CENTURY MINING COMPLETES ACQUISITION OF THIRD MINE
Century Mining Corporation (“Century” – TSX-V:CMM
– June 28, 2007) today announced that the public registration of the
transfer of title of Rosario de Belen from a private family in Peru
has been concluded.
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The acquisition was completed by two wholly owned subsidiaries of the
Company, Century Mining Peru S.A.C. and Century Mining Finance Corp. As
previously announced, Century issued one million Century shares to the sellers
as consideration for the purchase. Terms of the deal include a total purchase
price of US$20.5 million in cash, of which US$3.25 million was paid on closing.
Remaining payments include US$3.25 million six months after closing and US$13
million 12 months after closing, along with 500,000 shares of Century. Century
has also agreed to pay a 1.5% NSR royalty to the sellers.
Mina Rosario de Belen began operations in February 2007 as an open-pit
heap leach mine with an initial and expandable ore processing capacity of 5,000
tonnes per day. The mine and processing plant, still in the start-up phase, are
currently operating at a rate of approximately 3,000 tonnes of ore per day. The
processing plant includes both a zinc precipitation circuit and a new carbon
absorption circuit. Mina Rosario de Belen is equipped with leach-pad capacity
for 10-million tonnes and a Merrill-Crowe zinc precipitation circuit, which
currently operates at 530 gallons per minute.
Century Mining took over operations at Rosario de Belen on May 6, 2007.
Current start-up monthly production, on one 8-hour shift per day, 5 days per
week, is 650 ounces of gold and 6,500 ounces of silver. Century management
believes that the mine’s production can be increased to approximately
25,000 to 30,000 gold-equivalent ounces per year. Gold equivalents are calculated
using a US$600/oz gold price and US$10/oz silver price. Cash costs of
production are reported to be in the US$250-$300/oz range during the current
start-up phase. A feasibility study has not been completed by Century and the
estimate provided by the previous owners should not be relied upon. There is no
compliant current mineral resource estimate and there is no certainty that the
company's projected output will be viable.
Gold/silver mineralization at Rosario de Belen is associated with an
intrusive sub-volcanic unit that has cut across the sedimentary rocks of the
Chimu Formation. The Chimu Formation hosts the nearby Santa Rosa gold deposit,
which is currently producing 140,000 gold-equivalent ounces per year, and is
also host to world-class gold deposits including Lagunas Norte, which is
producing 1.1 million ounces of gold per year, and Yanacocha, which is
producing 2.6 million ounces of gold per year.
Century Geologists have spent the last month on the property and have
observed and identified important new structural controls on gold
mineralization. The Company Geologists believe these controls offer an
exploration approach that could rapidly focus definition efforts to
significantly expand the resource base and favorably impact the production potential
of the deposit. Century will finalize feasibility work on expansion plans when
the ultimate size of the deposit has been determined.
Margaret Kent, President & CEO said: “We are pleased to have
successfully completed this transaction to acquire our second mine in Peru,
and third mine companywide. Rosario de Belen has added immediate ounces to
Century’s production profile, and will provide significant exploration
upside. The Company plans to aggressively increase resources here. This
acquisition is consistent with the Company’s strategy of finding and
financing producing but undervalued gold mines on terms that increase
shareholder value.”
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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