Century Announces NI 43-101 Reserves And Technical Report For The San Juan Gold Mine In Peru

    BLAINE, WA, April 16 /CNW/ - Century Mining Corporation (CMM: TSX-V)
announced today it has received an updated NI 43-101 compliant reserve and
resource report and technical study. This report was prepared under the
supervision of Ross F. Burns, P.Geo, LG, the qualified person for Century
Mining Corporation. The report was co-authored by Dr. E. van Hees, P. Geo., an
Assistant Professor at Wayne State University, with respect to the reserves
and resources and by Mr. Mark Greasley, P.Eng., Area Manager for Whalen Mining
with respect to the mining and milling. All of the authors visited the
property between December 26, 2007 and January 3, 2008. The new technical
report for the San Juan Gold Mine meets NI 43-101 disclosure standards.
    "We are pleased with the results of the NI 43-101 technical report, which
provides a foundation for not only current mining and milling operations, but
also future exploration activities aimed at further expanding reserves and
resources. The San Juan operation is the Company's main producing asset in
Peru, and will continue to compliment the flagship Lamaque operation in Quebec
and provide diversification for Century in terms of our production profile,"
said Margaret Kent, President and CEO of Century.


    -   Forecast production of 21,800 oz. Au in 2008, increasing to
        33,000 oz. in 2009

    -   San Juan expected to achieve operating EBITDA of $10.0 million in
        2008, increasing to $15.9 million in 2009

    -   San Juan net present value 2008 - 2012:   $45 million @ 5%
                                                  discount rate
                                                  $38 million @ 10%
                                                  discount rate

    -   Average cash cost for production from 2008 - 2012 estimated at
        $302 per ounce

    -   Estimated capital expenditures of $2.6 million in 2008 and
        $6.5 million in 2009

    -   Capital expenditures to decrease to $500,000 per year in years 2010 -

    Mineral reserves and resources

    The resources have been classified using the CIM classification criteria.
This method uses measured, indicated and inferred to designate the confidence
level in the accuracy of the measurement of the mineral inventory. Measured
and indicated resources that have positive economic evaluations are classified
as mineral reserves (Proven and Probable).
    Mineral reserves and resource estimations have been classified in
accordance with NI 43-101 standards.
    Inferred resources have been calculated for a reasonable distance
(generally 60 meters) beyond the indicated or probable blocks and include a
similar zone of influence around drill hole intersections used in the mineral
inventory calculations.
    Inferred resources are calculated and tabulated separately from all other
resource and reserve calculations.
    The mineral reserves and resources have been summarized in the following

    Proven and Probable Reserves

    Reserve                                       Tonnes     Grade    Ounces
                                                           (g/t Au)  of Gold
    Proven Reserves                              218,265      8.06    56,547
    Probable Reserves                            435,180      9.27   129,769
    Total Proven + Probable                      653,445      8.87   186,316

    Measured, Indicated and Inferred Resources
    (Mineral resources are exclusive of mineral reserves)

    Resource                                      Tonnes     Grade    Ounces
                                                           (g/t Au)  of Gold
    Measured Resources                            72,885      2.61     6,127
    Indicated Resources                          129,270      2.49    10,349
      Total                                      202,155      2.53    16,475

    Inferred Resources                           589,025      9.25   175,125

    Economic model

    The economic model shown below assumes a realized gold price of US$800
per ounce. The summary shows the mine is currently cash flow positive and
projects cash costs of US$302 per ounce of gold, once the optimization plan
has been completed, with an NPV of $33 million, discounted at 15%.

                                   2008     2009     2010     2011     2012
    Gold Production (oz)
    Price Realized ($/oz)         21,802   33,559   33,696   33,696   33,696
    Revenue ($000s)              $   800  $   800  $   800  $   800  $   800
                                 $17,442  $26,847  $26,957  $26,957  $26,957

    Cash Costs ($000s)             7,453   10,919   10,106   10,106   10,106
    Operating EBITDA               9,989   15,928   16,851   16,851   16,851

    Depreciation                     365    2,192    2,367    2,617    3,117
    Income Taxes                   1,925    2,747    2,897    2,847    2,747

    Net Income                   $ 7,699  $10,989  $11,587  $11,387  $10,987

      Cash Payments                2008     2009     2010     2011     2012

    Total Capital Expenditures     2,620    6,538      500      500      500
    Cash Flow (Drain)              5,444    6,642   13,454   13,504   13,604

      NPV (millions) @
        0%          $53          Cash Cost Per Ounce               $     302
        5%          $45
       10%          $38          Total Operating EBITDA (millions) $      76
       15%          $33



    The San Juan property was purchased by Century in the spring of 2006.
Century purchased from Banco Wiese Sudameris, for US$2.5 million, a
$9.9-million debt secured by the majority of the mining concessions owned by
San Juan Gold Mines S.A.A. The total transaction cost, including purchase of
the debt, was $5.1 million and the issuance of one million common shares of
Century Mining. The Company now owns 82.6 percent of San Juan Gold Mines
through two wholly-owned subsidiaries, Century Mining Peru S.A.C. and Century
Finance. Century Mining Peru has an agreement with San Juan Gold Mines to
lease the property for 50 years in return for a 10 percent NPI (Net Profits
Interest.) As a result of Century's 82.6% ownership of San Juan Gold Mines,
Century receives 98.2% of the net profits.
    The mine is currently producing at a rate of approximately 250 tonnes per
day, with the goal of paying the carrying costs while planning, drilling and
development work is being carried out to further enhance profitability.
Century has upgraded the mill and mine infrastructure to allow the processing
of 225 to 250 tonnes per day, and plans further upgrades to the mill to match
the tonnage mined as new development allows the mine to expand its daily

    Production history
    There are no production records from prior to 1970, however, production
prior to 1970 is likely to have been a small fraction of the post-1970
production. Mill records from 1970 to 2006 show gold production of
approximately 576,853 fine ounces. It is also estimated that informal miners
produced approximately 500,000 to 600,000 ounces of gold over the same period,
additional to the gold produced at the San Juan mill.
    Thus, an estimated 1.1 to 1.2 million ounces were likely produced in the
district since 1970.

    Underground mine operations

    The San Juan Mine is currently mining in the following areas: San Juan
and Matilda Veins, Mercedes Vein, the Diagonal Veins, Veta Jessica and Veta
Clara. The Veta Clara is undergoing exploration crosscutting and raising and
the Veta Jessica is being developed for future mining. The mine employs
603 people.
    The main mining method is Cut and Fill, where the ore is mined first,
after which the waste is blasted to give a working platform and sufficient
width to work in. Shrinkage stoping is also used in some areas. These methods
are appropriate for the narrow high grade veins which generally dip at an
angle of 70 to 90 degrees.

    Ore processing

    The gold mill at San Juan was established in 1970 and has processed
San Juan ore since that time. The mill is predominantly a flotation mill but
also has the ability to process ore through a CIP circuit. The mill currently
is processing up to 250 tonnes of ore per day, and will be expanded to
400 tonnes per day with refurbishment and replacement of its gravity
equipment. The Company then plans to further expand milling to 700 tpd with
the addition of a second bank of flotation cells, mill upgrade and a
high-grade mill circuit.

    Five year mine plan

    The San Juan Mine has suffered from insufficient capital spending during
the period of low gold prices in the late 1990s. Century's optimization plan
identifies the items necessary to bring the operation back to full permitted
mill capacity of 700 tonnes per day.
    Although there is a skilled workforce, the mine requires mechanization
and the repair of existing equipment or new equipment to further expand
production. The mill has one circuit and part of a second circuit currently
operating. Refurbishment of the second circuit needs to be completed to expand
to 400 tonnes of ore per day. Currently the mine generates its own power and
compressed air with diesel equipment and will benefit substantially from
connection to the power grid.
    The five year mine plan is focused on obtaining permanent power, leased
equipment, refurbishing or replacing mine and mill equipment and completing
development in the mine to provide the stopes necessary to provide 700 tonnes
per day.

    In 2008 the plan for the process plant includes completion of
refurbishment of grinding lines 1 and 2, and refurbishment of the gravity
circuit to increase mill capacity to 400 tonnes per day. The Company will also
convert the 4 x 8 high-grade ball mill to a continuous high-grade circuit,
which incorporates the existing CIP circuit.
    Mine development plans for 2008 include centralizing operations around
the San Juan, Mercedes, Jessica and Clara veins and implementation of an
exploration and development program to increase mine production from
8,000 tonnes per month to 11,640 tonnes per month.
    Capital has been included in the plan to refurbish existing mine
infrastructure and equipment in San Juan and Mercedes, and for installation of
access and services for the Jessica and Veta Clara veins. Also included in the
plan is the completion of shaft upgrades at the Mercedes mine and the
installation of a new hoist and larger skip at the San Juan Esperanza mine
    The 2008 plan to upgrade equipment includes immediate upgrades by the
replacement of rented surface equipment with good new and remanufactured
leased equipment to reduce costs and prepare the mine property for steadily
increasing production. Installation of permanent power requires immediate
initiation of detailed engineering, environmental impact studies and
permitting for the power line and power corridor to San Juan. Century has
several options to proceed, however the most expedient is to contract a power
provider to design, permit, construct and operate the permanent power system.
The power line corridor would extend 60 kilometers from the existing
government power line at Chuquibamba to San Juan. The line and substation size
would provide capacity for 30 megawatts to the San Juan area.

    The 2009 development plan includes the refurbishment of grinding line 3
with a mill upgrade to increase mill capacity to 700 tpd. Mine development
will expand operations at Jessica and Veta Clara, with an extensive
development program to increase mine production from 11,640 tonnes of ore
per month to 21,400 tonnes per month. The refurbishment of existing mine
infrastructure and equipment in the principal mines (San Juan and Mercedes)
will also be completed. Planned mine productivity enhancement includes
implementation of semi-mechanization with specialized miners for raise
development and Longtoms (a small mechanized drill) used to accelerate track
drift development. The program also calls for completion of ramp access to
lower levels of the San Juan and Mercedes veins and development of a decline
access to the Chillihuay vein.
    These activities will double the amount of surface equipment necessary
for services to mines and the mill. The mine will continue to acquire new and
remanufactured leased equipment necessary to support increasing production.
Permitting and engineering of planned permanent power will continue through
initiation of construction. It is anticipated that the power line construction
will be started in 2009 and completed in December 2009.

    In 2010 the development plan includes expanding operations at the
Chillihuay and Alpacay veins, and continued development of peripheral mines
such as Veta Clara and Jessica. Century will also continue refurbishment of
existing mine infrastructure and equipment in the peripheral mines and
implementation of semi-mechanization and mechanized mining methods during
    Century will also develop replacement stopes and investigate new
potential mine areas to maintain the 21,400 tonnes per month production level.
The final construction of the permanent power transmission line and supply of
permanent power to all operating mines will be completed.

    Projected Operating Costs

                                                   2008      2009      2010
                                                 350 tpd   547 tpd   547 tpd
    PRODUCTION COST                              $/TONNE   $/TONNE   $/TONNE
      Mining                                     $ 19.54   $ 16.55   $ 16.55
      Mine Preparations                          $  3.91   $  5.91   $  5.91
      Mine Explorations                          $  2.79   $  2.36   $  2.36
      Milling - Processing                       $ 15.59   $ 15.62   $ 11.65
      Services                                   $  8.26   $  7.63   $  7.44
      G&A                                        $  8.29   $  7.50   $  7.31
      Reclamation                                $  0.01   $  0.01   $  0.01
      Refining & Transportation                  $  0.09   $  0.09   $  0.09
    TOTAL                                        $ 58.49   $ 55.67   $ 51.32

    Capital Expenses

                       CAPITAL COST FACTORS
     EXPENSES            2008        2009        2010        2011        2012
       Equipment  $1,248,650  $ 2,200,667  $        -  $        -  $        -
       ment       $  874,920  $ 1,626,200  $        -  $        -  $        -
       Equipment  $1,480,000  $ 1,418,000  $        -  $        -  $        -
       Power      $  200,000  $ 2,800,000
       tion       $  407,965  $   941,000  $        -  $        -  $        -
      Exploration $  405,996  $ 2,963,128  $        -  $        -  $

       Capital    $  100,000  $   500,000  $  500,000  $  500,000  $  500,000
    TOTAL         $4,717,531  $12,448,995  $  500,000  $  500,000  $  500,000

     (@10%dwn) $2,097,360  $ 2,910,600
      Power Line
       (inc in
       rate)                  $ 3,000,000
       - Permanent
         of Diesel
         Equipment            $   332,060
         Comp                 $  (332,060)
    TOTAL Capital
     Expenses     $2,620,171  $ 6,538,395

    Additional potential at the San Juan Mine

    The San Juan Mine has several areas of untested or poorly tested
potential that could lead to a significant increase in the overall resource.
The veins identified in the mineral resource on the property have been
examined on long-section and where they are intersected by drilling at depth
show no signs of weakening. Examination of the veins in the lower levels of
the mine indicates that they are typical mesothermal veins and have a strong
possibility that they will continue to depth, as is characteristic of this
type of deposit. This possibility is supported by both the Mercedes and
San Juan veins that have been mined over a vertical distances of approximately
800 meters to date with horizontal extents of 2 and 1.5 kilometers
    Veins located on the south side of the quebrada show good signs of
continuing to depth, however they thin and dissipate toward the south.
    There is a high probability that the current resource base can be
significantly increased through additional exploration on the known veins
within the San Juan mine area. A series of deep holes have been recommended by
Century's technical consultants in order to develop the resource estimate
required to justify the capital necessary for development to depth. The Veta
Clara (7 new veins) and Jessica veins, that are currently being explored by
crosscutting and drifting on vein have the potential to add significant ounces
to the mineral inventory. The large land position and the new veins and
showings located by the 2007 exploration program in the Pampas area
demonstrate the potential for the discovery of both additional reserves in
recently located veins and additional new veins.

    Additional potential in the San Juan Property

    Within the larger San Juan Property, which covers a total of 313 square
kilometers, there are porphyry-copper style stockworks with values of copper,
gold and molybdenum occurring on the Erika and Santa Clarita prospects in the
southern portion of the property. The Veta Clara vein system was mapped in
2007, and is shown to host 7 gold-bearing veins. These veins are currently
being explored by cross-cutting and drifting. The Company is currently
finalizing exploration plans for the larger San Juan Property, which will be
announced at a later date.

    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. 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's wholly-owned
subsidiaries own an 82.6% interest in the San Juan Mine where the Company
accounts for 100% of gold production. Century's subsidiaries also operate the
Rosario de Belen mine where it accounts for 100% of both gold and silver
production. Century's growth strategy is to acquire gold producing assets in
South America that will substantially reduce the Company's consolidated total
cash cost of production and where there is exceptional exploration potential
to expand production at these mines.

    On behalf of the Board of Directors,

    "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

    Caution Concerning Forward-Looking Information

    This press release contains forward-looking information within the
meaning of applicable securities laws. We use words such as "may", "will",
"should", "anticipate", "plan", "expect", "believe", "estimate" and similar
terminology to identify forward-looking information. It is 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 information involves 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 accordingly,
readers should not place undue reliance on those statements. 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 resource 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 Canadian securities regulatory authorities and available at
    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: 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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