Century Mining Announces Filing of Updated NI 43-101 Technical Reports for the Lamaque Project and San Juan Mine
TORONTO, ONTARIO -- (Marketwire) -- 08/11/11 -- Century Mining Corporation ('Century' or the 'Company') (TSX VENTURE: CMM) announces that the updated National Instrument 43-101 ('NI 43-101') Technical Reports describing the details of the updated reserve and resource estimates for the Lamaque Project and San Juan Mine have been filed on SEDAR (www.sedar.com). The updated reserve and resource estimates were previously reported in the Company's press release of June 30, 2011. The information contained herein modifies and supersedes the information in that press release.
As noted in the Company's June 30 press release, The Toronto Stock Exchange deferred its approval of the proposed plan of arrangement to combine White Tiger Gold Ltd. ('White Tiger Gold') and Century (the 'Business Combination'), as previously announced, pending receipt of 'current' NI 43-101 Technical Reports for Century's Lamaque and San Juan projects. Century Mining retained Micon International Limited ('Micon') and Dr. Edmond van Hees ('Ed van Hees') to complete the respective Technical Reports. In addition, the Company retained Ed van Hees to review Micon's approach and philosophy with regard to Micon's audit of the polygon resource estimation at Lamaque.
Century views this updated reserve and resource estimate at Lamaque as an interim update to satisfy the current requirements of the Company. Prior to the completion of these Technical Reports, the Company had been constrained in its disclosures and in proceeding with the Business Combination. The Company believes that a more extensive technical review of Lamaque will recover some of the reductions and reclassifications indicated in the current reserve and resource update or add new mineral resources. However, such review will require several months to complete, necessitating the release of this interim Lamaque report.
The Company would like to reiterate that, in its opinion, the changes to the reported resources and reserves at Lamaque will have limited impact on the short- to medium-term mine plan at Lamaque. The Company expects that further planned work, additional modeling, improved access to deeper areas, and new drilling will result in a reasonable amount of the resource reduction being recovered or reclassified particularly in areas targeted by the Company's mining plans. The current work has helped to highlight a large number of new exploration targets not recognised by the previous modeling technique that have the potential to add resources.
Micon has noted a number of errors in the figures presented by the Company in the technical review and reported in press release of June 30, 2011. The updated revised mineral reserve and resource estimates for the Lamaque Project are presented in Tables 1.0 and 2.0 below. Among other minor changes, there has been a reduction of 3,000 ounces of Proven and Probable reserves from those previously disclosed in the Company's June 30 press release. The San Mine mineral reserve and resources estimates are unchanged from those previously reported.
To view the tables accompanying this release please click on the following link: http://media3.marketwire.com/docs/0811cmm.pdf
Resource Assumptions
Micon's audited mineral resource estimate for the Lamaque Project has been rounded to reflect that the numbers are estimates. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Micon advises that further engineering studies and physical verification of the inferred estimates might not result in this material being up-graded into any higher resource classification and might result in the material being dropped from the subsequent estimates.
Micon believes that no environmental, permitting, legal, title, taxation, socio-economic, marketing or political issues exist which would adversely affect the mineral resource estimate for the Lamaque Project as of the date of its report.
The mineral resources in the Lamaque report were estimated in accordance the CIM definitions and standards adopted on November 27, 2010. The estimates of the mineral resources present at the Lamaque Project were audited by William J. Lewis, B.Sc., P.Geo. and Dibya Kanti Mukhopadhyay, MAusIMM (CP) of Micon, who are independent of Century Mining.
Lamaque No. 2 mine mineral resources are based on block modelling of the flat veins using drill hole and moil channel sampling data. Mineralised zones were outlined with a minimum height of 7 feet and a cut-off grade of 2.1 g/t Au was applied to mineral resource blocks. The cut-off grades developed were based on a long term gold price of US$1,250 per ounce and treatment plant gold recovery of 96%.
Lamaque No. 2 mine Probable mineral reserves were developed from Indicated mineral resources and are adjusted for mining dilution and ore losses. Mineral reserve blocks are fully engineered for development and trackless room and pillar mining. A cut-off grade of 2.3 g/t Au has been applied to the block model to outline stoping blocks.
North Wall Shear mineral resources to a depth of 1,200 feet below surface were defined by block modelling using moil samples derived from development drives on levels at 120 foot vertical intervals. Mineral resources are reported at a cut-off grade of 1.0 g/t Au. A bulk density of 2.67 t/m3 was used to convert volume to tonnage. Model blocks located within 30 feet of a sampled development drive were assigned to the Measured category. Resource blocks located between 30 feet and 70 feet of a sampled development drive were assigned to the Indicated category. Shear blocks situated further than 70 feet of a sampled development drive were assigned to the Inferred category.
North Wall Shear Proven and Probable mineral reserves were developed from Measured and Indicated Mineral resources and are adjusted for mining dilution and ore losses. The steeply dipping shear structures are fully engineered for longhole mining methods and a cut-off grade of 2.03 g/t Au.
North Wall Dyke mineral resources are based on block modelling of the mineralized dykes defined by diamond drilling. Mineral resources are reported at a cut-off grade of 1.0 g/t Au. A bulk density of 2.67 t/m3 was used to convert volume to tonnage. Dyke resource targets defined by a minimum of 3 drill holes were assigned to the Indicated category. Dyke resource targets defined by less than 3 drill holes were assigned to the Inferred category.
North Wall Dyke Probable mineral reserves were developed from Indicated mineral resources and are adjusted for mining dilution and ore losses. The steeply dipping dykes are fully engineered for longhole mining methods and a cut-off grade of 2.03 g/t Au.
The polygonal mineral resources were estimated by the previous operators Teck and, subsequently McWatters at Lamaque, and by Placer Dome at Sigma. The polygonal method used to estimate Measured and Indicated mineral resources, which are the basis of the proven and probable mineral reserves respectively, was developed over a long period of time and has been used historically at both the Sigma and Lamaque properties. A mineralized section of each shear zone or dyke was blocked out on a longitudinal section between levels at 125 ft (38.1 m) vertical intervals. Volume was determined using the longitudinal area and the average thickness. The number of tons was estimated by dividing the volume by the appropriate tonnage factor (12 ft3/st), equal to 2.67 t/m3. The grade of the block was determined using the length-weighted average of all assays within the block (reported in pennyweights (dwt)). Areas with assays below 2 dwt/st or 0.10 oz/st gold (3.4 g/t gold) were discarded and assays greater than 20 dwt/st or 1.0 oz/st gold (34.28 g/t gold) were cut to 1.0 oz/st gold. Mineral resources that were projected 35 ft (10.7 m) above or 35 ft (10.7 m) below a level were assigned to the Measured category. The remaining mineralization between the levels, at a distance greater than 35 ft or below a level, was categorized as Indicated mineral resources. Measured and Indicated resources that met the defined economic criteria were converted into proven and probable reserves. A majority of the polygonal resource blocks appear to be remnants from previous mining, rather than new resources which potentially could be expanded as further work is conducted. These remnants have limited potential to be expanded.
Reserve Assumptions
Mineral reserves are currently identified where the level of geological investigation has supported identification of measured and indicated resources.
Where measured and indicated resources are encompassed within plans for economic extraction, the measured resources have been converted to proven reserves and indicated resources to probable reserves through the application of modifying factors which reflect the impact of the mining extraction process.
The mineral reserves estimate for the Lamaque Project, as of June 20, 2011, is presented in Table 2.0 above. The mineral reserves contained are derived from the stated mineral resources and the stated resources are inclusive of the reserves.
The mineral reserves in the Lamaque report were estimated in accordance with the definitions contained in the CIM definitions and standards adopted on November 27, 2010. The estimate of the mineral reserves present at the Lamaque Project was audited by Geraint Harris, C. Eng., MAusIMM (CP), formerly of Micon, who is independent of Century Mining. The effective date of the mineral reserve estimate is June 20, 2011 which is also the cut-off date for data on which the estimate is based.
An economic cut-off grade of 3.18 g/t Au was used in calculating the Mineral Reserves for the Sigma Polygons. An economic cut-off grade of 2.3 g/t Au was used to calculate Mineral Reserves for the Lamaque No. 2 mine flat veins and a cut-off grade of 2.03 g/t Au was applied to develop the Mineral Reserves of the North Wall Shears and North Wall Dykes.
Measured and Indicated Resources include Proven and Probable Reserves.
The long term metal price used was US$1,250 per ounce for gold.
The estimated Reserves include intrinsic planned dilution and mining losses. The block model for the Flat veins was run at 7ft high, and 6 inches or 7% external dilution was added at nil grade. Steeply dipping North Wall Shears and North Wall Dykes, including Polygons, were adjusted for 5% mining losses and 5% dilution at nil grade.
Numbers have been rounded in all categories to reflect the precision of the estimates.
The mineral reserves were estimated from the life-of-mine plan, which defined sustaining capital requirements and mine operating costs, to demonstrate that the these reserves can be economically extracted and processed. Mining losses and dilution were determined based on experience of the operating environment and the specific mining technique and equipment limitations for each area of the mine.
Contained metal in estimated reserves remains subject to metallurgical recovery losses.
The resource and reserve estimates reflect the deposit at Lamaque as of June 20, 2011. Reserves were based on vertical stopes designed to a minimum mining width of 1.8 m (6 ft) and horizontal (Flat) stopes with a minimum height of 2.13 m (7 ft).
Micon believes that no environmental, permitting, legal, title, taxation, socio-economic, marketing or political issues exist that would adversely affect the audited mineral resource and reserve estimates at the Lamaque Project.
Century Mining retained Micon to independently audit the reserves and resources for the Lamaque mine. The Qualified Persons for Micon are Geraint Harris, C.Eng., MAusIMM (CP), William J. Lewis, B.Sc., P.Geo., Dibya Kanti Mukhopadhyay, MAusIMM (CP), Gary Patrick MAusIMM (CP) and Christopher R. Lattanzi, P.Eng. Micon's Qualified Persons have reviewed the Lamaque portion of this press release.
Dr. Ed Van Hees commented after his review: 'Micon has followed all the CIM Resource estimation rules and applied the appropriate mining parameters to establishing their NI 43-101 compliant Resource estimate for the Lamaque mine.'
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.
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 recovery and conversion of resources and reserves and the potential addition of resources. We use words such as 'might', 'will', 'should', 'anticipate', 'plan', 'expect', 'believe', 'estimate', 'forecast' 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 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
rmeschke@centurymining.com
www.centurymining.com
Terre Partners
Joanna Longo
President
(416) 238-1414 (ext 233)
jlongo@terrepartners.com