Century Mining Provides Operational Progress Update for Lamaque Gold Mine
BLAINE, WASHINGTON -- (Marketwire) -- 07/06/10 -- Century Mining Corporation ('Century' or the 'Company') (TSX VENTURE: CMM) is pleased to discuss the operational activity at its 100% owned Lamaque gold project located in Val-d'Or, Quebec, Canada.
'Century is making good progress at its Lamaque Gold Mine during its commissioning and ramp-up phases of operation. The use of low-profile equipment at Lamaque continues to show significant operational improvement over the historical use of jacklegs and slushers. Our operational, technical and exploration teams continue to focus on increasing production and defining additional reserves in advance of our mining plan. We have entered the Bedard Dyke and look forward to fully defining the potential of this new mining zone and reaching further milestones as we progress through 2010,' commented Margaret M. Kent, President & CEO of Century Mining Corporation.
The Company is pleased to provide the following update and operational results:
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April 20 to May 31, June 1 to June 30,
Period 2010 2010
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Tonnes Milled 19,577 13,655
Days Mill Operated 29 21
Mill Head Grade (including ore &
mineralized development) 3.32 g/t Au 4.37 g/t Au
Mill Recovery 95.97% approx. 96.50%
Gold Produced 1,961 1,870
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Operational Highlights:
-- Underground mine stope head grade ranged from 4.2 to 6.7 g/t Au.
-- Mill head grade averaged slightly lower than expected due to excess
mineralized development (MD) material fed into the mill circuit. Initial
mining in the Lamaque #2 flats identified the development waste graded
in excess of 1.0 g/t Au and thus was used as additional mill feed during
startup, which subsequently decreased the mill head grade. With the
current excess capacity in the mill, the use of 'MD' as mill feed will
continue to be processed, to maximize throughput.
-- Of significance, during startup, approximately 30-35% of the milled
tonnage was mined from outside the Company's underground resource base
due to the continuation of vein systems or discovery of new mineralized
areas as mining was in progress. The Company believes that additional
'new' tonnage will continue to be mined within stope complexes that has
never been placed, recorded or defined in the current resource base.
-- Excluding mineralized development, mill head grade averaged 4.31 g/t Au
for May and 4.76 g/t Au for June, which aligns with the expected milling
head grade target.
-- Production rate at the end of May was 420 tpd and increased at the end
of June to approximately 770 tpd. Production is slightly below forecast
but the Company expects production to increase month over month going
forward.
-- The mill facility commenced operation April 20, 2010 thus April / May
shown combined above. The mill throughput averaged approximately 800 tpd
during initial startup in April (utilizing stockpiled ore from
underground mining since March), averaged 615 tpd during May, and
averaged 650 tpd during June.
-- Of special note, mill head grade averaged 5.56 g/t Au during last nine
days of operation in June.
The mine production crew continues to operate in seven separate stoping complexes in addition to the development crew opening two new stopes underground in the Lamaque #2 mining zone, and also developing over to the North Wall zone. The low-profile underground equipment, in operation since the end of May 2010, continues to make significant progress in increasing the mine productivity and subsequently lowering of underground mine production costs. For example, in certain stoping complexes the low- profile production crews are able to double the size of the mining development round (blast) and remove the ore four to five times faster than using the jackleg and slusher combination. As indicated in the above table, the grade and production rate continues to show improvement month over month with the continued efficiencies gained from the introduction and adjustment to the low-profile mining equipment. The Company has an additional low-profile jumbo drill arriving in the third quarter of 2010 to continue in increasing the production profile.
At the Bedard Dyke, the Company has completed the required engineering, portal stabilization and construction which included significant cabling, wire mesh, rock-bolting and shotcrete. Development into the Bedard Dyke has commenced, and the initial mineralized development graded approximately 37 g/t Au across the face of the first blast zone. The Company expects to be developed down into the Bedard Dyke in July, at which point the 20,000 tonne bulk sample will be extracted and tested. Concurrently, the exploration team will also be initiating the underground drill program to fully explore this newly discovered mineralized zone. The Bedard Dyke is the second zone which the Company anticipates to develop in 2010, and production is expected to significantly increase upon commencement of mining. All underground access portals are collared via the historical Sigma pit, which is located only a few hundred meters from the 3,000+ tonne per day milling facility. Century's exploration team continues with its 150,000 foot (45,000+ meter) exploration and definition drill program that commenced in May 2010 at Lamaque and is expected to continue over a three-year period.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Margaret M. Kent, President & CEO
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Century Mining Corporation
Peter A. Ball
Director of Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com