Century Estimates First Quarter Production and Discusses Peruvian Order Restricting San Juan Milling Operations First Quarter 2011 Production Estimates
First Quarter 2011 Production Estimates
BLAINE, WASHINGTON -- (Marketwire) -- 04/06/11 -- Century Mining Corporation ('Century' or the 'Company') (TSX VENTURE: CMM) announces the estimated production for the first quarter of 2011 at the San Juan mine and the Lamaque project, as follows:
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Lamaque San Juan
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Q1 2011 Q1 2011 Q1 2010
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Gold Produced - Ounces 5,815 4,383 4,921
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Tonnes Milled 85,448 29,807 27,945
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Grade - gpt 2.28 5.71 6.5
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Recovery - % 92.67 N/A 82.8
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The Lamaque project was adversely affected by the breakdown and replacement of the cone crusher in February, as previously disclosed. Despite this, the milled tonnage for the quarter at Lamaque increased by 16.3% compared to that achieved in fourth quarter of 2010. The grade at Lamaque was disappointing, and the Company is putting operating strategies in place including fine tuning grade control and further management of mining dilution. The San Juan mine has more recently been affected by a suspension of milling operations in compliance with a Peruvian government order, as discussed below.
Recent developments at the Lamaque project have been more positive, as the mining contractor engaged for the North Wall development has been re-mobilized, and it appears the first ore from the North Wall will be recovered late in the second quarter of 2011. Additionally, the third mill refurbishment has been completed, and this will provide the mill with increased throughput capacity, up to 2,000 tonnes per day.
In reviewing the first quarter production data, President and CEO Daniel Major noted, 'This has been a difficult quarter for Century, with the Lamaque crusher breakdown causing significant downtime and throwing the project's development schedule back several weeks. Compounding this, we have recently had to suspend milling operations in Peru because of the government's concerns over permitting and construction of our tailings areas. We are working diligently to overcome these issues and re-establish our development schedule at Lamaque.'
Peru Tailings Dispute and Suspension of Milling Operations
The Company also advises that milling and processing operations at the Company's San Juan gold mine in Peru have been suspended in compliance with an order from OSINERGMIN (the Supervisory Agency for Energy and Mining Investment of Peru's Ministry of Mines) regarding the tailings disposal areas at the mine, which OSINERGMIN alleged were not properly permitted. The Company provided documentation demonstrating that appropriate permits were properly issued and filed a formal petition to lift the order, and has met with OSINERGMIN and the Ministry of Mines to resolve the dispute.
Although OSINERGMIN and the Ministry of Mines have acknowledged the permits, OSINERGMIN has changed its review to an evaluation of the stability of the San Juan tailings disposal areas, because of information received from external consultants and issues that have occurred with similar impoundments at other locations. Century believes that the construction of the tailings disposal areas at the San Juan mine, including the levee system constructed last year to prevent spillage into the nearby Ocona River, meets permit requirements and relevant engineering standards. Further, an engineering firm contracted by Century in 2010 has evaluated the tailings impoundments and dams at San Juan and has determined that they are stable and are properly constructed.
Pending resolution of the tailings disposal dispute, the San Juan mill remains idled. Mining operations, which were suspended for four days because of the OSINERGMIN order, have been resumed and ore is being stockpiled. The mill has capacity to accommodate the stockpiled ore once operations are resumed; however, depending upon the timing of the startup of the mill, it appears that losses will equal at least one week's production.
The Company will provide additional updates as appropriate.
Michael Page, B.Sc, M.Sc., FAusIMM, a geological consultant to the Company, is a Qualified Person for Century Mining Corporation as defined by National Instrument 43-101, and has reviewed the technical information presented in this news release.
About Century Mining Corporation
Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Daniel J. Major, President & CEO
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 including with respect to the intended use of proceeds raised in the private placement. 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 www.sedar.com.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Century Mining Corporation
Richard B. Meschke
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
www.centurymining.com