CENTURY CONVERTS
SIGMA-LAMAQUE TO FULL UNDERGROUND OPERATION
- COMPANY CLOSES OPEN
PIT -
BLAINE, WA: November 5,
2007 - Century Mining Corporation (CMM: TSX-V) �Century Mining Corporation
announced today that it has discontinued open pit mining operations at its
Sigma gold mine at Val d’Or, Quebec as of Monday, November 5, 2007, and
will ramp up production from the Lamaque underground mine, which the Company
reactivated in April 2007.� “The closure of the Sigma open pit was a
difficult decision, but deteriorating ore grades in the open pit and increasing
costs of operation because of rising fuel prices made the surface mine
uneconomic,” said Century’s President and CEO, Margaret Kent.
“We are extremely
enthusiastic about the prospects for the Lamaque mine, where we have had
significant success since reopening this historic mining operation,” said
Kent. “These underground mines have produced over 9.5 million ounces from
the 1930’s until the 1990’s.”� The contiguous underground
properties of both Sigma and Lamaque have been combined and are referred to
jointly by the Company as the Lamaque mine.�
The Lamaque mine is
currently producing 350 to 400 tonnes of ore per day at an average grade of
approximately 5.5 grams per tonne. The Company has applied for permits to
increase production to over 1,800 tonnes of ore per day.� Century expects
Lamaque to yield positive cash flows by the end of the first quarter of 2008.�
The Company also expects that Lamaque will produce upwards of 100,000 ounces of
gold per year at a cash cost of approximately $350 per ounce by the end of the
first quarter of 2009.� As a result of the shutdown of the open pit, the Company’s
revised production guidance for the full year 2007 is 65,000 ounces.
As a result of the closure
of the Sigma open pit, the Company will temporarily reduce its staffing levels
at Val d’Or this week by 191 employees, leaving employment of 110 at the
site. This temporary workforce reduction, including both salaried and hourly
employees, is necessary until these employees can be transitioned over to the
Lamaque underground mine.� As the Lamaque mine operations are expanded over the
next several months, the employment levels will be increased to approximately
350 to 400 employees when the mine achieves full production of 1,800 tonnes of
ore per day.
Century has also undertaken
a major data compilation and mapping effort for the Lamaque property to
demonstrate resources on the property and guide future expansion of mining
operations.� Use of recently digitized historic information and the application
of geological models has resulted in the discovery of several new ore zones at
the Lamaque property.� Century is currently delineating and quantifying these
ore zones in order to prepare and file an NI 43-101 report expanding the
reportable reserves and resources at the mine by the end of the year.
On September 27, 2007 the
Company announced a non-brokered private placement of up to US$20 million. �The
Company has chosen to close out that private placement after raising
approximately US$7.3 million because of available financing alternatives
including a proposed leasing line and adjustments to the Company’s senior
notes.�
To fund the Lamaque underground
development and underground exploration and resource definition programs, plus
other projects, Century is announcing plans to raise C$6-8 million through a
common equity and flow-through offering.� The terms of the offering are as
follows:
Offering of up to 6.5
million units. Each unit will consist of:
� one flow-through common share
� one common share
� one full share purchase warrant, exercisable for two
years from the date of issue at an exercise price of C$0.80
Proceeds of the offering
will be used to fund the Lamaque exploration and resource delineation efforts,
expansion of the Lamaque mine, and for working capital purposes, as follows:
� C$3-4 million flow-through Lamaque exploration and
resource expansion; and
� C$2-3 million Lamaque underground mine development and
working capital.
A finder’s fee of 6%
in cash and 6% in broker warrants will be paid.
About 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
Lamaque mine in Qu�bec that historically has produced over 9.5 million ounces
of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in
the San Juan Mine where the Company accounts for 100% of gold production.
Century subsidiaries have 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.
On behalf of the Board of
Directors,
“Margaret M.
Kent”
Chairman, President and
C.E.O.
For further information,
please contact:
Brent Jones
Manager, Investor Relations
E-mail: bjones@centurymining.com
Phone: (360) 332-4653
Fax: (360) 332-4652
Web site: www@centurymining.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.
Caution Concerning
Forward-Looking Information
This press release contains forward looking statements
within the meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of applicable
Canadian securities laws.� We use words such as “may”, “will”,
“should”, “anticipate”, “plan”,
“expect”, “believe”, “estimate” and similar
terminology to identify forward-looking statements and forward-looking
information.� Such statements and information are 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
statements and information involve 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 information and
accordingly, readers should not place undue reliance on such statements and
information. �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 commodity
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 included in this Annual Report , in our Annual Information Form and in
other filings made by us with the Securities and Exchange Commission and with
Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes
that the expectations expressed by such forward-looking statements and�
forward-looking information and the� assumptions, estimates, opinions and
analysis underlying such expectations are reasonable, there can be no assurance
that they will prove to be correct. In evaluating forward-looking statements
and information, readers should carefully consider the various factors which
could cause actual results or events to differ materially from those expressed
or implied in the forward-looking statements and forward-looking information.
Century Mining Coroporation: 441 Peace Portal Drive / Blaine,
WA 98230
/ Phone: (360) 332-4653
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