Century Mining Announces Temporary Curtailment of Lamaque Underground Production



    - Company to continue development work, further resource upgrades and
    focus on achieving senior debt financing draw down -

    BLAINE, WA, July 2 /CNW/ - Century Mining Corporation (CMM: TSX-V) today
announced that it will temporarily curtail production at the Company's Lamaque
Underground Mine, located in Val d'Or Quebec. The Company also announced that
mining operations at the San Juan Gold Mine in Peru will continue as normal.

    Investor Conference Call
    ------------------------
    Management will host a conference call after the 2008 first quarter
financial results are released to discuss the details of the financial results
and the future strategies at its operations in Québec and Peru. The date and
other details of the conference call will be included in the first quarter
financial results announcement.

    Overview
    --------
    Explaining today's decision, the Company cited economic and timing issues
that favor a temporary curtailment of underground production. The Company
stressed, however, that the operation will continue to remain open. Century
expects to complete necessary preparations and close the financing in order to
commence ramp up of the underground mining operations in November 2008.

    Purpose of Curtailment
    ----------------------
    The Company's Board of Directors, after carefully evaluating current
operations and near-term financial commitments and capital requirements,
determined that there are significant benefits to curtailing production for a
period of up to 6 months. During this period, the Company will utilize funds
procured through the recently announced financings to fully focus the key
staff on mine development, mine planning, permitting activities and financing
due diligence activities. Century recommenced development at the Lamaque
underground mine in May of 2007 and in parallel has undertaken a substantial
data compilation program that has resulted in a NI 43-101 compliant technical
report including 1.13 million ounces of gold reserves, 624,000 ounces of
measured and indicated resources and 2.83 million ounces in the inferred
resource category. During the interim curtailment, Century will maintain its
key staff at the Lamaque Complex.

    Financing
    ---------
    On June 5, 2008 the Company announced that it had secured a commitment
for $6 million from MRI Trading AG. Century is also currently engaged in a due
diligence process with Fortis Bank for a senior financing package of up to $70
million. Both of these financings are expected to proceed as planned during
the interim period. Funds procured through the MRI facility will be used for
the aforementioned due diligence activities, which will lead to the Company's
ability to draw down on the Fortis facility.
    Margaret Kent, President & CEO, commented: "The decision to implement a
curtailment of production during this interim period for Lamaque was carefully
considered by management and the Board of Directors based on all available
financial and operational information. Underground mining at Lamaque carried
out since May of last year has provided a thorough understanding of the mine
and the associated operating costs. This information was needed to confirm
previously reported feasibility numbers and provide the backup necessary for
the current banking due diligence processes. The underground operation was
operating at about 20% of optimum capacity, and the lack of necessary bridge
financing to increase production has resulted in continued operating losses.
By temporarily curtailing production the Company will be able to allocate all
funding and dedicate all management resources to mine development so that
full-scale production may begin immediately upon draw down of the previously
announced Fortis Bank debt financing. Management believes that this plan will
ensure the long-term success of the Lamaque Underground Mine and minimize
further dilution to the Company's shareholders. During the interim period
Century will work closely with the Company's financial backers and all other
stakeholders to ensure a smooth transition from development to the restart of
full-scale mining operations. The project has a 10 year life based on mineable
reserves and it is expected that the overall mine life will approach 20 plus
years, based on the known resource profile. A six month curtailment of
production is a positive step toward achieving our long-term goals."

    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 in
addition to its Canadian projects. The Company owns and produces gold at the
Lamaque mine in Québec that historically has produced over 9.4 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.

    "Margaret M. Kent"

    Chairman, President & CEO

    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.





For further information:

For further information: For further investor information, please
contact: Brent Jones, Manager of Investor Relations, E-mail:
bjones@centurymining.com, Phone: (877) 284-6535 or (360) 332-4653, Fax: (360)
332-4652, Website: www.centurymining.com

Organization Profile

CENTURY MINING CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890