TORONTO (miningweekly.com) – Vancouver-based Capstone Mining produced 17,7-million pounds of copper in concentrates in the three months ended September 30, compared with 23,1-million pounds in the second quarter of this year.

Capstone produces copper, as well as lead, zinc, silver and gold as byproducts, from its Cozamin and Minto mines, in Mexico and Canada's Yukon territory respectively.

Total cash costs for the third quarter, net of byproduct credits and selling costs, were $1,14/lb, the company reported on Wednesday.

The firm had indicated in July that production at both mines were likely to be lower than average, after water in the pit at Minto and delayed access to deeper higher grade ores at Cozamin affected output.

However, the Minto pit is now dewatered and development has been completed at Cozamin, giving access to high grade ore again at both operations, president and COO Stephen Quin said in a statement.

“This high grade feed, combined with each operation's ability to exceed design mill throughput, provide Capstone the opportunity to catch up on its production and we will strive to come within the range of prior guidance of 95-million to 105-million pounds of copper production for 2009," he said.

However, he conceded that both mines will need to produce at record levels if the company is to achieve this target.

Shares in Capstone slid 0,95% on Wednesday, to C$3,13 apiece by 14:10 in Toronto.

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