Centurion Mines begins work at Mammoth

Preliminary development is under way at the Mammoth mine in the Tintic mining district near Salt Lake City, Utah.

The rehabilitation of underground tunnels from the 300-ft. level to surface is allowing Centurion Mines (NASDAQ) to carry out mapping and sampling of the upper-level workings.

The deposit is a high-grade breccia column of mineralization extending from surface down tothe 2000-ft. level. Mining began in the late 1800s and, while the lower levels continued to be intermittently mined over the years, the upper levels were last mined in the 1930s and closed. Recent channel-sampling on the 50-ft. level identified the high-grade Back Fissure zone returning 67 ft. averaging 7.6% copper, 0.22 oz. gold and 25.5 oz. silver per ton. A 30-ton bulk sample taken from another area grades 9.9% copper, 0.07 oz. gold and 10.5 oz. silver. These newly identified areas are in addition to two previously outlined blocks of reserves, one containing 15,000 tons grading 19.36% copper, and the other hosting 50,000 tons grading 7.22% copper, 0.22 oz. gold and 22.5 oz. silver.

A hole drilled from surface by the previous owner returned a 20-ft. interval from a depth of 230 to 250 ft. grading 0.44% copper, 0.38 oz. gold and 7.3 oz. silver. Centurion is planning underground drilling to delineate the zones. The company is well-positioned to finance the mining operations and sees no need for additional equity or debt financing. Centurion plans to crush the ore on-site using a portable crusher and then ship it directly to a smelter. Transportation and smelting are being arranged. Total operating costs are estimated at less than US$150 per ton.

The company secured its 81.3% interest in the Mammoth mine last September along with a 100% interest in the neighboring Grand Central mine, situated just 1,900 ft. from Mammoth. An estimated 10,400 tons are stockpiled at Grand Central, the average grade being 0.93% copper, 0.17 oz. gold and 7.2 oz. silver. Extensive exploration is planned for the mine.

Centurion is the largest holder of properties in the Tintic mining district, as well as the largest holder of precious metal properties in Utah. The company has 27.3 million shares outstanding and working capital of US$1 million.