Centurion awaits results of San Juan placer study

Centurion Minerals is confident that a final feasibility study at its San Juan placer project 70 miles northeast of Sacramento, Calif. will recommend both increased production and an extended mine life.

Laboratory analysis of the $1.5- million feasibility study, which included an in-fill drilling program, flow sheet development and amendments to existing mining permits, is expected within 30 days.

Vancouver-listed Centurion says a preliminary feasibility study, confined to one of two known gold- bearing zones, has placed cash production costs at approximately $175(US) per oz. Annual gold production is estimated to be 33,000 oz for an initial 8.5-year mine life.

By December the company expects to have completed the final feasibility study, flow sheet development and mining permit amendment applications.

Centurion, which holds an option to acquire a 50% leasehold interest in the San Juan project, can also acquire an additional 40% from Coastal Mining Co.

In other news, the first stage of an exploration program is under way on the Black Quartz property adjacent to the Round Mountain mine (the fourth largest gold producer in the U.S.) in Nevada.

Centurion says several primary exploration targets will be examined during the program expected to be completed in 90 days. Upon completion of the initial program, Centurion and Vancouver-based Granby Resources will form a 50%/50% joint venture.

Also, regulatory approval has been received for a private placement of 500,000 Granby shares. The private placement includes a warrant allowing Centurion to purchase an additional 100,000 Granby shares over two years.

Following the placement, Centurion will own 16% of Granby’s issued shares.