Capstone Mining gains on life-of-mine extension

Vancouver-based Capstone Mining (TSE:CS) says that based on a new pre-feasibility study, its Pinto Valley copper mine in Arizona has an extra 8 years to operate, extending its mine life to 2026.

Capstone was trading for $2.87 per share, a gain of more than 5%.

Pinto Valley, which has been in operation since 1974 with three shutdown periods, was supposed to stop producing in 2018.

Capstone pointed out some highlights of its Pre-Feasibility Study — Mine Life Extension ("PV2 PFS") in a news release Wednesday.

Average annual production for the first five years is 128.4 million pounds of copper contained in concentrate and 6.6 million pounds of copper cathode, the company wrote.

"The Pinto Valley PFS has validated the purchase price and confirms our position as a leading intermediate copper producer," President and CEO of Capstone Darren Pylot said in a statement. "Completion of the PV2 PFS extends the mine life to 2026 and provides us with the platform to stabilize operations, gain efficiencies and gives us the opportunity to take a longer-term view towards the future of the Pinto Valley Mine in Arizona."

Capstone purchased the Pinto Valley mining operation from BHP Billiton for US$650 million in 2013.