Century Mining Corporation

Century Mining Corporation

August 16, 2007 13:28 ET

Century Mining Announces Operations Update at Sigma-Lamaque

BLAINE, WASHINGTON--(Marketwire - Aug. 16, 2007) - Century Mining Corporation (TSX VENTURE:CMM) is pleased to provide an update on ongoing mining operations and other initiatives aimed at achieving further growth.



Century's operations, exploration, and future growth in Canada is centered around the Sigma-Lamaque complex, which operated from underground for most of the last century producing a total of approximately 9.4 million ounces of gold to date. These underground mines were closed as a result of the low price of gold in the 1990s. At the time of the mine closures, significant gold resources were defined and remained unmined. Century began operations at the Sigma Open Pit (May 2005) and the Lamaque Underground (April 2007).

Lamaque Underground Mine

As part of Century's overall strategy to enhance investor confidence and increase profitability, the company announced plans in May 2007 to phase out open pit mining and shift the focus of the Sigma-Lamaque Complex to underground operations, which were commenced in April 2007. Since reopening of the Lamaque Underground Mine, Century has succeeded in expanding production from approximately 50 tonnes of ore per day to an average of approximately 100 tonnes per day during the month of July 2007 at an average head grade of 8.4 grams of gold per tonne of ore. This represents a gradual increase from an average of 62 and 91 tonnes of ore per day in the months of May and June, respectively. During July, the company mined a total of approximately 68,000 tonnes of ore from the Sigma Open Pit at an average head grade of 1.61 grams of gold per tonne.

Century will continue to increase production from the Lamaque Underground Mine, whereby the Company is currently targeting a run rate of between 360 to 400 tonnes of ore per day by the end of 2007. This will be achieved by the addition of more underground miners and additional equipment that has been purchased.

In order to expand production capabilities, it is necessary for the company to increase the number of underground miners. In this regard, Century has initiated a comprehensive recruiting campaign focused on eastern Canada (Ontario, Quebec, and the Maritimes), and has hired a new underground mine trainer for the increased workforce. In addition, a program to bring foreign miners to Sigma-Lamaque has also been initiated. Century plans to hire approximately 80 additional miners, engineers and supervisors for its underground operations.

Regarding water pumping from the Sigma and Lamaque underground mines, Century is currently confirming underground water quality and finalizing the method of discharge outside the Sigma-Lamaque mines. Underground water volumes are being estimated to establish pumping system design and capacity. Once this initial work is complete the design will be completed and application will be made for a Certificate of Authorization to begin pumping in late 2007.

Concurrently, Century has submitted two additional permit applications for mining operations at the Sigma Lamaque Complex. The first is for a Certificate of Authorization to commence mining the Bedard Dyke. The other application submitted is for a Certificate of Authorization to increase tonnage from the Lamaque Underground Mine to over 500 tons per day. These applications were submitted to the Government in July, and the Company expects the Certificates to be issued in October 2007.

In other developments, Century is continuing the advancement of the haulage drift from the Lamaque Underground to the Sigma Open Pit and intends to complete the drift by the end of August. This will allow the Company to transport underground ore to the Sigma mill in a more efficient manner by using larger open pit equipment. This will alleviate the current scheduling issues with the Citie de L'Or Museum in Val d'Or.

At the head office in Blaine, WA Century added a new 6-technician digital scanning and 3D modeling department to organize the large volumes of historical information from the Sigma and Lamaque mines. The existing Sigma Mine model will be extended south across our adjacent claim boundaries to include the Lamaque Mine. The first priority is to add mineable ore reserves in the area of the Lamaque #2 decline. This priority area is 1,600 ft. x 1,600 ft. by 1,200 ft. depth from surface, and contains ore in the boundary pillars between the Sigma and Lamaque Mines. Century has begun a 10,000 foot infill drilling program in this area to add ore reserves. Ultimately the new Sigma-Lamaque working model will be a complete digitization of historic and new data to facilitate solid resource management for the overall operation and to provide new targets for exploration.

Sigma Underground Mine

Regarding the startup of the Sigma Underground Mine, Century plans to begin mining ore through Lamaque Underground openings into the Sigma Mine during 2007, ahead of the previous forecast for startup timing of early 2008.


The Company will provide an update on Peruvian operations in a separate press release, which will be announced at a later date.

Second quarter financial results

Century announced today that it will disclose financial results for the second quarter of 2007 on August 30, 2007, followed by a management conference call on Tuesday September 4.

Margaret Kent, President & CEO, commented, "Given the current state of the mining industry, where skilled underground miners are in short supply, our progress thus far at the LU has been slower than expected. The problem has been in maintaining sufficient staffing levels, and all the mining companies in Eastern Canada are having the same issues. However, we have ounces ready to extract, and our new recruiting campaign, which has been successful to date, is specifically designed to solve this problem. We are increasing under based on a 400-500 tonne-per-day operation. Century will continue to evaluate and optimize operations at the Sigma-Lamaque Complex as we effect our transition from open pit mining to a focus on underground operations. Despite the slower-than-expected ramp up in production, head grades are good, and we are working actively on moving the historic resources into reserves. We fully expect the shift in focus to underground operations to improve investor confidence in the Sigma-Lamaque Complex and allow Century to be a long term producer in this mining camp."

About Century Mining Corporation

Century Mining Corporation is an emerging mid-tier gold producer that is aggressively acquiring producing mines and exploration properties in Peru. The Company owns and produces gold at the Sigma and Lamaque mines in Quebec that historically have produced over 9.4 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Century subsidiaries have also recently acquired Rosario de Belen where it accounts for 100% of both gold and silver production. Century's growth strategy is to acquire gold producing assets in South America that will substantially reduce the Company's consolidated total cash cost of production and where there is exceptional exploration potential to expand production at these mines.

Margaret M. Kent, Chairman, President & CEO

Caution Concerning Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking information. It is 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 information involves 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 accordingly, readers should not place undue reliance on those statements. 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 resource 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 Canadian securities regulatory authorities and available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

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