Century Announces NI 43-101 Reserves And Technical Report For The San Juan Gold Mine In Peru

14:16 EDT Wednesday, April 16, 2008

BLAINE, WA, April 16 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today it has received an updated NI 43-101 compliant reserve and resource report and technical study. This report was prepared under the supervision of Ross F. Burns, P.Geo, LG, the qualified person for Century Mining Corporation. The report was co-authored by Dr. E. van Hees, P. Geo., an Assistant Professor atWayne State University, with respect to the reserves and resources and by Mr. Mark Greasley , P.Eng., Area Manager for Whalen Mining with respect to the mining and milling. All of the authors visited the property betweenDecember 26, 2007 and January 3, 2008. The new technical report for the San Juan Gold Mine meets NI 43-101 disclosure standards.

"We are pleased with the results of the NI 43-101 technical report, which provides a foundation for not only current mining and milling operations, but also future exploration activities aimed at further expanding reserves and resources. TheSan Juan operation is the Company's main producing asset in Peru, and will continue to compliment the flagship Lamaque operation in Quebec and provide diversification for Century in terms of our production profile," said Margaret Kent, President and CEO of Century.

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Highlights
----------

- Forecast production of 21,800 oz. Au in 2008, increasing to
33,000 oz. in 2009

- San Juan expected to achieve operating EBITDA of $10.0 million in
2008, increasing to $15.9 million in 2009

- San Juan net present value 2008 - 2012: $45 million @ 5%
discount rate
$38 million @ 10%
discount rate

- Average cash cost for production from 2008 - 2012 estimated at
$302 per ounce

- Estimated capital expenditures of $2.6 million in 2008 and
$6.5 million in 2009

- Capital expenditures to decrease to $500,000 per year in years 2010 -
2012
>>

Mineral reserves and resources

------------------------------

The resources have been classified using the CIM classification criteria. This method uses measured, indicated and inferred to designate the confidence level in the accuracy of the measurement of the mineral inventory. Measured and indicated resources that have positive economic evaluations are classified as mineral reserves (Proven and Probable).

Mineral reserves and resource estimations have been classified in accordance with NI 43-101 standards.

Inferred resources have been calculated for a reasonable distance (generally 60 meters) beyond the indicated or probable blocks and include a similar zone of influence around drill hole intersections used in the mineral inventory calculations.

Inferred resources are calculated and tabulated separately from all other resource and reserve calculations.

The mineral reserves and resources have been summarized in the following tables.

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Proven and Probable Reserves

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Reserve Tonnes Grade Ounces
(g/t Au) of Gold
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Proven Reserves 218,265 8.06 56,547
Probable Reserves 435,180 9.27 129,769
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total Proven + Probable 653,445 8.87 186,316
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Measured, Indicated and Inferred Resources
(Mineral resources are exclusive of mineral reserves)

-------------------------------------------------------------------------
Resource Tonnes Grade Ounces
(g/t Au) of Gold
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Measured Resources 72,885 2.61 6,127
Indicated Resources 129,270 2.49 10,349
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total 202,155 2.53 16,475

Inferred Resources 589,025 9.25 175,125

Economic model

--------------

The economic model shown below assumes a realized gold price of US$800 per ounce. The summary shows the mine is currently cash flow positive and projects cash costs of US$302 per ounce of gold, once the optimization plan has been completed, with an NPV of$33 million, discounted at 15%.

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-------------------------------------------------------------------------
2008 2009 2010 2011 2012
Revenues
Gold Production (oz)
Price Realized ($/oz) 21,802 33,559 33,696 33,696 33,696
Revenue ($000s) $ 800 $ 800 $ 800 $ 800 $ 800
$17,442 $26,847 $26,957 $26,957 $26,957

Cash Costs ($000s) 7,453 10,919 10,106 10,106 10,106
--------------------------------------------
Operating EBITDA 9,989 15,928 16,851 16,851 16,851

Less:
Depreciation 365 2,192 2,367 2,617 3,117
Income Taxes 1,925 2,747 2,897 2,847 2,747
--------------------------------------------

Net Income $ 7,699 $10,989 $11,587 $11,387 $10,987

Cash Payments 2008 2009 2010 2011 2012

Total Capital Expenditures 2,620 6,538 500 500 500
Cash Flow (Drain) 5,444 6,642 13,454 13,504 13,604

NPV (millions) @
----------------------
0% $53 Cash Cost Per Ounce $ 302
5% $45
10% $38 Total Operating EBITDA (millions) $ 76
15% $33

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History

-------

The San Juan property was purchased by Century in the spring of 2006. Century purchased from Banco Wiese Sudameris, for US$2.5 million, a $9.9-million debt secured by the majority of the mining concessions owned by San Juan Gold Mines S.A.A. The total transaction cost, including purchase of the debt, was $5.1 million and the issuance of one million common shares of Century Mining. The Company now owns 82.6 percent of San Juan Gold Mines through two wholly-owned subsidiaries, Century Mining Peru S.A.C. and Century Finance. Century Mining Peru has an agreement with San Juan Gold Mines to lease the property for 50 years in return for a 10 percent NPI (Net Profits Interest.) As a result of Century's 82.6% ownership of San Juan Gold Mines, Century receives 98.2% of the net profits.

The mine is currently producing at a rate of approximately 250 tonnes per day, with the goal of paying the carrying costs while planning, drilling and development work is being carried out to further enhance profitability. Century has upgraded the mill and mine infrastructure to allow the processing of 225 to 250 tonnes per day, and plans further upgrades to the mill to match the tonnage mined as new development allows the mine to expand its daily production.

Production history

------------------

There are no production records from prior to 1970, however, production prior to 1970 is likely to have been a small fraction of the post-1970 production. Mill records from 1970 to 2006 show gold production of approximately 576,853 fine ounces. It is also estimated that informal miners produced approximately 500,000 to 600,000 ounces of gold over the same period, additional to the gold produced at theSan Juan mill.

Thus, an estimated 1.1 to 1.2 million ounces were likely produced in the district since 1970.

Underground mine operations

---------------------------

The San Juan Mine is currently mining in the following areas: San Juan and Matilda Veins, Mercedes Vein, the Diagonal Veins, Veta Jessica and Veta Clara. The Veta Clara is undergoing exploration crosscutting and raising and the Veta Jessica is being developed for future mining. The mine employs 603 people.

The main mining method is Cut and Fill, where the ore is mined first, after which the waste is blasted to give a working platform and sufficient width to work in. Shrinkage stoping is also used in some areas. These methods are appropriate for the narrow high grade veins which generally dip at an angle of 70 to 90 degrees.

Ore processing

--------------

The gold mill at San Juan was established in 1970 and has processed San Juan ore since that time. The mill is predominantly a flotation mill but also has the ability to process ore through a CIP circuit. The mill currently is processing up to 250 tonnes of ore per day, and will be expanded to 400 tonnes per day with refurbishment and replacement of its gravity equipment. The Company then plans to further expand milling to 700 tpd with the addition of a second bank of flotation cells, mill upgrade and a high-grade mill circuit.

Five year mine plan

-------------------

The San Juan Mine has suffered from insufficient capital spending during the period of low gold prices in the late 1990s. Century's optimization plan identifies the items necessary to bring the operation back to full permitted mill capacity of 700 tonnes per day.

Although there is a skilled workforce, the mine requires mechanization and the repair of existing equipment or new equipment to further expand production. The mill has one circuit and part of a second circuit currently operating. Refurbishment of the second circuit needs to be completed to expand to 400 tonnes of ore per day. Currently the mine generates its own power and compressed air with diesel equipment and will benefit substantially from connection to the power grid.

The five year mine plan is focused on obtaining permanent power, leased equipment, refurbishing or replacing mine and mill equipment and completing development in the mine to provide the stopes necessary to provide 700 tonnes per day.

2008

----

In 2008 the plan for the process plant includes completion of refurbishment of grinding lines 1 and 2, and refurbishment of the gravity circuit to increase mill capacity to 400 tonnes per day. The Company will also convert the 4 x 8 high-grade ball mill to a continuous high-grade circuit, which incorporates the existing CIP circuit.

Mine development plans for 2008 include centralizing operations around the San Juan, Mercedes, Jessica and Clara veins and implementation of an exploration and development program to increase mine production from 8,000 tonnes per month to 11,640 tonnes per month.

Capital has been included in the plan to refurbish existing mine infrastructure and equipment in San Juan and Mercedes, and for installation of access and services for the Jessica and Veta Clara veins. Also included in the plan is the completion of shaft upgrades at the Mercedes mine and the installation of a new hoist and larger skip at the SanJuan Esperanza mine shaft.

The 2008 plan to upgrade equipment includes immediate upgrades by the replacement of rented surface equipment with good new and remanufactured leased equipment to reduce costs and prepare the mine property for steadily increasing production. Installation of permanent power requires immediate initiation of detailed engineering, environmental impact studies and permitting for the power line and power corridor toSan Juan . Century has several options to proceed, however the most expedient is to contract a power provider to design, permit, construct and operate the permanent power system. The power line corridor would extend 60 kilometers from the existing government power line at Chuquibamba toSan Juan. The line and substation size would provide capacity for 30 megawatts to the San Juan area.

2009

----

The 2009 development plan includes the refurbishment of grinding line 3 with a mill upgrade to increase mill capacity to 700 tpd. Mine development will expand operations at Jessica andVeta Clara , with an extensive development program to increase mine production from 11,640 tonnes of ore per month to 21,400 tonnes per month. The refurbishment of existing mine infrastructure and equipment in the principal mines (San Juan and Mercedes) will also be completed. Planned mine productivity enhancement includes implementation of semi-mechanization with specialized miners for raise development and Longtoms (a small mechanized drill) used to accelerate track drift development. The program also calls for completion of ramp access to lower levels of theSan Juan and Mercedes veins and development of a decline access to the Chillihuay vein.

These activities will double the amount of surface equipment necessary for services to mines and the mill. The mine will continue to acquire new and remanufactured leased equipment necessary to support increasing production. Permitting and engineering of planned permanent power will continue through initiation of construction. It is anticipated that the power line construction will be started in 2009 and completed inDecember 2009.

2010

----

In 2010 the development plan includes expanding operations at the Chillihuay and Alpacay veins, and continued development of peripheral mines such asVeta Clara and Jessica. Century will also continue refurbishment of existing mine infrastructure and equipment in the peripheral mines and implementation of semi-mechanization and mechanized mining methods during 2010.

Century will also develop replacement stopes and investigate new potential mine areas to maintain the 21,400 tonnes per month production level. The final construction of the permanent power transmission line and supply of permanent power to all operating mines will be completed.

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Projected Operating Costs
-------------------------

2008 2009 2010
350 tpd 547 tpd 547 tpd
PRODUCTION COST $/TONNE $/TONNE $/TONNE
-------------------------------------------------------------------------
Mining $ 19.54 $ 16.55 $ 16.55
Mine Preparations $ 3.91 $ 5.91 $ 5.91
Mine Explorations $ 2.79 $ 2.36 $ 2.36
Milling - Processing $ 15.59 $ 15.62 $ 11.65
Services $ 8.26 $ 7.63 $ 7.44
G&A $ 8.29 $ 7.50 $ 7.31
Reclamation $ 0.01 $ 0.01 $ 0.01
Refining & Transportation $ 0.09 $ 0.09 $ 0.09
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TOTAL $ 58.49 $ 55.67 $ 51.32


Capital Expenses
----------------

CAPITAL COST FACTORS
CAPITAL
EXPENSES 2008 2009 2010 2011 2012
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CAPITAL COST
Mine
Equipment $1,248,650 $ 2,200,667 $ - $ - $ -
Mine
Develop-
ment $ 874,920 $ 1,626,200 $ - $ - $ -
General
Equipment $1,480,000 $ 1,418,000 $ - $ - $ -
Permanent
Power $ 200,000 $ 2,800,000
Mill
Construc-
tion $ 407,965 $ 941,000 $ - $ - $ -
Exploration $ 405,996 $ 2,963,128 $ - $ - $

Sustaining
Capital $ 100,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000
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TOTAL $4,717,531 $12,448,995 $ 500,000 $ 500,000 $ 500,000

Equipment
Lease
(@10%dwn) $2,097,360 $ 2,910,600
Permanent
Power
Power Line
(inc in
monthly
rate) $ 3,000,000
Equipment
conversion
- Permanent
Power
Disposal
of Diesel
Powered
Equipment $ 332,060
Down
Payment
for
Permanent
Comp $ (332,060)
TOTAL Capital
Expenses $2,620,171 $ 6,538,395
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Additional potential at the San Juan Mine

-----------------------------------------

The San Juan Mine has several areas of untested or poorly tested potential that could lead to a significant increase in the overall resource. The veins identified in the mineral resource on the property have been examined on long-section and where they are intersected by drilling at depth show no signs of weakening. Examination of the veins in the lower levels of the mine indicates that they are typical mesothermal veins and have a strong possibility that they will continue to depth, as is characteristic of this type of deposit. This possibility is supported by both the Mercedes and San Juan veins that have been mined over a vertical distances of approximately 800 meters to date with horizontal extents of 2 and 1.5 kilometers respectively.

Veins located on the south side of the quebrada show good signs of continuing to depth, however they thin and dissipate toward the south.

There is a high probability that the current resource base can be significantly increased through additional exploration on the known veins within theSan Juan mine area. A series of deep holes have been recommended by Century's technical consultants in order to develop the resource estimate required to justify the capital necessary for development to depth. TheVeta Clara (7 new veins) and Jessica veins, that are currently being explored by crosscutting and drifting on vein have the potential to add significant ounces to the mineral inventory. The large land position and the new veins and showings located by the 2007 exploration program in the Pampas area demonstrate the potential for the discovery of both additional reserves in recently located veins and additional new veins.

Additional potential in the San Juan Property

---------------------------------------------

Within the larger San Juan Property, which covers a total of 313 square kilometers, there are porphyry-copper style stockworks with values of copper, gold and molybdenum occurring on the Erika and Santa Clarita prospects in the southern portion of the property. TheVeta Clara vein system was mapped in 2007, and is shown to host 7 gold-bearing veins. These veins are currently being explored by cross-cutting and drifting. The Company is currently finalizing exploration plans for the largerSan Juan Property, which will be announced at a later date.