Century Updates Progress on Exploration at San Juan Gold Mines Property in Peru
Monday June 26, 2:47 pm ET
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BLAINE, WASHINGTON--(CCNMatthews - June 26, 2006) - Century Mining Corporation (TSX VENTURE:CMM - News) is providing an update on exploration at the San Juan Gold Mines property in the Department of Arequipa, southern Peru.
Century acquired 60% controlling interest in San Juan Gold Mines S.A.A. on May 17, 2006 and has entered into a long-term mining lease on the 18,000 hectare property. Century has begun preparations for an extensive underground and surface-based sampling and drilling campaign. The program is designed to bring the historical resources of approximately 1.23 million ounces of gold at the San Juan Mine up to date under National Instrument 43-101 standards of disclosure. (Reference: San Juan Gold Mines, in a company report dated December 31, 2000, which was verified by an independent consultant, quoted an estimated resource of 4.4 million tonnes at a grade of 8.68 g/t gold containing 1.23 million ounces of gold, which qualifies as an historical resource estimate according to NI 43-101 standards of disclosure. These resources have not been verified by an NI 43-101 Qualified Person and should not be relied on). This program is expected to take several months.
Geological mapping and grid geochemical sampling has begun on the Golden Champune prospect, located approximately four kilometers east of the San Juan Gold Mine. Reconnaissance mapping shows that the Golden Champune alteration and mineralization zone covers three mountain ridges oriented roughly northwest-southeast, and spans a lateral east-west distance of approximately two kilometers. The highest part of the zone, Golden Champune, stands approximately 400 meters above the surrounding dry stream beds (quebradas), while the two adjacent lower ridges to the east stand 225 meters (Champune Media) and 100 meters high (Champune Pequeno), respectively. The extent of the zone in a north-south direction is more than 600 meters.
The Company's work to date has determined that significant areas of the Golden Champune slopes are covered by shallow mud flows, usually less than one meter thick. Outcrops are common, however, and they show that the ridges and quebradas between them are underlain by intrusive bedrock units that exhibit pervasive alteration and extensive, close-spaced stockwork veinlets and fractures. The stockwork is exposed in the bottoms of the quebradas, on the side slopes, and on the tops of all three ridges.
Further research into the archives at the San Juan Mine has uncovered the existence of an encouraging historical geochemical study performed on a limited part of Golden Champune in June, 1989. The studies were conducted under the direction of the Peru Universidad Nacional de Ingenieria, Facultad de Ingenieria Geologica, Minera y Metalurgica. A total of 190 soil and rock chip samples were collected from the quebradas and lower slopes of Golden Champune. Gold values in the rock chip samples ranged from 1.0 g/t to a high of 3.1 g/t gold. The area in which the samples were taken measured 1.5 km by 1.7 km. Coverage is clustered along the quebradas.
The same study also included soil and rock chip sampling from the Santa Clarita prospect, located approximately 5 kilometers from the San Juan mine site. The area in which the samples were taken measured 2.5 km by 1.0 km. Coverage is clustered along the quebradas and on the ridge lines. A total of 196 soil and rock chip samples were collected. Rock chip samples ranged in value from 0.5 to 4.0 g/t gold. Santa Clarita exhibits geology similar to that of Golden Champune.
In 1988, a geophysical Induced Polarization/Conductivity study was also conducted on Golden Champune. The results were inconclusive due to the difficulty in gaining proper ground contact with bedrock.
Century's grid rock chip sampling program on Golden Champune has begun this week. The grids will be established on a nominal 50 meter by 50 meter spacing. The samples will be transported directly to a newly-constructed sample preparation laboratory at the San Juan Mine, where the samples will be crushed and a portion shipped to Lima for analysis. Approximately 700 samples will be collected over the next few weeks.
The San Juan Mine operation is located near the southern Peruvian coast, approximately 80 kilometers inland from the mouth of the Ocona River and the city of Camana, and is currently producing gold from extensive veins and shears within intrusive rocks. More than 35 mineralized structures have been identified on the property, of which only two have been extensively mined.
Margaret Kent, President & CEO, commented: "We are excited about the exploration potential at the San Juan Mine and surrounding properties, which is being confirmed by data in archival technical reports that we are evaluating. No exploration has been conducted on the Santa Clarita, Golden Champune, Lily-La Huaca and Erika properties since the early 1990s. We believe that these four discoveries have the potential to establish a new mining district in the future and may be suitable for large tonnage heap leach method of extraction. We are commencing an aggressive exploration program. We will be moving rapidly with this program on the basis of the information we have found at the property. We have been able to establish drill targets for Golden Champune and Santa Clarita. These targets will be drill tested as soon as permits are obtained and a suitable drilling contract is negotiated. The San Juan Mine will be a key component of our future growth in gold production."
About Century Mining Corporation
The Company forecasts gold production of 100,000 ounces of gold at a cash cost of US$325 to US$350 an ounce from its Sigma, Lamaque and San Juan mines in 2006. The Company owns the dormant Carolin gold mine in southwestern British Columbia; nine precious metals exploration properties located on the historic Juneau Gold Belt in Alaska; and production and exploration properties in Peru.
Margaret M. Kent, Chairman, President & CEO
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and as amended in Section 27E of the 1934 Act.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Contact:
Tom Thomsen
Century Mining Corporation
Investor Relations Consultant
(877) 284-6535 or (360) 332-4653
tthomsen@centurymining.com
Graham Eacott
Century Mining Corporation
Vice President, Investor Relations
(877) 284-6535 or (360) 332-4653
(360) 332-4652 (FAX)
geacott@centurymining.com
www.centurymining.com
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Source: Century Mining Corporation |
