Century Mining begins full production at Sigma

Vancouver – Despite a 10-week delay, new mid-tier gold miner Century Mining (CMM-V) has commenced full-scale production at its Sigma mine, located on the eastern outskirts of Val d’Or, Quebec.

The company completed mining and processing of a 250,000 tonne bulk sample earlier this year, producing over 20,000 oz. of gold, but full-scale operations were deferred a couple of months due to delays in procuring the mining equipment fleet.

Century Mining is slated to produce about 70,000 oz. of gold this year from Sigma, then increasing to about 110,000 oz. annually at estimated cash costs of under US$300 per oz.

Mill throughout has been successfully ramped up to 84% of capacity (5,000 tonnes-per-day), with recoveries reaching 94.8% in May. Head-grades in May were 1.8 grams gold per tonne, approaching the modeled grade of 2 grams gold.

The company is also reviewing all geologic databases enroute to developing its life-of-mine computer model and pit optimization plan. A National Instrument 43-101 compliant reserve and resource estimate for the Sigma pit is scheduled to be completed by Fall 2005.

Century Mining chairman, president and CEO Margaret Kent (formerly Peggy Witte), who had previously run Royal Oak Mines in the 1990s, commented “after a slow start, we are very pleased with the steady improvements in operating performance of the mine and mill.”

The now bankrupt McWatters Mining purchased the Sigma-Lamaque mine from Placer Dome (PDG-T) in 1997 for about US$13 million and subsequently spent over $34 million on mill expansion and transitioning the operation from underground to open pit. The larger, low grade open pit deposit was the ultimate demise of the fledgling miner that operated from 1998-2001 and then intermittently until 2003 when financial problems forced its closure.

Century acquired the past producing Sigma gold mine in mid-2004 from the Sigma-Lamaque Limited Partnership for $25.9 million. The acquisition included the Sigma and Lamaque deposits, the 5,000-tonne-per-day CIP (carbon-in-pulp) plant and associated infrastructure.

Ms. Kent continued “We believe there is potential to mine in the Sigma camp for at least the next 10 years based on known resources.”

With 34.8 million shares outstanding, Century posts a market capitalization of $14 million at its recent trading level of 41 per share.