Press Release Source: Century Mining Corporation
Century Commences Underground Exploration and Development Program at Lamaque Mine
Monday March 20, 3:58 pm ET
BLAINE, WASHINGTON--(CCNMatthews - March 20, 2006) - Century Mining Corporation (TSX VENTURE:CMM - News) is pleased to announce the commencement today of a three-phase exploration and development program for the restarting of mining operations at the Lamaque underground mine.
The Lamaque Mine, which is adjacent to the operating Sigma Mine, operated from 1935 to 1985 with total mine production of approximately 24.2 million tonnes of ore at an average grade of 5.81 g/t gold for a total of 4.55 million ounces of gold.
Phase 1 is scheduled to proceed through the end of July at a cost of approximately $600,000. The scope of work includes inspection of the Lamaque Mine #2 shaft and decline area for the purpose of preparing for future operations down to the 1200 ft level. This will require refurbishing of utilities, power, haulage support systems, ventilation, communications and primary and secondary travel ways.
Phase 2 is scheduled to extend from July through December 2006 at an estimated cost of $5.0 million.
The work will encompass development of key ore target zones for the purpose of developing the Lamaque #2 shaft mine area.
This will require the purchase of underground mining equipment, hiring of an underground operating crew, and further exploration ore definition drilling.
The Company plans to inspect and begin pumping in the #7 shaft mine area at depth. The Company estimates gold production in the range of 5,000 to 10,000 ounces from the Phase 2 program this year.
Phase 3 is scheduled to start at the beginning of 2007 and will continue throughout the year at an estimated cost of $5.0 million.
State-of-the-art technology in mining retrieval and hoisting, including horizontal and vertical conveyor systems and upgraded diesel mobile equipment, will be used to begin mining of the #7 shaft mine area and to improve productivity in the #2 shaft mine areas.
The total cost of the development program of approximately $10.6 million will be funded by operating cash flow from the Sigma Mine and from the exercise of warrants, which will add $7.5 million to the treasury.
Currently there are approximately 17 million warrants outstanding for exercise at a weighted average exercise price of $0.44 per share.
All warrants are in-the-money, the exercise prices being in the range of $0.40 to $0.55 per share. The latest expiry date is September 23, 2007. Century's share price closed at $1.00 per share on March 17.
The table below shows the tonnes, grade and contained ounces of gold in the measured, indicated and inferred resource categories at the Sigma-Lamaque underground mine. Mineral resources that are not mineral reserves do not have demonstrated economic feasibility.
The table is extracted from the technical report prepared by Chlumsky, Armbrust and Meyer, LLC ("CAM"), the "independent qualified person" in accordance with the provisions of NI 43-101 that was filed on SEDAR (www.sedar.com) on November 30, 2005. This table was previously included in a technical report prepared by T.J. Armstrong Geological Consulting Inc. that was filed on SEDAR on October 20, 2004.
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Mineral Resource Sigma-Lamaque Underground
Category (cutoff grade undefined)
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Grade Contained
Tonnes (g/t Au) oz of Gold
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Measured 772,000 5.36 133,000
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Indicated 3,151,000 4.91 497,000
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Measured + Indicated 3,923,000 4.99 630,000
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Inferred 10,101,000 5.26 1,708,000
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(after Armstrong 2004)
Historical records indicate grades of up to 7.0 g/t gold in the vein structures in the Lamaque mine.
Margaret Kent, President & C.E.O. said: "The current gold price environment has allowed us to commence our underground program at Lamaque earlier than we had envisaged a year ago when we commenced mining in the Sigma pit.
Furthermore, we plan to finance this program from internally generated funds comprising operating cash flow from the Sigma Mine and from the exercise of warrants from earlier private placements.
The addition of significantly higher grade material from the Lamaque underground will have a beneficial impact on production and costs next year."
Margaret M. Kent, Chairman, President & C.E.O.
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 or info@centurymining.com
www.centurymining.com
biz.yahoo.com
Source: Century Mining Corporation
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