VANCOUVER - Capstone Mining Corp. ('Capstone' or the 'Company') (TSX: CS) announces it intends to advance the Cobalt Project at Santo Domingo in Region III, Chile, to Feasibility as described in the Santo Domingo Project, Region III, Chile NI 43-101 Technical Report and Preliminary Economic Assessment1.
The production of battery-grade cobalt sulphate at Santo Domingo is expected to significantly add to the robust copper-iron-gold project and maximizes the recovery of future facing metals from this rich resource.
Darren Pylot, Capstone President and CEO said, 'Capstone has an incredible opportunity to produce ethically-sourced battery-grade cobalt sulphate from Santo Domingo's future copper-iron tailings stream. The process is a series of conventional steps, with below zero costs given significant by-product credits.'
'The potential of cobalt production in Chile has been underappreciated for decades while copper and, recently, lithium have been the main focus of investment. Although this market is small, projections for demand growth suggest that it could triple in size by 2030 mainly due to the development of electromobility. As the chemical properties of cobalt extends the life of rechargeable lithium batteries used in electric vehicles, we are seeing a significant boost to exploration and extraction activity. Capstone's plans for a cobalt feasibility study at Santo Domingo could represent a great step forward and an example of Chile's potential to become an important world producer.' said Edgar Blanco, Chile's mining ministry undersecretary.
The Santo Domingo Advantage in the Global Cobalt Supply Landscape2
Downstream cobalt users are actively seeking ethical supply to meet future demand needs and Chile is one of the best mining jurisdictions in the world.
In 2020, an estimated 71% of the 133,000 tonnes of cobalt produced globally originated from the Democratic Republic of Congo (DRC) and the majority of this was shipped to China, the leading importer of mined cobalt and exporter of refined cobalt.
Global cobalt sulphate production in 2020 is estimated at 43,000 tonnes of cobalt contained. Of this, greater than 85% was produced in China and greater than 90% originated from DRC intermediates.
By 2025, an estimated 140,000 tonnes of cobalt contained in cobalt sulphate will be required for lithium-ion (Li-ion) batteries.
Cobalt contained in sulphate currently sells at a premium over the cobalt metal benchmark price3.
The bulk of global cobalt sulphate production is dependent on refining third-party feedstock imported from other countries. The majority of cobalt sulphate producers are currently processing feed that is priced at around 93-94% of the cobalt metal benchmark price.
Santo Domingo's PEA estimated costs of -$4 per pound (net of by-products in cobalt operation) positions it to be a unique, fully integrated producer of battery-grade cobalt sulphate4.
Santo Domingo will be the only cobalt sulphate project in the Americas not dependent on third-party DRC feed5.
Santo Domingo's cobalt processing capacity could supply enough battery-grade material for more than 500,000 electric vehicles (EV's) annually6.
Mr. Pylot added, 'A cobalt operation at Santo Domingo would unlock Chile's vast potential for this critical metal and it is exciting that Capstone is leading this vision. The selection of a strategic partner due later this year, will accelerate this unique project to recover a future-facing, green metal from a waste stream, a plan that I'm set on making a reality.'
ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 100% of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region III, Chile, as well as a portfolio of exploration properties. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining friendly regions, centred in the Americas. We are committed to the responsible development of our assets and the environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release, and the documents incorporated by reference herein, contains '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. ('Capstone' or 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 our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the estimation of Mineral Resources and Mineral Reserves, the realization of Mineral Reserve estimates, the timing and amount of estimated future production, costs of production, the timing and possible outcome of legal proceedings and regulatory actions, and capital expenditures, the success of our mining operations, environmental risks, unanticipated reclamation expenses and title disputes, Capstone's ability to satisfy the conditions of closing the Gold Stream Agreement and complete required corporate matters, Capstone's ability to complete the required agreements contemplated in the Framework Agreement with Puerto Ventanas, Capstone and Puerto Ventanas' ability to finance the construction of the Port, Capstone's ability to finance the Santo Domingo Project, the successful completion of our strategic process for the Santo Domingo Project. In certain cases, forward-looking statements can be identified by the use of words such as 'aims', 'plans', 'expects', 'aiming', 'approximately', 'guidance', 'scheduled', 'target', 'estimates', 'forecasts', 'extends', 'convert', 'potential', 'intends', 'anticipates', 'believes' or variations of such words and phrases, or statements that certain actions, events or results 'may', 'could', 'should', 'would', 'will', '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 that may cause our 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, permitting risks related to the Santo Domingo Port and other permits required for the Santo Domingo Project our ability to finance the Santo Domingo Project, our ability to find a strategic partner for the Santo Domingo Project, risk related to compliance with our covenants under our RCF, risks related to inherent hazards associated with mining operations and closure of mining projects, the inherent uncertainty of mineral exploration and estimations of exploration targets, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, Capstone's ability to acquire properties for growth, counterparty risks associated with sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, changes in governmental tax legislation or interpretation thereof, impact of climatic conditions on our operations, aboriginal title claims, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Santo Domingo Project, increased constructions costs, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, 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, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.
Contact:
Jerrold Annett
Tel: 647-273-7351
Email: jannett@capstonemining.com
CAPSTONE MINING 
