 | | | Published : April 30th, 2008 | Provides Update on Exploration Program in Nicaragua |
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April 30, 2008
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Central Sun Provides Update on Exploration Program in Nicaragua
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TORONTO, ONTARIO--(Marketwire - April 30, 2008) -
CONFERENCE CALL
Central Sun Mining Inc. (the "Company") (TSX:CSM)(TSX:CSM.WT)(AMEX:SMC) has scheduled a conference call for analysts and investors on Wednesday, April 30, 2008 at 1:30 p.m. (Eastern) to provide an update on its exploration and operations activities.
Conference Call
To participate in the conference call, please dial 416-695-9753 or 1-888-818-4097 about five minutes prior to the start of the call.
EXPLORATION UPDATE
Limon Mine Area
Central Sun Mining Inc. has completed seven (7) Diamond drill holes totaling 2,291 m of a planned 10,000 metre program in the Limon Mine area. Results of the first three holes were previously reported in press releases dated January 29, 2008 and February 20, 2008, respectively. The first three holes successfully intersected a major new zone that significantly extends the potential downdip and on strike extensions of the Santa Pancha orebody as shown on the vertical longitudinal section (Figure 1). The Santa Pancha orebody, which has the highest grade of the Limon Mine area deposits, is currently being mined on the 100 metre level at a reserve grade of approximately 5.6 g Au/t.
To see Figure 1, please visit the following link:
http://media3.marketwire.com/docs/csfig1.pdf.
Holes LM-08-004 to LM-08-006 tested the potential extension of this new zone from 120m to 250m further south of Hole LM-08-003 which intersected 4.54 g Au/t over 15.0m true width. All three holes intersected wide zones of alteration principally silicification and carbonatization that ranged from 25m to 40m in true width. Hole LM-08-004 intersected two mineralized zones grading 7.22 g Au/t over 3.4m true width and 2.57 g Au/t over 2.6m true width. Lower grade values were returned from Hole LM-08-05 (2.78 g Au/t over 2.7m true width) and in LM-08-006, in which carbonate alteration was predominant, no significant values were returned.
A deeper series of holes approximately 100m below the first six holes was commenced with Hole LM-08-007. This hole intersected a 12m wide (true width) zone of quartz veining and quartz vein breccia but returned only low grade values. Hole LM-08-008 intersected a 12m wide (true width) mineralized zone; assays on this hole are pending. Complete drilling results are listed in Table 1.
Dr. Bill Pearson, P.Geo., Executive Vice President, Exploration commented, "Drilling continues to confirm that the Santa Pancha structure is very extensive and remains open at depth. However, closer spaced drilling is required to fully assess the resource potential of this zone. One additional deep hole further south will be completed and then the drill spacing will be tightened to approximately 50m centres to better define the distribution of gold mineralization within this extensive structure."
The Santa Pancha structure, located about 4 kilometres east of the Limon processing plant, strikes N20E and extends for approximately 2.5 kilometres along strike. The target zone being tested as shown on the longitudinal section (Figure 1) extends for approximately 650 metres along strike from the No. 2 shaft area southwards to the No. 8 shaft. The drill holes completed to date have confirmed that the favourable structure extends to a vertical depth of at least 350 m.
Orosi Mine Area
Exploration drilling totaling 10,000m is planned for the Orosi Mine area. An initial five holes totalling 762 metres were completed on the Santa Maria, Mojon and Santa Elena structures in the mine area as recommended by Scott Wilson Roscoe Postle Associates Inc. Results of these drill holes which confirmed previous reverse circulation drilling are listed in Table 2. These results are being incorporated into the updated mineral resource estimate being completed by Scott Wilson as part of the Orosi Mill feasibility study.
Drilling of 1,903 m in 10 holes has been completed to test the San Juan vein structure, a potential open pittable target, located about 5km south of the mine area. These holes tested the structure over approximately an 800m strike length to a vertical depth of 180m. All but one hole intersected gold mineralized quartz veins/vein breccias. Significant results from the first seven (7) holes for which assay results have been received include 19.55g Au/t (17.58 cut) over 1.2m true width and 2.48 g Au/t over 5.7m true width. Table 2 gives complete results.
Recent geological and petrological work by Dr. Robert Hodder, P.Geo., a well known specialist in epithermal gold systems, has better characterized the nature and distribution of alteration related to the gold mineralization at Orosi. Diatreme-type breccias appear to be an important control on the distribution of mineralization with vuggy silica and quartz-adularia veins being important indicators for areas of gold mineralization. Dr. Hodder concludes that none of the deposits studied thus far appear to have bottomed-out in a geological sense. Further he notes the importance of post-mineral faults in displacing mineralized zones opening up possibilities for additional target areas especially in topographic lows resulting from down dropped blocks. A detailed geological mapping program is currently in progress in the general mine area to apply this new geological information and identify additional target areas for drilling.
Induced Polarization/Resistivity surveys have begun at Orosi to target mineralization in the potential northeastern extention of the Mojon-Crimea and Santa Maria structures.
Mestiza-La India Area
At Mestiza-La India, located 70 kilometres east of Limon, Magnetic, Resistivity and Induced Polarization (IP) surveys have been conducted on approximately 45 line kilometres of new exploration grid oriented perpendicular to the Tatiana vein crossing the Mestiza property, along with geological mapping, sampling, prospecting and data compilation. Preliminary geological mapping indicates it is likely that a complete epithermal system is exposed from the lower intrusive at La India 10 kilometres to the southeast to high level quartz veins at Mestiza. Vertically, the system appears to extend from about 500 metres to perhaps as much as 900 metres. Historic production from 1938 to 1955 at La India was 575,000 ounces of gold from 1.73 million tonnes grading 13.4 g Au/t. The Tatiana vein on the Mestiza property contains an inferred mineral resource of 558,000 tonnes at 8.80 g Au/t containing 158,600 ounces of gold (see Annual Information Form dated March 31, 2008 posted on SEDAR).
Significantly higher resistivity anomalies are associated with all of the major veins that are known on the property including the Tatiana, Espinito, Guapinol, and Constancia-America showings. These anomalies persist to the maximum search depth of the dipole array (n equals 8, a equals 25m). Resistivity and IP data show that the anomaly associated with the Espinito vein strengthens with depth where it is paired with a second resistive structure. A much stronger resistivity high with a strike length over 800 m is associated with the Guapinol vein in the middle of the Mestiza property. This anomaly persists to the maximum depth sampled in both the resistivity and chargeability data. It provides a high priority drill target.
A north-south trending resistive structure is located in the previously unexplored southwest part of the grid. This trend is potentially the northward strike extension of the La India vein onto the Mestiza property.
Eight (8) targets have been outlined for drilling including the Guapinol, Espinito, Norte de La India, and Tatiana anomalies. Planning is underway for a 2,500 m drill program to evaluate these anomalies beginning in June 2008.
Dr. Christopher J. Hale, P. Geo. the qualified person for the geophysical programs commented, "I am very pleased with the high quality work that CSM's team has been doing at Mestiza. Central Sun enjoys the flexibility offered by an in-house Nicaraguan technical team provided with the latest in instrumentation. Resistivity in particular has been shown to be an excellent technique to target the silicious vein systems on the property and at depths approaching a hundred metres. CSM has been quick to recognize that modern geophysical surveys can target drilling to evaluate discoveries systematically and efficiently."
SAMPLING, ASSAYING AND QUALITY CONTROL
The core (NQ 47.6 mm) is logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at the Company's Limon Mine laboratories. The Limon mine laboratory has a separate preparation circuit for exploration samples so that these are prepared and analyzed separately from run-of-mine samples. Samples for the Orosi drill program will be analyzed at the Orosi Mine laboratory. A second circuit is currently being installed at the Orosi laboratory; however, no run-of-mine samples are currently being assayed at this facility.
Both the Limon and Orosi Mine laboratories use normal industry procedures. The entire half-core samples are crushed to pass 10-mesh-size sieve, a 1/4 split is then pulverized to have greater than 90% passing the 200-mesh-sized sieve to produce a 100 gram homogenized sub-sample. A one-assay ton aliquot (a 29.2 gram sub-sample) is used for fire assaying with an atomic absorption (AA) or gravimetric finish to determine gold concentration. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying. Regular external check assays are performed at a certified Canadian commercial laboratory and certified external reference standards are inserted into each batch.
Table 1A: Summary of Drilling Results, Santa Pancha, Limon Mine area
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Gold Zone
Hole(i) From To Core True (g/t)
(m) (m) Length Width -----------------------------
(m) (m) Uncut Cut(ii)
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LM-08-003 254.9 272.3 17.3 15.1 4.54 Santa Pancha
----------------------------------------------------------------------------
LM-08-004 245.9 249.8 3.9 3.4 2.57 Santa Pancha
----------------------------------------------------------------------------
256.6 259.6 3.0 2.6 7.22 Santa Pancha
----------------------------------------------------------------------------
LM-08-005 283.5 286.3 2.8 2.7 2.78 Santa Pancha
----------------------------------------------------------------------------
304.4 307.2 2.9 2.8 0.84 Santa Pancha
----------------------------------------------------------------------------
LM-08-006 263.6 272.8 9.2 8.3 0.04 Santa Pancha
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297.8 301.9 4.2 3.8 0.28 Santa Pancha
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LM-08-007 367.8 370.5 2.7 2.1 0.99 Santa Pancha
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374.8 377.9 3.1 2.4 0.69 Santa Pancha
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(i) All holes are NQ core size
(ii) High sample assays capped at 25 Au g/t following the practice at the
Santa Pancha mine; the cut values were established geostatistically.
Table 1B: Collar Coordinates and Orientation of Drill Holes, Santa Pancha,
Limon Mine
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Hole Easting Northing Elev. Length Az(i) Dip(i)
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LM-08-003 19423.0 13441.0 60.5 315.9 291 degrees -60 degrees
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LM-08-004 19385.5 13407.0 65.0 306.5 270 degrees -70 degrees
----------------------------------------------------------------------------
LM-08-005 19459 13350 60.0 352.6 270 degrees -70 degrees
----------------------------------------------------------------------------
LM-08-006 19439 13300 61.0 336.7 270 degrees -70 degrees
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LM-08-007 19507.5 13354 63.5 182.9 291 degrees -65 degrees
----------------------------------------------------------------------------
(i) All measurements are in metres except Azimuth (Az) and Dip which are
measured in degrees.
Table 2A. Summary of Drilling Results, Santa Maria, Santa Elena, Mojon y San
Juan, Orosi Mine
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Gold Zone
Hole(i) From To Core True (g/t)
(m) (m) Length Width -----------------------------
(m) (m) Uncut Cut(ii)
----------------------------------------------------------------------------
Check Drill Program recommended by Scott Wilson Roscoe Postle Limited
----------------------------------------------------------------------------
SM-08-001 40.1 50.1 7.2 6.3 7.89 6.10 Santa Maria
----------------------------------------------------------------------------
SM-08-002 98.1 111.8 13.7 11.9 3.76 3.52 Santa Maria
----------------------------------------------------------------------------
SE-08-001 27.1 31.2 4.2 3.6 3.00 Santa Elena
----------------------------------------------------------------------------
MJ-08-001 141.5 153.4 11.9 10.4 4.53 Mojon
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MJ-08-002 166.6 173.9 7.3 6.4 2.97 Mojon
----------------------------------------------------------------------------
Drill Program San Juan Target
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SJ-08-001 No Vein San Juan
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SJ-08-002 142.3 146.7 4.4 3.8 1.05 San Juan
----------------------------------------------------------------------------
SJ-08-003 153.9 157.2 1.4 1.2 19.55 17.58 San Juan
----------------------------------------------------------------------------
SJ-08-004 30.6 47.2 6.6 5.7 2.48 San Juan
----------------------------------------------------------------------------
SJ-08-005 42.1 46.1 3.9 3.5 1.13 San Juan
----------------------------------------------------------------------------
SJ-08-006 22.7 27.9 5.2 4.5 1.16 San Juan
----------------------------------------------------------------------------
45.3 49.3 4.0 3.5 1.76 San Juan
----------------------------------------------------------------------------
(i) All holes are NQ core size
(ii) High sample assays capped at 25 Au g/t following the practice at the
Santa Pancha mine; the cut values were established geostatistically.
Table 2B: Collar Coordinates and Orientation of Drill Holes, Santa Maria,
Santa Elena, Mojon and San Juan, Orosi Mine
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Hole Easting Northing Elev. Length Az(i) Dip(i)
----------------------------------------------------------------------------
Check Drill Program requested by Scott Wilson Roscoe Postle Limited
----------------------------------------------------------------------------
SM-08-001 50238.1 49853.3 514.6 99.1 331 -46 degrees
----------------------------------------------------------------------------
SM-08-002 50260.8 49810.5 525.7 150.9 330 -35 degrees
----------------------------------------------------------------------------
SE-08-001 49935.3 50151.2 541.7 125.1 328 -48 degrees
----------------------------------------------------------------------------
MJ-08-001 48437.8 49347.6 542.8 190.1 329 -46 degrees
----------------------------------------------------------------------------
MJ-08-002 48499.9 49333.4 531.5 192.7 331 -46 degrees
----------------------------------------------------------------------------
Drill Program San Juan Target
----------------------------------------------------------------------------
SJ-08-001 51642.6 48827.5 497.5 57.9 170 -60 degrees
----------------------------------------------------------------------------
SJ-08-002 51641.0 48829.0 500 161.5 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-003 51545.0 48790.0 510 240.8 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-004 51594.0 48736.0 496 115.8 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-005 51499.0 48630.0 510 120.4 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-006 51430.0 48555.0 499 135.6 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-007 51355.0 48481.0 495 150.9 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-008 51268.0 48427.0 478 129.5 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-009 51248.0 48448.0 463 192.0 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-010 51285.4 51185.3 482 89.9 135 -50 degrees
----------------------------------------------------------------------------
(i) All measurements are in metres except Azimuth (Az) and Dip which are
measured in degrees.QUALIFIED PERSON
Dr. Bill Pearson, P. Geo., Executive Vice President, Exploration for Central Sun Mining, is the Qualified Person responsible for the management of the exploration program and disclosure of the drill results as defined by National Instrument 43-101. The laboratory process reported herein and the internal quality control information are reviewed regularly by Dr. Pearson. Dr. Pearson 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 press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the completion of the Company's new strategic plan, the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of gold, estimated recoveries under the milling plan, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital for the mill project, operating and exploration expenditures, costs and timing of the development of new deposits, outcome, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements 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, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or required financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in the Company's annual information form for the year ended December 31, 2006 on file with the securities regulatory authorities in Canada and the Company's Form 40-F on file with the Securities and Exchange Commission in Washington, D.C. 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 law.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
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CONTACT INFORMATION:
Central Sun Mining Inc.
Andre Bharti
Investor Relations
(416) 860-0919
Email: ir@centralsun.ca
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INDUSTRY: Manufacturing and Production - Mining and Metals
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Central Sun Mining Incorporation
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PRODUCER |
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CODE : CSM.TO |
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ProfileMarket
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Asset profileContact Cpy |
Central Sun Mining Inc. is a gold producing company based in . Central Sun Mining Inc. holds various exploration projects in Nicaragua. Its main asset in production is BELLAVISTA in Costa Rica, its main asset in development is OROSI in Nicaragua and its main exploration properties are MESTIZA-LA INDIA, TATASCAME and SAN JUAN in Nicaragua. Central Sun Mining Inc. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 78.1 millions as of today (US$ 63.0 millions, € 47.4 millions). Its stock quote reached its highest recent level on April 18, 2008 at CA$ 2.50, and its lowest recent point on October 21, 2016 at CA$ 0.08. Central Sun Mining Inc. has 109 940 000 shares outstanding. |
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