Capstone Mining outlines new approach to developing Kutcho copper project

By The Canadian Press

VANCOUVER, B.C. - Capstone Mining Corp. (TSX: CS.TO) says it's considering a "radically different approach" to developing the Kutcho copper-zinc project in northwestern British Columbia.

The Vancouver-based company announced Tuesday that a preliminary economic assessment from JDS Energy & Mining Inc. recommends an underground copper-zinc mine rather than an open pit operation.

Among the advantages would be reduced power requirements and the ability to use gold and silver byproducts at the operation to lower the cost of producing the copper-zinc resource, Capstone said.

"The Kutcho preliminary economic assessment takes a radically different approach to the potential development of the Kutcho copper project," said Stephen Quin, Capstone's president and chief operating officer.

"By going underground, scaling back the throughput and focusing on high grades, we have been able to reduce the capital cost and operating costs and, equally as important, significantly reduce the environmental footprint of the project,"

The company's shares closed Monday at $2.96, up one cent.