Century newsCentury Mining Terminates Huancacancha Purchase
15:42 EDT Monday, October 01, 2007
BLAINE, WASHINGTON--(Marketwire - Oct. 1, 2007) - Century Mining Corporation (TSX VENTURE:CMM) today announced that it has terminated its agreement to purchase the Huancacancha exploration property in Peru. The Company cited less-than-expected silver values in drill results as the basis for today's decision.
As announced on August 7, 2007 Century had agreed to a purchase price for the project of US$24,500,000 to be financed by the sellers. An initial installment by Century of $215,000 was paid at the closing, and the remaining $24,285,000 was to be paid over the next 4 years.
Since acquiring the Huancacancha property, Century conducted approximately 800 meters of diamond drilling in four holes to confirm silver and gold grades in the deposit. The deposit is located on a belt that has hosted other deposits where the silver content has covered a substantial portion of operating costs. The results of Century's drilling, however, showed low silver values that would not support further investment in the property.
Effective today therefore, Century has terminated the purchase agreement for Huancacancha and returned the concessions to the vendor without penalty to the Company and without any subsequent payment obligations to the vendor.
Margaret Kent, President & CEO, commented, "We saw excellent potential for a significant operation at Huancacancha as evidenced by Barrick's nearby Pierina deposit. However, the drill results were not what we considered sufficient to support a long-term project. Century will continue to focus management resources on our Lamaque underground program and on the expansion at San Juan."
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