Name and Location
Pinto Valley copper mine life extension project, Arizona, US.

Client
Capstone Mining.

Project Description
A prefeasibility study on the Pinto Valley mine has extended the mine life by eight years from 2018 to 2026.

Pinto Valley mine – a conventional openpit operation – has been in operation since 1974. The mill operation consists of a primary, secondary and tertiary crushing system, six ball mills and a flotation concentration facility. The mill produces a copper and molybdenum concentrate. Copper cathodes are produced through a solvent extraction electrowinning plant by leaching the run-of-mine material above 0.10% copper and below 0.18% copper grade.

The mine has proven and probable reserves of 232.22-million tonnes, grading at 0.33% copper and 0.008% molybdenum.
Average yearly production for the first five years is estimated at 128.4-million pounds of copper contained in concentrate and 6.6-million pounds of copper cathode.

Ore feed to the mill is planned to continue at 50 000 t/d, or 18.2-million tonnes a year, for the first two years, followed by an increase to 52 000 t/d, or 18.9 million tonnes a year, for the remaining life of the mine. Low-grade ore that will be stockpiled earlier in the mine life will be processed in 2025 and 2026, with metal recoveries averaging 88.0% for copper and 42.8% for molybdenum.

Life-of-mine production is estimated at 119.5-million pounds of copper contained in concentrate and 6.3-million pounds of cathode copper, as well as 1.4-million pounds of molybdenum and 235 000 oz
of silver credited to concentrate each year.

Value
Capital costs are estimated at $187.9-million.

Duration
Mine production will increase from 22.6-million tonnes in 2014 to about 42.3-million tonnes from 2016 to 2019 and then decrease to 2025.

Latest Developments
Capstone believes there is potential to extend the operational life beyond the mine-life extension-project reserve life, if mineral resources not included in the life extension mine plan can be successfully converted into mineral reserves.
Capstone intends to start engineering and economic studies to consider all remaining current mineral resources not included in the life extension mine plan and their potential for development beyond 2026.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Capstone Mining VP of investor relations and communications Cindy Burnett, tel +1 604 637 8157 or
email cburnett@capstonemining.com.