Century Iron Mines Corporation
TSX : FER

Century Iron Mines Corporation

August 13, 2012 08:00 ET

Century Iron Mines Corporation and Augyva Mining Resources Announce Duncan Lake Iron Ore Project Phase II Drilling# 3, Final Update

TORONTO, ONTARIO--(Marketwire - Aug. 13, 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 #3 - Final Report.

Highlights include:

  • Drill hole DUN 11-237B intersected 142.9 metres grading 24.64% total Iron (FeT).

  • Drill hole DUN 11- 352 intersected 321.25 metres grading 25.55% total iron (FeT).

Phase II Drilling, Update #3 results are being reported for 6,786m of drilling in 19 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, previously reported 8,956m in 26 holes - complete
Phase II drilling update #3, Final report 6,786m in 19 holes - complete
Total 54,306m 176 holes

This concludes all outstanding drilling assay results for the Phase II drilling program.

Sandy Chim, President & CEO said, "We are pleased to release the final drill holes in our Phase II drilling program. 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 6,786m of drilling in 19 drill holes together with mineralized intercepts and grades, drill hole collar coordinates, hole dips and azimuths as well as intercept core lengths.

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.

Quality Assurance, Quality Control and Qualified Person

Sample preparation except for holes DUN-11-237B, DUN-11-315, DUN-11-324B, DUN-11-352, DUN-11-380 and DUN-11-382 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. For holes DUN-11-237B, DUN-11-315, DUN-11-324B, DUN-11-352, DUN-11-380 and DUN-11-382, sample cutting was done by SGS in Lakefield, Ontario and split core was sent to ALS for analysis. 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.

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

Zone 3
HOLE
NUMBER
NORTHING EASTING ELEVATION DIP AZIMUTH FROM TO Core
Length
FE %
(M) (M) (M)
DUN-11-237B 5936441 324232 178 -90 320 33 42 9 31.00
197.15 237.2 40.05 28.39
283.6 426.5 142.9 24.64
DUN-11-245B 5936674 324849 151 -50 315 9.6 64.2 54.6 22.87
Incl. 9.6 20.1 10.5 21.12
Incl. 29 64.2 35.2 26.56
109.2 128.5 19.3 24.00
DUN-11-338 5935929 324182 153 -50 316 7 56.4 49.4 25.14
Incl. 23.8 56.4 32.6 29.32
70.7 169.3 98.6 26.22
DUN-11-346 5936290 324671 155 -50 314 15 87.25 72.25 24.96
DUN-11-352 5936953 324575 155 -50 317 12.2 333.45 321.25 25.55
DUN-12-245A 5936768 324757 151 -50 135 84.5 185.45 100.95 21.85
249.45 269.55 20.1 25.67
DUN-12-350 5936660 324580 168 -50 135 98.7 136.2 37.5 22.99
DUN-12-356 5936440 325366 151 -50 315 231.6 395.6 164 23.23
Note: Intersections are core lengths, true widths may be less than core lengths.
Zone 4
HOLE
NUMBER
NORTHING EASTING ELEVATION DIP AZIMUTH FROM TO Core Length FE %
(M) (M) (M)
DUN-11-315 5941695 329342 145 -60 320 10.40 149.00 138.60 24.82
Incl. 10.40 108.10 97.70 28.82
227.75 340.50 112.75 20.78
Incl. 257.70 304.10 46.40 24.51
Incl. 314.40 340.50 26.10 22.28
DUN-11-324B 5941951 329661 153 -55 320 33.4 167.9 134.5 21.87
DUN-12-210 5941733 329050 154 -50 320 79.4 331 251.6 21.93
154.1 266.9 112.8 28.22
DUN-12-211 5941887 329180 153 -60 320 13.7 117.8 104.1 22.45
DUN-12-220 5942170 329998 146 -60 320 19 98.65 79.65 25.56
DUN-12-310 5941331 328995 145 -60 320 263.7 312.3 48.6 28.04
368.95 464.55 95.6 23.57
DUN-12-322 5941693 329614 145 -60 320 242.1 494.85 252.75 21.96
DUN-12-325 5941828 329762 150 -60 320 246.3 350 103.7 21.43
DUN-12-327 5941959 329913 147 -60 320 230.3 289.55 59.25 24.43
347.2 362 14.8 24.87
Note: Intersections are core lengths, true widths may be less than core lengths.
Zone 6
HOLE NUMBER NORTHING EASTING ELEVATION DIP AZIMUTH FROM TO Core
Length
FE %
(M) (M) (M)
DUN-11-380 5936115 327046 151 -50 340 117.8 151.2 33.4 26.65
369.25 384.9 15.65 30.95
DUN-11-382 5936269 327203 153 -50 340 134.1 145.7 11.6 31.92
202.9 372.4 169.5 19.77
Incl. 202.9 255.7 52.8 25.29
Note: Intersections are core lengths, true widths may be less than core lengths.

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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