The net result of the successful 2010 infill drill program was significantly improved continuity of the mineralization in the high grade Esso deposit, resulting in all of the mineralization being moved into the indicated mineral resource category, including mineralization earlier classified in the inferred category.
Using a 1.5% copper cut-off for illustrative purposes, grades for zinc and silver increased by approximately 50% versus prior estimates and increased gold by more than 15% even though this was just an infill-focused drilling program.
The actual cut-off grade applicable to Esso will be established as part of the pre-feasibility study (PFS) currently nearing completion and will be based upon an NSR formula including by-product credits and accounting for metallurgical recovery rates.
The 2010 updated mineral resource estimate for the Esso deposit resulted in an overall gain in tonnage, grade and contained metal, as well as a substantial positive upgrade in the classification of the mineral resource over that reported in February 2009, prior to the commencement of the 2010 infill drill program.
Capstone also reports that the PFS for the Kutcho Project will be completed in January 2011.
All major components of the PFS are nearing completion, with final metallurgical testing on the Esso deposit and annual composites of Main and Esso mineralization currently underway.
