Century Iron Mines Corporation
TSX : FER

Century Iron Mines Corporation

July 31, 2012 08:00 ET

Century Iron Mines Corporation and Augyva Mining Resources Announce Duncan Lake Iron Ore Project Phase II Drilling, Update

TORONTO, ONTARIO--(Marketwire - July 31, 2012) -

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

Century Iron Mines Corporation (TSX:FER) ("Century ") and Augyva Mining Resources Inc. (TSX VENTURE:AUV) ("Augyva") is pleased to announce Duncan Lake Iron Ore Project Phase II Drilling Update #2.

Phase II Drilling, Update #2 results are being reported for 8,956m of drilling in 26 drill holes located in zones 3, 4 and 6. The table immediately below shows previously released drilling results.

Phase I drilling, previously reported 10,460m in 52 holes - complete
Phase II interim drilling, previously reported 8,404m in 25 holes - complete
Phase II drilling update #1, previously reported 19,700m in 54 holes - complete
Phase II drilling update #2, this report 8,956m in 26 holes - complete

The Phase II drilling program is complete, except for outstanding assay results for an additional 19 holes, which will be reported in update #3.

Sandy Chim, President & CEO said, "We are pleased to see that these results continue to show grade and quality consistency with the previous drilling. An NI43-101 report updating mineral resource estimate is currently in process by Met-Chem Canada Inc. and expected to be completed in the third quarter of 2012. A Preliminary Economic Assessment (PEA) will follow immediately and is targeted to be completed by the end of the year."

At the end of this news release are the three tables namely zone 3, zone 4 and zone 6 with details of the 8,956m of drilling in 26 drill holes together with mineralized intercepts and grades, drill hole collar coordinates, hole dips and azimuths as well as intercept core lengths. The remaining results of the drilling program will be reported when assays are available.

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, 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.

Duncan Lake Iron Ore Project Phase II Drilling, Update # 2 - Results

Zone 3

HOLE
NUMBER
NORTHING EASTING ELEV-
ATION
DIP AZIMUTH FROM
(M)
TO
(M)
Core
Length
(M)
FE %
DUN 11-234B 5936355 324049 173 -60 143 207.9 277.45 69.55 30.07
DUN 11-238C 5935977 324697 152 -50 317 165.6 277.1 111.5 24.49
DUN 11-337 5936064 324051 163 -50 319 NSA
DUN 11-337B 5936038 324071 160 -50 135 18.6 117.65 99.05 29.36
141.8 201.15 59.35 26.82
DUN 11-340C 5936265 324126 172 -50 135 44.25 144.2 99.95 27.7
DUN 11-346B 5936098 324858 153 -50 310 178.3 319.9 141.6 21.81
DUN 11-348 5936864 324376 165 -50 315 36.7 178.6 141.9 20.56
Incl. 36.7 89.7 53 25.2
242.35 278.8 36.45 22.62
DUN 11-348B 5936959 324287 164 -50 315 62.2 136.7 74.5 17.6
DUN 11-350B 5936510 324729 159 -50 315 NSA
DUN 11-353 5936508 325015 151 -50 315 32.55 148.3 115.75 21.77
435.15 478.1 42.95 25.56
DUN 11-354 5937189 324618 158 -50 315 9.9 131.6 121.7 24
185.5 196.1 10.6 28.74
DUN 11-237C 5936441 324232 178 -50 135 NSA
DUN 12-249 5936536 325270 152 -50 315 103.3 245.7 142.4 19.53
Incl. 103.3 145 41.7 24.32
Incl. 169.95 199.6 29.65 26.83
NSA - no significant assay
Note: Intersections are core lengths, true widths may be less than core lengths.

Zone 4

HOLE
NUMBER
NORTHING EASTING ELEV-
ATION
DIP AZIMUTH FROM
(M)
TO
(M)
Core
Length
(M)
FE %
DUN 11-203 5941250 328541 149 -60 320 73 145 72 24.77
DUN 11-204 5941300 328495 153 -60 320 4.5 68 63.5 24.07
DUN-11-205 5941455 328625 156 -50 320 6 47 41 20.56
DUN 11-206 5941310 328835 149 -50 320 226.5 273.1 46.6 23.63
DUN 11-207 5941469 329008 146 -60 320 61.9 209.9 148 22.5
Incl. 61.9 130.4 68.5 32.15
275.3 342.8 67.5 24.35
470 506.4 36.4 25.43
DUN 11-208 5941573 328928 155 -60 320 43.9 96.3 52.4 26.34
151.2 222 70.8 25.18
DUN 11-209 5941569 329197 146 -60 320 21 132 111 24.14
165.1 213 47.9 22.16
279.85 470.4 190.55 21.26
Incl. 359.9 441.8 81.9 27.89
DUN 11-226 5941909 328895 157 -60 320 14.5 156.5 142 23.43
DUN 11-305 5941121 328388 145 -60 320 18.15 43.1 24.95 22.9
DUN 11-308 5941326 328738 145 -60 320 170 204.5 34.5 21.52
DUN 11-309 5941462 328883 149 -60 320 68.6 154.6 86 19.51
207.8 280.2 72.4 25.65
DUN 11-313 5941678 329108 151 -60 320 45.5 86.7 41.2 19.57
152.3 365 212.7 22.07
Incl. 237.9 317 79.1 28.28
NSA - no significant assay
Note: Intersections are core lengths, true widths may be less than core lengths.

Zone 6

HOLE
NUMBER
NORTHING EASTING ELEV-
ATION
DIP AZIMUTH FROM
(M)
TO
(M)
Core
Length
(M)
FE %
DUN 11-379 5936302 326980 155 -50 341 58.7 112.3 53.6 21.48
131.2 140.6 9.4 33.6
165.5 235.5 70 19.06
273.2 292.3 19.1 20.45
325.4 380.5 55.1 24.58
NSA - no significant assay
Note: Intersections are core lengths, true widths may be less than core lengths.

Quality Assurance, Quality Control and Qualified Person

Sample preparation was contracted to the IOS Service Geoscientifiques Inc. ("IOS"), an independent sample preparation facility located in Chicoutimi. Pulps were then shipped to ALS Canada Ltd ("ALS") in Vancouver, British Columbia, which is independent of Century. The samples were analyzed via lithium borate XRF, and sulphur was determined by Leco furnace. Iron was reported as total ferric iron and calculated as total iron by Century.

The Qualified Person on the project, as defined under National Instrument 43-101, are Claude Britt, P. Geo. and Zhihuan Wan, P.Geo. They were responsible for the preparation of all technical information provided in this press release and have reviewed and approved the contents of this news release.

About the Century Iron Mines Corporation

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's website is: www.centuryiron.com.

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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