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March 28, 2008
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Central Sun Announces Full Environmental Approval for Orosi Mine Project
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TORONTO, ONTARIO--(Marketwire - March 28, 2008) - On March 28, 2008, the Nicaraguan Department of Environment, MARENA (Minesterio del Ambiente y los Recursos Naturales de Nicaragua) issued Central Sun Mining Inc. (TSX:CSM)(TSX:CSM.WT)(AMEX:SMC) full environmental permitting for the construction, operation and maintenance of the Orosi Mine Project which includes process plant upgrade and tailing management facility. The Orosi Mine is located 110 kilometres east of Managua, the capital city of Nicaragua.
"We are very pleased with the issuance of the full environmental permitting for the Orosi Mine Expansion Project, including the tailing dam facilities," said Central Sun's President & CEO, Peter Tagliamonte. "The project team has done an exceptional job of working closely and co-operatively with the Nicaraguan Governmental agencies. With the permitting in place, Central Sun will continue on the fast track schedule with gold production expected to start in the first quarter 2009."
Orosi Mine Project
Central Sun is currently converting the Orosi Mine from a heap leach operation to a conventional milling operation. Recoveries are anticipated to increase from 38% previously being achieved from heap leaching to over 90% with conventional milling based on extensive metallurgical testing. Production is expected to start in the first quarter of 2009 at a rate of approximately 85,000 ounces of gold per year. A positive scoping study was completed in March 2007 and the full feasibility study is expected to be completed in April 2008.
The Orosi Mine Project is on track, with all of the equipment from the dismantled Getchell mill in Nevada having been successfully shipped to Nicaragua and transported to the Orosi Mine site. Orosi will position Central Sun as an emerging gold producer, with expected annual production at a rate of 125,000 ounces per year starting in 2009.
The mineral reserve and updated resource estimates for the Orosi Mine are being prepared in conjunction with the feasibility study commissioned by Scott Wilson Roscoe Postle Associates Inc. The new mineral reserve and resource estimates for Central Sun will be issued once the feasibility study has been completed.
Qualified Person
Graham Speirs, P. Eng., COO for Central Sun Mining, is the Qualified Person responsible for the disclosure as defined by National Instrument 43-101. The internal quality control information were reviewed and verified by Mr. Speirs. Mr. Speirs has read and approved this news release.
About Central Sun Mining
The Company is a growing gold producer with mining and exploration activities focused in Nicaragua. The Company operates the Limon Mine in Nicaragua and is converting the Orosi Mine in Nicaragua to conventional milling to increase the annual gold output. It also holds an option to acquire a 100% interest in the Mestiza gold property which is located 70 kilometres east of the Limon Mine. The Company is focused on efficient and productive mining practices to establish high quality and cost effective operations. Central Sun Mining is committed to growth by optimizing current operations, expanding mineral reserves and resources at existing mines as well as exploring its extensive land holdings.
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995, and "forward-looking information" under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and risk factors include, but are not limited to, statements with respect to the implementation of the Company's strategic plan; the future financial or operating performance of the Company, its subsidiaries and its projects; the future price of gold; expectation that the Orosi Mill feasibility study will be positive; capital requirements for completion of the Orosi Mill project; successful implementation of the Orosi Mill project; the estimated Orosi Mill recovery rates; the estimation of mineral reserves and resources, the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; operating and exploration expenditures; mining or processing issues; costs and timing of the development of new deposits; costs, timing and success of future exploration; government regulation of mining operations; permitting time lines and permitting; labour disruptions; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage and regulatory matters. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of the Company as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
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