Nov. 28, 2010 (Canada NewsWire Group) --
Operating Activities Temporarily Suspended
VANCOUVER, Nov. 28 /CNW/ - Capstone Mining Corp. (CS: TSX) regrets to report that a fatal accident occurred at its Cozamin Mine on the morning of November 24, 2010, when a miner was trapped in a piece of equipment during a rock fall incident. Intensive rescue operations were carried out over the two days following the incident and the victim was recovered and pronounced dead at the scene on the evening of November 26. Authorities have determined that the incident was an accident.
Capstone is committed to the highest safety standards at each of its operations and regrets that these efforts did not prevent this incident. The rock fall occurred in an area with extensive roof bolting and the operator was in an approved area for the equipment to operate. As a result of the accident, Capstone has suspended mining operations at Cozamin pending a review of rock support and pre-work inspection standards throughout the mine with support from independent consultants. Mining operations will commence on a gradual basis as reviews of each of the areas of the mine are completed and any additional safety measures are fully implemented. The operations are expected to return to capacity over the next seven to ten days. This accident will affect overall production for the Cozamin Mine, but the safety of Capstone's workers comes first. Additional guidance will be provided once production resumes.
"Capstone and its employees at the Cozamin Mine are focused on safety each and every day," said Gregg Bush, COO of Capstone Mining Corp. "This tragic accident is a terrible shock to everyone and we extend our heartfelt sympathy to the family of our employee. In order to ensure that such an accident cannot occur again, we are making every effort to ensure safe working conditions by inspecting all working areas before any work recommences."
This document 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 Capstone Mining Corp. (the "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 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", "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. 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, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; 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 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. There can be 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.
Darren Pylot, Vice Chairman & CEO, Gregg Bush, COO, Or Investor Relations' Jason Howe at (604) 684-8894 or (866) 684-8894 or e-mail Capstone at email@example.com