A Leading Intermediate Copper Producer

A Leading Intermediate Copper Producer
June 2015
1
Cautionary Note Forward Looking Information
This presentation, and the documents incorporated by reference herein, 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 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 mineral 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”, “outlook”, “guidance”, “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. In this document, certain forward-looking statements are identified by words
including “may”, “future”, “expected”, “intends” and “estimates”. 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 forwardlooking 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 resources; possible variations in ore reserves, grade or recovery rates; accidents, dependence on key personnel, labour pool constraints, labour disputes; availability of infrastructure required
for the development of mining projects; delays or inability to obtain governmental and regulatory approvals for mining operations or financing or in the completion of development or
construction activities; compliance with debt covenants, 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 management’s discussion and analysis 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 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. The Company provides 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.
Alternative Performance Measures
“C1 cash cost”, “cash cost”, “all-in sustaining cost”, “all-in cost”, “fully-loaded all-in cost”, “adjusted net earnings/loss”, adjusted EBITDA”, “operating cash flow before changes in working capital”,
“net debt” are Alternative Performance Measures. Alternative performance measures are furnished to provide additional information. These performance measures are used by management to
monitor performance, to plan and to assess the overall effectiveness and efficiency of mining operations. These performance measures may not be comparable to similar data presented by other
mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance included in the Company’s unaudited condensed interim
consolidated financial statements prepared in accordance with IFRS.
Currency
All amounts are in US$ unless otherwise specified.
2
About Capstone
Low-risk copper producer focused on the Americas
Stable cash flow generation from three mines
Financial flexibility to fund growth
Proven track record of sustainable growth
A leading intermediate copper producer
3
PRODUCTION
DEVELOPMENT
EXPLORATION
Three operating mines
Growth Projects
Portfolio
Production assets located in
stable geographies in the
Americas producing
90 k tonnes1 of copper in 2015
Disciplined approach to
construction, offering significant
growth in planned copper
production over next five years
Early-stage base metals
exploration properties

Pinto Valley

Arizona, US
59 k tonnes1 copper

Santo Domingo
Region III, Chile
CS 70%; KORES 30%
Cozamin

Long term
Short term
Portfolio
Chile
SQM - option to earn
up to 70% of Project
Providencia
Zacatecas State, Mexico
18 k tonnes1 copper

Minto
Yukon, Canada
13 k tonnes1 copper
1.±5%; see news release dated January 20, 2015.
4
Two-Tiered Growth Strategy
1. Robust organic growth potential



Potential brownfield expansion at Pinto Valley - PV3 PFS underway
Advancing the Santo Domingo project
Progressing the exploration portfolio
2. Growth through strategic acquisition

Maintain disciplined, well-balanced approach with
a conservative and flexible balance sheet

Low-risk, mining-friendly jurisdictions in the Americas

Copper asset in or near production
Capstone is well-positioned for profitable growth,
supported by considerable financial flexibility
5
Pinto Valley Mine
Open Pit Mine in Arizona, US
Mine life remaining (years)
11
Q1 2015 Production1 (k tonnes)
Q1 2015 C1 cash cost2 ($/payable lb produced)
2015 Production1 guidance (k tonnes Cu ±5%)
2015 C1 cash cost2 guidance ($/payable lb produced)
15.8
$1.93
59.0
$2.00- $2.10
By-products
Mo, Ag
Key Points
 Two cases to evaluate the significant amount of resources not in the mine plan are being advanced to
Pre-Feasibility study level to be completed in Q3 2015 (PV3)
 Base case: 10-15% increase in throughput and possibility of mine life extension
 Case two: throughput increase to 90,000 tpd combined with potential mine life extension
Current PV2 mine plan represents only 16% of the total M&I Resource
1.±5%; see news release dated April 13, 2015. 2. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as
treatment and selling costs. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
6
PV2 Pre-Feasibility Summary & Mine Plan – March 2014
Summary of March 2014 PV2 PFS
Mine Life (years)
12.3
1,563mt@0.30%1
Mineral Resources
Mineral Reserves
232mt@0.33%
Planned Throughput (ktpd)
50 - 52
Avg. Annual Production – Contained in Concentrate (Mt)
54.2
Avg. Annual Production – Cathode (Mt)
2.9
Est. LOM Avg. C1 Cash Costs
$2.00
LOM Sustaining Capital ($ millions)
$187.9
After-tax NPV, 8% ($M)
$738
50
0.40%
Total Material Moved
0.35%
40
0.30%
35
30
0.25%
25
0.20%
20
0.15%
15
0.10%
10
Capital Expenditure ($M)
Payable Copper (k tonnes)
0.05%
5
0
0.00%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
47
62
12
12
9
11
14
6
5
5
3
2
0
64.1
54.8
65.1
55.8
56.2
54.1
57.0
56.1
54.7
52.3
59.7
41.0
12.0
1. Pinto Valley Mine 2014 Pre-Feasibility Study, April 2014. Mineral Reserves and Resources take into account mining activities until January 1,
2014, and are reported above 0.18% Cu Cut-off Grade. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
2026
7
Copper Grade %
Material Mined (M t/year)
45
Pinto Valley Improvement Strategy Underway
2012/13
Restart
Ramp-up to 50 ktpd
2014/15
Stabilize/Optimize
2016+ Potential
Extension/Expansion
Stabilizing at 50 - 52 ktpd
Steady at 52 ktpd
Upcoming Catalysts

Pinto Valley
Improving mill reliability


BHP Copper Cities
Change management, maintenance
systems, documentation & training
BHP
Miami
Pre-Feasibility for PV3 underway
with the potential to:


Freeport
Miami
Extend mine life
Expand production
Town of
Miami
KGHM
Carlota
Source: Google maps.
8
Cozamin Mine
Underground Mine in Zacatecas State, Mexico
Mine life remaining (years)
6
Q1 2015 Production1 (k tonnes)
Q1 2015 C1 cash cost2 ($/payable lb produced)
3.8
$1.51
2015 Production1 guidance (k tonnes Cu ±5%)
2015 C1 cash cost2 guidance ($/payable lb produced)
By-products
2015
2016
Infill and exploration drilling
Ongoing exploration program
18.0
$1.35 - $1.45
Zn, Pb, Ag
2017+
Silver stream sale expires
April 2017 to significantly
improve economics
(currently ~1.5M oz/year)
1.±5%; see news release dated April 13, 2015. 2. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as
treatment and selling costs. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
9
Minto Mine
Open Pit & Underground Mine in Yukon, Canada
Mine life remaining (years)
7
Q1 2015 Production1 (k tonnes)
Q1 2015 C1 cash cost2,3 ($/payable lb produced)
4.1
$2.58
2015 Production1 guidance (k tonnes Cu ±5%)
2015 C1 cash cost2,3 guidance ($/payable lb produced)
13.0
$3.10 - $3.20
Life of mine projected C1 cash cost1
$1.92
By-products
2016
2015
Processing underground and
stockpiled ore; awaiting permits
for Minto North and evaluating
capital commitment
Minto North open pit high-grade
ore to be milled Dec 2015 –
Dec 2016; underground mining
resumes mid-year as base case
depending on permits
Au, Ag
2017+
Underground mining continues
1.±5%; see news release dated April 13, 2015 2. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as
treatment and selling costs. See Forward-Looking Statements and Cautionary Note for NI 43-101 information. 3. 2015 C1 cash cost guidance
includes $0.34 per pound of costs allocated from stockpile which was spent in 2014 and earlier, bringing actual cash expended during 2015 to
$2.75 to $2.85 per pound of payable copper produced. During Q1, the reported C1 cash cost figure of $2.58 includes $0.14/lb spent in prior years.
10
Santo Domingo Project
Copper-Iron Development Project in Region III, Chile
Project Area
(Lundin)
Diego de Almagro

Superior infrastructure





7 kms from town, power lines & sub-station
110 kms from port
Low elevation (~1,000 masl)
Paved road access
(Lundin)
Low environmental risk
11
Santo Domingo – July 2014 Feasibility Study
Confirms the value as a robust, low cost copper project

Unlevered Internal Rate of Return of 17.9% (27.3% assuming
$1B project debt or 60% leverage)

$797 million after-tax NPV, discounted at 8%

18-year mine life, 128M lbs Cu, 4.2 Mt Fe, 16 k oz Au annually

Off-take agreements committed for 50% of Cu and Fe LOM

LOM by-product C1 cash costs1 negative $0.06/lb payable Cu

LOM co-product C1 cash costs1 $1.50/lb payable Cu; $43.00/t Fe

Attractive opportunity in a community that demonstrates
strong support for the project
A long-life, low cost copper project
1. C1 Cash Cost is an Alternative Performance Measure. C1 Cash Cost on a by-product basis includes gold and iron credits. Metal price assumptions used for
the FS were a constant $2.85 per pound of copper, $85 per tonne of magnetite iron concentrate at a 65% iron content FOB Santo Domingo port ($1.31 per
dry metric tonne unit ("dmtu") of iron), and $1,275 per ounce of gold. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
12
Santo Domingo FS – CAPEX & Funding
CAPEX1,2
Partnership & Funding Structure3

Initial cost $1.7B

 Owned 70% Capstone and 30% Korea Resources
Corporation (KORES)
Sustaining Capital: $368M
 KORES largest Capstone shareholder (11%)
 LOM off-take agreement for 50% of Cu & Fe magnetite
concentrate on then prevailing market terms
 KORES to participate in arranging debt financing
Process
Plant
$380M
Port
$180M
Mine
$157M
Pipelines
$172M
Plant / Mine
Infrastructure
Contingency
$242M
EPCM
$115
Indirect
Costs
$290
$163M
KORES
Equity
$179M
CS Equity
$416M
65%
Project Debt
$1,105M
1. Source: Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. 2. Accuracy range
of -10% to +15% for capital costs and operating costs. 3. Illustration based on feasibility study capital of $1.7B and assumed project debt of 65%.
13
Santo Domingo Project – Development Plan
Next Steps1
2015
2016
Stage-gate 1 - EIA approval, EPC
contractor POSCO conducting
project review, validation and due
diligence to confirm contractual
performance guarantee parameters
2017+
Stage-gate 2 – Engineering
50% complete
Stage-gate 3 – Engineering
effectively complete
Production estimated +2 years
from construction decision
Decision on if, how, and when to proceed will reflect, among other factors:
Ongoing social licence
 Receipt of port concession
 General/project specific market conditions
 Project economics

Long-term power availability
 Awarding project execution contract
 Financing market
 Available alternatives

Proceeding in a disciplined manner with a stage-gate process for decision making
1. Subject to the commercial and regulatory environment in Chile and not within Capstone’s control. Various decisions are dependent on the
availability of low cost power as well as regulatory approval, and clear demonstration of an economically viable project with appropriate financing in
place and a supportive environment for development.
14
Strong Projected Organic Growth Profile(1)
$2.00
150
$1.50
100
$1.00
50
$0.50
0
$0.00
2012
2013
Cozamin
2014
Minto2
2015
2016
Pinto Valley
2017
2018
Santo Domingo 70%
2019
2020
2,3,4
C1 Cash Costs 3
Potential for significant cash flow generation
1. Assumes a positive construction decision on Santo Domingo with commissioning in 2019 (Capstone 70% ownership – based on FS dated July 8, 2014);
does not include by-product metal production at any mine or project. 2. C1 cash costs for 2016 and beyond do not factor in deferred stripping and
movements in ore stockpile for Minto. 3. C1 Cash Cost is an Alternative Performance Measure. See Forward-Looking Statements and Cautionary Note for
NI 43-101 information.
15
C1 Cash Cost/lb3 of Payable Cu Produced
Cu Concentrate Production (k tonnes)
200
Revolving Credit Facility
At March 31, 2015
Senior Secured
Amount
$500M credit facility ($440M committed plus a $60M accordion)
Term
4 years
Interest Rate
US Libor + 3.0% (adjustable in certain circumstances)
Standby Fee
0.675% on undrawn balance (adjustable in certain circumstances)
Payment Schedule
Interest only
Covenants
EBITDA/Interest Expense ≥ 2.5:1
Senior Secured Net Debt/EBITDA not more than 3.0:1
Total Net Debt/EBITDA not more than 4.0:1
Use
 $304M drawn to replace borrowings initially drawn to support PV acquisition.
 Eliminates scheduled amortization payments attached to previous reducing
credit facility.
 Provides financial flexibility to meet operating requirements and to address
potential market or operational disruptions.
Ensures financial flexibility in challenging pricing environment
16
Capstone Is Well-Positioned For Profitable Growth
2015 and beyond
Short term


Pinto Valley
Focus on operational stability, cost efficiencies and potential mine life extension

Santo Domingo
Advance to next stage-gate decision point

Cozamin
Reliable production with ongoing infill drilling and exploration

Minto
Mine plan to optimize value

Exploration
Drilling at large property in Chile

Acquisition Criteria
Copper, in production, in the Americas
A leading intermediate copper producer
17
Appendix
1.
Board of Directors
2.
Senior Management Team
3.
Financial & Operating Results
4.
Financial Position
5.
C1 Cash Costs
6.
Mine Cost Breakdown
7.
2015 Operating Guidance
8.
2015 Capital Expenditure Guidance
9.
Historical Financial Performance
10.
Historical Operating Performance
11.
Consolidated Mineral Reserves Estimate
12.
Consolidated Mineral Resources Estimate
13.
Track Record of Growth in Mineral Resource Base
14.
History of Pinto Valley Mine
15.
Minto Mineral Reserve and Mineral Resource Areas
16.
Minto Mineral Resources and Underground Development
17.
Santo Domingo July 2014 Feasibility Study Summary
18.
Project Providencia - Key Deposits in Analogous Metallogenic Settings
19.
Notes on Consolidated Mineral Reserves and Resources Estimates
20.
NI 43-101 Information
18
Board of Directors
Name
Experience
Lawrence Bell
Former Chairman & CEO of BC Hydro, Director of Silver Wheaton
George Brack - Non-Executive Chairman
Mining & investment banking, former industry head of Scotia Capital
Chantal Gosselin
Former VP & Portfolio Manager of Goodman Investment Counsel. Previously with Sun
Valley Gold LLP, Blackhawk Mining & Pan American Silver. Director of Silver Wheaton.
Soon Jin Kwon
Director & Chief Operating Officer of KORES Canada Corporation
Kalidas Madhavpeddi
Overseas CEO for China Molybdenum Inc. and former Sr. VP Business Development
of Phelps Dodge
Dale Peniuk - Audit Committee Chairman
Financial & board expertise, former Partner with KPMG
Darren Pylot - President, CEO & Director
Founder of Capstone Mining Corp.
Richard Zimmer
Former President & CEO of Far West Mining. Previously with Teck & Bow Valley
Industries
19
Senior Management Team
Years
Experience
Years Mining
Experience
Founder of Capstone Mining Corp.
21
21
Jim Slattery, Sr VP & CFO
Former CFO of Imnet Mining, Wescast Industries & Canadian General Tower
34
10
Gregg Bush, Sr VP & COO
Former COO of Minefinders, Mine GM & Operations of Barrick/Placer Dome,
12 years in Chile
31
31
Brad Mercer, Sr VP Exploration
Formerly with Sherwood Copper Corp., Miramar Mining & Royal Oak
31
31
Robert Blusson, VP Finance
Formerly with Lundin Mining & EuroZinc
13
9
Cindy Burnett, VP IR
Formerly with Western Lithium, Skye Resources, Ivanhoe Energy & Nova Chemicals
36
7
Peter Hemstead, VP Mktg. & Treasurer
Formerly with Sherwood Copper Corp. & PricewaterhouseCoopers LLP
19
9
Jason Howe, VP Business Development
Co-founder & former CFO of Silverstone Resources Corp. Formerly with
PricewaterhouseCoopers LLP
21
11
Wendy King, VP Legal, Risk &
Governance
Former Sr. VP General Counsel, Government Relations, Chief Compliance Officer
and Corporate Secretary with Central 1 Credit Union & Weyerhaeuser Company
19
2
Guy Le Bel, VP Evaluations
Formerly with Quadra Mining, BHP Billiton Base Metals, Rio Algom & Cambior Inc.
31
31
Gillian McCombie, VP HR
Formerly with Placer Dome, Hunter-Dickinson & TELUS
19
15
David Sinitsin, VP Technical Services
Formerly with Canaco Resources, Silver Standard Resources & Freeport-McMoRan
31
31
Brad Skeeles, VP North American
Operations
Formerly with Newmont Mining, INCO & BHP Billiton
27
27
Name
Experience
Darren Pylot, President, CEO & Director
20
Financial & Operating Results
Q1 2015
Revenue ($M)
Q1 2014
102.9
160.8
Copper produced (tonnes)
23,677
27,215
Payable copper produced (tonnes)
22,853
26,245
1.97
1.92
20,082
26,601
2.47
1.89
2.36
3.05
3.15
2.99
1.86
2.28
2.33
2.50
Net loss ($M)
Per common share:
(17.4)
(0.04)
(4.4)
(0.01)
Adjusted net loss1 ($ M)
Per common share:
(8.9)
(0.02)
(4.4)
(0.01)
Adjusted EBITDA1 ($M)
Per common share:
24.3
0.06
56.4
0.15
Operating cash flow before changes in working capital1 ($M)
Per common share:
16.5
0.04
50.2
0.14
Cash and cash equivalents ($M)
122.6
135.7
Net debt1 ($M)
177.2
175.5
C1 cash cost1 ($ per payable lb of Cu produced)
Copper sold (tonnes)
Realized copper price per pound sold ($/lb)*
C1 cash cost per payable pound sold1 ($/lb)
All-in sustaining cost per payable pound sold1 ($/lb)
All-in cost per payable pound sold1 ($/lb)
Fully loaded all-in cost per payable pound sold1 ($/lb)
* Q1 2015 includes a negative provisional pricing adjustment of $12.7 million related to prior shipments, equivalent to $0.29 per pound of copper sold
during the quarter. 1. These are Alternative Performance Measures. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
21
Financial Position
2015 Capital Guidance ($M)
At March 31, 2015 ($M)
(including capitalized stripping in development costs)
Cash and cash equivalents
$122.6
$0.8
$11.8
LESS: Long Term Debt & Leases
$299.8
$23.6(4)
$5.6
Net Debt
$177.2
PLUS: Undrawn Credit Facilities
$136.1
Total Liquidity
$258.7
2014 Operating Cash Flow Before
Changes in Working Capital
$199.4
$64.2(3)
$155.0(5)
$11.2
$15.9
 Corporate Revolving Credit Facility
revised in January 2015 has a four year term
with no scheduled amortization payments.
$21.9
Sustaining
Pinto Valley
Cozamin
Development
Minto1
Santo Domingo2
Total
Kutcho
 No cost collar ensures covenant compliance
with price protection at $2.60/lb to end of Q3
while allowing upside participation to $3.10/lb
Conservative and flexible financial position
1. Capitalized-stripping of Minto North is pending receipt of the Water Use License, expected in Q2 2015. 2. Reflects the base case spending plan to advance
permitting, social license, and sustain the owners’ team, representing Capstone’s 70% share of capital expenditure. 3. Includes $10.7M for capitalized
stripping. 4. Full $23.6M represents capitalized stripping. 5. Does not include $5.4M budgeted as an expense for greenfield exploration.
22
C1 Cash Cost per payable pound produced(1) Q1 2015
Consolidated Total
$3.00
Pinto Valley
$3.00
$2.50
$2.50
$2.00
$1.50
$0.46
$(0.12)
$1.97
$1.63
$2.00
$0.49
$(0.05)
$1.93
Treatment &
Selling Costs
By-Product
Credits
C1 Cash
Cost/lb
$1.50
$1.49
$1.00
$1.00
$0.50
$0.50
$0.00
$0.00
Operating
Costs
Treatment &
Selling Costs
By-Product
Credits
C1 Cash
Cost/lb
Minto
$3.00
Cozamin
$3.00
Operating
Costs
$2.50
$2.50
$2.00
$2.00
$0.41
$1.50
$(0.39)
$2.31
$(0.14)
$2.58
$1.50
$1.51
$1.49
$0.41
$1.90
$1.00
$1.00
$0.50
$0.50
$0.00
$0.00
Operating
Costs
Treatment &
Selling Costs
By-Product
Credits
C1 Cash
Cost/lb
Operating
Costs
Treatment &
Selling Costs
By-Product
Credits
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs.
C1 Cash
Cost/lb
23
Q1 2015 Mine Cost Breakdown(1)
Consolidated
Pinto Valley
6%
12%
7%
14%
31%
7%
32%
8%
8%
8%
15%
21%
13%
19%
Minto
Cozamin
9%
5%
10%
29%
8%
3%
3%
5%
Salaries
Contractors & Consultants
Maintenance
Diesel, Gas & Lubricants
Power
Consumables
Minesite G&A
27%
10%
5%
16%
28%
41%
1. Cost of production in US$ for the quarter ended as at March 31, 2015. Excluding by-product credits and TCRCs.
24
2015 Operating Guidance
Pinto Valley
Cozamin
Minto
Total
Tonnes milled (M)
19.0
1.2
1.4
21.6
Copper grade (%)
0.35
1.59
1.19
0.47
Copper recovery (%)
88.1
93.3
86.4
88.3
56,300
18,000
13,000
87,300
2,700
-
-
2,700
59,000
18,000
13,000
90,000
-
8,300
-
8,300
480
-
-
480
-
400
-
400
0.3
1.4
0.1
1.8
-
-
17,000
17,000
$2.00 - $2.10
$1.35 - $1.45
$3.10 - $3.20
$2.00 - $2.10
Production (contained in concentrates)
Copper (tonnes)
Copper cathode (tonnes)
Total Copper (tonnes)
Zinc (tonnes)
Molybdenum (tonnes)
Lead (tonnes)
Silver (million ounces)
Gold (ounces)
C1 cash costs1 per pound of payable copper
produced net of by-product credits and
selling costs
1. This is an alternative performance measure, please see “Alternative Performance Measure” definition at the beginning of this presentation.
25
2015 Capital Guidance
Capital Expenditure ($M)
Pinto Valley1
Santo
Domingo3
Minto2
Cozamin
Total4
Kutcho
Sustaining
$21.9
$15.9
$11.2
-
-
$49.0
PV2 Capital
$45.5
-
-
-
-
$45.5
PV3 Study
$8.0
-
-
-
-
$8.0
-
$5.6
-
-
-
$5.6
$10.7
-
$23.6
-
-
$34.3
-
-
-
$11.8
$0.8
$12.6
$86.1
$21.5
$34.8
$11.8
$0.8
$155.0
Brownfield Exploration
Capitalized Stripping
Development Projects
Total
Santo
Domingo
$11.8
Minto
$34.8
Kutcho
$0.8

2015 year of significant growth spending for PV2
expansion and Minto North stripping

An additional $5.4M budgeted as an expense for
greenfield exploration in 2015
Pinto Valley
$86.1
Cozamin
$21.5
1. Note PV2 capital is slightly higher than PFS estimate for 2015 as it includes capitalized stripping and component replacements on mining fleet. 2 Capitalized-stripping of Minto
North is pending receipt of the Water Use License, expected in Q2 2015. 3. Reflects the base case spending plan to advance permitting, social license, and sustain the owners’ team,
representing Capstone’s 70% share of capital expenditure. 4. Does not include $5.4M budgeted as an expense for greenfield exploration.
26
Historical Operating Performance
Realized Price/lb of Copper Sold ($)
Copper Sold (tonnes)
120,000
103,901
100,000
80,000
60,000
40,000
29,892
38,691
33,022
35,879
35,834
45,405
20,082
20,000
0
2008
2009
2010
2011
2012
2013
2014
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Q1 2015
C1 Cash Cost1,2
($ per payable lb of Cu produced)
$2.36
$2.31
2008
2009
$2.00
$1.72
$1.40
$1.25
$1.45
$1.93
$1.97
$3.66
$3.30
2010
2011
2012
55%
59%
63%
59%
$1.50
$1.00
2013
2014
48%
36%
20%
$2.16
$1.58
$1.11
$1.28
$1.10
$1.00
$0.50
Q1 2015
$2.45
$2.02
$2.00
$1.03
$3.03
$2.47
$3.00
$2.50
$1.50
$3.90
Cash Margin/lb of Copper Sold ($)
47%
$2.50
$1.50
$3.42
$0.50
$0.50
$0.00
$0.00
2008
2009
2010
2011
2012
2013
2014
Q1 2015
2008
2009
2010
2011
2012
2013
2014
1. This is an Alternative Performance Measure. * Commencing in 2011, financial results in accordance with IFRS. 2. The total 2008 information only
includes results from the Cozamin Mine from November 24, 2008 to December 31, 2008, except for the C1 Cash Cost per pound of payable copper,
which is for the full year.
Q1 2015
27
Historical Financial Performance
Revenue3 ($M)
Adjusted EBITDA1,3 ($M)
$656
$700
$250
$600
$232
$200
$500
$400
$250
$300
$353
$301
$306
$117
$142
$106
$103
$100
$162
$200
$146
$150
$332
$103
$100
$0
$50
$36
$24
$0
2008
2009
2010
2011
2012
2013
2014
Q1 2015
$121
2011
2012
2013
2014
Q1 2015
$199
$94
$200
$85
$80
$59
$60
$40
2010
$250
$123
$120
$100
2009
Operating Cash Flow Before Changes in
Working Capital3 ($M)
Capital Additions2,3($M)
$140
2008
$150
$120
$56
$40
$33
$100
$50
$20
$0
$94
$114
$86
$75
$28
$17
$0
2008
2009
2010
2011
2012
2013
2014
Q1 2015
2008
2009
2010
2011
2012
2013
2014
Q1 2015
Deferred Stripping
Capital Additions
1. This is an Alternative Performance Measure. 2. Includes deferred stripping at Minto. 2008 capital additions include $13 million from old Capstone for 9
months in 2008. 3. The total 2008 information only includes results from the Cozamin Mine from November 24, 2008 to December 31, 2008. Year end 2010,28
2011 and 2012 in accordance with IFRS. 2008 figures pro forma for combination with Sherwood Copper to include Cozamin and Minto for the full year.
Consolidated Mineral Reserve Estimate
MINERAL RESERVES
Category
Pinto Valley1
Cu
%
kt
Zn
%
CONTAINED METAL
Pb
%
Mo
%
Ag
g/t
Au
g/t
Fe
%
Cu
kt
Zn
kt
Pb
kt
Mo
kt
Ag
koz
Fe6
Mt
Au
koz
Proven
199,212
0.33
-
-
0.008
-
-
-
651
-
-
16
-
-
-
31-Dec-14 Probable
9,682
0.24
-
-
0.008
-
-
-
23
-
-
1
-
-
-
Total
208,894
0.32
-
-
0.008
-
-
-
675
-
-
17
-
-
-
Proven
4
1.23
1.18
0.21
-
38
-
-
0
0
0
-
5
-
-
31-Dec-14 Probable
6,971
1.49
0.79
0.17
-
42
-
-
104
55
12
-
9,394
-
-
Total
6,975
1.49
0.79
0.17
-
42
-
-
104
55
12
-
9,398
-
-
Proven
2,857
1.82
-
-
-
6
0.93
-
52
-
-
-
586
86
-
31-Dec-14 Probable
4,802
1.64
-
-
-
6
0.63
-
79
-
-
-
889
98
-
Total
7,659
1.71
-
-
-
6
0.74
-
131
-
-
-
1,475
183
-
Proven
65,300
0.61
-
-
-
-
0.08
30.9
398
-
-
-
-
170
8
31-Dec-14 Probable
326,400
0.24
-
-
-
-
0.03
27.6
783
-
-
-
-
336
67
Total
391,700
0.30
-
-
-
-
0.04
28.2
1,175
-
-
-
-
506
75
Kutcho5 Probable
10,441
2.01
3.19
-
-
35
0.37
-
210
333
-
-
11,618
124
-
10,441
2.01
3.19
-
-
35
0.37
-
210
333
-
-
11,618
124
-
TOTAL CAPSTONE MINERAL RESERVES
2,295
388
12
17
22,491
814
75
Cozamin2
Minto3
Santo Domingo4
31-Dec-14
Total
See corresponding Notes on Consolidated Mineral Reserve Estimate at the end of this presentation.
29
Consolidated Mineral Resource Estimate
MINERAL RESOURCES – Inclusive of Mineral Reserves
Category
kt
Pinto Valley1 Measured 665,233
31-Dec-14 Indicated 939,033
M&I 1,604,266
Inferred
58,615
Cu
%
0.34
0.28
0.31
0.23
Zn
%
Pb
%
-
-
Mo
%
0.008
0.006
0.007
0.005
CONTAINED METAL
Ag
g/t
Au
g/t
Fe
%
-
-
-
Cu
kt
2,291
2,605
4,896
137
Zn
kt
Pb
kt
-
-
Mo
kt
56
60
116
3
Ag
koz
Au
koz
Fe6
kt
-
-
-
Cozamin2 Measured
31-Dec-14 Indicated
M&I
Inferred
4
12,724
12,728
7,151
1.23
1.34
1.34
1.19
1.18
1.32
1.32
1.15
0.21
0.23
0.23
0.18
-
38
45
45
33
-
-
0
170
170
85
0
168
168
82
0
29
30
13
-
5
18,239
18,244
7,682
-
-
Minto3 Measured
31-Dec-14 Indicated
M&I
Inferred
10,867
37,091
47,958
16,205
1.28
1.02
1.08
0.92
-
-
-
4
4
4
3
0.53
0.36
0.40
0.30
-
139
380
519
149
-
-
-
1,426
4,437
5,863
1,649
186
435
621
157
-
Santo Domingo4 Measured
31-Dec-14 Indicated
M&I
Inferred
64,800
449,000
513,000
58,100
0.62
0.27
0.31
0.20
-
-
-
-
0.08
0.03
0.04
0.03
31.2
25.0
25.8
24.3
402
1,212
1,590
116
-
-
-
-
171
491
660
49
-
Kutcho5 Measured
31-Dec-14 Indicated
M&I
5,421
5,859
11,280
2.15
2.24
2.19
2.86
3.67
3.28
-
-
31
42
37
0.34
0.45
0.39
-
116
131
248
155
215
370
-
-
5,482
7,831
13,313
59
84
143
-
Inferred
1,090
1.74
2.04
-
-
31
0.35
-
19
22
-
-
1,077
12
-
TOTAL CAPSTONE MEASURED & INDICATED MINERAL RESOURCES
7,423
538
30
116 37,420
1,423
0
TOTAL CAPSTONE ADDITIONAL INFERRED MINERAL RESOURCES
506
104
13
3 10,408
217
0
See corresponding Notes on Consolidated Mineral Resource Estimate at the end of this presentation.
30
Proven Track Record of Growth in Mineral Resource Base
2,500
8,000
Cu tonnes in Mineral Reserves1
Cu tonnes in M&I Mineral Resources1
2,000
Santo
Domingo
1,500
Kutcho
Santo
Domingo
CS
Total
Minto
0
Pinto
Valley
806%
1,000
500
Santo
Domingo
Cozamin
Kutcho
Santo
Santo
Santo
Domingo Domingo Domingo
CS
Total
Minto
Minto
Minto
CS
Kutcho Kutcho Kutcho Kutcho
Total
Cozamin
Cozamin
Minto
Minto
Minto
Minto
Cozamin
Cozamin
Cozamin
Cozamin
Cozamin
Thousands (tonnes)
Thousands (tonnes)
7,000
Kutcho
4,000
0
Cozamin
Santo
Domingo
0.020
208%
0.002
0.001
Cu tonnes/share (basic)
0.004
Kutcho
CS
Total
CS
Total
Kutcho
Kutcho
Kutcho
Minto
Cozamin
Cozamin
Minto
Minto
CS
Total
Cozamin
Santo
Domingo
Santo
Domingo
Kutcho
Kutcho
Pinto
Valley
Santo
Domingo
Santo
Domingo
Minto
Santo
Santo
Domingo
Minto Domingo
Kutcho
Cozamin
Kutcho
Cozamin
Kutcho
Cozamin
Cozamin
Cozamin
Minto
Minto
Minto
Kutcho
Minto
Minto
Cozamin
Cozamin
2008 2009 2010 2011 2012 2013 2014
0.006
0.005
Pinto
Valley
1,034%
3,000
1,000
Minto
Cozamin
Cu tonnes in Mineral Reserves1 Per Share
Cu tonnes/share (basic)
5,000
2,000
2008 2009 2010 2011 2012 2013 2014
0.003
Pinto
Valley
6,000
Cu tonnes in M&I Mineral Resources1 Per Share
0.018
0.016
0.014
0.012
0.010
355%
0.008
0.006
0.004
0.002
0.000
0
2008 2009 2010 2011 2012 2013 2014
2008 2009 2010 2011 2012 2013 2014
1. Includes Mineral Resources and Reserves as reported in Annual Information Forms for each respective year. 70% share of Santo Domingo Mineral
Resources as at August 31, 2012 and Mineral Reserves as at May 2, 2014. Kutcho as at Dec. 31, 2010. See Forward-Looking Statements and
Cautionary Note for NI 43-101 information
31
History of Pinto Valley
Pinto Valley Historical Production/Copper Prices
PV production commenced by
owner Cities Service (formerly
Tennessee Corporation)
PV Cu Production
$5.00
Average Cu Price
225
PV acquired by Newmont
subsidiary and placed PV on
care and maintenance
200
175
Newmont announced
plans to restart PV
Capstone
acquires PV
PV operations
restarted
BHP
acquired PV
$4.50
$4.00
$3.50
150
$3.00
BHP placed PV on care and
maintenance due to
temporarily low copper prices
125
100
$2.50
BHP
restarts
PV
$2.00
75
$1.50
50
$1.00
25
$0.50
0
$-
2014
2013
SMARRCO
$11.4 (6%)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
BHP Billiton $194mm(1) re-start capital incorporated lessons learned
from previous re-start
 Acquired new mining fleet
 Upgraded electrical and controls
 Significantly improved plant conditions to HSEC standards
 In-sourced mining
1999

1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
2012 Re-start Capital Cost
Mine
$3.9 (2%)
Contractors'
Indirect (2)
$8.9 (5%)
EPCM
$14.2 (7%)
Mine Fleet
$63.8 (33%)
Infrastructure
$21.2 (11%)
Owner Cost
$27.1 (14%)
Source: BHP Copper. 1.Source: BHP Copper, in US$M. 2. The cost of employing contractors during project execution.
Processing
$43.7 (22%)
32
Historical Cu Price (US$/lb)
Historical Cu Production (mlbs)
250
BHP placed PV on
care and maintenance
due to temporarily
low copper prices
Minto Mineral Reserve & Mineral Resource Areas
A
LEGEND
Inferno North
Minto North
(extension of Minto North)
N
Mineral Reserves &
Resources
Inferno
Other Deposits
Fireweed
Mining Complete
(extension of Minto East)
Minto Main
Mill
>3% Cu over ≥5m
Deposit Area
>2% Cu over ≥5m
Exploration Corridor
>1% Cu over ≥5m
>0.5% Cu over ≥5m
All other drill holes >50
Fault
Creeks and Streams
All Weather Gravel Road
Camp
Minto East
Area 2/118
Key Points
Minto South
Copper Keel
Wildfire/
Copper Keel NE
 Current Mineral Resource/Reserve
has a 3.5 km strike length
 Other underground geophysical and
geological targets exist
Ridgetop
A’
500
meters
33
Minto Mineral Resources & Underground Development
Inferno North
Area 2/118
N
S
Wildfire
900masl
700masl
Minto North
Mining Complete
Ridgetop
Minto Main
500masl
Copper Keel
Mineral Reserves and Resources
Minto East
Other Deposits
Fireweed
Minto Permitting and Mining Phases




I – III: Minto Main pit mining completed Q2 2011, stockpiles processed until Q2 2012
IV: Current Mining - Area 2/118 mined by open pit and underground
V: Minto North to be mined by open pit; Minto East by underground
VI: PFS Q3 2012 added Copper Keel and Wildfire underground Mineral Reserves
34
Santo Domingo – July 2014 Feasibility Study Summary
Estimated C1 cash cost3
Summary of July 2014 FS1,2
Mine life (years)
18
Average annual
production
LOM Avg: 128M lbs Cu, 4.2 Mt Fe, 16 koz Au
First 5 years: 248M lbs Cu, 3.3 Mt Fe, 35 koz Au
Planned
throughput (tpd)
Development
capital
LOM Avg:
$ per payable lb of Cu produced
negative
$0.06
First 5 years:
$ per payable lb of Cu produced
$0.49
LOM Avg: 60,500
First 5 Years: 65,000
$1.7B
Investment
return
(after tax)
IRR: 17.9%
NPV @ 8% discount rate: $797M
Payback: 4.2 years
By-products
Fe, Au
Metal price
assumptions
Cu: $2.85/lb
Fe: $1.31/dmtu ($85/t conc. @ 65% Fe)
Au: $1,275/oz
Low-risk and relatively low-cost approach
1. Source: Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. 2. The report was compiled by
AMEC’s Santiago office with an accuracy range of -10% to +15% for capital and operating costs. The estimates presented in the FS are current as of October 2013. 3.
C1 Cash Cost is an Alternative Performance Measure. C1 Cash Cost on a by-product basis includes gold and iron credits. See Forward-Looking Statements and
Cautionary Note for NI 43-101 information
35
Providencia Project – Region II, Chile
Metallogeny
1. Jurassic IOCG (Iron Oxide Copper Gold) Deposits
 Mantoverde
 Santo Domingo
 Julia Reventon
2. Cretaceous Manto & Porphyry Deposits
 Candelaria
 Mantos Blancos
 La Casualidad
 Tersa de Colmo
 Franke
 Altamira
3. Cretaceous – Paleocene Porphyry Deposits
 Spence
 Virgo – Sierra La Overa
Providencia Project lies ~80 kms
North of Santo Domingo
36
Notes: Consolidated Mineral Reserve Estimate
NOTES: Mineral Reserves take into account mining activities (where applicable) until December 31, 2014. Brad Skeeles, P.Eng., Vice-President of North American Operations at Capstone, is the
Qualified Person for the disclosure of Capstone's consolidated Mineral Reserves table. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes,
grade and contained metal content. All Mineral Reserve estimates are inclusive of dilution and mining recovery factors. Contained ounces (oz) are troy ounces. COG is cut-off grade. NSR is net smelter
return. All amounts in US$ unless otherwise specified. Stockpiled material is treated as Proven Mineral Reserves. See Technical Reports filed under Capstone’s profile on SEDAR for further information.
1. Brad Skeeles, P.Eng., Vice-President of North American Operations at Capstone, is the Qualified Person responsible for the disclosure of the Pinto Valley Mine Mineral Reserves taking into account
ongoing mine production. John Marek, PE, SME-RM, is an independent Qualified Person responsible for the preparation of the Mineral Reserves estimate with an effective date of January 1, 2014.
Economic inputs to the block model were $2.75/lb copper, mining $2.02/t moved, mill $5.50/t processed, G&A $1.65/t processed and an average copper recovery of 88%. Mineral reserves are
reported above a total copper (TCu) COG of 0.18% TCu between years 2014-2022. An internal COG of 0.17% TCu was applied between years 2023-2025.
2. Brad Skeeles, P.Eng., Vice-President of North American Operations at Capstone, is the Qualified Person responsible for the disclosure of the Cozamin Mine Mineral Reserves taking into account
ongoing mine production. Mel Lawson, SME-RM, and Allan Schappert, SME-RM, are independent Qualified Persons responsible for the preparation of the Mineral Reserves estimate with an effective
date of December 31, 2013. A NSR COG of $42.50/t was used for the San Roberto and MNFW zones and $38.00/t was used for San Rafael. Metal prices used in reserve estimate for copper, silver, zinc,
and lead, respectively, are $2.50/lb, $20/oz, $0.80/lb, and $0.85/lb. The exchange rate used is MEX12.50 to US$1.00.
3. Pooya Mohseni, P.Eng., Chief Engineer at Minto, is the Qualified Person responsible for the disclosure of the Minto Mine Mineral Reserves taking into account ongoing mine production, in addition
to the preparation of the Mineral Reserves estimate of the Minto deposits. The open-pit Mineral Reserves at Minto North, and the underground Mineral Reserves at Area 2, Area 118, and Minto East
have an effective date of January 1, 2011. The open-pit Mineral Reserves at Minto South Deposit (MSD) and Ridgetop, and the underground Mineral Reserves at Copper Keel and Wildfire have an
effective date of January 1, 2012. Metal Price assumptions used to calculate the NSR COG for all deposits are: Cu=$2.50, Au=$300, Ag=$3.90. Processing recoveries for all deposits are: Cu=91%,
Au=70%, Ag=78%. Open pit mineral reserves are reported above 0.5% Cu COG. Underground mineral reserves are reported above a $64.40 NSR COG.
4. Santo Domingo Project Mineral Reserves shown on 100% basis (Capstone’s share is 70%). Carlos Guzman, FAusIMM, CMC, is the independent Qualified Person responsible for the preparation of the
Mineral Reserves estimate with an effective date of May 2, 2014. Mineral Reserves are reported as constrained within Measured and Indicated pit designs, and supported by a mine plan featuring
variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of $2.75/lb Cu, $1,275/oz Au
and $80/dmt of Fe concentrate; recovery to concentrate assumptions of a maximum of 93.6% for Cu and 75% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper
concentrate treatment charges of $70/dmt, $0.07/lb of Cu refining charges, $5/oz of Au refining charges, $48/wmt and $3/wmt for shipping Cu and Fe concentrates respectively; waste mining cost of
$1.53/t, mining cost of $1.53/t ore, and process and G&A costs of $7.84/t processed; average pit slope angles that range from 37.6º to 43.6º; a 2% royalty rate assumption, and an assumption of 100%
mining recovery.
5. Michael Makarenko, P.Eng., is an independent Qualified Person responsible for the preparation of the Mineral Reserves estimate with an effective date of February 15, 2011. Mineral Reserves are
reported within 1.0% Cu grade shells used for stope design.
6. Fe as magnetite concentrate (Fe3O4)
37
Notes: Consolidated Mineral Resource Estimate
NOTES: Mineral Resources take into account mining activities (where applicable) until December 31, 2014. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the
Qualified Person responsible for the disclosure of Capstone's consolidated Mineral Resources table. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral
Resources are reported inclusive of the Mineral Reserves. All Mineral Resources are exclusive to dilution and mining recovery factors. Rounding as required by reporting guidelines may result in apparent
summation differences between tonnes, grade and contained metal content. Contained ounces (oz) are troy ounces. COG is cut-off grade. NSR is net smelter return. M&I = Measured & Indicated. All amounts
in US$ unless otherwise specified. Stockpiled material is treated as Measured Mineral Resources. See Technical Reports filed under Capstone’s profile on SEDAR for further information.
1. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of the Pinto Valley Mine Mineral Resources taking into
account ongoing mine production. Garth Kirkham, P.Geo., FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate with an effective date of January 1,
2014, which are reported above a total copper (TCu) COG of 0.18% TCu.
2. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of the Cozamin Mine Mineral Resources taking into account
ongoing mine production. Ali Shahkar, P.Eng., is an independent Qualified Person responsible for the preparation of the San Roberto and Mala Noche Footwall zones Mineral Resources estimates. The cut-off
date for mining and drillhole/mine sample data for the San Roberto and Mala Noche Footwall zones is December 31, 2013. Robert Sim, P.Geo., is an independent Qualified Person responsible for the San
Rafael zone Mineral Resources estimate. The cut-off for drillhole data for the San Rafael zone is November 26, 2009. The Mineral Resources are reported above a NSR of $35/t using respective metal prices
for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries used to calculate the NSR COG for the San Roberto and Mala Noche Footwall zones Mineral Resources are
based on historical site operating experiences reflecting recoveries of: Cu=92%; Ag=72%; Zn=69%; Pb=64%. Processing recoveries used to calculate the NSR COG for the San Rafael Mineral Resources are
based on laboratory results reflecting recoveries of: Cu=41%, Ag=32%, Zn=84%, Pb=65%, Au=21%. Exchange used is MEX12.50 to US$1.00.
3. Douglas McIlveen, P.Geo., Chief Geologist at Minto, is the Qualified Person responsible for the disclosure of the Minto Mine Mineral Resources taking into account ongoing mine production. Garth
Kirkham, P.Geo., FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimates for the Minto North and East areas that include respective drilling data cut-off
dates of December 1, 2009 and December 15, 2010. Dr. Wayne Barnett, Ph.D., Pr.Sci.Nat., is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate at Ridgetop
that takes into account drillhole data until August 2010, and the MSD deposit, which includes the Area 2/118, Wildfire, and Copper Keel areas, and takes into account drillhole data until September 29, 2011.
Minto North and and Ridgetop areas are amenable to open pit extraction. Area 2/118 and Wildfire areas are amenable to open pit and underground mining, while Minto East and Copper Keel areas are
suitable for underground mining. Mineral Resources are reported above a 0.5% Cu COG. Metal price assumptions used to determine the COG for reasonable prospects of economic extraction for all deposit
areas are: Cu=$3.50, Au=$1,300, Ag=$16.00. Resources include any material remaining in the Minto Main Deposit not considered in the current mine plan. Resources exclude material mined but not
processed during pre-stripping activities in the Area 2 region of MSD and currently held in stockpiles.
4. Santo Domingo Project Mineral Resources shown on 100% basis (Capstone’s share is 70%). David Rennie, P.Eng., is an an employee of Rosco Postle Associates Inc. and an independent Qualified Person
responsible for the preparation of the Mineral Resources estimates for the Santo Domingo Sur, Iris, and Iris Norte deposits, which have an effective date of August 31, 2012. Mineral Resource estimates for
the Estrellita deposit have an effective date of October 30, 2007. Mineral Resources for the Santo Domingo Sur, Iris, and Iris Norte deposits are reported using a COG of 0.25% copper equivalent (CuEq). CuEq
grades are calculated using average long term prices of US$3.50/lb Cu, US$1,500/oz Au and US$1.94/dmtu Fe (US$120/dmt conc. at 62% Fe). The CuEq equation is: Metal Value = Grade*Cm*R%/100*(PriceTCRC-Freight)*(100-Royalty)/100, where Cm is a constant to convert grade of metal to metal price units; R is metallurgical recovery and %Cu Equivalent = (Cu Value + Au Value + Fe Value)/(Cu Value per
1%Cu). An assessment of reasonable prospects for economic extraction for the Santo Domingo Sur, Iris, and Iris Norte deposits was performed using a Lerchs–Grossman pit shell that has the following
assumptions: pit slopes averaging 45°; mining cost of US$1.19/t, processing cost of US$ 4.49/t; processing recovery of 85%; selling price of US$2.25/lb, and a selling cost of US$0.247/lb. At the 0.25% CuEq cutoff, all but 5% of the Mineral Resources were captured by the pit shell. On the basis of this result, it was concluded that there was little merit in restricting the Mineral Resources to those blocks contained
only within the pit shell. Accordingly, the Mineral Resource inventory was reported in its entirety. Mineral Resources for the Estrellita deposit are reported using a 0.3% Cu COG.
5. Garth Kirkham, P.Geo, FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimates with an effective date of February 15, 2011. Mineral Resources are
reported above a 1.5% Cu COG.
6. Fe as magnetite concentrate (Fe3O4)
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Compliance with NI 43-101
Unless otherwise indicated, Capstone has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases
(collectively the “Disclosure Documents”) available under Capstone Mining Corp.’s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision
of a qualified person (a “Qualified Person” or “QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). For
readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and
exclusions that relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have
demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is
subject to the assumptions and qualifications contained in the Disclosure Documents.
The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators ("NI 43-101") and reviewed by Brad Skeeles, P.Eng. VP of North American Operations (Technical Information related to mining and production) and
Brad Mercer, P. Geol., Senior Vice President, Exploration (Technical Information related to mineral exploration activities), and reviewed and approved by Gregg Bush, Senior Vice President and Chief
Operating Officer for Capstone Mining, all QP’s under NI 43-101.
This presentation summarizes some of the information contained in the Pinto Valley Mine 2014 Pre-Feasibility Study, dated April 28, 2014 , that was directed by Capstone with contributions from
Kirkham Geosystems Ltd. (geology, Resource estimation), Independent Mining Consultants Inc. (reserve, geotechnical, mine design and schedule, equipment selection), KWM Consulting Inc.
(metallurgy, mill operation), AMEC Environment & Infrastructure Inc. (tailings), Stantec (Infrastructure and PFS report compilation), SRK (US), Inc. (environmental), and Adam M Consulting Inc. (financial
modelling). Personnel from each of these companies will be signing off as a QP as defined in NI 43-101 for their specific responsibilities. The following QP’s will author the technical report: Mel Lawson,
P.E. of Stantec, Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd., John Marek P.E. of Independent Mining Consultants, Inc., Ken Majors P.Eng. of KWM Consulting Inc, Tony Freiman, P.E. of AMEC Inc.,
Adam Majorkiewicz, P.Eng of Adam M Consulting Inc. and Cori Hoag C.P.G. of SRK. The January 1, 2014 Mineral Resource estimate reported herein for the Pinto Valley property was prepared by Garth
Kirkham, P. Geo, Kirkham Geosystems Ltd., an independent QP. Based on the Mineral Resource Estimate, a standard methodology for pit limit analysis, mining sequence, and cut-off grade optimization,
including application of mining dilution, process recovery, economic criteria and physical mine and plant operating constraints, has been followed to design the Pinto Valley pit and determine the
Mineral Reserve Estimate dated January 1, 2014.
This presentation summarizes some of the information contained in the NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico dated July 31 , 2014. The following QP’s were responsible
for the preparation of their relevant portions of the Technical Report: Patrick Andrieux, PhD., P.Eng. (Itasca Consulting Group. Inc), Dave Hallman, PE (Tetra Tech, Inc), Jenna Hardy, P.Geo. (Nimbus
Management Ltd.), Mel Lawson, SME-RM (Stantec Consulting International LLC), Ken Major, P.Eng. (KWM Consulting Inc.), Vivienne McLennan, P.Geo. (Capstone Mining Corp.), Allan Schappert, SMERM (Stantec Consulting International LLC), Ali Shahkar, P.Eng. (Lions Gate Geological Consulting Inc.), Robert Sim, P.Geo. (Sim Geological Inc.), Brad Skeeles, P.Eng. (Capstone Mining Corp.), and Jeremy
Vincent, P.Geo. (Capstone Mining Corp.).
This presentation summarizes some of the information contained in the Minto Phase VI Preliminary Feasibility Study Technical Report dated January 2012. Qualified Persons under National Instrument
43-101 responsible for this report: John Sagman, BASc., P.Eng., PMP, Wayne Barnett, Pr.Sci.Nat., SRK Consulting (Canada), Inc., John Eggert, P.Eng, Eggert Engineering Ltd; Bruce Murphy, P.Eng., SRK
Consulting (Canada), Inc.; Bill Hodgson, P.Eng., Genivar Inc.; Garth Kirkham, P. Geo, Kirkham Geosystems Ltd; Michael Levy, PE, SRK Consulting (Canada), Inc.; Brad Mercer, P.Geol. Capstone Mining
Corp.; Pooya Mohseni, P.Eng. Minto Exploration; Marek Nowak, P.Eng., SRK Consulting (Canada) Inc.; and Colleen Roche, P.Eng. Capstone Mining Corp. who are responsible for certain sections of the
PFS as detailed in the PFS.
This presentation summarizes some of the information contained in the Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. The
following QP’s were responsible for the preparation of their relevant portions of the Technical Report based on the Feasibility Study: David Frost, F.AusIMM (AMEC Ingeniería y Construcción Ltda.),
Hans Gopfert, P.Eng (AMEC Ingeniería y Construcción Ltda.), Joyce Maycock, P. Eng (AMEC Ingeniería y Construcción Ltda.), Vikram Khera, P. Eng (AMEC Ingeniería y Construcción Ltda.), Anna Klimek,
P.Eng (AMEC Ingeniería y Construcción Ltda.), Roy Betinol, P.Eng. (BRASS Chile S.A.) -- Seawater and Magnetite Concentrate Pipeline System, Carlos Guzmán, F.AusIMM (NCL Ingeniería y Construcción
Ltda.) -- Mineral Reserve Model, Mine Equipment and Mine Development , Tom Kerr, P.Eng. (Knight Piésold S. A.) - Tailings Storage Facility, David Rennie, P. Eng (Roscoe Postle Associates Inc.) -- Mineral
Resource Model. The technical information in the July 8,2014 report was reviewed by Court Muggli, P.E., Project Director, Capstone Mining Corp., and Gregg Bush, P. Eng., Senior Vice President and
Chief Operating Officer, Capstone Mining Corp., both QP’s under NI 43-101.
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For additional information, please visit capstonemining.com
or contact us at:
Phone: +1-604-684-8894
Toll Free: 1-866-684-8894
Email: info@capstonemining.com
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Last updated June 10, 2015