Century Mining Corporation

Century Mining Corporation

March 08, 2011 08:30 ET

Century Provides Operational and Financial Update for Lamaque Mine

BLAINE, WASHINGTON--(Marketwire - March 8, 2011) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is currently commissioning the Lamaque gold mine in Val d'Or, Québec, Canada. On February 9, 2011, the mill facility experienced a failure of its cone crusher that placed the total crusher circuit inoperable until February 17, 2011, at which time the Company was able to implement a temporary solution and resume operation. Final repairs and replacement of the cone crusher were completed on March 6, 2011. 

The loss of the crusher circuit for nine days and the need to operate with a temporary solution since that time have had a more severe impact on the Lamaque mill throughput than originally anticipated. In January mill throughput improved to average 944 tpd for the month, below the Company's expectations. Due to the crusher failure, mill throughput was reduced to 788 tpd for the month of February. 

Mining operations continued during the period in which the crusher circuit was inoperable. The production rate has improved but remains below plan, and management continues to work on programs to improve this situation. In January the mine production averaged 971 tpd and this increased to an average of 1168 tpd in February. 

Prior to the crusher circuit failure, the Company was working on a number of programs intended to continue the ramp up of the ore production including the refurbishment of the third ball mill, underground dewatering, reconfiguration of the crusher conveyor system, and development of the North Wall ore area. 

The losses in mill throughput resulting from the crusher failure has had an adverse impact upon the Company's cash flow and its available funds. This severe constraint on funds availability has forced management to halt the operations of the contractor responsible for the development of access to the North Wall mining area, which is now expected to delay mining in this area until May at the earliest, subject to funding availability.

All other capital projects have also been placed on hold while the Company considers its options as it seeks to meet its obligations associated with debt repayment and ongoing working capital payments as the Company continues to operate on a cash negative basis as it works to ramp up production. The delays in the capital projects will slow the ramp up process and further extend the period during which the Company expects to operate on a cash negative basis.

The current gold production guidance for 2011 at the Lamaque operation is 70,000 to 75,000 ounces. The operating team is now completing a full review of potential operational impacts based on the recent cone crusher failure and the subsequent development and production delays resulting from the financial impact of the downtime. The Company will provide an update on production guidance for 2011 when this review is complete. 

While this incident has had a negative impact on the Company's ramp-up process at Lamaque, the operating staff at the mine must be congratulated for their ingenuity and speed in responding to implement contingency measures and minimize the production downtime, avoiding further delays and production losses. 

About Century Mining Corporation

Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

Daniel J. Major, President & CEO

Caution Concerning Forward-Looking Information

This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws including with respect to the intended use of proceeds raised in the private placement. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are 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 statements and information involve 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 information and accordingly, readers should not place undue reliance on such statements and information. 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, including the failure of major mining and/or milling equipment; the availability to the Company of suitable financing alternatives; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity 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 included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.

While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Century Mining Corporation
    Peter A. Ball
    Vice President Investor Relations
    (360) 332-4653 or Toll Free: (877) 284-6535
    (360) 332-4652 (FAX)