Capstone Receives Amended Quartz Mining License

Capstone Mining Corp. (TSX:CS) announced that it has received an amended Quartz Mining License for the Minto North deposit. However, the company has not yet received its Water Use License amendment; the Yukon Water Board has said the second amendment is “required in order to commence pre-stripping of Capstone’s Minto North pit.”

As quoted in the press release:

Underground mining and milling operations are not affected and production guidance at Minto for 2014 is unchanged. The mill will process underground ore and stockpile for the remainder of the year as planned. The 2014 mine plan submitted in the license applications did however call for pre-stripping of the Minto North open pit, starting in September 2014. The delay in starting the pre-stripping of Minto North has resulted in a revised mine plan which will bring forward fully permitted underground ore from Area 118, starting later this month, to maintain full mill production and partially offset the 2015 shortfall in ore from the Minto North open pit. Production in 2015 is not expected to be materially different than 2014, however the most significant production from Minto North will shift from 2015 to 2016.

As a result of the delay in pre-stripping, the surface mining contractor will be downsizing its crew at Minto, affecting approximately 50 people. This downsizing is in addition to the 44 jobs affected with the surface mining contractor in January 2014, when Minto slowed open pit mining to better align with the expected permitting timeline. Following the downsizing by the surface mining contractor, total direct and contract employment at Minto is approximately 250 people. Capstone’s 171 employees and present underground mining contract employees are not affected. Support contractor positions will be evaluated based on the reduction of personnel for the mining contractor.

Click here to read the full Capstone Mining Corp. (TSX:CS) press release.