BLAINE, WA, March 25 /CNW/ - Century Mining Corporation (CMM: TSX-V)
today provided an update on the progress of its plans to expand production at
the Company's Lamaque underground mine, located in Val d'Or, Quebec.
Average daily production for March (through March 23) was 325 tonnes of
ore per day. The Company is currently in the process of reconciling the
projected ore grade and the actual mined ore grade to determine the
appropriate cutting factor. This process is expected to be completed in
approximately 6 - 8 weeks, but the average year-to-date grade is projected to
be over 4.0 grams of gold per tonne. For the month of April, the Company
expects to increase production to approximately 400 tonnes of ore per day from
the underground mine. Century also confirmed today that it expects cash flow
at the Lamaque operation to reach the break-even level by the middle of the
third quarter 2008.
In early March, the Company completed the necessary mill conversions that
were part of the conversion from an open pit to an underground operation.
These conversions included the installation of a new portable crushing and
screening plant, with a processing capacity of 3,000 tonnes of ore per day.
Despite normal start-up issues, the mill is currently operating with recovery
rates at or above 96%.
Also during the month of March, the SAG mill was decommissioned and is
expected to be removed from the property by the purchasing party in April, at
which time Century will receive the remaining $1.0 million of the total $2.0
million selling price.
Regarding equipment, Century recently purchased a fifth underground
truck, and will place in service one new underground truck, which is scheduled
to be commissioned next week.
Capital requirements for the Lamaque underground mine in 2008 total
approximately $9.3 million, of which approximately $1.5 million has already
been spent to date. Going forward, Century expects capital expenditures for
Lamaque of $25.5 million and $20.0 million in 2009 and 2010, respectively.
These capital expenditures have been accelerated from the schedule shown in
the Lamaque NI 43-101 technical report in order to expedite the rehabilitation
of the Sigma No.2 shaft. The capital expenditures for these years also
includes dewatering of the lower levels of the underground mine, mine
equipment and development work to reach the Company's production targets of
2,400 tonnes of ore per day from the Lamaque underground mine and an
additional 600 - 800 tonnes per day from the West Plug open pit.
Capital requirements in 2008 will be covered by a $7.5 million leasing
line and an additional $4.0 million equity placement. The Company is working
with First Canadian Securities on the placement, which will be a combination
of flow-through shares for Lamaque underground development and units for
necessary working capital.
To meet future capital needs, Century is currently engaged in preliminary
negotiations with four separate banking and private equity institutions. Over
the next 30 - 45 days Century will receive and review proposals from these
groups for a senior project financing initiative regarding the Lamaque
underground mine. Any potential financing package is not expected to be
finalized until the third quarter of 2008. In the meantime, Century will meet
2008 capital requirements through the aforementioned leasing line, private
placement proceeds and the sale of gold currently being produced at Lamaque.
The Company announced today that it will disclose fourth quarter 2007
financial and operating results at the end of April, at which time the Company
will include a write-down of approximately $23 million related to deferred
stripping and other expenses associated with the shutdown of the Sigma open
Update on Peruvian operations
Century announced today that the Company will provide a comprehensive
update on operations in Peru concurrent with the announcement of the NI 43-101
technical report for the San Juan Gold Mine, which is expected on or before
April 17. Century is currently renegotiating certain key contracts in Peru,
including the purchase terms for both Rosario de Belen and Shahuindo. No
immediate payments are anticipated to the sellers. Century will provide
further details when the negotiations are concluded.
Margaret Kent, President & CEO said: "The current turmoil in the U.S.
economy and its subsequent negative effects on world markets has tightened up
project financing capital in the junior and mid-tier mining sector. However,
we are very encouraged by the initial responses we have received regarding a
significant financing package to expand production at Lamaque. Our main
objective with this project financing is to procure the capital necessary for
growth primarily through debt, thereby minimizing dilution to current
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: email@example.com, Phone: (877) 284-6535 or (360) 332-4653,
Fax: (360) 332-4652, Website: www.centurymining.com