Thursday 8th December 2022 Font size:

Century Mining Agrees To Buy Advanced Exploration Property In Peru

Wednesday, August 8th, 2007

Century Mining Corporation announce that it has acquired the mining concessions and surface rights of the Huancacancha precious metal property in Peru.
The Huancacancha prospect is an advanced stage exploration property comprising 1,900 hectares in the Department of Ancash in north-central Peru. The project is 45 km south of Huaraz City and 55 km south of Barrick’s Pierina mine, which produced approximately 500,000 ounces of gold in 2006. The deposit is on the southern margins of the 70 km long hydrothermal alteration trend known as the Pierina Belt, and is situated in the Cordillera Negra range of the Andes at an average elevation of 4,200 meters. The deposit is currently defined by 83 drill holes containing approximately 5,500 meters of reverse circulation and diamond core drilling. The target area is 800m x 400m in surface area and is characterized by intense vuggy silica, quartz-alunite and argillic alteration. The alteration is hosted in the Calipuy group, a suite of volcanic rock characterized by basal andesitic lavas overlying rhyodacitic pumic and lithic tuffs. This host rock is identical to Barrick’s Pierina deposit. Oxidation has been identified to a depth of 50 meters and is open in this direction. Intense hydrothermal breccia has also been identified in surface outcrops. The deposit represents a bulk minable open-pit heap leach oxide gold and associated silver target. There are also indications of sulfide mineralization at depth.
The property was evaluated in 2000, prior to acquisition by its current owner, by a publicly traded international gold mining company in an internal report which documented a historical resource of about 37 million tonnes grading 0.39 grams of gold per tonne or over 400,000 resource ounces of gold. To date, the Company has obtained and reviewed drill logs for 5 of the above noted 83 drill holes. No silver assays were run on samples from the deposit even though this geological belt typically hosts economically significant silver resources. A NI 43-101-qualified report has not been completed on the deposit and the historical resource should not be relied on. Technical information included in this press release was reviewed by Century’s “Qualified Person” Ross Burns, B.Sc, P.Geo., Vice President, Exploration.
Given Huancacancha’s favorable geologic setting and its close proximity to Barrick’s Pierina mine along a recognized trend, the area is considered to be very prospective and could potentially host another Pierina-type deposit.
The purchase price is US$24,500,000 and is being financed by the sellers over a 5 year period. An initial installment by Century of $215,000 was paid at the closing. The remaining $24,285,000 will be paid in yearly amounts of $2,285,000, $3 million, $4 million, $5 million and $10 million, each amount payable in 12 monthly installments. At any time the Company may terminate the agreement and return the concessions to the vendor without penalty to the Company and without any subsequent payment obligations to the vendor. The Company plans to immediately complete an assessment of the property including confirmation drilling. Century is also currently arranging a long term debt facility and this facility, combined with ongoing cash flow from existing operations will enable the Company to cover its ongoing obligations. The transaction is subject to the finalization of all documentation and approval of the TSX Venture Exchange.
Margaret Kent, President & CEO commented, “This most recent acquisition provides outstanding potential as evidenced by Barrick’s nearby Pierina deposit. We recognize that although the reported gold grade is low, the tonnage potential is substantial based on what we know to date. Furthermore, there has never been a silver assay done on the deposit and we know that this belt has hosted situations whereby the silver content alone has covered operating costs. Our land position in Peru now totals over 54,000 hectares on 5 properties. Since expanding operations to Peru just over a year ago, we are quickly realizing our vision of becoming a mid-tier gold producer.”

< go back