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Capstone Copper Corp. ("Capstone" or the "Company") (TSX:CS) (ASX:CSC) reports today that sulphide copper production is temporarily impacted due to a motor failure in the ball mill at the Mantoverde mine in Chile.
On August 24 th , the Mantoverde site experienced a failure of one of its two ball mill electrical drive motors. Over the next few days, the team on site replaced the damaged motor with the spare in order to return to full capacity. However, on August 30 th , the site experienced a failure of the second ball mill drive motor. Without an additional spare on site, this has resulted in a period of impacted production at Mantoverde.
We estimate repairs to the ball mill motor will take approximately four weeks. During this period, we expect that Mantoverde will continue to operate at approximately half capacity through bypassing the ball mill, an operating mode for which the circuit is configured and that our team has successfully executed previously. An opportunity exists to further mitigate the effects of the interruption by rescheduling plant maintenance that had been planned for later in September to coincide with the ball mill downtime. Our team will continue to identify and execute mitigation plans, investigate the root cause of the motor failure, and advance a replacement and repair strategy to return to full capacity.
At this time, based on an estimated four-week repair schedule while we continue to operate at half capacity during that period, we expect production to be impacted by 3,000 to 4,000 tonnes of copper in concentrate at Mantoverde. Capstone plans to provide further updates in due course.
ABOUT Capstone Copper CORP.
Capstone Copper Corp. is an Americas-focused copper mining company headquartered in Vancouver, Canada. We own and operate the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, we own the fully permitted Santo Domingo copper-iron-gold project, located approximately 30 kilometres northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.
Capstone Copper's strategy is to unlock transformational copper production growth while executing on cost and operational improvements through innovation, optimization and safe and responsible production throughout our portfolio of assets. We focus on profitability and disciplined capital allocation to surface stakeholder value. We are committed to creating a positive impact in the lives of our people and local communities, while delivering compelling returns to investors by responsibly producing copper to meet the world's growing needs.
Further information is available at www.capstonecopper.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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 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 the Company's expectations or beliefs regarding future events. The Company's estimation of the period of time to return to full capacity, and the impact to production are an estimation based on current information and assumptions and are subject to change. Forward-looking statements include, but are not limited to, statements with respect to the estimation of the timing and amount of future production, the timing to resume full production, the ability to operate at reduced capacity, the timing and complexity of equipment repair or replacement, the success of mitigation plans, the extent of production impacts, the root cause of equipment failure, the costs of production and capital expenditures, the success of the Company's mining operations, and the risks included in the Company's continuous disclosure filings on SEDAR+ at www.sedarplus.ca . The impact of global events such as pandemics, geopolitical conflict, or other events, to Capstone Copper is dependent on a number of factors outside of the Company's control and knowledge, including the effectiveness of the measures taken by public health and governmental authorities to combat the spread of diseases, global economic uncertainties and outlook due to widespread diseases or geopolitical events or conflicts, supply chain delays resulting in lack of availability of supplies, goods and equipment, and evolving restrictions relating to mining activities and to travel in certain jurisdictions in which we operate.
In certain cases, forward-looking statements can be identified by the use of words such as "anticipates", "approximately", "believes", "budget", "estimates", "expects", "forecasts", "guidance", "intends", "plans", "scheduled", "target", or variations of such words and phrases, or statements that certain actions, events or results "be achieved", "could", "may", "might", "occur", "should", "will be taken" or "would" or the negative of these terms or comparable terminology. In this document certain forward-looking statements are identified by words including "anticipated", "expected", "guidance" and "plan". By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to changes to cost and availability of goods and raw materials, along with supply, logistics and transportation constraints, changes in general economic conditions including market volatility due to uncertain trade policies and tariffs, asset integrity, suppliers and other essential resources and what effect those impacts, if they occur, would have on the Company's business, including the Company's ability to access goods and supplies and skilled labour, potential delays or disruptions in equipment maintenance and operational continuity, geopolitical events and the effects of global supply chain disruptions, 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 MD&A of those statements and Annual Information Form, all of which are filed and available for review under the Company's profile on SEDAR+ at www.sedarplus.ca . Although the Company has attempted to identify important factors that could cause the Company's actual results, performance or achievements to differ materially from those described in the Company's forward-looking statements, there may be other factors that cause the Company's results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that the Company's forward-looking statements will prove to be accurate, as the Company's actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the Company's forward-looking statements.
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Daniel Sampieri, Vice President, Investor Relations
437-788-1767
dsampieri@capstonecopper.com
Michael Slifirski, Director, Investor Relations, APAC Region
61-412-251-818
mslifirski@capstonecopper.com
Claire Stirling, Manager, Investor Relations
416-831-8908
cstirling@capstonecopper.com
