Century eyes Sigma revival (February 07, 2005)

Drill results suggest grades at the Sigma mine in Val d’Or, Que., are up to 20% higher than estimated in due diligence work.

Preliminary results from ongoing reverse-circulation drilling by Century Mining (CMM-V) has so far completed two-thirds of a reverse-circulation program that is expected to span 12,000 metres. Highlights from drilling on 4.6-metre centres on lines spaced 9.2 metres apart include 19 metres grading 11.1 grams gold per tonne, 5.5 metres at 26.2 grams, 7.3 metres at 7.2 grams, and 1.8 metres at 71 grams. Of the 3,517 assays received, 23% exceed a cutoff grade of 0.85 gram gold.

The drilling also outlined clear ore/waste boundaries, which supports the use of selective mining rather than the bulk mining methods employed by previous operator McWatters Mining.

Century plans to combine the RC-drilling results and data derived from the milling of the first 250,000 tonnes of ore processed to upgrade resources so that they are compliant with National Instrument 43-101. At the end of 2002, Sigma reportedly had an open-pit reserve of 10.3 million tonnes grading 2.7 grams gold per tonne (though a subsequent review by Australia’s RSG Global failed to confirm that figure).

Initial plans at Sigma call for the milling of a maximum of 5,000 tonnes per day. A new, 3-month open-pit mine plan is being formulated, with production slated to begin in February. Grade control will continue to employ RC drilling, with mine plans covering three months of production. Century says McWatters Mining’s previous practise of using blast holes for grade control failed to reduce ore dilution.

Most of the mine’s technical staff are in place, and the company has arranged leases for a new mining fleet. The smaller equipment will allow for more selective mining of Sigma’s narrow-vein ore. Owing to delays in delivery of the equipment, production in 2005 is pegged at 90,000 oz. at a cash cost of US$290 per oz.

Century acquired the Sigma-Lamaque mine property from McWatters in September for $25.9 million worth of cash, shares and debt assumption.