UPDATE 1-Capstone Mining Q1 loss narrows

* Q1 loss $0.10/shr vs yr-ago loss $0.88/shr

* Q1 adj. EPS $0.19

* Net revenue up 91 pct

May 14 (Reuters) - Copper producer Capstone Mining Corp (CS.TO) reported a narrower first-quarter loss, helped by its acquisition of Sherwood Copper Corp.

For the quarter ended March 31, Capstone posted a loss of $16.2 million, or 10 cents per share, compared with a loss of $65.8 million, or 88 cents per share, a year-ago.

Excluding items, the company reported adjusted earnings of 19 cents a share.

Net revenue surged 91 percent to $54.5 million.

Analysts, on average, expected the company to earn 8 cents per share, before items, on revenue of $57.4 million, according to Reuters Estimates.

Capstone completed its acquisition of Sherwood in the fourth quarter of 2008.