CENTURY
MINING AGREES TO BUY ADVANCED EXPLORATION PROPERTY IN PERU
Century Mining Corporation
(“Century” – TSX-V:CMM – August 7, 2007) announced that it has acquired
the mining concessions and surface rights of the Huancacancha precious metal
property in Peru.
The Huancacancha prospect is an
advanced stage exploration property comprising 1,900 hectares in the Department
of Ancash in north-central Peru.
The project is 45 km south of Huaraz
City and 55 km south of
Barrick’s Pierina mine, which produced approximately 500,000 ounces of
gold in 2006. The deposit is on the southern margins of the 70 km long
hydrothermal alteration trend known as the Pierina Belt, and is situated in the
Cordillera Negra range of the Andes at an
average elevation of 4,200 meters. The deposit is currently defined by 83 drill
holes containing approximately 5,500 meters of reverse circulation and diamond
core drilling. The target area is 800m x 400m in surface area and is
characterized by intense vuggy silica, quartz-alunite and argillic alteration.
The alteration is hosted in the Calipuy group, a suite of volcanic rock
characterized by basal andesitic lavas overlying rhyodacitic pumic and lithic
tuffs. This host rock is identical to Barrick’s Pierina deposit.
Oxidation has been identified to a depth of 50 meters and is open in this
direction. Intense hydrothermal breccia has also been identified in surface
outcrops. The deposit represents a bulk minable open-pit heap leach oxide gold
and associated silver target. There are also indications of sulfide
mineralization at depth.
The property was evaluated in 2000,
prior to acquisition by its current owner, by a publicly traded international
gold mining company in an internal report which documented a historical
resource of about 37 million tonnes grading 0.39 grams of gold per tonne or
over 400,000 resource ounces of gold. To date, the Company has obtained and
reviewed drill logs for 5 of the above noted 83 drill holes. No silver assays
were run on samples from the deposit even though this geological belt typically
hosts economically significant silver resources. A NI 43-101-qualified report
has not been completed on the deposit and the historical resource should not be
relied on. Technical information included in this press release was reviewed by
Century’s “Qualified Person” Ross Burns, B.Sc, P.Geo., Vice
President, Exploration.
Given Huancacancha’s favorable
geologic setting and its close proximity to Barrick’s Pierina mine along
a recognized trend, the area is considered to be very prospective and could
potentially host another Pierina-type deposit.�
The purchase price is US$24,500,000
and is being financed by the sellers over a 5 year period. An initial
installment by Century of $215,000 was paid at the closing. The remaining
$24,285,000 will be paid in yearly amounts of $2,285,000, $3 million, $4
million, $5 million and $10 million, each amount payable in 12 monthly
installments. At any time the Company may terminate the agreement and return
the concessions to the vendor without penalty to the Company and without any
subsequent payment obligations to the vendor. The Company plans to immediately
complete an assessment of the property including confirmation drilling. Century
is also currently arranging a long term debt facility and this facility,
combined with ongoing cash flow from existing operations will enable the
Company to cover its ongoing obligations. The transaction is subject to the
finalization of all documentation and approval of the TSX Venture Exchange.
Margaret Kent, President & CEO
commented, “This most recent acquisition provides outstanding potential
as evidenced by Barrick’s nearby Pierina deposit. We recognize that
although the reported gold grade is low, the tonnage potential is substantial
based on what we know to date. Furthermore, there has never been a silver assay
done on the deposit and we know that this belt has hosted situations whereby
the silver content alone has covered operating costs. Our land position in Peru now totals
over 54,000 hectares on 5 properties. Since expanding operations to Peru just over
a year ago, we are quickly realizing our vision of becoming a mid-tier gold
producer.”
Regards,
Sara Swisher
Century Mining Corporation
Century Mining Corporation: is an emerging mid-tier gold producer
that is aggressively acquiring producing mines and exploration properties in Peru.
The Company owns and produces gold at the Sigma and Lamaque mines in Qu�bec
that historically have produced over 9.4 million ounces of gold. In Peru,
Century owns an 82.6% interest in the San Juan Mine where the Company accounts
for 100% of gold production. The Company has also recently acquired Rosario de
Belen where it accounts for 100% of both gold and silver production.
Century’s growth strategy is to acquire gold producing assets in South America that will substantially reduce the
Company’s consolidated total cash cost of production and where
there is exceptional exploration potential to expand production at these mines.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this press
release.
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.
Century Mining Coroporation: 441
Peace Portal Drive / Blaine,
WA 98230
/ Phone: (360) 332-4653
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