Century Mining Corporation

Century Mining Corporation

October 19, 2006 20:44 ET

Century Mining to Host Conference Call to Discuss Growth Strategy in Peru

BLAINE, WASHINGTONVANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 19, 2006) - Century Mining Corporation (TSX VENTURE:CMM) is pleased to provide an update on its activities in Peru and will host a conference call on Friday, October 20 to discuss the Company's acquisition and growth strategy.

Conference call

Margaret Kent, President & CEO, will host a conference call from Peru on Friday, October 20, 2006 at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) to discuss the Company's current activities in Peru and Canada as they relate to the long-term growth strategy. Mining analysts, investors and the media are invited to phone 1-800-857-8786, or 1-610-794-9509 if outside Canada and the U.S.A., followed by the pass code 12567 approximately 5 minutes before the start of the presentation. The presentation will be followed by a question and answer period.

A replay of the conference call can be heard until Friday, October 27 by dialing 1-800-288-9658, or from outside North America 1-203-369-3658.

Receipt of drilling permit for San Juan Mine expected next week

The Company expects to receive the drilling permit for its exploration program at the San Juan Mine early next week. This will be the first drill permit ever received for the property, and the subsequent drilling program will also be the first ever carried out on this 20,000 hectare block. Drilling from surface will begin immediately to test extensions to the Mercedes and San Juan veins, which are the only veins that have been mined to date, as well as 33 additional veins that parallel and are diagonal to the Mercedes and San Juan veins. The initial drilling will consist of approximately twenty holes. All veins are well mineralized as shown by recent sampling and have potential to host significant gold resources. The drill program will provide the basis for the preparation of an NI 43-101 technical report.

Subsequent to receiving the drilling permit for the San Juan Mine, the Company will apply for a combined drilling permit to explore the Veta Clara and Santa Clarita areas on the San Juan property. Regarding multiple permit applications, the Ministry of Mines of Peru will only review one application at a time, and will not accept new applications until permits have been issued for prior applications.

Growth strategy in Peru

Recognizing the potential of gold mining and exploration in Peru, Century incorporated Century Mining (Peru) S.A. and opened an office in Lima in February of this year, subsequent to which the Company has acquired the following assets:

- A 60% controlling interest in the operating San Juan Mine.

- An operating lease on the San Juan Mine whereby Century will receive 100% of the gold from the mine subject to returning a 10% NPI to San Juan.

- Four additional exploration projects and 20,000 hectares of land that surround the San Juan Mine.

- An agreement to acquire a 38% interest in Compania Minera Poderosa S.A. (CMPSA), which operates the Poderosa mine.

- The Colina Dorada exploration property.

The Company's growth strategy in Peru on these properties is outlined below:

Rehabilitation of San Juan Mine

Historically, the San Juan Mine has produced over 1.2 million ounces of gold from 2 of 35 veins on the property. However, during the last few years when the mine was privately owned, little capital was spent on the assets, either in sustaining maintenance capital or to expand production and mineral resources. As a result, the mine has only operated at an annual production rate of approximately of 6,000 to 12,000 ounces from one mill processing less than 100 tonnes per day compared to its rated capacity of approximately 80,000 ounces per annum when all five mills and the processing plant are operating at a total throughput rate of 700 tonnes per day. The Company is currently in the process of increasing mill tonnage, which is now averaging about 120 tonnes per day. Concurrently, the Company is evaluating total projected costs to rehabilitate and mechanize the mine and processing plant to their rated capacity.

Acquisition of 38% interest in CMPSA

The Poderosa Mine has produced approximately 1.4 million ounces of gold since start-up in 1982. The mine currently has a production capacity of approximately 100,000 ounces per year at a cash cost of under US$220 per ounce. The mine has established management and technical teams that operate an efficient mine and processing plant.

Century's acquisition of a 38% interest in CMPSA is the first step in the Company's expansion into the prolific Pataz belt, which produces over 400,000 ounces of gold per year. Poderosa's concessions cover approximately 50% of the Pataz batholith. This acquisition will also allow Century to evaluate the Pataz belt, further exploration potential, and the day to day operations of Poderosa, while providing an opportunity for further possible investment. Century plans to work with Poderosa's management team as they continue to explore this highly prospective land position.

Exploration at Colina Dorada

The Company will carry out a systematic exploration program at its Colina Dorada property in northern Peru during the current quarter. This project is located next to the Plexmar Bolsa del Diablo property in Northern Peru. The Company has set an initial budget of $50,000 for geological mapping, prospecting and sampling over the 6.6 km2 property position, which will be carried out by the Company's Peruvian staff geologists. The results of this preliminary program will determine the scope of continuing exploration programs in this highly prospective area.

Exploration on other San Juan properties

Century Mining Peru has assembled a team of Peruvian geologists, comprising two senior geologists and four junior geologists, who will carry out the exploration programs on the Company's properties. The programs on these properties are summarized below:

Golden Champune

The Golden Champune property will be re-evaluated as a potential vein system target using a focused sampling method and at least two core holes to sample the system to a depth of up to 1,000 meters. A budget of US$80,000 has been set for this exploration.

Veta Clara

Century intends to complete further sampling and will drill up to 4,000 meters on the target beginning late in 2006 with the intention of proving up additional vein reserves to feed the San Juan mill.

A budget of US$300,000 has been set for further testing of this vein system that will include diamond drilling, sampling and assaying and some road building. This work will begin within the next month.

Santa Clarita

Further sampling and drilling are proposed in 2006-2007 to determine the character of the mineralization and a budget of US$300,000 has been allocated for this work. This program is expected to commence early in 2007.


For 2006-2007 the Company will complete a geochemical and mapping survey over the entire two square kilometer area of the showing to more clearly understand the geology and mineralization. A budget of US$30,000 has been allocated for this work.

San Juan Regional

A regional geologic program to document and sample these areas is contemplated for 2007.

Opening of Lima, Peru office

To facilitate Century's expanding operations and exploration programs in Peru, the Company has leased 3,000 square feet of office space in San Isedro, located in central Lima. The new office is staffed with experienced geologists, engineers and a corporate lawyer. The new subsidiary, Century Mining Peru, has quickly become an active part of the Peruvian mining community, receiving daily property submissions from local and outside parties. The office is supplemented and visited frequently by senior management from Century's head office in Washington.

Margaret Kent, President and CEO, commented, "Our acquisitions in Peru will allow us to achieve lower gold production costs than the Sigma-Lamaque Complex in Quebec. Century's corporate goal is to build another major South American Mining company, such as Compania de Minas Buenaventura. I am pleased to announce that in a relatively short period of time we have succeeded in adding a significant amount of ounces to our resource portfolio in Peru. The Company now has exposure to the 70,000 hectare Pataz block, in addition to 20,000 hectares in San Juan, which are some of the best gold exploration concessions in Peru. Furthermore, the vein system in San Juan contains a significant porphyry copper target."

Ms. Kent continued, "At Sigma-Lamaque we continue to make progress in returning the Lamaque underground mine to production. At the same time, we are making significant progress in removing the backlog of waste in the Sigma pit. Access to higher-grade underground ore at Lamaque and returning the Sigma pit operations to the life-of-mine strip ratio should enable us to continue to lower cash costs and increase cash flow at these mines. The Sigma-Lamaque Complex provides the base of our operations in Canada where we will carry out exploration and development programs on our properties within economic trucking distance of the Sigma mill."

About Century Mining Corporation

Pursuant to its acquisition of a 38% interest in CMPSA the Company has revised its consolidated production and mine site cash cost estimates from the Sigma, Lamaque, San Juan and Poderosa mines to the following:

Production Cash cost
Year Oz/year gold US$/oz gold
2006 88,100 385
2007 163,000 331
2008 243,000 319

The Company also owns the dormant Carolin gold mine in southwestern British Columbia and nine precious metals exploration properties located on the historic Juneau Gold Belt in Alaska.

Margaret M. Kent, Chairman, President & C.E.O.

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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