Century Mining Provides Exploration Overview
Wednesday September 27, 11:50 am ET
ca.us.biz.yahoo.com
BLAINE, WASHINGTON--(CCNMatthews - Sept. 27, 2006) - Century Mining Corporation (TSX VENTURE:CMM - News) is pleased to provide an update on its exploration properties and activities.
LOCATION AND EXPLORATION MAPS TO ACCOMPANY THIS NEWS RELEASE CAN BE SEEN BY CLICKING ON THE FOLLOWING LINK: ccnmatthews.com
Century Mining is pleased to present a summary of its exploration projects and plans for the next six-month period from September 2006 to March 2007. Century Mining has exploration projects in Canada, Peru and the United States. In Peru the Company owns the San Juan mine in Arequipa Province of southern Peru, which has at least six excellent exploration targets on its 250 km2 property, and the Colina Dorada property located in the province of Piura in northern Peru. Its Canadian projects are located in Val d'Or, Quebec adjacent to its Sigma and Lamaque mines and in British Columbia near Hope, BC and in Yellowknife, NT. The Company's Alaskan properties are located near Juneau, Alaska on the Juneau Gold Belt and include the Treadwell mine, which was the largest gold mine in the world at the turn of the 20th century.
Peru
San Juan Exploration
The San Juan property is 250 km2 in size and is a complete mining district that covers an up-thrown block which forms a window to the basement Jurassic to Cretaceous Yura Group meta-sediments. This block forms a window through the thick overlying Miocene-Pliocene Senecca Volcanics. The Yura Group contains intrusions of the Bella Union Complex and Coastal Batholith, both of which are intruded by younger granodiorite stocks. The Bella Union complex and the granodiorite stocks have been extensively fractured and mineralized with gold-bearing veins and stockworks.
San Juan Mine Proper
- San Juan mine, which is currently in operation, has historically produced 1.2 million ounces of gold to date from the San Juan and Mercedes veins and has never had a drill hole in the property. These veins have excellent potential to expand both along strike and down dip. Thirty-five additional veins that parallel and are diagonal to the Mercedes and San Juan veins are also well mineralized as shown by recent sampling and have similar potential to host significant gold resources.
- At this writing new access roads have been constructed and drilling, upon receipt of the drilling permit expected within the next week, will begin from the surface to test these new veins and extensions of the Mercedes and San Juan veins.
- In addition, underground sampling and development work have begun which will help establish additional resources on the San Juan and Mercedes veins. The contract for the drilling has been signed, and the drill rig is being mobilized to the site.
- A budget of US$300,000 has been set to complete diamond drilling, assaying and other sample work. This work will provide the basis for the preparation of an NI 43-101 technical report, which is expected in the next few months. Chlumsky, Armbrust and Meyer, LLC of Lakewood, CO have been retained to review the work after completion
Golden Champune
- The Golden Champune consists of an extensive stockwork in Coastal Batholith granodiorite covering several square kilometers.
- The stockwork is comprised of sheared alteration rims with pervasive sericite, iron oxides and thin quartz veinlets surrounding brecciated granodiorite fragments.
- Historic sampling returned values of up to 3.1 g/t Au.
- Century's sample program, which used 542, 2m x 2m rock chip panel samples of the stockwork weighing 3 to 4 kilograms, was aimed at testing the potential for a bulk tonnage gold deposit. The program returned a maximum gold value of 0.68 g/t Au which indicates that the stockwork does not host a low-grade, bulk tonnage target.
- The Golden Champune will be re-evaluated as a potential vein system target using a focused sampling method and at least two core holes to sample the system to a depth of up to 1,000 meters. A budget of US$80,000 has been set for this exploration.
Veta Clara
- The Veta Clara target is a vein swarm and alteration system located in the southern portion of the property with a known strike length of over 3 kilometers.
- A small portion of the Veta Clara is currently being mined under an agreement with independent miners who are working the surface portion of one vein and transporting the ore the 4 kilometers to the San Juan mill.
- A 30 meter adit has been established on the vein.
- Century intends to complete further sampling and will drill up to 4,000 meters on the target beginning late in 2006 with the intention of proving up additional vein reserves to feed the San Juan mill.
- Sampling by Century to test the veins and alteration zone for the presence of a large, low grade deposit returned good grades on the veins but failed to show significant gold grades in the surrounding alteration. A total of 875 samples were taken which returned the grades given in the following table:
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Number of Grade
Samples Gm/tonne Au
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10 5.00 plus
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11 3.00 to 5.00
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22 1.00 to 3.00
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146 0.50 to 1.00
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686 trace
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- A budget of US$300,000 has been set for further testing of this vein system that will include diamond drilling, sampling and assaying and some road building. This work will begin within the next month.
Santa Clarita
- The Santa Clarita showing is approximately one kilometer square and is hosted by andesites within a diorite intrusive of the Bella Union Complex.
- A total of 206 samples taken by Peru Universidad de Ingenieria in1989 returned gold values up to 4 g/t Au in several clusters. A ground IP survey was also conducted but was inconclusive due to poor ground contact at the poles.
- Minera IRL S.A. mapped and sampled the area in 2006 and obtained moderately anomalous values in molybdenum (maximum-1,601 ppm), copper (maximum-343 ppm), and gold (maximum-480 ppm). The property is 4 kilometers from San Juan mine with road access.
- Further sampling and drilling are proposed in 2006-2007 to determine if the character of the mineralization and a budget of US$300,000 has been allocated for this work. This program is expected to commence early in 2007.
Erika
- The Erika target consists of feldspar porphyry that has intruded quartzose siltstones of the Yura Group.
- Erika showing is located in the southeast corner of the San Juan property about 6 kilometers from the San Juan mine. The property abuts Teck-Cominco claims to the south and east, which cover a copper porphyry discovery in similar rocks south-east of the Erika.
- The Erika showing contains copper values in the siltstones that surround the intrusive but insufficient work has been done to date to provide adequate geochemical coverage of the target area.
- For 2006-2007 the Company will complete a geochemical and mapping survey over the entire two square kilometer area of the showing to more clearly understand the geology and mineralization. A budget of US$30,000 has been allocated for this work.
San Juan Regional
- Century intends to carry out a regional prospecting, sampling and mapping program over the 250 km2 San Juan property as there are other known showings on the property that have not been well documented. These showings are thought to be vein style gold mineralization and they include the Lily La Huaca area and the Northern Vein. There is no information on the Lily La Huaca or the Northern Vein but the Northern Vein is currently being mined by informal miners. The Northern Vein extends for 3 kilometers on Century property; however, this has not yet been documented by Century. A regional geologic program to document and sample these areas is contemplated for 2007.
Colina Dorada
Century Mining Peru's Colina Dorada Property, located in northern Peru, will be the focus of a systematic exploration program in the fourth quarter of 2006. The project covers a 60 km2 area located approximately 130 kilometers northeast of the city of Piura in the District of Las Lomas, and is situated in low foothills on the border with Ecuador along the Rio Chirra. The region is very dry and characterized by low scrub brush and cactus and is sparsely populated.
The Colina Dorada property is located near Plexmar Resources' Bolsa del Diablo property. Plexmar has reported high values of gold (186.5 g/t), silver (141 g/t), and copper (0.8%) from sampling in veins, stockworks, and significant alteration zones. Numerous itinerant miners - known as "informales" - are working on Colina Dorada, with oxidized gold ore being produced and hauled in bags to small processing mills.
Dynasty Metals and Mining, working in Ecuador north of the Colina Dorada property, has delineated a previously unexplored Copper-Gold Belt in Ecuador, which trends south west into the Colina Dorada property. The Copper-Gold Belt is approximately 90 km long and 20 km wide and trends through the Colina Dorada property on strike with the well known Tambo Grande deposits, which are located south west of Colina Dorada. The Colina Dorada property shares similar geology with Bolsa del Diablo, consisting of epithermal veins and stockworks in volcanic and minor sedimentary rocks of the Lancones Formation. These rocks have been intruded by plugs and stocks of granodiorite. Younger felsic dikes cut the granodiorites.
The program will consist of systematic geological mapping, prospecting and sampling over the property position, which covers an area of approximately 6.6 km2. A budget of $50,000 has been set for this program which will be completed by staff geologists from Century Peru's Lima office.
Canada
Sigma-Lamaque, Bourlamaque Township, Quebec
Century's prime area for exploration in Canada is the Sigma-Lamaque mine and the claims which abut the mine on the east side. The Sigma and Lamaque mines both operated from underground for most of the last century producing a total of approximately 9.4 million ounces of gold to date. These underground mines were closed as a result of the low price of gold in the 1990s and an open pit, which is in operation today, was developed by Century Mining on the crown pillar of the Sigma mine.
Century has commenced exploration and mining on the underground workings of the Sigma and Lamaque mines and will use the Lamaque mine openings to access the workings. All of the production will be milled at the Sigma mill which has the capacity to process both the open pit and underground ore. The Sigma-Lamaque underground has NI 43-101 compliant resources as follows: Measured 772,000 tonnes at a grade of 5.4 g/t Au, Indicated 3,151,000 tonnes at a grade of 4.91 g/t Au for a total contained 630,000 ounces of gold in Measured and Indicated. In addition a further 10,101,000 tonnes is carried in the inferred category at a grade of 5.21 g/t Au containing 1.7 million ounces of gold (Ref. CAM report, Sigma Lamaque Complex, November 29, 2005 which is available on www.sedar.com).
Century has commenced the sampling and rehabilitation work necessary to prepare for underground production. The water level in the mine has been established to be at the 1,500 level and the underground mine infrastructure has been determined to be in good condition. The underground workings are currently being accessed through a decline and initial production will be achieved using this decline. In the future it is planned to use one of the Lamaque shafts as the main conduit for ore, when full production is established. A low operating cost vertical conveyor system is being considered to allow ore to be easily moved to the surface for transport to the nearby Sigma mill. A total of 9 resource blocks, shown in the diagrammatic crossection of the Sigma-Lamaque underground (see link), have been targeted for future exploration from underground. A total of C$800,000 will be spent on the Lamaque exploration program in 2006.
In addition to the underground program, the West Plug deposit is situated on the Lamaque property and was the subject of Century's 2005 exploration drill program. Reserves and resources are currently being calculated on this deposit and will be included in Century's reserve statement at year-end.
Bourlamaque Township Exploration Properties
Century has a total of 8.4 km2 of exploration properties in Bourlamaque Township which are either contiguous with or in close proximity to the east side of the Sigma-Lamaque mine property. These claims cover the eastern extension of the mine mineralized zone which has a strong east-west orientation parallel to the Larder Lake-Cadillac break.
The strong east-west structures, diorite plugs and dykes, which localize the mineralization at Sigma-Lamaque, continue onto these claims and host known mineralization similar to that on the Sigma property. Evidence of this is given by exploration drilling on the property which has produced intersections of similar width and grade to that mined at the Sigma mine. The historic intersections grading greater than 3 g/t gold are given in the tables below. The true width of the intersections is not known.
Central DioriteHistoric Intersections greater than 3 g/tonne Au
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Hole ID Intersection (m) Value (g/t Au)
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NB-83-21 0.70 42.10
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NB-83-46 0.7 14.10
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NB-83-46 0.6 18.10
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NB-83-46 0.9 3.00
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NB-83-46 0.6 50.70
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NB-83-46 1.2 8.65
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NB-83-47 0.6 8.7
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U-83-19 0.5 54.50
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U-83-19 0.80 13.40
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U-83-27 0.50 19.00
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U-83-28 0.50 17.30
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U-83-57 1.00 10.80
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U-83-60 0.50 5.00
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C-9 0.33 4.46
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1369134 0.80 4.30
-----------------------------------------------Southern Diorite
Historic Intersections greater than 3g/tonne Au
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Hole ID Intersection (m) Value (g/t Au)
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2 0.25 29.15
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80 0.43 12.41
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82 0.61 3.87
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82 0.30 238.32
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82 0.46 14.40
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92 0.61 3.89
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92 0.61 9.09
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92 0.61 7.48
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92 1.22 4.04
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92 0.30 5.52
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94 0.40 7.92
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94 0.3 7.82
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96 0.3 3.43
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96 1.68 108.25
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103 3.05 10.66
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UB-79-02 0.52 23.87
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UB-79-02 0.11 63.43
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UB-79-02 0.16 4.11
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UB-79-02 0.61 3.09
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UB-79-02 0.61 25.37
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UB-87-01 2.44 11.98
-----------------------------------------------Lac Langlade
Historic Intersections greater than 3g/tonne Au
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Hole ID Intersection (m) Value (g/t Au)
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6 1.21 21.25
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7 0.39 38.06
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7 0.64 19.20
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UM-88-03 1.00 10.97
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UM-91-02 1.08 5.08
-----------------------------------------------Auric West
Historic Intersections greater than 3g/tonne Au
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Hole ID Intersection (m) Value (g/t Au)
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U-83-55 1.6 9.30
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U-83-74 1.50 9.50
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U-83-74 0.50 5.20
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U-84-78 0.60 55.80
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U-84-78 0.50 22.80
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85-90 0.34 15.10
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The Aumaque mine is located slightly east of the Lamaque portion of the Sigma-Lamaque property and contains a fractured and mineralized diorite plug similar to that of the Main Plug on the Lamaque property. It was discovered in 1934 by the Herbin Lake Gold Syndicate and in the period from 1944 to 1949 Aumaque Gold Mines completed underground development to the 625 level and drifts on five levels in addition to 11,585 m of surface drilling and 5730 m of underground drilling. The mineralization was found to be consistent in style to that found in the Sigma-Lamaque Complex and a historic resource was calculated. In the period from 1987-1988, Alotta Resources Ltd. dewatered and sampled the mine and completed a total of 7,941 m of surface and underground drilling and estimated a resource.
Louvicourt Township, Quebec
Century has the Sigma II property comprising 4.2 km2 in Louvicourt Township south of Aur Resources' Louvicourt mine. This Sigma II mine was mined by open pit methods in the recent past and the ore transported to the Sigma mill. The mineralization continues to depth and will be re-evaluated in light of the current gold price. Further drilling is needed to complete this evaluation but has not been planned for 2006.
British Columbia Property
Century Mining Corporation owns 70% of the Carolin Mine Property, which contains 126 claims covering the old Carolin Mine and 19 other gold showings. It is located in British Columbia six miles east of Hope. Century has the option to buy the remaining 30% of the property for $6,667.00 each 1% percent interest purchased. Century plans to option, joint venture or place the property in a separate company where exploration can be conducted using flow through financing.
The Property is in the Coquihalla Gold Belt and straddles the north trending Hozameen fault. The gold showings on the property occur in conglomerates and volcanic rocks of the Ladner Group on the east side of the fault. The Carolin Mine has a historical inferred mineral resource, produced by Athabaska Gold Resources in May of 1996, of 1.5 million tons at a grade of 0.129 ounces of gold per ton plus 590,000 tons of tailings with a grade of 0.054 ounces of gold per ton (These historic mineral resource calculations are not NI 43-101 compliant and should not be relied on as they have not been reviewed by a qualified person. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The company is not treating the historical estimate as current mineral resources or mineral reserves as defined in NI 43-101. No more recent estimates or data are available to the Company. The Company believes the resource estimates are relevant as it documents that there may be an important gold content in the mine and tailings pond). A study of the quantity and grade of the tailings was conducted by Ash Consultants in 1995 and a metallurgical program was conducted by Melis Engineering and reviewed by Rescan Environmental Services Ltd., which confirmed that reprocessing of the tailings could produce a gold-bearing concentrate.
Exploration carried out by Athabaska Gold Resources in the late 1990s extended the 875 level to the north. Drilling at the north end of the 875 level intersected two new zones grading 0.33 opt Au over 29 feet and 0.15 opt Au over 49 feet.
A four kilometer gold in soil anomaly is present on the Carolin Property with the Carolin mine entrance located at one end and the McMaster gold showing at the other. It is believed that high angle faults have moved the gold bearing stratigraphy upwards as it trends northwards towards the McMaster area. The McMaster area is a potential open pit target.
The potential of the Carolin area also includes the native gold potential of the talcose shears which mark the Hozameen fault. Similar talcose shears are found in the major fault zone that localizes the California Motherlode deposits where high grade native gold has been produced.
North Belt Leases, Northwest Territories
The Northbelt leases cover the Yellowknife Gold Belt for 15 kilometers in a northerly direction from the north end of the Con and Giant mine properties, which produced over 8 million ounces of gold. The property contains the Crestaurum gold deposit, a large number of gold showings and a zinc showing. Century plans to explore this property in a separate company utilizing flow through funding to finance the exploration.
The Juneau Gold Belt, Alaska
The Juneau Gold Belt was a one of the world's largest gold producers at the turn of the 20th century with both the Treadwell and AJ (Alaska Juneau) mines in production. A total of 6 million ounces of gold were produced from these mines with 3.2 million ounces being produced from the Treadwell mine to a depth of 1,700 feet.
The Treadwell Mine is Century's anchor project on the Juneau Gold Belt. In the early 1990s Echo Bay Mines drilled a long hole across Gastineau Channel to test the continuity of the mineralization to depth. At an elevation of 3,000 feet, which is 1,300' below the Treadwell workings, the hole intersected 187' of 0.101 opt Au, containing a section of 44' of 0.22 opt Au. This extremely wide intersection was typical of the width and grade originally mined from the Treadwell during the mine life.
Century's other properties in the Juneau Gold Belt include:
Alaska Empire Mine
- Small historical producer that produced 19,451 ounces of gold prior to World War Two from the Williams Vein.
- Echo Bay Mines explored the property in the 1980s completing 5,000' of drilling.
- The best drill hole intercept returned 13' of 1.25 opt Au.
- Exploration to include ground geophysics and follow-up drilling.
Yakima Property
- The Yakima property is located 450m west of and parallel to the Treadwell mine. The properties are thought to be related due to their close proximity and similar geology to each other. Both properties contain long low grade gold intersections.
- Gold and base metal mineralization has been cut in 3 drill holes designed to test gold and base metal soil anomalies.
- DDH-1: 75' of 0.2% Cu; 7.5' of 0.027 opt Au.
- DDH-2: 166.5' at 0.03 opt Au, including 26' at 0.14 opt Au and 8' at 0.3 opt Au hosted by quartz diorite similar to the Treadwell diorite.
- DDH-3: 219' at 0.25% Zn, including 50' @0.5% Zn, 15' of 0.022 opt Au and 36' of 0.017 opt Au.
- Geophysical/geochemical surveys & drilling are planned.
Eagle River Mine
- Past producer of 22,500 ounces of Au between 1904 and 1912.
- The "Flume" Tunnel encountered an ore shoot measuring 300 foot long, 36 foot wide stringer zone assaying 0.18 opt Au, which contained a 4.5 foot zone assaying 0.59 opt Au on the hanging wall.
- Exploration to include rehabilitation and sampling of the "Flume" adit and an underground drill program.
Sweetheart Property
- Cu, Zn, Ag, & Au mineralization extends over 12,600' strike length.
- Tested by 16 shallow diamond drill holes which returned Cu to 1.4%, Zn to 3.2%, Ag to 1.3 opt, and Au to 0.27 opt (see details in Technical Report, October 2004 available on www.sedar.com).
- Geophysical surveys are planned to further explore the property.
Patton Property
- Under-explored, high-grade Au veins in phyllites.
- Four small adits on property. Vein in 3 adits averages 1.3' wide over 100'.
- Sampling by United States Geologic Survey returned 2.2 and 1.9 opt Au over 0.7 feet and 0.7 feet' respectively.
- Geological mapping, soil sampling, & geophysical surveys are planned.
Peterson Property
- Historical prospecting identified gold mineralization within an arsenic soil anomaly which covers most of the property.
- Stream sediment sampling returned significant Au values in pan concentrates.
- Exploration work to include sampling, mapping and identifying drill targets.
Dream Property
- Placer Dome discovered a high grade breccia pipe in an area of stratabound polymetallic mineralization.
- Selected grab samples returned grades up to 0.4 opt Au.
- Exploration to include sampling & mapping to identify drill targets.
Bessie Property
- Under-explored, high-grade Au veins in phyllites.
- Four old adits on Bessie vein at north end of property; four adits and shaft on the Alaska Washington vein at southern end of property. 300 oz. Au produced. Vein in adit #2 exposes a section 50' long by 18" wide that averages 0.431 opt Au.
- Geological mapping, soil sampling, & geophysical surveys are planned.
Century plans to option, joint venture or place the Alaska properties in another company to finance the exploration.
Summary
The Company has 25 exploration projects and properties. The majority of the Company's exploration focus will be at Sigma-Lamaque in Quebec and in Peru. Margaret Kent stated: "To build a major mining company our company needs a strong land position with a number of development targets. Several of the properties that Century owns would, on their own, be a flagship property for an exploration company trading with tens of millions of dollars of market capitalization. This is the case with our Colina Dorada Property.
Century has a strong portfolio of exploration properties that we are actively advancing. Our ability to generate development targets, replace reserves and find the next major deposit are greatly enhanced. The Company is well positioned for growth and will continue to be focused in Peru and Quebec".
Margaret M. Kent, Chairman, President & C.E.O.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking information. It is based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other resource prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.
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:
Brent Jones
Century Mining Corporation
Manager, Investor Relations
(360) 332-4653 or Toll Free: 1-877-284-6535
bjones@centurymining.com
Graham Eacott
Century Mining Corporation
Vice President, Investor Relations
(360) 332-4653 or Toll Free: 1-877-284-6535
(360) 332-4652 (FAX)
geacott@centurymining.com
www.centurymining.com
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Source: Century Mining Corporation
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