Century Mining announces operations update at Sigma-Lamaque

    BLAINE, WA, Aug. 16 /CNW/ - Century Mining Corporation (CMM: TSX-V) is
pleased to provide an update on ongoing mining operations and other
initiatives aimed at achieving further growth.


    Century's operations, exploration, and future growth in Canada is
centered around the Sigma-Lamaque complex, which operated from underground for
most of the last century producing a total of approximately 9.4 million ounces
of gold to date. These underground mines were closed as a result of the low
price of gold in the 1990s. At the time of the mine closures, significant gold
resources were defined and remained unmined. Century began operations at the
Sigma Open Pit (May 2005) and the Lamaque Underground (April 2007).

    Lamaque Underground Mine
    As part of Century's overall strategy to enhance investor confidence and
increase profitability, the company announced plans in May 2007 to phase out
open pit mining and shift the focus of the Sigma-Lamaque Complex to
underground operations, which were commenced in April 2007. Since reopening of
the Lamaque Underground Mine, Century has succeeded in expanding production
from approximately 50 tonnes of ore per day to an average of approximately 100
tonnes per day during the month of July 2007 at an average head grade of 8.4
grams of gold per tonne of ore. This represents a gradual increase from an
average of 62 and 91 tonnes of ore per day in the months of May and June,
respectively. During July, the company mined a total of approximately 68,000
tonnes of ore from the Sigma Open Pit at an average head grade of 1.61 grams
of gold per tonne.
    Century will continue to increase production from the Lamaque Underground
Mine, whereby the Company is currently targeting a run rate of between 360 to
400 tonnes of ore per day by the end of 2007. This will be achieved by the
addition of more underground miners and additional equipment that has been
    In order to expand production capabilities, it is necessary for the
company to increase the number of underground miners. In this regard, Century
has initiated a comprehensive recruiting campaign focused on eastern Canada
(Ontario, Quebec, and the Maritimes), and has hired a new underground mine
trainer for the increased workforce. In addition, a program to bring foreign
miners to Sigma-Lamaque has also been initiated. Century plans to hire
approximately 80 additional miners, engineers and supervisors for its
underground operations.
    Regarding water pumping from the Sigma and Lamaque underground mines,
Century is currently confirming underground water quality and finalizing the
method of discharge outside the Sigma-Lamaque mines. Underground water volumes
are being estimated to establish pumping system design and capacity. Once this
initial work is complete the design will be completed and application will be
made for a Certificate of Authorization to begin pumping in late 2007.
    Concurrently, Century has submitted two additional permit applications
for mining operations at the Sigma Lamaque Complex. The first is for a
Certificate of Authorization to commence mining the Bedard Dyke. The other
application submitted is for a Certificate of Authorization to increase
tonnage from the Lamaque Underground Mine to over 500 tons per day. These
applications were submitted to the Government in July, and the Company expects
the Certificates to be issued in October 2007.
    In other developments, Century is continuing the advancement of the
haulage drift from the Lamaque Underground to the Sigma Open Pit and intends
to complete the drift by the end of August. This will allow the Company to
transport underground ore to the Sigma mill in a more efficient manner by
using larger open pit equipment. This will alleviate the current scheduling
issues with the Citie de L'Or Museum in Val d'Or.
    At the head office in Blaine, WA Century added a new 6-technician digital
scanning and 3D modeling department to organize the large volumes of
historical information from the Sigma and Lamaque mines. The existing Sigma
Mine model will be extended south across our adjacent claim boundaries to
include the Lamaque Mine. The first priority is to add mineable ore reserves
in the area of the Lamaque No. 2 decline. This priority area is 1,600 ft. x
1,600 ft. by 1,200 ft. depth from surface, and contains ore in the boundary
pillars between the Sigma and Lamaque Mines. Century has begun a 10,000 foot
infill drilling program in this area to add ore reserves. Ultimately the new
Sigma-Lamaque working model will be a complete digitization of historic and
new data to facilitate solid resource management for the overall operation and
to provide new targets for exploration.

    Sigma Underground Mine
    Regarding the startup of the Sigma Underground Mine, Century plans to
begin mining ore through Lamaque Underground openings into the Sigma Mine
during 2007, ahead of the previous forecast for startup timing of early 2008.

    The Company will provide an update on Peruvian operations in a separate
press release, which will be announced at a later date.

    Second quarter financial results
    Century announced today that it will disclose financial results for the
second quarter of 2007 on August 30, 2007, followed by a management conference
call on Tuesday September 4.
    Margaret Kent, President & CEO commented, "Given the current state of the
mining industry, where skilled underground miners are in short supply, our
progress thus far at the LU has been slower than expected. The problem has
been in maintaining sufficient staffing levels, and all the mining companies
in Eastern Canada are having the same issues. However, we have ounces ready to
extract, and our new recruiting campaign, which has been successful to date,
is specifically designed to solve this problem. We are increasing under based
on a 400-500 tonne-per-day operation. Century will continue to evaluate and
optimize operations at the Sigma-Lamaque Complex as we effect our transition
from open pit mining to a focus on underground operations. Despite the
slower-than-expected ramp up in production, head grades are good, and we are
working actively on moving the historic resources into reserves. We fully
expect the shift in focus to underground operations to improve investor
confidence in the Sigma-Lamaque Complex and allow Century to be a long term
producer in this mining camp."

    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 Sigma and Lamaque mines in Québec that
historically have 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. Century subsidiaries have also
recently acquired Rosario de Belen 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.

    "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

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

Organization Profile


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