Century Provides Gold Production Update on the Lamaque Mine
VAL D'OR, QUEBEC -- (Marketwire) -- 06/07/11 -- Century Mining Corporation ('Century' or the 'Company') (TSX VENTURE: CMM) announced today that its development plans for producing longhole stope ore from the North Wall at the Lamaque mine remain on target for July and will result in the planned noticeable increase in ore feed rates to the process plant for the third quarter.
Stope ore mining at the Lamaque Project in the first half of 2011 has been restricted to the narrow vein structures within the Lamaque Flats, that has resulted in lower than planned tonnages and grades, as noted in the Q1-2011 production report. During this period the Company's development actions have been focused on accessing the targeted longhole tonnage ore reserves forecast in the North Wall area. Due to the excellent development rates provided by the mining contractor, CMAC, the mine is in a position to start longhole stoping in July. The North Wall ore targets due to their geometry are expected to provide a clear increase ore tonnage feed rates and in the grade versus those achieved to date, and by the end of the Q3-2011 the Company is targeting to be at the planned rate of 2,000 tonnes of ore per day.
Year to date, the Lamaque Mine witnessed constrained gold production due to having the Lamaque Flats as the primary ore feed source. As a result, Century is lowering its Lamaque 2011 gold production guidance from the initial 70,000-75,000 to 45,000-50,000 ounces. With the access to the North Wall in second half of 2011 the Company is forecasting a discernible increase in monthly production compared with that achieved in the first half, and the Company is projecting to achieve commercial production at its Lamaque Project as of the end of the third quarter. Including production from the San Juan mine in Peru, which remains on plan, the Company's revised combined production guidance for 2011 is 65,000 to 70,000 ounces of gold.
'The first half of 2011 has been an operational challenge with only mining access to the Lamaque Flats that has resulted in a lower than expected gold production from the Lamaque mine,' said Daniel Major, President and CEO of Century Mining Corporation. 'Over the past months, the team at the mine has worked diligently to gain access to the longhole reserve targets in the North Wall area and expects to increase ore feed and gold production by mining these bulk tonnage stopes in July. We remain on track to achieving commercial production and the 2,000 tonnes per day goal in the second half of the year.'
Interim Financial Statements
Additionally, the Company also announces that, in compliance with National Instrument 51-102 Continuous Disclosure Obligations, which was amended on October 1, 2010 to provide a 30 day extension to the deadline for filing the first interim financial report in the year of adopting IFRS in respect of an interim period beginning on or after January 1, 2011, it expects to file its interim financial statements for the quarter ended March 31, 2011 on or before June 29, 2011.
Flow-through Financing
Additionally Century announces today that the private placement of flow-through units previously announced on May 27, 2011 will be raised from C$1.0 million to a maximum of C$1.5 million, due to increased investor interest in the offering. All other terms and conditions remain the same as announced on May 27. Century expects to complete the financings by mid-June 2011. These funds will be used to identify and delineate new shallow underground resource targets at Lamaque.
About Century Mining Corporation
Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Daniel J. Major, 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 including with respect to the expected increase in ore tonnage feed rates and grade, the forecasted increase in monthly production, the achievement of commercial production by the end of the third quarter, the Company's Lamaque 2011 gold production guidance and combined production guidance, the expected closing of the private placement and the intended use of proceeds raised in the private placement. 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 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
Richard B. Meschke
(360) 332-4653 or Toll Free: (877) 284-6535
rmeschke@centurymining.com
www.centurymining.com
Terre Partners
Joanna Longo
President
(416) 238-1414 (ext 233)
jlongo@terrepartners.com