Century Mining Reports Second Quarter 2008 Financial Results



    BLAINE, WA, Sept. 2 /CNW/ - Century Mining Corporation (CMM: TSX-V) is
pleased to announce its financial and operating results for the second quarter
ended June 30, 2008.

    (This news release contains forward looking information that is subject
to risk factors and assumptions as set out in our Cautionary Statement on
Forward-Looking information located at the end of this news release).

    
    Second Quarter Results
    ----------------------
    

    In the second quarter ended June 30, 2008 the company reported an
operating profit from mining operations, before depreciation, amortization and
accretion, of $1,437,174 (2007 - $4,739,028) from gold revenues of $3,121,143
(2007 - $14,656,374). Expenses incurred in the mining operations were
$1,683,969 (2007 - $9,917,346). For the quarter ended June 30, 2008 the
Company reported net income of $2,538,817 or $0.01 per share, compared to net
income of $4,037,376, or $0.03 per share in the prior period. The net income
in the 2008 quarter was solely as a result of the return of the Rosario de
Belen shares to the sellers. The following table shows a comparison of
expenses for the second quarter periods ended June 30, 2008 and 2007, and for
the six-month periods ended June 30, 2008 and 2007.

    
    -------------------------------------------------------------------------
                                                      6 months      6 months
    Expenses ($)           Q2-2008       Q2-2007          2008          2007
    -------------------------------------------------------------------------
    Mining operations    1,683,969     9,917,346     4,197,706    17,979,146
    -------------------------------------------------------------------------
    Depreciation,
     amortization
     and accretion         365,828     1,303,545       763,517     2,300,017
    -------------------------------------------------------------------------
    Corporate
     administration        938,744       508,825     1,659,241     1,640,643
    -------------------------------------------------------------------------
    Interest on
     long-term notes       291,982       285,736       587,343       562,698
    -------------------------------------------------------------------------
    Other Interest          92,019       137,160       182,771       325,809
    -------------------------------------------------------------------------
    Stock-based
     compensation          167,080       160,736       364,156       285,156
    -------------------------------------------------------------------------
    Total expenses       3,539,621    12,313,348     7,754,734    23,093,469
    -------------------------------------------------------------------------

    In the second quarter of 2008, expenses of $1,683,969 at the mining
operations accounted for 48% of total expenses of $3,539,621 before other
items.
    The following table summarizes the Company's operating results for each of
the eight most recently completed quarters:

    -------------------------------------------------------------------------
    Period                           Revenue ($)    Net income    Net income
                                                    (loss) ($)    (loss) per
                                                                   share ($)
    -------------------------------------------------------------------------
    2008
    -------------------------------------------------------------------------
    Q2                                 3,121,143     2,538,817          0.01
    -------------------------------------------------------------------------
    Q1                                 3,223,641    (1,809,846)        (0.01)
    -------------------------------------------------------------------------
    2007
    -------------------------------------------------------------------------
    Q4                                 4,507,441   (26,172,784)        (0.20)
    -------------------------------------------------------------------------
    Q3                                15,774,184   (27,214,549)        (0.20)
    -------------------------------------------------------------------------
    Q2                                14,656,374     4,037,376          0.03
    -------------------------------------------------------------------------
    Q1                                13,124,871     1,979,815          0.02
    -------------------------------------------------------------------------
    2006
    -------------------------------------------------------------------------
    Q4                                11,059,159     2,554,626          0.02
    -------------------------------------------------------------------------
    Q3                                11,045,950     1,107,845          0.01
    -------------------------------------------------------------------------


    Summarized quarterly operating and production data by mine
    ----------------------------------------------------------

    -------------------------------------------------------------------------
    Production                Q2-07     Q3-07     Q4-07     Q1-08     Q2-08
    -------------------------------------------------------------------------
    Sigma-Lamaque
    -------------------------------------------------------------------------
    Ore milled (tonnes)      360,230   333,013   144,920    17,045    16,840
    -------------------------------------------------------------------------
    Head grade (g/ton gold)     1.47      1.44      1.21      4.14      4.24
    -------------------------------------------------------------------------
    Recovery (%)                93.4      91.5      90.6      95.2      94.6
    -------------------------------------------------------------------------
    Recovered gold (oz)       17,132    14,082     5,125     2,643     2,735
    -------------------------------------------------------------------------
    Minesite cash cost
     (US$/oz gold)               454       927     1,539        (*)       (*)
    -------------------------------------------------------------------------
    Minesite cash cost per
     tonne milled (C$/tonne)   28.08     41.16     54.44        (*)       (*)
    -------------------------------------------------------------------------
    San Juan
    -------------------------------------------------------------------------
    Ore milled (tonnes)       19,030    24,107    22,607    22,678    19,130
    -------------------------------------------------------------------------
    Head grade (g/ton gold)     5.54      5.70      5.55      6.26      6.48
    -------------------------------------------------------------------------
    Recovery (%)                85.2      84.8      85.1      88.9      85.9
    -------------------------------------------------------------------------
    Recovered gold (oz)        2,882     3,795     3,413     4,058     3,626
    -------------------------------------------------------------------------
    Minesite cash cost
     (US$/oz gold)               305       342       503       619       459
    -------------------------------------------------------------------------
    Minesite cash cost per
     tonne milled (C$/tonne)   52.41     61.51     58.79    110.84     88.03
    -------------------------------------------------------------------------
    (*) Lamaque underground mine results were capitalized as development
        beginning January 1, 2008
    


    The open pit operations at Sigma were shut down in early November 2007.
The non-cash write-offs of capitalized deferred stripping costs and the open
pit equipment were in addition to the indicated cash cost per ounce. The San
Juan mine produced 3,626 ounces of gold during the second quarter of 2008, a
decrease from the 4,058 ounces produced in the first quarter. The mine has
recently initiated operations at Veta Clara and Veta Jessica, which are narrow
vein, high grade operations that have improved the overall grade but also
increased mining costs. Due to the lack of working capital the operation
experienced several days in the second quarter with a lack of production. This
has affected the production costs significantly. In the second quarter
significant cash flow from Peru was used to cover operating shortfalls in
Canada. Because of this, the Peruvian operations are currently carrying
significant payables and are in need of working capital.
    As previously announced, the Company has temporarily curtailed production
at the Lamaque Underground Mine. The expansion was progressing slower than
anticipated as a result of the lack of capital, and Century will use the
interim period to focus management on the mine planning, mine development and
due diligence required to complete the long-term financing for the operation.
The Fortis facility due diligence is scheduled to be completed by the second
week of September, at which time the bank will need three to four weeks to
finalize submissions for credit approval. Upon credit approval the Company
will need approximately six weeks to complete legal documentation. The
drawdown is not conditional upon syndication; however, no assurance can be
made at this time that other conditions precedent will not be requirements of
drawdown. These conditions precedent could include the need to raise
additional equity, permitting or additional technical information.
    Margaret Kent, President & CEO of Century said, "we are working
diligently to arrange a short-term bridge facility. Concurrently, we are
looking at a number of strategic alternatives which may include the sale of
certain assets or the Company as a whole."

    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

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CENTURY MINING CORPORATION

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