oz Au and $80/dmt of Fe concentrate; recovery to concentrate assumptions of a maximum of 93.6% for Cu and 75% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper concentrate treatment charges of $70/dmt, $0.07/lb of Cu refining charges, $5/oz of Au refining charges, $48/wmt and $3/wmt for shipping Cu and Fe concentrates respectively; waste mining cost of $1.53/t, mining cost of $1.53/t ore, and process and G&A costs of $7.84/t processed; average pit slope angles that range from 37.6º to 43.6º; a 2% royalty rate assumption, and an assumption of 100% mining recovery.
5. Michael Makarenko, P.Eng., is an independent Qualified Person responsible for the preparation of the Kutcho Mineral Reserves estimate with an effective date of February 15, 2011. Mineral Reserves are reported within 1.0% Cu grade shells used for stope design.
6. Fe as magnetite concentrate (Fe3O4)
34
Notes: Consolidated Mineral Resource Estimate
NOTES: Mineral Resources take into account mining activities (where applicable) until December 31, 2014. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of Capstone's consolidated Mineral Resources table. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are reported inclusive of the Mineral Reserves. All Mineral Resources are exclusive to dilution and mining recovery factors. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. Contained ounces (oz) are troy ounces. COG is cut-off grade. NSR is net smelter return. M&I = Measured & Indicated. All amounts in US$ unless otherwise specified. Stockpiled material is treated as Measured Mineral Resources. See Technical Reports filed under Capstone’s profile on SEDAR for further information.
1. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of the Pinto Valley Mine Mineral Resources taking into account ongoing mine production. Garth Kirkham, P.Geo., FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate with an effective date of January 1, 2014, which are reported above a total copper (TCu) COG of 0.18% TCu.
2. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of the Cozamin Mine Mineral Resources taking into account ongoing mine production. Ali Shahkar, P.Eng., is an independent Qualified Person responsible for the preparation of the San Roberto and Mala Noche Footwall zones Mineral Resources estimates. The cut-off date for mining and drillhole/mine sample data for the San Roberto and Mala Noche Footwall zones is December 31, 2013. Robert Sim, P.Geo., is an independent Qualified Person responsible for the San Rafael zone Mineral Resources estimate. The cut-off for drillhole data for the San Rafael zone is November 26, 2009. The Mineral Resources are reported above a NSR of $35/t using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries used to calculate the NSR COG for the San Roberto and Mala Noche Footwall zones Mineral Resources are based on historical site operating experiences reflecting recoveries of: Cu=92%; Ag=72%; Zn=69%; Pb=64%. Processing recoveries used to calculate the NSR COG for the San Rafael Mineral Resources are based on laboratory results reflecting recoveries of: Cu=41%, Ag=32%, Zn=84%, Pb=65%, Au=21%. Exchange used is MEX12.50 to US$1.00.
3. Douglas McIlveen, P.Geo., Chief Geologist at Minto, is the Qualified Person responsible for the disclosure of the Minto Mine Mineral Resources taking into account ongoing mine production. Garth Kirkham, P.Geo., FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimates for the Minto North and East areas that include respective drilling data cut-off dates of December 1, 2009 and December 15, 2010. Dr. Wayne Barnett, Ph.D., Pr.Sci.Nat., is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate at Ridgetop that takes into account drillhole data until August 2010, and the MSD deposit, which includes the Area 2/118, Wildfire, and Copper Keel areas, and takes into account drillhole data until September 29, 2011. Minto North and Ridgetop areas are amenable to open pit extraction. Area 2/118 and Wildfire areas are amenable to open pit and underground mining, while Minto East and Copper Keel areas are suitable for underground mining. Mineral Resources are reported above a 0.5% Cu COG. Metal price assumptions used to determine the COG for reasonable prospects of economic extraction for all deposit areas are: Cu=$3.50, Au=$1,300, Ag=$16.00. Resources include any material remaining in the Minto Main Deposit not considered in the current mine plan. Resources exclude material mined but not processed during pre-stripping activities in the Area 2 region of MSD and currently held in stockpiles.
4. Santo Domingo Project Mineral Resources shown on 100% basis (Capstone’s share is 70%). David Rennie, P.Eng., is an employee of Rosco Postle Associates Inc. and an independent Qualified Person responsible for the preparation of the Mineral Resources estimates for the Santo Domingo Sur, Iris, and Iris Norte deposits, which have an effective date of August 31, 2012. Mineral Resource estimates for the Estrellita deposit have an effective date of October 30, 2007. Mineral Resources for the Santo Domingo Sur, Iris, and Iris Norte deposits are reported using a COG of 0.25% copper equivalent (CuEq). CuEq grades are calculated using average long term prices of US$3.50/lb Cu, US$1,500/oz Au and US$1.94/dmtu Fe (US$120/dmt conc. at 62% Fe). The CuEq equation is: Metal Value = Grade*Cm*R%/100*(Price-TCRC-Freight)*(100-Royalty)/100, where Cm is a constant to convert grade of metal to metal price units; R is metallurgical recovery and %Cu Equivalent = (Cu Value + Au Value + Fe Value)/(Cu Value per 1%Cu). An assessment of reasonable prospects for economic extraction for the Santo Domingo Sur, Iris, and Iris Norte deposits was performed using a Lerchs–Grossman pit shell that has the following assumptions: pit slopes averaging 45°; mining cost of US$1.19/t, processing cost of US$ 4.49/t; processing recovery of 85%; selling price of US$2.25/lb, and a selling cost of US$0.247/lb. At the 0.25% CuEq cut-off, all but 5% of the Mineral Resources were captured by the pit shell. On the basis of this result, it was concluded that there was little merit in restricting the Mineral Resources to those blocks contained only within the pit shell. Accordingly, the Mineral Resource inventory was reported in its entirety. Mineral Resources for the Estrellita deposit are reported using a 0.3% Cu COG.
5. Garth Kirkham, P.Geo, FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimates with an effective date of February 15, 2011. Mineral Resources are reported above a 1.5% Cu COG.
6. Fe as magnetite concentrate (Fe3O4)
3535
Unless otherwise indicated, Capstone has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (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” or “QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). For readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this presentation 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 presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and reviewed and approved by Gregg Bush, P.Eng., Senior Vice President and Chief Operating Officer for Capstone Mining. Technical Information related to mineral exploration activities has been reviewed and approved by Brad Mercer, P. Geol., Senior Vice President, Exploration. Both are QP’s under NI 43-101.
This presentation summarizes some of the information contained in the Pinto Valley Mine 2014 Pre-Feasibility Study, dated April 28, 2014, that was directed by Capstone with contributions from Kirkham Geosystems Ltd. (geology, Resource estimation), Independent Mining Consultants Inc. (reserve, geotechnical, mine design and schedule, equipment selection), KWM Consulting Inc. (metallurgy, mill operation), AMEC Environment & Infrastructure Inc. (tailings), Stantec (Infrastructure and PFS report compilation), SRK (US), Inc. (environmental), and Adam M Consulting Inc. (financial modelling). Personnel from each of these companies will be signing off as a QP as defined in NI 43-101 for their specific responsibilities. The following QP’s authored the technical report: Mel Lawson, P.E. (Stantec), Garth Kirkham, P.Geo. (Kirkham Geosystems Ltd.), John Marek P.E. (Independent Mining Consultants, Inc.), Ken Majors P.Eng. (KWM Consulting Inc.), Tony Freiman, P.E. (AMEC Inc.), Adam Majorkiewicz, P.Eng (Adam M Consulting Inc.) and Cori Hoag C.P.G. (SRK). The January 1, 2014 Mineral Resource estimate reported herein for the Pinto Valley property was prepared by Garth Kirkham, P. Geo, Kirkham Geosystems Ltd., an independent QP. Based on the Mineral Resource Estimate, a standard methodology for pit limit analysis, mining sequence, and cut-off grade optimization, including application of mining dilution, process recovery, economic criteria and physical mine and plant operating constraints, has been followed to design the Pinto Valley pit and determine the Mineral Reserve Estimate dated January 1, 2014.
This presentation summarizes some of the information contained in the NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico dated July 31 , 2014. The following QP’s were responsible for the preparation of their relevant portions of the Technical Report: Patrick Andrieux, PhD., P.Eng. (Itasca Consulting Group. Inc), Dave Hallman, PE (Tetra Tech, Inc), Jenna Hardy, P.Geo. (Nimbus Management Ltd.), Mel Lawson, SME-RM (Stantec Consulting International LLC), Ken Major, P.Eng. (KWM Consulting Inc.), Vivienne McLennan, P.Geo. (Capstone Mining Corp.), Allan Schappert, SME-RM (Stantec Consulting International LLC), Ali Shahkar, P.Eng. (Lions Gate Geological Consulting Inc.), Robert Sim, P.Geo. (Sim Geological Inc.), Brad Skeeles, P.Eng. (formerly with Capstone Mining Corp.), and Jeremy Vincent, P.Geo. (Capstone Mining Corp.).
This presentation summarizes some of the information contained in the Minto Phase VI Preliminary Feasibility Study Technical Report dated January 2012. Qualified Persons under National Instrument 43-101 responsible for this report: John Sagman, BASc., P.Eng., PMP, Wayne Barnett, Pr.Sci.Nat., SRK Consulting (Canada), Inc., John Eggert, P.Eng, Eggert Engineering Ltd; Bruce Murphy, P.Eng., SRK Consulting (Canada), Inc.; Bill Hodgson, P.Eng., Genivar Inc.; Garth Kirkham, P. Geo, Kirkham Geosystems Ltd; Michael Levy, PE, SRK Consulting (Canada), Inc.; Brad Mercer, P.Geol. Capstone Mining Corp.; Pooya Mohseni, P.Eng., Minto Exploration; Marek Nowak, P.Eng., SRK Consulting (Canada) Inc.; and Colleen Roche, P.Eng., Capstone Mining Corp. who are responsible for certain sections of the PFS as detailed in the PFS.
This presentation summarizes some of the information contained in the Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. The following QP’s were responsible for the preparation of their relevant portions of the Technical Report based on the Feasibility Study: David Frost, F.AusIMM (AMEC Ingeniería y Construcción Ltda.), Hans Gopfert, P.Eng (AMEC Ingeniería y Construcción Ltda.), Joyce Maycock, P. Eng (AMEC Ingeniería y Construcción Ltda.), Vikram Khera, P. Eng (AMEC Ingeniería y Construcción Ltda.), Anna Klimek, P.Eng (AMEC Ingeniería y Construcción Ltda.), Roy Betinol, P.Eng. (BRASS Chile S.A.) -- Seawater and Magnetite Concentrate Pipeline System, Carlos Guzmán, F.AusIMM (NCL Ingeniería y Construcción Ltda.) -- Mineral Reserve Model, Mine Equipment and Mine Development , Tom Kerr, P.Eng. (Knight Piésold S. A.) - Tailings Storage Facility, David Rennie, P. Eng (Roscoe Postle Associates Inc.) -- Mineral Resource Model. The technical information in the July 8, 2014 report was reviewed by Court Muggli, P.E., Project Director, Capstone Mining Corp., and Gregg Bush, P. Eng., Senior Vice President and Chief Operating Officer, Capstone Mining Corp., both QP’s under NI 43-101.
Compliance with NI 43-101
36
For additional information, please visit capstonemining.com or contact us at:
Phone: +1-604-684-8894
Toll Free: 1-866-684-8894
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Last updated October 27, 2015
