Century Mining Corporation

Century Mining Corporation

August 08, 2006 17:29 ET

Century Mining Takes Steps to Meet 2006 Production Target at Sigma-Lamaque

BLAINE, WASHINGTON--(CCNMatthews - Aug. 8, 2006) - Century Mining Corporation (TSX VENTURE:CMM) announces a number of steps to meet its 2006 production target at its Sigma-Lamaque mining operations in Quebec.

Purchase of reverse circulation drill

The Company has purchased and taken delivery of a new reverse circulation drill for use in its Sigma open pit. The company discussed its intention to purchase a new RC drill for the Sigma open pit during its first quarter conference call with analysts and investors.

The definition drilling program, which commenced in 2004 with a previously leased old drill, will continue to further delineate ore within the pit using the new drill with the objectives of improving ore recovery, minimizing waste dilution, and aiding in the predictability of ore deliveries during the extraction processes. Grade control processes are very important in the open pit mining operations to ensure optimal results. The drill is currently being commissioned at the mine and training will begin this week.

Delivery of second haulage truck

The second new HD785-5LC-100 ton haulage truck has been received, commissioned, and is operating in the Sigma pit. The third and fourth trucks are currently being assembled in Val d'Or. The expected deliveries on these remaining units are next week for the third unit and the end of August for the last unit.

The Company has already observed an increase in the total haulage capability of the fleet with the addition of the second haulage truck. The additional new trucks, coupled with increased availability due to improvements associated with the preventive maintenance processes and systems on the pre-existing fleet at the open pit, have contributed to the increase. Total pit haulage incorporating the second truck has been encouraging during the first several days of operation and has averaged approximately 30,000 tons per day.

This Company believes that the recovery waste strip plan scheduled for the balance of 2006 is achievable when the two remaining new units have been delivered.

Development of Lamaque underground mine continues on track

Progress continues to be made on the development of the underground Lamaque project. Phase 1 of the underground Lamaque project is well advanced and remains on schedule and on budget. The geological and engineering planning for Phase 2 is advancing and several targets for the Phase 2 bulk sample are being refined. The historical plans and sections are currently being digitized into an electronic format compatible with the Sigma mine files. Management is currently focusing attention on acquiring the underground fleet, equipment and consumable supply provisions necessary to support Phase 2.

Stephen Hodgson has joined the Company as Underground Mine Superintendent at Lamaque. Mr. Hodgson has extensive experience in underground mining operations and will provide innovative leadership to the extraction of the Lamaque ores. Mr. Hodgson's career has spanned in excess of 30 years in underground mining, much of it spent with Rio Tinto plc in various North American operations.

Margaret Kent, President & CEO, commented: "Because of the severe industry-wide shortage of mining equipment, we have been on the waiting list for over a year for delivery of the four new haulage trucks and the reverse circulation drill. The new haulage equipment is expected to make a significant improvement in pit output, which together with the advancement of development at Lamaque should allow us to meet our 2006 production targets of 90,000 ounces of gold at Sigma and 5,000 ounces at Lamaque. The addition of new reverse circulation drilling equipment should ensure that gold recovery and waste dilution are optimized. We are pleased that Stephen Hodgson has joined the Century team as Underground Mine Superintendent and we remain very optimistic in respect of the Lamaque underground project, particularly with the addition of new qualified and experienced key personnel dedicated to Lamaque. Our disciplined approach to containing capital costs on the front end of this project while achieving the project schedule and remediation targets should ensure that we meet our production target this year."

About Century Mining Corporation

The Company forecasts total gold production of 100,000 ounces of gold at a cash cost of US$325 to US$350 an ounce from its Sigma, Lamaque and San Juan mines in 2006. The Company owns the dormant Carolin gold mine in southwestern British Columbia; nine precious metals exploration properties located on the historic Juneau Gold Belt in Alaska; and production and 23,000 ha of exploration properties in Peru.

Margaret M. Kent, Chairman, President & CEO

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and as amended in Section 27E of the 1934 Act.

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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