Source CCNMatthews
Date05/07/2007 §
Time§06:39:43 AM
Company§ CENTURY MINING CORPORATION
Title§Century Mining to Purchase Operating Mine in Peru and Announces Private
Placement
CDNX Symbol: CMM
Press Release
NEWS RELEASE TRANSMITTED BY CCNMATTHEWS
FOR: Century Mining Corporation
TSX VENTURE SYMBOL: CMM
May 7, 2007
Century Mining to Purchase Operating Mine in Peru and Announces Private
Placement
Management Likes Resource Expansion Prospects at Mina Rosario de Belen
BLAINE, WASHINGTON--(CCNMatthews - May 7, 2007) - Century Mining Corporation
(TSX VENTURE:CMM) announces that it has signed an agreement to purchase Mina
Rosario de Belen, an operating gold and silver mine located in northern Peru.
Mina Rosario de Belen is owned by a Peruvian family, and is located near the
town of Patival in the Angasmarca district of the state of La Libertad. The
property is in the same mining belt that includes the Lagunas Norte Mine and
the Yanacocha Mine, which are among the world's largest gold mines. The mine
property is approximately 12,471 hectares, adjacent to and directly to the
south of the operating Santa Rosa Gold Mine.
Mina Rosario de Belen began operations in February of this year as an open-pit
heap leach mine with an initial and expandable ore processing capacity of 5,000
tonnes per day. The mine and processing plant, still in the start-up phase, are
currently operating at a rate of 2,000 tonnes of ore per day. The processing
plant includes both a zinc precipitation circuit and a new carbon absorption
circuit. Mina Rosario de Belen is equipped with leach-pad capacity for
10-million tonnes and a Merrill-Crowe zinc precipitation circuit, which
currently operates at 530 gallons per minute. Power is currently generated
on-site, with plans to connect to the national power grid in the second quarter
of 2007.
Current start-up monthly production, on one 8-hour shift per day, 5 days per
week, is 650 ounces of gold and 6,500 ounces of silver. Century management
believes that the mine's production can be increased to approximately 25,000 to
30,000 gold-equivalent ounces per year. Gold equivalents are calculated using a
US$600/oz gold price and US$10/oz silver price. Cash costs of production are
reported to be in the US$250-$300/oz range during the current start-up phase. A
feasibility study has not been completed by Century and the estimate provided
by the previous owners should not be relied upon.
The deposit has a reported historical resource of 18 million tonnes of ore
grading 0.9 grams of gold equivalent per tonne or approximately 500,000 ounces
of gold. This resource was calculated by the previous owner in 2001, however an
NI 43-101-qualified report has not been completed on the deposit and the
historical resource should not be relied on.
The deposit is open along strike and is amenable to modern exploration
techniques. Based on the site visit and review of the owner's drill data,
trench sampling and geological maps and reports by Century's Qualified Person,
Dan Brost, Manager of Resource Geology, Century's geological team plans to
conduct a resource definition program to confirm the reported 18 million tonnes
grading 0.9 g/t gold equivalent. The above quantity and grade estimates are
Century's only, and there has been insufficient drilling to date to define a NI
43-101 compliant measured mineral resource.
The resource is associated with an intrusive sub-volcanic unit that has cut
across the sedimentary rocks of the Chimu Formation. The Chimu Formation hosts
the nearby Santa Rosa gold deposit, which is currently producing 140,000
gold-equivalent ounces per year, and is also host to world-class gold deposits
including Lagunas Norte, which is producing 1.1 million ounces of gold per
year, and Yanacocha, which is producing 2.6 million ounces of gold per year.
The resource and geological setting are characteristic for this district, in
that the resource is silver-rich and most of the mineralization is hosted in
the oxidized intrusive unit. The exploration model (sandstone-hosted
gold-silver) of the district could be applied to the area around the Patival
land concessions with reasonable prospects for further discovery.
Given Rosario de Belen's favorable geologic setting and its location adjacent
to Santa Rosa, along a recognized trend that includes other large mines, the
area is considered to be very prospective and could potentially host another
Santa Rosa-type deposit.
Century has agreed to issue one million Century shares to the sellers as
consideration for the purchase. Terms of the deal include a total purchase
price of US$20.5 million in cash, to be paid in installments of US$3.25 million
on closing in 45 days, US$3.25 million six months after closing, and US$13
million 12 months after closing, along with 500,000 shares of Century. Century
has also agreed to pay a 1.5% NSR royalty to the sellers. Century expects to
close the transaction in 45 days. The transaction is subject to the
finalization of all documentation and approval of the TSX Venture Exchange.
The Company also announced a non-brokered private placement of units raising up
to C$12 million. Each unit is priced at $0.89 and consists of one share plus
one-quarter share purchase warrant exercisable at $1.17 for a period of 24
months. After 12 months the warrants will become exercisable within 20 days if
the 20-day weighted average closing share price exceeds $1.25. The shares will
be subject to restrictions on resale for four months. A large portion of the
placement will be taken down by a significant European mining group.
No finder's fee or brokers warrants will be paid.
Proceeds of the unit offering will be used for the acquisition of Mina Rosario
de Belen, mining equipment, capital requirements at the San Juan Gold Mine and
other general corporate working capital purposes.
Margaret Kent, President & CEO, said, "We are very excited to announce another
quality acquisition in Peru. Rosario de Belen will not only add immediate
ounces to Century's production profile, but will also provide significant
exploration potential, and the Company plans to aggressively increase resources
here. This acquisition is consistent with the Company's policy of finding and
financing producing but undervalued gold mines on terms that can increase
shareholder value."
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 Quebec that
historically have produced over 9.4 million ounces of gold. In Peru, Century
owns an 82.6% interest in the San Juan Mine where the Company accounts for 100%
of gold 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
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 www.sedar.com.
- 30 -
FOR FURTHER INFORMATION PLEASE CONTACT:
Century Mining Corporation
Brent Jones
Manager of Investor Relations
1-877-284-6535 or (360) 332-4653
Fax: (360) 332-4652
Email: bjones@centurymining.com
Website: www.centurymining.com
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the contents of this press release.
INDUSTRY: Manufacturing and Production - Mining and Metals
SUBJECT: STK - STOCK/OTHER MARKET NEWS
|
Thread abonnieren
