Century Iron Mines Corporation
TSX : FER

Century Iron Mines Corporation

February 10, 2012 08:40 ET

Century Iron Mines Corporation Announces Duncan Lake Iron Ore Project Phase II Drilling, Update

TORONTO, ONTARIO--(Marketwire - Feb. 10, 2012) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Century Iron Mines Corp. (TSX:FER) ("Century Iron" or the "Company") is pleased to announce Duncan Lake Iron Ore Project Phase II Drilling Update.

Phase II Drilling, Update results are being reported for 19,700m of drilling in 54 drill holes located in deposit zones 3, 4 and 6.

The Phase II drilling program is expected to continue after freeze-up in 2012, to provide information for an NI43-101 updated mineral resource estimate and to perform a Preliminary Economic Assessment (PEA), the contract for which has been awarded to Met-Chem Canada Inc.

The Phase II 19,700 drill program has improved confidence in the continuity of magnetite dominant zones and has demonstrated approximate strike extends 2.5 km in zone 3, 1.0 km in zone 4 and 1.0 km in zone 6. Sandy Chim, President & CEO of Century Iron commented: "These results continue to show grade consistency with that of previous drilling. Our program has been on plan and I am pleased that we are moving toward a target updated NI43-101 resource estimate and PEA by approximately mid-2012."

At the end of this news release is a diagram of the Project zones 1 through 6 and three tables namely zone 3, zone 4 and zone 6 with details included of the 19,700m of drilling in 54 drill holes together with mineralized intercepts and grades, drill hole collar coordinates, hole dips and azimuths as well as intercept core lengths. More results of the continuing drilling program will be reported when assays are available.

The Qualified Person on the project, as defined under National Instrument 43-101, are Wenlong Gan, P.Geo. He was responsible for the preparation of all technical information provided in this press release and has reviewed and approved the contents of this news release.

Zone 3 - Duncan Lake Iron Ore Project Phase II Drilling, Update #I - Results

The following intercepts were defined by a 16% Fe cut off and an 8m minimum core length. True widths have yet to be determined. Drill results indicate that the geometry of folding within zone 3 is relatively complex. The reader is cautioned that true widths may vary significantly from the reported drilled core lengths.

HOLE NUMBER NORTHING EASTING ELEVA-
TION
DIP AZI-
MUTH
FROM
(M)
TO
(M)
Core
Length
(M)
FE %
DUN-11-228 5935588 323956 153 -54 315 90 108 18 25.8
126 138 12 23.1
216 225 9 29.9
DUN-11-229 5935864 323960 165 -52 315 NSA
DUN-11-232 5935973 324134 155 -50 315 43.9 341.4 297.5 32.6
DUN-11-233 5935837 324273 153 -50 316 45.8 86.4 40.6 27.7
DUN-11-234 5936376 324015 173 -50 315 167 194.8 27.8 30.8
DUN-11-235 5936140 324252 163 -50 315 138 210 72 24.6
228 291 63 23.8
294 318 24 18.9
321 333 12 24.6
336 501 165 29.2
507 552 45 26.7
555 567 12 27.7
DUN-11-236 5935951 324440 156 -52 315 64.5 156 91.5 25.2
236.5 273 36.6 23.7
DUN-11-237 5936441 324232 178 -50 315 42.3 149.8 107.5 26.4
209.6 396 186.4 27.6
DUN-11-238 5936167 324537 160 -50 315 13.8 135 121.3 26.1
DUN-11-240 5936484 324471 172 -51 315 21.9 35.2 13.3 28.5
51 66 15 20.1
86.7 97.8 11.1 20.3
399 493.2 94.2 24.3
DUN-11-242 5936294 324948 153 -51 315 56 96 40 26.8
117 201 84 22.3
DUN-11-245 5936584 324938 151 -53 315 159 168 9 23.4
198 372 174 25.4
DUN-11-246 5936359 325163 152 -51 315 183 270 87 23.3
296 336 40 29.8
DUN-11-247 5937051 324753 153 -53 319 153 165 12 22.4
309 384 75 24.8
DUN-11-248 5936811 325010 151 -52 316 78 87 9 24.7
114 123 9 22.9
DUN-11-251 5937229 324859 154 -52 314 324 387.3 63.3 23.1
DUN-11-252 5936706 325394 149 -51 315 24.6 63 38.4 30.2
78 99 21 33.7
DUN-11-255 5936802 325566 155 -50 320 NSA
DUN-11-256 5936583 325784 147 -52 315 75 88 13 26.2
DUN-11-259 5937585 325069 164 -50 315 294 330 36 23.5
DUN-11-260 5937105 325545 165 -51 315 5.5 48 42.5 28.9
DUN-11-261 5936957 325695 155 -52 312 112 253 141 25.8
357 375 18 19.2
DUN-11-263 5937104 325830 163 -50 315 NSA
DUN-11-334 5935541 324001 153 -54 308 146 165 19 31
186 195 9 18.9
356 364 8 20.5
DUN-11-340 5936264 324126 172 -43 320 162.8 174.4 11.6 36.3
304 375 71 31.9
DUN-11-343 5936318 324357 169 -50 315 173.5 197.4 23.9 22.5
211.9 263.5 51.7 25.8
279.1 320.1 41 23.7
340.8 355.4 14.7 21.5
366.3 492.4 126.2 23.8
505.7 620.8 115.1 23.6
DUN-11-345 5936626 324332 176 -47 312 43.9 140.8 96.9 24.4
167.9 248.5 80.7 20.7
263.1 436 172.9 22.9
447.6 456.3 8.7 17.8
DUN-11-351 5936219 325024 155 -49 313 129 204 75 21.2
231 291 60 24
DUN-11-360 5937413 324956 159 -50 314 290.1 339 48.9 21.4
DUN-11-362 5936513 325857 148 -51 315 6 42 36 22.5
DUN-11-364 5937675 324982 161 -51 315 171 183 12 25.2
DUN-11-367 5937891 324910 163 -51 315 6 30 24 22.4
DUN-11-368 5937177 325754 160 -52 315 NSA
(NSA - No Significant Assays)

Zone 4 - Duncan Lake Iron Ore Project Phase II Drilling, Update # I - Results

The following intercepts were defined by a 16% Fe cut off and an 8m minimum core length. True widths have yet to be determined. Drill results indicate that the geometry of zone 4 is controlled by a thrust fault, which hinders the accurate interpretation of the true width of the mineralized intersections. The reader is cautioned that true widths may vary significantly from the reported drilled core lengths.

HOLE NUMBER NORTHING EASTING ELEVA-
TION
DIP AZI-
MUTH
FROM
(M)
TO
(M)
Core
Length
(M)
FE %
DUN-11-212 5941639 329388 149 -67 320 38 286 248 25.5
345.6 444.3 96.5 22.4
DUN-11-213 5941589 329428 147 -51 320 105.85 298 192.1 24.2
302 330.3 28.4 24
DUN-11-214 5941795 329520 152 -60 320 56.8 73.6 16.8 25.8
89.7 191.5 101.8 25.6
210.3 230.2 19.9 22.7
296.5 397.6 101.1 21.5
450.4 459.6 9.2 21.9
DUN-11-215 5941985 329361 156 -61 320 14.7 130.7 116 21.1
DUN-11-216 5942086 329525 156 -61 320 37.8 48.6 10.8 19.1
65.5 91.6 26.1 19.2
DUN-11-217 5941911 329684 149 -61 320 106.5 116.2 9.7 20.9
122.3 234 111.7 25.8
DUN-11-218 5942138 329751 148 -61 320 28.1 46.6 18.5 18.4
72.4 84.3 11.9 24.4
90.4 103.7 13.3 17.5
DUN-11-219 5942043 329834 147 -64 320 60 187.6 127.6 23.3
221.3 240 18.7 22.2
DUN-11-221 5942076 330067 143 -62 320 155.8 241 85.2 27
259.4 270 10.6 23.8
DUN-11-222 5942143 330267 144 -61 320 187.1 200.5 13.4 20.8
219.4 227.5 8.1 22.3
238.1 265.4 27.3 18.3
DUN-11-223 5942306 330394 144 -61 320 133 143.5 10.5 25.9
DUN-11-224 5942451 330535 145 -61 320 83.2 97.7 14.5 27.1
DUN-11-320 5941932 329399 156 -60 320 8.6 17.5 8.9 18.7
91.9 206.3 114.4 23.5
DUN-11-321 5941838 329483 152 -60 320 16.9 165.8 148.9 22.4
231.2 337.6 106.4 22.3
375.5 391.6 16.2 18.4
DUN-11-331 5942393 330584 146 -62 320 188 203.4 15.4 28.5
DUN-11-332 5942593 330667 146 -54 320 NSA
(NSA - No Significant Assays)

Zone 6 - Duncan Lake Iron Ore Project Phase II Drilling, Update # I - Results

The following intercepts were defined by a 16% Fe cut off and an 8m minimum core length. True widths have yet to be determined. Zone 6 is intruded by an irregular network of granitic intrusives which hinder the estimation of true width. The reader is cautioned that true widths may vary significantly from the reported drilled core lengths.

HOLE NUMBER NORTHING EASTING ELEVA-
TION
DIP AZI-
MUTH
FROM
(M)
TO
(M)
Core
Length
(M)
FE %
DUN-11-272 5936321 326757 154 -51 340 16.2 65.2 49 23.2
118.2 127.3 9.1 24.1
173.4 196.5 23.1 24.5
312.3 321.2 8.9 22.3
DUN-11-273 5936163 326814 156 -52 340 4.8 42.4 37.6 30.5
273.7 346.6 72.9 31.2
366.3 384.5 18.2 23.3
450.7 466.5 15.8 21.9
DUN-11-383 5936395 327263 153 -52 340 146.2 224.8 78.6 20.1
236.8 245.3 8.5 27.8
DUN-11-384 5936545 327313 152 -52 340 9.5 45.5 36 19.3
115.8 127.9 12.1 32.9
DUN-11-386 5936641 327492 152 -50 340 8 34.8 26.8 19.2
64.1 156 91.9 25.7

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/765219_map.pdf

About the Duncan Lake Property

The Duncan Lake Iron Ore Property ("DLIOP") is located approximately 570 km north of Mattagami, Québec, and can be easily accessed via paved road (Highway 109), connecting Mattagami to Radisson. Road distance from Montreal to DLIOP is estimated to be 1,350 km. The property is located 50 km south of Radisson and 10 km south of the LG2 regional airport.

The property is subdivided into six (6) separate mineralized zones (1 to 6) proximal to Highway 109. The claim blocks 1, 2, and 5 are located southwest of the highway and claim blocks 3, 4 and 6 to the northeast. The property has recently been expanded to 528 exploration claims covering 25,448.8 hectares.

The DLIOP is subject to a joint venture agreement between Century, which holds a 51% interest, and Augyva Mining Resources Inc.('Augyva'), which holds a 49% interest under an option and joint venture agreement dated May 20, 2008.

On November 11, 2010, Century completed its funding of $6,000,000 to earn an initial 51% interest in the DLIOP in accordance with the JV Agreement. Pursuant to the JV Agreement, and after earning the initial 51% interest, Century will have the option to increase its interest in the property to 65% by expending a further $14 million during the following 4 years thereafter.

About the Company

Century Iron Mines Corporation (TSX:FER) is Canada's largest holder of iron ore land claims, with interests in several properties in the Provinces of Quebec and Newfoundland and Labrador. Century's mission is to enhance shareholder value through the development of iron ore projects in Canada and to become a major Canadian iron ore producer. Century has promising iron ore assets and is firmly entrenched in western Quebec and in the prolific iron ore-producing region of the Labrador Trough in eastern Quebec and western Labrador. The Company has two key strategic partners in WISCO International Resources Development & Investment Limited and Minmetals Exploration & Development (Luxembourg) Limited S.àr.l., both state-owned Chinese companies with the financial and technical resources to assist the Company with funding and technical expertise for the exploration and development of its iron ore projects.

The Company has interests in the following mineral exploration projects located in Quebec and Newfoundland and Labrador:

  • The Duncan Lake Project of which the Company currently has a 51% interest with an option to increase to a 65% interest under an option and joint venture agreement with Augyva Mining Resources Inc.;

  • The Attikamagen Project of which the Company currently has an option to acquire up to a 60% interest under an option and joint venture agreement with Champion Minerals Inc. (TSX:CHM);

  • The Sunny Lake Project (100% owned by Century Iron) and;

  • The Astray, Grenville, Menihek and Schefferville projects recently acquired from Altius Minerals Corp. (TSX:ALS) (100% owned by Century Iron).

The Company's objective is to enhance shareholder value through the development of iron ore projects in Canada and to become a Canadian iron ore producer. Century Iron's website is: www.centuryiron.com.

About WISCO

WISCO International Resources Development & Investment Limited holds an approximate 25% interest in Century Iron and an off-take agreement for up to 60% of the production. WISCO is one of the major subsidiaries of Wuhan Iron & Steel (Group) Corporation ("WISCO Group"), headquartered in Wuhan in the province of Hubei in the People's Republic of China. The WISCO Group is one of the "Big Three" Chinese state-owned integrated iron and steel company. In 2010, the WISCO Group had an annual output of 36 million tonnes of steel. The WISCO Group's portfolio of business activities includes mining, coking, sintering, iron making, steel making, rolling and associated utilities.

About Minmetals

Minmetals Exploration & Development (Luxembourg) Limited S. àr. l holds an approximate 5% interest in Century Iron and off-take agreement for up to 10% of the production. Minmetals is one of the major subsidiaries of China Minmetals Corporation ("China Minmetals"). China Minmetals is a state-owned diversified metals and mining company based in Beijing, in the People's Republic of China. China Minmetals is engaged in the production and trading of metals and minerals, including copper, aluminum, tungsten, tin, antimony, lead, zinc, iron and steel-related commodities. China Minmetals also engages in activities related to real estate development, finance, shipping and tendering.

Forward Looking Information

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to the expected completion of the current drilling phase at Duncan Lake and the Company's objective to enhance shareholder value through the development of iron ore projects in Canada and to become a major Canadian iron ore producer. The forward-looking information is based on certain assumptions, which could change materially in the future, including the assumption that the Company is able to complete the current phase III an extension to the Phase II drilling program and that the development of the Company's iron ore projects will enhance shareholder value and be sufficient for it to become a major Canadian iron ore producer. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risk that the current phase III an extension to the Phase II drilling program at Duncan Lake may be delayed or may not be completed and that the Company's Canadian iron ore projects may not succeed in enhancing shareholder value or allow the Company to become a major Canadian iron ore producer. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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