Fortis Declines Project Financing For Lamaque

    BLAINE, WA, Jan. 19 /CNW/ - Century Mining Corporation (CMM: TSX-V)
announced today that it has been informed by Fortis Bank that its Credit
Committee has decided not to support the financing of Century's Lamaque
underground gold mine expansion project. Fortis cited depressed financial
markets, uncertainty in the overall economic environment and strategic changes
within Fortis as reasons for today's decision.
    A thorough due diligence report submitted to Fortis by independent
consultants concluded that the Lamaque project is economically viable, and
Fortis has agreed to support the marketing of the financing package to other
banks jointly with Century.
    Century has elected to hire an investment bank and immediately put the
project up for sale. Regarding the sale of Lamaque, the Company received two
separate purchase offers for the project in 2008, but elected not to sell the
project at that time and pursue a fully-underwritten project financing
proposed by Fortis bank. The due diligence process for the Fortis project
financing took place between July and December 2008. A summary of the results
of the due diligence, including projected cash flows from the Lamaque project,
may be viewed on Century's website at

    The Lamaque Project
    The underground mine has an 80 year history, with total past production of
approximately 9.4 million ounces of gold at a head grade of 5.8 grams per
tonne. Current NI 43-101 compliant reserves total 1.13 million ounces of gold.
Total measured and indicated resources are 624,201 ounces of gold, with a
further 2.8 million ounces of gold in the inferred resources category.
    The proposed restart of mining operations at Lamaque would concentrate on
ramping up production over the short- to mid- term to a nominal 2,000 tonnes
of ore per day at an average grade of 4.74 grams of gold per tonne.
    The project is currently permitted for underground ore production up to
1,200 tonnes per day. Permits to complete the dewatering of the mine, access
the Bedard Dyke and raise the tailings storage dam are being prepared or are
currently under government review.
    According to the due diligence report, the economics of Lamaque afford it
a favourable ranking in the middle section of the cost curve of world gold
producers, while the project is also competitive on a total cost basis.
Furthermore, all major infrastructure is in place. The due diligence report
includes detailed mining plans for 11 years of mining. The following table
shows insitu ore scheduled for production over the 11 year period.

                                   Table 1
                       Scheduled Insitu Ore Production

    Area                      Tonnes of Ore  Grams per Tonne  Ounces of Gold
    Lamaque No. 2                  446,420        5.72             78,049
    Lamaque Main Plug              615,025        5.37            100,924
    Sigma (below pit)            3,877,760        5.33            631,644
    North Wall                   1,661,895        4.99            253,535
    Sigma West (Bedard Dyke)       150,404        4.80             22,050
    West Plug                      449,680        4.27             58,646
    Total                        7,201,184        4.94          1,144,848

    The due diligence report also contains monthly mine plans for the first 36
months of production and annual production plans for the first 11 years. The
mine plans are based on a comprehensive review of Lamaque ore reserves,
detailed cash flow models and capital requirements.

    To view the graphs entitled "Lamaque Gold Production for First 12 Months
after Startup" and "Scheduled Production after Startup", please visit the
following URL:

    Lamaque NI 43-101 Compliant Mineral inventory

       Category                      Tonnes      Grade (g/t Au)     Gold (oz)
       --------                      ------      --------------     ---------
    Proven                          2,416,993         5.26           409,045
    Probable                        4,517,162         4.67           677,706
    West Plug (probable)              802,026         1.87            48,220
      Total reserves                7,736,181         4.56         1,134,971
    Measured                          760,964         5.08           124,334
    Indicated                       2,926,614         5.31           499,867
      Total M&I resources           3,687,308         5.27           624,201
      Total inferred resources     17,839,915         4.83         2,832,389

    As part of the due diligence process for the Lamaque project financing,
Century worked with independent consultants and Fortis to create a
comprehensive financial model and long-term plan for the Lamaque mine. This
model is inclusive of all production and development requirements,
construction and working capital, detailed labor and operating cost
calculations, exchange rate calculations, debt service requirements, cover
ratio requirements, sensitivity analysis, taxes, environmental bonds and other
relevant factors.

    Lamaque Financial Model Highlights for First 11 Years of Mining

    (US$ 1,000 except where noted)

             Gold production (oz).................... 1,028,900
             Hedged gold avg. (US$/oz)..................... 905
             Spot gold sales avg. (US$/oz)................. 664
             Revenue................................... 730,265
             Cash costs................................ 427,138
             Operating cash flow....................... 297,590
             Operating costs (US$/oz)...................... 421
             Cash flow after taxes..................... 168,267

             Total capital expenditures................ 138,326
             Total loan amount.......................... 55,000
              (balance funded from operating cash flow)
             Net cash flow after capital............... 113,267
             NPV @ 10%............................... 88,248

    Margaret Kent, President and CEO of Century commented, "We are very
disappointed in today's decision by Fortis, as we have been working on this
project financing for ten months. Century was given assurance that the process
for credit committee approval was proceeding as recently as last week. The
Lamaque project is technically and economically viable, as demonstrated by
projected cash flows in the due diligence report on Century's website. The
management and Board of Directors of Century will continue to do everything
possible to protect and enhance shareholder value during this difficult time."

    Investor conference call
    Management will host a conference call on Tuesday, January 20 at 10:00
a.m. Pacific time (1:00 p.m. Eastern time) to discuss the details of this
press release. Mining analysts, investors and the media are invited to phone
1-800-988-9669, or 1-312-470-7065 if outside Canada and the U.S.A., followed
by the pass code 7109991 approximately 5 minutes before the start of
management's presentation. The presentation will be followed by a question and
answer period. A replay of the conference call can be heard through Friday,
January 30 by dialing 1-800-925-5417, or from outside North America

    About Century Mining Corporation

    Century Mining Corporation is a junior gold producer. The Company owns and
is working towards the restart of 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. Total gold production for 2006 and 2007
was 70,401 ounces and 63,124 ounces of gold, respectively.

    "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 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
    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:, Phone: (877) 284-6535 or (360) 332-4653,
Fax: (360) 332-4652, Website:

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