Today's Trading

In the absence of buyers during the summer doldrums, combined with today's 343 point drop on the TSX and gold indices off 3%, it wasn't that difficult for some CMM sellers to knock us all the way down to 41 cents today.  There were three sellers of 200k shares each, including Canaccord who seem to have a never-ending supply.

When you consider the current gold price and everything that Century has going for it, it truly is amazing that the share price is in the low 40's.

Tomorrow is the last day of the quarter.  In Q2 of 2009 San Juan produced 4,290 ounces of gold that was sold for an average of $926/oz.  That resulted in an operating profit of over $2 million.  In Q2 of 2010 Gold has closed above $1,200/oz more days than it has closed below $1,200 so the average selling price should be close to $1,200 and we should be somewhere around 5,000 ounces produced.  That would produce revenues of $6 million for the quarter - 50% higher than a year ago.

Lamaque should now be making a profit.  Prior to Sigma-Lamaque shutting down in 2008 we were told that the break even point was approximately 700 tonnes/day and that was when gold was selling for around $900/oz.  Based on reports posted here we appear to have exceeded the required 700 tpd and the gold price is a lot higher.  Of course the earnings won't appear on the balance sheet until Century declares commercial production, but there should still be positive cash flow from operations.

Yet sellers are willing to part with their shares for 41 cents each.  Where is the long term risk in holding or buying shares at these prices?  San Juan is a proven operation that can sustain a 41 cent share price by itself and if Lamaque is processing over 700 tpd, then we are on track to meet current forecasts.

I believe gold is going much higher than current prices.  The attempts by the bullion banks to suppress the price are becoming a lot more difficult as evidenced by the price action last week and again this week so far.

Here is today's trading summary:

Century Mining Announces Capital Lease Financing Facilities for Lamaque Mine Project

Jun 28, 2010 09:00

BLAINE, WASHINGTON--(Marketwire - June 28, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to report that it has entered into term sheets with First National Capital Corporation and Mazuma Capital Corporation for two lease lines totaling $5.0 million and $4.0 million, respectively, subject to satisfaction of various conditions and final due diligence. Both facilities are repayable over a 42-month period, and are conventional capital leasing facilities.

The equipment to be leased will consist of various underground and surface mining vehicles including such items as drills, scoops, haulage trucks, and service and maintenance vehicles. Certain of the equipment has already been delivered to the Lamaque mine site, with the remainder expected to arrive throughout the latter half of 2010.

Margaret M. Kent, President and CEO of Century Mining commented: "We are pleased to reach these agreements with the lenders at this key point in the continued expansion of the Lamaque mine operation. The equipment will greatly assist in maximizing our mine productivity and minimize our operating costs at Lamaque and greatly reduce the need for contracted equipment currently being used at the operation. We also appreciate the confidence that First National and Mazuma Capital have shown in our Lamaque operation and our team by agreeing to fund our equipment fleet."

About Century Mining Corporation

Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

Margaret M. Kent, President & CEO

Long-term exploration targets around Lamaque (not even a complete list)

Please note that all of the exploration targets discussed below are based on either historical data or historical internal reports. When dealing with such info one should use extreme caution as there can be no certainty that the historical info is correct or even complete, at least not until sufficient modern work has been done to validate.

Also, (although impossible to know right now) there may not be exploration work on any of these target areas for years into the future as there are way too many high priority targets to drill that can contribute to cash flow much faster. These are interesting drill target areas nonetheless (perhaps they will find a way to drill 1 or 2 in the mid-term).


1) Our Union Gold property area just outside of the Lamaque Complex - I can`t help but to wonder if a 1 sq km area on this property could turn out to be a (new) mini Lamaque Complex in the future

Here are some comments on our properties to the east of Lamaque (outside of the complex, including the Union Gold property), from Century`s website: ``The properties are either contiguous with or in close proximity to the east side of the Sigma-Lamaque mine property. These claims cover the eastern extension of the mine mineralized zone, which has a strong east-west orientation parallel to the Larder Lake-Cadillac break. The strong east-west structures, diorite plugs and dykes, which localize the mineralization at Sigma-Lamaque, continue onto these claims and host known mineralization similar to that on the Sigma property.``

The part of the Union Gold property I have in mind has 7 solid gold mineralized areas within that 1 sq km space:

1. Union Gold: Decapage A

2. Cisaillement E-O (Sud. Zone S) - historic drill results labelled ``Auric West`` on CMM`s website

3. Union Gold: Decapage C

4. Val d`Or Mineral - historic drill results labelled ``Southern Diorite`` on CMM`s website

5. Union Gold: Decapage D - historic drill results labelled under ``Central Diorite`` on CMM`s website

6. Union Gold: Decapage E

7. Secteur Ouest

The mineralization is thought to be the same or similar to the Sigma side of the Lamaque Complex. I especially find historic drill hole NB-83-46 to be interesting. That 1983 hole (perhaps drilled by Placer Dome) hit mineralization 5 times (depth of the hole has not been published):

Hit 1. 14.10 g/t grade - .7 (m) thickness
Hit 2. 18.10 g/t - .6 (m)
Hit 3. 3.00 g/t - .9 (m)
Hit 4. 50.70 g/t - .6 (m)
Hit 5. 8.65 g/t - 1.2 (m)

There is not enough info published and I do not have enough geology knowledge to know firmly what that drill data info is telling us. However, it does remind me a lot of some of our Bedard dyke drill holes, as a number of the the BD drill attempts hit numerous mineralized areas as the drills progressed vertically down the dyke. As such, I can`t help but to wonder if this historical NB-83-46 drill hole was also hitting a dyke back during the 1983 drill program. If it is a dyke then do these high grade hits represent high grade zones and flats going down the dyke, similar the Bedard dyke. I guess we may not find out for years. This is an interesting drill target area nonetheless.

Here is an Alexandria Minerals map. The Century gold showings are in the top left corner. You will need to enlarge the map (try 125%).

http://www.azx.ca/pdf/Carte_geol_reg_UTM.pdf

Here is a link to the historical drill results from Century`s site:

http://www.centurymining.com/s/Canada.asp


2) U/g Sigma side below 6,100 ft (1,860 m)

From the April 6`10 NR: ``Historically the Sigma mine was developed to the 6,100 foot level and the Lamaque mine to the 3,500 foot level. The Company believes that the gold mineralization continues to depth beneath both areas, and historically the grade has increased as the mine was developed deeper. ``

Grades appear to be strong at depth. The Sigma side has been mined down to about 1,800 m. Down the highway is Agnico-Eagle`s flagship mine (LaRonde). Agnico is mining LaRonde beyond 3,000 m (3 miles). That is way beyond where Sigma has been mined. LaRonde does have base metal credits as an advantage. It may also have good bulk mining capabilities. However, Sigma u/g does have a lot going for it also, which could make for economical mining below 1,860 m (Sigma has demonstrated some some high grade zones, we now have low profile equipment capabilities to perform efficient Room and Pillar mining in flats, we can perform long-hole stope (bulk) mining for areas with strong rock and the appropriate type of mineralization and our grades should increase with depth).


3) Lamaque side below 3,500 ft (1,067 m) – veins

Below this level has been virtually unexplored on the Lamaque side. Vein potential should be strong given vein mineralization success at this depth on the Sigma side historically. The reason work was done on the Sigma side in the past and not the Lamaque side is because of separate owners in the past. This is essentially the first time the properties have been under one owner (with both properties active). I have chosen to discuss the Lamaque Main Plug separately (see below).


4) Lamaque Main Plug

I believe this plug was Teck`s bread and butter (of its mining areas at Lamaque). It`s a bulk mining plug. Teck stopped mining Lamaque around 1985. I believe Placer Dome purchase all or some of Lamaque around 1993. I remember Peggy saying that Century has some very limited historical drill data in its database that shows mineralization in the Lamaque Main Plug at depth below 3,500 ft (I remember her mentioning 525,000 ounces @ 5 g/t grade). It also looks like Placer Dome prepared an internal report in 1996 that identified the resources. In the 2005 Century Annual report (pg 11), posted on both Century`s website and on SEDAR, Century includes the 525,000 ounces and 5 g/t (below level 24) in a schedule, and attributes it to an internal Placer Dome report.

I don`t believe these ounces (or at least the majority of these ounces) are counted in our current 43-101 report, as there is likely insufficient data.

In a past presentation, Century mentioned that they believe that the Lamaque Main Plug and the West Plug, combined, has the potential to provide 2,000,000 additional ounces (potentially bulk mineable also). I have chosen to discuss the West Plug u/g separately (see below).


5) West Plug (u/g)

Again, on the same internal Placer Dome report, it was identified that the West Plug has 423,000 ounces between level 23 and level 40 (@ 5.0 g/t grade). This would count as part of the 2,000,000 ounces that Century believes still remain in the Lamaque Main Plug and the West Plug combined. Also, the majority of the 423,000 ounces are likely not counted in our current 43-101 number due to insufficient data at this time.


6) East Plug

I see the East Plug as being extremely low on even the long-term exploration list. I am not even sure that Century will ever look at it. However, I wanted to mention it because it did historically provide production of 344,000 ounces @ 3.94 g/t. Also, on the Placer Dome internal report, it shows that the East Plug has 132,000 ounces still remaining @ 4.44 g/t (below level 36). Exploration technology (and knowledged gained) is far better these days relative to when the East Plug was previously mined. There may be some good exploration opportunities still remaining for the East Plug at some point in the future.

Of course, same as the 2 other plugs, the 132.000 East Plug ounces are not currently counted in Century`s 43-101 resource number.


7) Aumaque Mine

I wrote about Aumaque the other day. This is what I previously posted:

``It is located about 2 - 3 km from the Lamaque mill. It has non-43101 ounces of 50,000 (8.57 g/t grade) and 17,000 (6.03 g/t grade). The property has never been mined but it has a shaft that goes down to 165m and a winze from 150m to 198m. It also has a number of levels established.

`The mineralization was found to be consistent in style with the vein types found at the Lamaque mine in pyroclastic volcanics.`

`At the west end of the property and extending onto the Lamaque property there is an untested diorite plug similar to the Numbers 4 and 5 plugs found at Lamaque. It has been previously suggested that the known veins may extend into this plug with the result that a fractured and mineralized system similar to those mined at Lamaque may have developed.`

If the known Aumaque veins are found to actually extend into the untested diorite plug on the west end, I wonder what Mr. Daniels thinks about the 67,000 historical Aumaque ounce total maybe increasing to, say, 400,000 ounces. ``


8) Sigma II
To be honest, I don`t know what the status is of Sigma 2. Century hasn`t made any comments about it lately so I am not even positive we still own it. Although, it`s still listed on Century`s website and I don`t remember seeing anything in the MD&A about the lease not being renewed or it being sold (or something of that nature). Hopefully it`s a case where Century still owns it but it got lost in the shuffle due to obviously much much much bigger fish to fry right now.

Sigma II is located about 20 kilometers away from Lamaque, within trucking distance. In the late 80s (or 90s - I can`t remember), Placer Dome mined 155,000 ounces @ 2.67 g/t from Sigma II and trucked it to the Lamaque (Sigma) mill for processing - I think this was during a US$325 - US$425 gold price period. Sigma II is still open at depth today, but requires exploration work to establish the resource base and grades at depth and to assess if it is economically viable. The Sigma II property is about 4 Km2 in size, which is relatively large.

At US$1,255 gold, (in my opinion) Sigma II looks very attractive in terms of exploration potentially, for both open pit and underground, especially since we already know it is open at depth.

Carib, short poll question idea

Lamaque`s tonnes per day at end of June (not avg June) - end of May was 420

*800 or above
*700 - 799
*600 - 699
*500 - 599
*499 or below

Maybe we can have it up for just a few days (until end of June).

It`s not important at all. Only if you have a bit of spare time. Also, feel free to replace the question if you think of a better idea - I absolutely wouldn`t mind at all.

Site tour, July 8th - executives to tour with analysts

From Century`s website (``updates/upcoming events``):

``Lamaque Gold Mine Operation & Site Analyst Tour
Century Mining's executive management team will tour the underground and the surface/mill infrastructure and review the operations and minesite with industry analysts.``

Back from Vacation

I've been away for 2 weeks and wasn't able to post the trading summaries that some of you requested.  The summary of house positions for the month of June follows.

Once again Production has posted a compelling analysis of our current valuation compared to a number of peers.  I've said it many times and I'll say it again, we have to contend with a huge management discount and have to rely on momentum retail traders.  We had started to regain some credibility with the monthly scorecards, but not meeting the stated goal of 500 - 800 tpd in May, combined with the CTO and a little bit of insider selling certainly took its toll.  The failure to name an independent Chairman of the Board is another hit to credibility and proves that Peggy is firmly in control.

All that being said, our share price continues to be a joke at $1200+ gold prices.  We have to be patient because no institution will pay any attention to production forecasts until we actually start meeting them.  If, as the new Lamaque video forecasts, we reach 1200 tonnes per day by the end of the year and 2000 tpd by the end of 2011, then institutional buying will ensure a much more reasonable valuation.  Earnings cannot be ignored. 

I expect we'll see a more positive update at the end of June and if so, the analysts tours in July may lead to some taking a position.  I expect the retailers that are selling at sub 50 cents will jump back in once there is a reversal.  In the meantime, I am continuing to accumulate at these prices because San Juan alone is almost enough to justify a 47 cent share price.

Maple Minerals Corp - would someone happen to know the latest on the Caribou Mine

As you know, Maple Minerals Corp is a private company owned mainly by Finskiy, but with partial ownership by Scola and Peggy also. They have been trying to purchase the zinc-lead-silver Caribou mine in NB (out of bankruptcy).

Maple Minerals Corp purchased the mining equipment for $3M. They essentially used Peggy`s approach of securing undervalued assets (Peggy used a similar approach in purchasing the San Juan Mine). By Maple Minerals purchasing the mining equipment, it allow them to control the situation, which subsequently allowed them to negotiate a nice $1.25M price for the Caribou mine. Thus, Maple Minerals was able to negotiate a total price of just $4.25M for everything (mine and mining equipment). I think they were also trying to negotiate some financial assistance from the NB government to help out with the restart, due to the potential of the mine to employ 250 people.

A price tag of $4.25M (plus restart cost) is probably not too bad, as the previous operator invested $150M in the Caribou mine operation.

However, as of March 30, 2010, the deal was at risk of falling apart. Two other parties were granted a total of 30% claims on the mine (just the mine and not the mining equipment). It is completely understandable that Maple Minerals Corp is interested only if they can own 100% of the operation.

I can`t find any latest info on the situation. I have no idea of the current status.

If Maple Minerals decide to move on then they can remove the mining equipment (they own the equipment). I think most of the equipment should only be a few years old (should be in good shape). Perhaps Maple Minerals can sell some of the equipment to Century. We will likely need more equipment once we get into long-hole stope mining of the Bedard dyke and once we start mining the North Wall zone. Also, I`m sure better equipment can also be used in Peru, to enable greater efficiency. Although, Caribou was last mined as an open pit mine (Maple Minerals intend to mine strictly the underground this time). As such, Century may not be able to use all of this equipment. However, Finskiy also has his own private gold mining company in Russia, which I think should be producing about 40,000 ounces right now but he plans on increasing production to 225,000 - 255,000 ounces by about 2013. I`m sure he can use mining equipment for the growth of his private Russian gold producer also (which has numerous different property/mine locations).

Here is the article from March 30, 2010:

Mining: Maple Minerals Corp. must decide whether to share Caribou Mine venture with two other firms, which have 30% stake in the zinc-lead mine, monitor says

The fate of a closed Bathurst-area mine has become unclear due to two court rulings that change the game for Maple Minerals Corp., the company interested in running the mine.

Enlarge Photo Bob Smith Bob Smith, the PricewaterhouseCoopers LLP monitor handling the receivership of Blue Note Caribou Mines Inc., said a judge recently ruled that two other firms have a stake in the zinc-lead Caribou Mine.

After a court hearing in January in which Smith asked for direction on two issues, Justice Réginald Léger of the Bathurst Court of Queen's Bench ruled recently that Fern Trust, an offshore entity, has a 10 per cent net profits interest on the Caribou Mine that it has maintained since 1991.

Breakwater Resources Ltd. (TSX:BWR), through its subsidiary CanZinco Ltd., sold the mine to Blue Note Caribou in 2006, and still has a 20 per cent joint venture interest in the facility, Léger ruled.

Smith said the various parties are formulating their positions and he expects to be back in court some time soon.

"Now we wait and the lawyers continue to exchange courteous comments back and forth to try to figure out, 'What now?'

"As we're doing that, the mine continues to flood. Water continues to roll into the mine, especially now that it's spring, so we have a very limited period of weeks to move on."

He said the situation creates uncertainly for Maple Minerals, which needs to decide whether it will take the mine equipment and move it elsewhere, or try to make a go of the flooded mine.

"Maple Minerals does not wish to give 20 per cent joint venture interest to Breakwater. They want to own, if they can, 100 per cent," Smith said.

Smith said he needs to know if Maple Minerals is prepared to proceed with operating the mine.

"That's a decision they have to make. Because if they're not, they get to take their above-ground equipment and go, or some other alternative we have yet to figure out."

Last fall, Maple Minerals completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines, the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed in the fall of 2008.

Blue Note went into receivership last February and declared bankruptcy in July.

Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and but has since then been working with the court to work out the details of a $1.25-million purchase of the mines, land, buildings and other assets. The company had previously said it would like to operate the mine, employing as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.

Maple Minerals declined comment when reached by the Telegraph-Journal.

The gap

I had posted a comparative analysis back on April 8th (located in the comment area of a post on that day). Century was trading at $.47 at the time (but Lamaque wasn`t pouring gold).


Developments/accomplishments since April 8th:


* Century is now pouring gold at Lamaque.

* The gold price is now at an all time high, at US$1,255 (up from around US$1,150 on April 8th).

* Twice as many mining stopes have been opened up and are being mined in the Lamaque flats (since April 8th).

* All of the low profile (room and pillar mining) equipment have arrived and have all likely been deployed (by now).

* We have launched a new exploration program which has many objectives (including provide vital rock info in advance of mining in the Lamaque flats)

* We are likely about 10 days away (or so) from start up of bulk sample mining at the Bedard dyke.

* We are about 2.5 months closer to getting our long-hole stoping permit to authorize long-hole stoping (low cost bulk mining) at both the Bedard dyke and the North Wall dyke.

* We are likely about 4 months away from development start up of the North Wall zone (our 3rd source for Lamaque near-term ore feed (with possible production in early 2011). I think the main mineralized structure is the North Wall zone is the North Wall dyke, but I believe the North Wall also has mineralized shears, flats and I think perhaps even dippers. Dykes, shears, flats and dippers are the 4 primary types of mineralized structures on the Sigma side of Lamaque. I don`t remember the details perfectly but I`m pretty sure the Bedard dyke has 2 (maybe still potential for 3) of the 4 types within its zone and the North Wall zone has all 4 types (I think - for sure it has 3 times). Again, low cost (long-hole stoping) bulk mining will be the primary mining method for both Bedard and North Wall.

* The property is a lot cleaner now than it was back on April 8th (with Century seeming to be working successfully with the government with the clear up efforts).

* Excellent progress made at San Juan since April 8th (including the successful lowering of hoisting capabilities with the internal shaft, thus providing greater mining access to deeper parts of San Juan`s mesothermal veins).

YET, Century`s share price is still pretty much the same as April 8th - $.51.

With the new exploration program, I would like to see Century move some of the 600,000 M&I Cross-over ounces into P&P and some of the 1.1M Inferred Cross-over into M&I – they should be able to eventually access most of the Cross-over ounces via the haulage drift and Lamaque no. 2 decline (it`s still worth it even if they have to put in other secondary declines and perform further development work).

Also, the North Wall has about 250,000 P&P ounces currently and 400,000 (+) Inferred ounces. I would like to see them move the Inferred ounces upwards at some point during the current exploration program.

After Century moves more Cross-over and North Wall ounces into P&P, I wonder if they will consider ramping up production at Lamaque to 155,000 ounces annually, strictly from mill feed from the declines (instead of waiting 4 years for the shafts to be refurbished). With the extra mill capacity and US1,255 gold, it`s a waste to just leave 1/3 of the (3,000 t/d) mill capacity idle for 4 years (that will be a huge opportunity cost).

If Century cannot not supply the Lamaque mill with 155,000 ounces per by mid-term then they need to go out and acquire a nearby property that can supply the extra mill feed to get to 155,000 ounces. Doing nothing, and not finding either an organic solution or an external solution, would be a terrible business decision (especially with US$1,255 gold, but likely more like US$1,500 gold).

Century Mining:
*Outstanding shares = 345,300,000
*Current market cap = $176,103,000
*2011 production = 115,000 ounces
*2013 production = 135,000 or 190,000 ounces
*Cash cost per ounce = $450 - 500

If Century continues successfully down the path I described, I do not see the following companies as having assets that are substantially more superior than what Century has (both with production and ounces in the ground). Yet, the gap in market value between Century and all these companies is unreal. Century`s share price will likely receive a major revaluation once management provides firm evidence that Lamaque is well on the way to being successful:

1) Alamos Gold:
*Outstanding shares = 115,127,000
*Current market cap = $2,014,722,500
*2011 production = 167,500 ounces (avg)
*2013 production = 300,000 ounces
*Cash cost per ounce = $338 (for core asset only)

2) Lake Shore Gold:
*Outstanding shares = 349,151,000
*Current market cap = $1,145,215,280
*2011 production = 120,000 ounces
*2013 production = 200,000 ounces
*Cash cost per ounce = $320 (old estimate only)

3) San Gold Corp:
*Outstanding shares = 277,934,000
*Current market cap = $1,264,599,700
*2011 production = unclear
*2013 production = unclear (at one point I remember seeing an old figure of 200,000 ounces)
*Cash cost per ounce = unclear (again, at one point I remember seeing an old figure of $350)

4) Aurizon:
*Outstanding shares = 159,421,000
*Current market cap = $825,800,780
*2011 production = 150,000 ounces
*2013 production = 240,000 ounces
*Cash cost per ounce = $435

5) Semafo:
*Outstanding shares = 268,640,000
*Current market cap = $2,407,014,400
*2011 production = 245,000 ounces (avg)
*2013 production = 245,000 ounces
*Cash cost per ounce = $500

6) Romarco Minerals:
*Outstanding shares = 465,554,000
*Current market cap = $912,485,840
*2011 production = no production ounces until 2012
*2013 production = 150,000 ounces
*Cash cost per ounce = $266 (old number)

7) Jinshan Gold:
*Outstanding shares = 170,744,000
*Current market cap = $689,805,760
*2011 production = 120,000 ounces
*2013 production = 140,000 ounces
*Cash cost per ounce = $401

8) B2Gold:
*Outstanding shares = 310,744,000
*Current market cap = $567,483,000
*2011 production = 125,000 ounces
*2013 production = 133,000 ounces
*Cash cost per ounce = $475

9) St Andrew Goldfields:
*Outstanding shares = 328,060,000
*Current market cap = $426,478,000
*2011 production = 110,000 ounces
*2013 production = unclear
*Cash cost per ounce = $550

New Lamaque video

http://www.centurymining.com/s/AudioVideo.asp

Some more details on my thoughts (per request)

1) Anonymous (1) said...
``prod-5, why not post a detailed explanation of what you think Century is doing wrong? I'd be interested in knowing what's got you so negative. Is it just the share price, alone?``

``And, btw, what's your average price? I can see you being annoyed if you're in the red right now. But me, I'm buying at this low price. (I'd never touch it at .60, though.)``


The average cost of my Century shares is low - that`s not an issue. Mid to longer term, I still see big (very positive) things for Century.

I`m fine.  CMM will be fine.  Finskiy will likely provide funding if they are any short-term cash shortfalls. With Finskiy and Scola now in the picture (with large investments from their own personal cash), we are far better off than we have ever been in the past.

There are likely a lot of good parts that will be added to the Lamaque mix over time (long-hole stoping of the Bedard dyke, mining of the North Wall, etc.).  Lamaque will continue to build up to reasonable levels of performance.

My frustrations are mainly related to seeing Century`s old bad habits resurfacing again, such as really poor communications to the general market and long periods of leaving the market in the dark (even aside from CTO issues, operating delays, etc.).  I find that Century does a very poor job at educating the market (in my view).  Either Century`s management are too stubborn to change or do not fully understand that their past negative track record (whether simply perception or real) and lack of confidence by the market means that they have to (or they should) go out of their way to educate the market (more than most other management for other companies).  Reputable management can give guidance (without much details) and the market will trust them.  If there are minor setbacks, the market will still believe (and the share price will not be hammered - i.e. from $.87 to $.46).  It`s the total opposite with Century`s management (in my humble opinion - again, this is only my opinion).  That`s why it is important for Century to go above and beyond in communicating with the market (explaining plans and progress in extreme details - provide really good education, BE COMPLETELY PROACTIVE WITH EVERYTHING).

In my books, not providing a progress update via NR to the general market since early May (1.5 months ago) doesn`t cut it (not when trying to build investor confidence).

These bad habits are killing all of the great progress they are making at both Lamaque and San Juan and also killing (or delaying) good growth opportunities.

Century will be fine.  It would just be nice if management begin learning from failures in the past.

I really want to see the company shed the images of the past. Ultimately, it`s about share price performance. However, a progressive (fair market value) and sustainable share price is only a result of establishing a professional (performance) driven company which the market embraces due to a high level of confidence. I find it frustrating when I see signs of the company reverting back to its old habits.


2) Anonymous (2) said...
``What annoys me most is that the Adrian guy is still around Lamaque. Thought he was shipped off to Peru. To me he represents the worst of all that went wrong at Sigma when they moved all that rock to find what? Bills (debt that sent our s/p crashing) There were other mismanagement issues of course.``

I agree completely. They need to purge all that was wrong with Sigma, and Mr. McNutt was in the centre of Sigma. I guess they needed to move him there to temporarily help out due to that Kelly guy (with his $30,000 signing bonus) leaving us a the bind (after 2 months of service).

Mr. McNutt appears to have done a good job with San Juan (a much smaller operation). Hopefully he has learned a little bit from his past and is able to do a better job at Lamaque this time around. Also, the underground geology is much better (we have a successful 70 year u/g track record at Lamaque) than the unpredictable open pit ore body (where open pit mining was essentially new to Lamaque - Lamaque had always been strictly an underground mine). In addition, we have fresh Bedard Dyke drill holes that can be mined near-term - it tells us (even if things are a bit slow in the Lamaque flats) good grade gold is there at the Bedard dyke and ready to be mined. I didn`t see any near-term critical dates to ramp up production in the DB performance agreement document on SEDAR. San Juan is pledged at the start up commitment guarantee, but I didn`t see any near-term critical dates - just as long as we deliver the ounces to DB (currently 667 ounces per month. We are well positioned with San Juan in production - if Lamaque needs short-term assistance with the ounces. In terms of cash, we have the US$15M worth of warrants from Finskiy, for emergency purposes.

Back to Mr. McNutt, as mentioned, I fully agree that having him back at Lamaque brings back bad memories. However, they are currently in search for a perminent Lamaque Ops person. Mr. McNutt`s stay at Lamaque is only temporary.

It`s too bad Century can`t get its crap together quicker

That is, if they truly want to do this:

``About Century Mining Corporation``
``Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.``

The share price for Northern Star Mining has now fallen to $.16. They have some good advanced stage properties in the Val d`Or area and also a 900 tpd mill (they also have some potential for low cost production). As I have always said (even back when their share price was $.36), Northern Star is in big trouble, IMO. I said that because they have some serious debt coming due mid next year and I don`t see a non-takeover scenario for them. They also now have some off-take gold delivery that starts early September and running for 12 months (it`s not even clear if they can meet that committment).

This is an ideal company for Century to take over, then refinance the debt (or pay it off partly through cash flow of the new consolidated company come mid next year).

It`s too bad Century didn`t have their crap together. If Century could have only just kept going with the $.87 share price, and up to a nice takeover price of $1.50.

With Northern Star Mining now at $.16, some other players might begin to come around to pick them up cheaply.

With a TRULY PATHETIC share price of $.46 while gold is US$1,200 (Century`s management is entirely to blame for the move down from $.87, IMO) Century will likey not be in a position to do anything meaningful on the takeover front for quite a while (without short selling Century shareholders with too much extra dilution), IMO.

Although Northern Star`s assets are perfect for us, Century will likely lose out on the opportunity if Northern Star`s situation becomes too desperate (and they have to sell out immediately to a shark). In such a situation, Northern Star`s shareholders lose out big time also, as the company they partner with would likely not have nearly the share price upside (as Century`s depressed share price can offer).

All in my opinion of course.

At this stage, management just need to focus on delivery Lamaque. Everything else is irrelavent until they begin showing significent progress at Lamaque.

Century Mining Announces Annual Meeting Results

Jun 14, 2010 18:02 ET

BLAINE, WASHINGTON--(Marketwire - June 14, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that at its annual meeting (the "Meeting") held in Vancouver, BC on June 11, 2010, over 48% of the issued and outstanding shares were represented. Margaret M. Kent, Fran Scola, William Lamarque and William J.V. Sheridan were re-elected as directors. Messrs Ricardo M. Campoy and Keith Hulley were elected as directors of the Company at the Meeting.

Chairman Margaret Kent commented, "On behalf of the Board and shareholders, I would like to welcome Mr. Campoy and Mr. Hulley as directors of the Company. Mr. Campoy and Mr. Hulley have both recently acted as board advisors since January 2010, and I look forward to working closely with our strengthened and experienced board as we continue to build a mid-tier gold producer."

Mr. Campoy has 34 years of international experience as a mining engineer, merchant and investment banker and as a financial advisor. From 2004 to 2006 he was Managing Director and Head of the Mining and Metals Group for WestLB in New York. Before that he held several senior banking positions with McFarland Dewey & Co. LLC; ING Capital; Swiss Bank; and as President of specialized resources merchant bank, Elders Resources Finance Inc.; European Banking Company; and Continental Illinois National Bank. Mr. Campoy serves on a number of mining company boards. Mr. Campoy earned a Bachelor of Science degree in Mining Engineering at the Colorado School of Mines and a Master's of International Management (Finance) at the American Graduate School of International Management.

Mr. Hulley was until recently the interim CEO of Gabriel Resources Ltd. and has been a member of the Gabriel Board since 2006. Previously, Mr. Hulley served seven years successively as President, Chief Executive Officer and Executive Chairman of Apex Silver Mines before retiring in 2004. Mr. Hulley has more than 40 years experience in the mining business which includes, prior to joining Apex Silver, Board and senior executive experience at Western Mining Holdings Ltd. (Director of Operations) and USMX Inc. (President/CEO).

The Company is pleased to report that all of the resolutions that shareholders were asked to consider at the Meeting, including the continuation of the Company's stock option plan and the extension of the shareholder rights plan, were approved by a majority of the votes cast at the Meeting.

Century currently has 345,503,444 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan a maximum of 34,550,344 shares are available to be issued pursuant to the exercise of options at this time. Subject to the approval of the TSX Venture Exchange, the Company approved the issue of 1,750,000 stock options to officers and directors of Century. The stock options are exercisable into common shares of Century at an exercise price of C$0.53 per share for a period of five years. Century's common shares closed at C$0.53 on the TSX Venture Exchange on June 11, 2010. Including this grant of 1,750,000 options, a total of 9,930,000 shares have been reserved for issuance pursuant to outstanding option grants. A further 24,620,344 shares are available for issuance pursuant to future option grants at this time.

About Century Mining Corporation

Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

"Margaret M. Kent"

President & CEO

I imagine the following 2 items are likely not too far away

1) The 3 drill holes drilled at the end of May. Century`s in-house assay lab is open, therefore much quicker turnaround time. It`s not clear if Century will release any results though. I don`t think the first few holes are ``sexy`` type holes (like the Bedard Dyke holes), although these holes should be very good for mine planning purposes. I think they are just drilling ahead of the mining, in the Lamaque flats. It should also help them with building the mining reserves in the flats (in addition to provide valuable info for actual mining and development of stopes).

The drilling might become more interesting to the casual (jump around) market audience once they start with the discovery test holes (i.e. test to see if the BD mineralization bumps into north dippers that were mined in the open pit days, test to the north of the BD where there was historical mining and mineralization is thought to still remain).

2) The updated SJ 43-101 report


Also, it`s almost mid June. It means that almost 1.5 months has elapsed of the estimated 5 months for the long-hole stoping permit. That means the estimate is now 3.5 months before we get the permit. It would be nice if the crown pillar study is ahead of schedule. If we get a nice surprise and get the permit say in month 3.5 or 4.0 (instead of month 5.0) then that would be very positive. Long-hole stope mining (of the BD and the North Wall) is what is going enable us to drive out really nice cash cost per ounce.

Just a very minor side note - Hecla`s Greens Creek (high grade) polymetallic mine in the Juneau area

This is just some minor fyi info, as Century will likely not be doing anything with our Alaskan properties for a long long long time into the future (but you never know for sure). This info is very facinating nonetheless (check out the $ value of the Greens Creek Mine - below).

Greens Creek is a high grade polymetallic mine in production in the Juneau area. It is located about 30 km (or so) from Century`s own polymetallic property. Greens Creek is owned 100% by Hecla Mining. Hecla has been in business for about 100 years (I think one of the oldest mining companies in America), yet the CEO says that Greens Creek is by far the best mine Hecla has ever owned.

Hecla use to own 29.7% but increase their ownership to 100% in 2008. They paid Rio Tinto US$750M for the remaining 70.3%. It means that 100% of Greens Creek (a Juneau area polymetallic mine) was valued at about US$1.1 billion at the time of the transaction.

``The Greens Creek orebody contains silver, zinc, gold and lead, and lies adjacent to the Admiralty Island National Monument, an environmentally sensitive area.``

``Greens Creek is an underground mine which produces approximately 2,100 tons of ore per day. The primary mining methods are cut and fill and longhole stoping. The ore is processed on site at a mill, which produces lead, zinc and bulk concentrates, as well as gold doré. In 2009, ore was processed at an average rate of approximately 2,167 tons per day. During 2009, mill recovery totaled approximately 72% silver, 79% zinc, 69% lead, and 64% gold.``

Greens Creek`s (probable) reserves show grades of:
*12.1 opt silver
*0.1 opt gold
*3.6% lead
*10.3% zinc

Attached is a link to the Greens Creek profile on Hecla`s website. I highly recommend watching the short video about Greens Creek (link is at the middle of the Hecla page). The CEO is very excited about what they have there in Alaska. He really likes the geologic potential of the area.

http://www.hecla-mining.com/hmc_prop_greenscreek.html

I wonder what Mr. Daniels think about the potential of these 2 extremely minor Century properties

Mr. Daniels` property exploration round up is expected to be completed in 90 days. He will probably not consider these 2 properties as they are likely too minor. Though, I would like to see him perform an assessment on them. I would like to know his thoughts.


1) Aumaque Mine (Val d`Or)

It is located about 2 - 3 km from the Lamaque mill. It has non-43101 ounces of 50,000 (8.57 g/t grade) and 17,000 (6.03 g/t grade). The property has never been mined but it has a shaft that goes down to 165m and a winze from 150m to 198m. It also has a number of levels established.

``The mineralization was found to be consistent in style with the vein types found at the Lamaque mine in pyroclastic volcanics.``

``At the west end of the property and extending onto the Lamaque property there is an untested diorite plug similar to the Numbers 4 and 5 plugs found at Lamaque. It has been previously suggested that the known veins may extend into this plug with the result that a fractured and mineralized system similar to those mined at Lamaque may have developed.``

If the known Aumaque veins are found to actually extend into the untested diorite plug on the west end, I wonder what Mr. Daniels thinks about the 67,000 historical Aumaque ounce total maybe increasing to, say, 400,000 ounces.


2) Sweetheart Property (Juneau, Alaska)

There was a major (precedence setting) supreme court decision in 2009 that went in favour of Coeur d'Alene Mines. It allowed Coeur to begin mining their Juneau area mine. This precedence setting decision has likely made exploration and mining a lot more favourable for other companies with properties around the Juneau area (although, risks from environmentalists will likely always exist, but hopefully to a far lesser degree due to the supreme court decision).

Century has 8 properties in the area, with all of the properties having solid potential. Treadwell was the largest mining operation in the world about 90 to 110 years ago. It produced 3.2 million ounces prior to the flood. Exploration holes (4 holes) done in the 1990s provides a hint that millions of ounces likely still remain - the 4 holes hit significant mineralization 1,300 ft below previous mine workings. The Treadwell veins are mesothermal veins also. With mesothermal type veins, the grades continue to increase with depth.

The Yakima property is located 450m west of and parallel to the Treadwell mine. The properties are thought to be related due to their close proximity and similar geology to each other.

However, the property I am curious about the most is the Sweetheart Property. It`s a polymetallic property. It has several polymetallic targets identified. The property was tested in 1978 by a company called Mapco Minerals. The exploration program included 16 shallow diamond drill holes which returned Cu to 1.4%, Zn to 3.2%, Pb to 1.7%, Ag to 1.3 opt (40.3 g/t), and Au to 0.27 opt (8.37 g/t) - best results in each of the individual metal categories. The best drill hole intersection was 3 metres (10 ft) 1.1% Cu, .62% Zn, 1.7% Pb, .58 opt (17.98 g/t) Ag, and 0.27 opt (8.37 g/t) Au. I haven`t seen the results for the other 15 individual drill holes.

The Sweetheart mineralization extends over 12,600 feet (4 km) strike length.

It would be nice to get an assessment from Mr. Daniels about this property. Again, I am not expecting it to be included in the 90 day round up release (as it is too minor of a property for Century), but nevertheless it looks like a fascinating exploration property to me. Being polymetallic, it`s a property that can potentially stand the test of time - not dependent on a high gold price.

Bigjohn37

Hi bigjohn, hope all is well.

I am not familiar with the track record of the new VP Geology. However, I really like Century`s approach. Century`s focused has always been on at least somewhat medium stage ore bodies but primarily advanced stage projects. Mr Daniels` skillsets appear to be ideal for the job. He not only brings exploration expertise, but he also has experience with mine modeling, economic resource estimation and project evaluation. These are skills that can help us with both maximizing our existing properties and evaluating projects for external growth (once we reach that stage).

His top priority is our Lamaque complex. However, after he looks at Lamaque he will also be assessing our existing properties surrounding Lamaque (outside of the complex). The land package is large and there are a number of good exloration areas on those properties as well (with good historical exploration drill holes already).

He will also be performing assessments on our other properties as well, perhaps including our NWT property (with its 15 km strike length) and our 8 (Juneau area)Alaskan properties.

Of course, he will be looking at San Juan also. Here is a comment from Century (May 14`10 NR):

``The San Juan project has the opportunity to create a major mining district based on the results of previous exploration work.``

It sounds like Century`s geologists (maybe even Mr. Daniels) are liking the potential at San Juan.

I have always felt that our San Juan project has been severely under appreciated by the market. Off the top of my head, here are only 3 reasons for the lack of appreciation (IMO):

1) SJ is a small scale producer
2) The market`s misunderstanding of SJ`s narrow veins
3) No porphyry stockwork resource profile delineated as yet

I am not sure how many people realize this but SJ has produced well over 1 million ounces of gold historically (including estimates from the periods of poor record keeping). Yet, there have only been 51 drill holes (ever) made on the entire project. That`s probably unheard of for any million ounce producing property anywhere in the entire world.

The SJ veins successfully mined historically have typically been between 10 to 80 cm range. Of note, 100 cm equals 1 meter (I believe). SJ veins fall into the category of high grade, narrow veins, but that doesn`t mean it can`t be hugely productive. We are also going into a new phase of mining equipment efficiency, with the new low profile equipment now being utilized elsewhere, to mine narrow veins. As SJ grows (and becomes larger scale) there may be a cost/benefit advantage down the road to purchase new low profile equipment for the SJ operation (especially with mining the primary veins). We also shouldn`t forget about bringing electrical power to SJ. This will make the operation much more efficient also. The power line is currently only 15 km away. It must have gotten closer or something. It was 20 km away just a couple of years ago. Good to see progress (potentially). I read an article in March which stated that Century is trying to convince the Peru government to split the cost of bring the power to SJ. I think that`s only fair, as Peru citizens along the way can tap into the power lines also - everyone benefits. However, I don`t know if the gov`t agrees or not.


The SJ project has 2 primary types of ore bodies:

1) Vein systems (typically high grade, narrow veins)

2) Porphyry stockwork systems (my guess is that the grade only needs to be in the 1 g/t to 2 g/t range, or maybe even below 1 g/t, to be economical because it will likely be mined with some sort of bulk mining approach or maybe a low grade high tonnage approach)


The SJ part of the project has a swarm vein system, with about 25 - 30 known veins (and counting). There are 2 primary veins (SJ and Mercedes) that have accounted for most of the production, but there are other veins in production also. The SJ part of the property (with the SJ swarm vein system) is only a relatively small part of the total SJ project land package.

Veta Clara is another vein system, located about 5 km away from the milling operation. Veta Clara has about 7 or 8 veins, and, at least one (maybe more) of those veins are now in production currently.

Santa Clarita is another prospect also. I think it might have both vein potential and stockwork potential (although I am not fully clear or at least I don`t fully remember). No drill holes as yet though, therefore it`s not something we should rely on at this time. What is interesting though is that it is located next to Veta Clara and we know that Veta Clara is producing gold.

We already know about the potential of Erika perhaps turning into porphyry copper system - again, no drill holes as yet.

Century has looked at Champune a few different ways in the past. They believe they finally understand the structure, and they now believe they have a firm handle on where the gold might be located. ``Stockworkin granodiorite intruded by andesitic dykes containing gold adjacent to the margin of the dykes`` I have breifly read about somewhat similar deposits like this. The theory might be somewhat common. However, at this point it is only a theory with regards to Champune. There has been on drill holes thus far. As such, it still has to be proven.

Lily-La Huaca has potential also. I think it`s a vein system. I think they have very little data on it though - far less data than even the other properties in the SJ land package. Naturally, no drill holes thus far.

One important note about the SJ veins (especially the primary producing veins - SJ and Mercedes): Examination of the veins determined that the veins appear to be mesothermal in nature and therefore can be expected to continue at far greater depth that is currently being mined at this time. Apparently, mesothermal type veins, like our SJ veins, typically go very deep, not just in Peru but in locations in other places around the world.

Hopefully Mr. Daniels can use his expertise to maximize all of these opportunities for Century shareholders.

With regards to the AGM, I will not be attending. As a side note, it has been moved back to Vancouver (just in case anyone had scheduled to attend it in Toronto).

Century valuation from stockhouse

http://www.goldminerpulse.com/blogs/century-mining-valuation.php

I would like to see them hit 900 tpd at some point in July

Ideally, at some point in July, I would like to see them hit 1,000 tpd, the targeted grade of 4.76 and the targeted recovery range of 94% - 96%. If this level gets sustained over a 4 consecutive month period (coupled with contributions from SJ) it should be good enough to access the next US$8.5M cash from escrow.

However, without more updates from the company, it is hard for me to visualize them (at this time) getting to that level in July (even late July).

Nonetheless, I think numbers slightly below that level might be possible (at some point in July) IF THEY EXECUTE. I would like to see them now take a very progressive step with the numbers. It`s time to step up and toss away the list of excuses. This is the right time as key components are in place. In July (at some point) I would like to see them hit 900 tpd, and average 4.0 g/t grade with a 95% recovery rate. If they do this then both ounces and cash from operations will contribute decently.

Here is the possible breakdown:

*400 tpd now
*150 tpd from new stopes in production in June (in development at May EOM)
*150 tpd gain from all of the low profile equipment now being in place
*200 tpd from BD bulk sample mining

400 + 150 + 150 + 200 = 900 tpd

(or some combination of all that)

Hopefully the new BD ore and ore from the other new Lamaque (flats) stopes will lift the overall grade to 4.0 g/t.

In August, I would like to see them reach 1,100 tpd and 4.5 g/t. This might be sufficient to get them back on track to access the US$8.5M eventually, in my view.

Summary of trades for the week

Hey Carib could you please post the trading summary for the last few days??

Double checked info - expected timeframe for long-hole stoping permit

I was going from off the top of my head last night - I couldn`t remember if it was 150 days or 180 days (I wanted to be conservative until verifying). I planned on going back to SEDAR to doubled check the expected timeframe. It`s a bit of good news. The Jan 14th document states 150 days (not 180 days):

``Issuance of permit expected 150 days after issuance of Lamaque Exploration permit.``

It may not sound like a lot, but it is very meaningful. The 150 days converts to 5 months, essentially (instead of 6). The Lamaque Exploration permit was granted at the end of April. Of the 5 months, 1 month has already elapsed. We start mining BD in July, as such 2 of the 5 months will be elapsed come the start of July. It means that we will only have 3 more months (at that point) before the long-hole stoping permit is expected. It means that the 20,000 tonne BD bulk sample only has to sustain us for 3 months (July to September) before we can potentially get into full scale mining of the BD. Perhaps Century can apply for a 10,000 tonne bulk sample add on (then mine 10,000 tonnes per month from BD for the 3 month period).

There is still also a chance that we can get our long-hole stoping permit early. I think that things are mainly dependent on finalizing the crown pillar study. Best I can tell (from the various documents), all of the preliminary stages have gone very well over the past couple of years on the crown pillar study.

Century will be performing a lot of the development work ahead of actually receiving the permit. For example, the exploration drifts will not only help us to explore but will be used to reach the long-hole mining areas soon after we get the permit.

From the BD NR in early May: ``The development of the exploration drifts will be used in preparation for mining, which will commence upon completion of the crown pillar study.``

Century will likely still need to develop the long-hole stope itself once the permit is granted, but I think it helps a lot that the portal, the decline, the drifts, etc. will already be in place prior to the permit being granted. They can probably hire the people and purchase the equipment in advance also (i.e. the long-hole drill that is arriving in a wk or 2). It shouldn`t take us too much longer after that point to get going with long-hole stoping of the BD. Mind you, they will likely also need to put in the crown pillar before they mine under the hwy. It`s not clear when they will reach that stage though. It`s not clear if they will be able to perform some long-hole stope mining prior to reaching the ore located under the hwy.

I view long-hole stope mining as being huge for us. I view it as almost a form of bulk mining (in my mind anyway), with low cash cost per oz potential. You can check out the World Gold Council`s description of the long-hole stope mining method (middle of page). It comes with a small diagram also:

http://www.trustingold.com/production/mining-methods/

Interpretations and comments

1) Lamaque mining appears to be 1.5 to 2 months behind schedule, largely due to delays with arrival of the essential (critical) new low-profile equipment. Peggy says that the new jumbos and scoops (loaders) are working ``fabulously``. She says it will revolutionize the industry, with regards to mining narrow veins.


2) They are currently mining entirely from the Lamaque flats. BD bulk sample mining is not expected to start up until July. Gold currently being mined in the flats can be categorized as follows:

i) Stope ore that was already included as reserves – represents 50% of what is being mined, which they believe is coming in with a grade around 4.5 g/t

ii) They are mining and crushing some of the waste muck. They are already mining in the area and have to move the wastes anyway and the gold price is $1,200 per ounce. This may not work at $800 gold, but it might help to pay some bills at $1,200 gold. The gold in waste material, that is being processed, has a minimum grade of .5 g/t, but likely averages somewhere in the 1.0 to 2.0 g/t range. They say that the waste muck being mined represents about 1/3 or the tonnage going through the milling process. Let`s say that this represents 33%.

iii) They are also finding that the ore areas (being mined) continue within the veins - even after already mining what was identified in reserves. This would therefore represent stope area gold (similar to point i above), but not previously counted in reserves. There seems to be continuation in the veins of all the stopes they have thus far opened up. It`s also not clear if the grade is also within the 4.5 g/t area. I guess by default it sounds like this represent 17% (100% - 50% - 33%) of what is currently being mined.

In the Jan`09 bankable report, it was identified that we would likely find low grade non-reserve ounces (in the path) that could be economically mined. As such, I am not surprised of the findings after actually mining the flats. The Lamaque flats are comprised of mainly narrow vein high grade ore, but has low grade loose change as well (as we can see). If the gold price is high enough and the mining teams are efficient, theoretically they should be able to pick up some of these low grade ounces economically as they are already mining in the area (no extra development work and they should be right in the path).


3) 1,800 ounces of gold produced at Lamaque so far. This is from 19,161 tonnes process thus far, which includes the 1/3 from low grade muck being run through the crusher.

Prior to the mill circuit being shut down, the circuit normally carried about 2,000 to 2,500 ounces as inventory. In addition to the 1,800 ounces already produced, the Lamaque circuit currently carries an additional 1,000 ounces. They expect the circuit inventory total to go back up to 2,000 ounces before settling in at that level on a continuous basis. I don`t know exactly how it works, but there is usually build up in the circuit that accounts for the inventory. They had cleaned out the circuit when it was last shut down. This new inventory build is happening naturally as they have cranked things up again. Now, most likely not all of the 1,800 ounces produced and the 1,000 ounces currently in mill circuit inventory is from current mining. I say this because the company was carrying X number of Lamaque inventory all along (since the last shut down), although I don`t know where they were storing those ounces given the mill clean that occurred. Maybe they moved the ounces back for mill circuit storage after the mill had been cleaned up. Either way, we should keep in mind that it is likely that not all of the 2,800 ounces were from new mining efforts.


4) They are currently doing 400 tpd at Lamaque. That is probably the key (starting point) number to work with when trying to assess the ramp up situation.

``Additional stopes to opened in June 2010 with increased production anticipated``

There were 4 stopes in production at the end of May. There are 3 additional stopes in development at the end of May. It`s not clear if at least 1 of the 3 development stopes is in the BD (or if all 3 are incremental to BD). Either way, it sounds like there is soon to be more than 4 production stopes at the Lamaque flats in the near future. This should increase tonnage beyond the 400 tpd level.

``Production expected to increase due to low-profile underground equipment became operational later than expected at the end of May 2010``

It`s not clear how much of the low-profile equipment gains have already been built into the 400 tpd EOM number. If the low-profile equipment is making a ``fabulous`` impact (as Peggy claims) it would be extremely disappointing and operationally devastating if this new equipment (alone) doesn`t push the 400 tpd number to a much higher level.

``Work continues on Bedard Dyke portal access; expect to ramp to zone by July 2010 and additional tonnage to be added to production profile``

The 20,000 bulk sample tonnes from BD starting in July (hopefully not too much longer than a month from now) should help to push the 400 tpd higher. The ore grade from BD should be good also. As they are mining the 20,000 sample tonnes, I would like to see them apply for a permit extension to mine another 20,000 sample (once they`ve mined the first 20,000). I don`t know if they are allowed to do this though. They did manage to increase the original 15,000 tonne request up to 20,000.

I would like for them to make this request because it will likely be a while before we get our long-hole stoping permit to fully mine the BD and the North Wall. Per the Jan. 14 DB agreement on SEDAR, the long-hole stoping permit is not expected until 180 days after the Lamaque exploration permit is granted. The Lamaque exploration permit was granted around the end of April. If we stick to what is in the DB agreement then we will not get the long-hole stoping permit until beginning of November (5 months from now). We need to ensure we can find a way to mine the BD continually from July to October. Maybe they are planning to stretch the 20,000 bulk sample throughout that 4 month period. That would equate to 167 tpd from BD for the 4 month period. It would be 333 tpd from BD if they mine the 20,000 tonnes over 2 months, which probably makes more sense. Peggy said that BD would represent 40% of production (let`s hope she means near-term) and then 50%-60% at full BD mining.

Although, Peggy said something on the conference call that was odd. She said that they recently purchased a long-hole drill and it will be arriving in a week or 2. Now, I am not exactly clear why they would need a long-hole drill right now when the long-hole stoping permit is not expected for another 5 months. Hopefully they are anticipating that the permit will arrive much earlier.


5) ``Exploration Drilling started end of May 2010; 3 holes completed to date for 500+ meters``

Our in-house assay lab is now up and running. One would think that means quick turnaround time. They will probably still need to send out some assays to independent labs, but that should only be about 10%. With the in-house lab, let`s hope that Century will be in a position to release results from the first 3 holes in about 2 weeks or so.
It sounds like the first few drill holes are focused on drilling the Lamaque flats ahead of mining. If so, this should provide more near-term mining certainty and provide better mine plan expectations. It should also help to add ounces to reserves.


6) Updated SJ 43-101 report expected at some point in the next little while. The last one was a couple of years ago so they will have to remove ounces mined. However, they should be able to increase the net numbers. To be honest, I really didn`t understand what the independent person was thinking when he prepared the last report. He was super conservative I think, to the point where it didn`t make any basic sense to me. His team used an average reserve grade of 8.87 g/t for SJ, even though they know that SJ operates at an average grade of around 6.5 g/t (before the report and after the report). It`s obvious that SJ operator mixes the high grade ore with the low grade ore to get to the very economical 6.5 g/t average. The 43-101 preparer likely left out a lot of the lower (very economical) grade ore from the last 43-101 report.

Those ounces are even more economical today. The gold price was US$800 back then. The gold price is now 50% higher today, at US$1,200.

As you can see, there should be at least a couple of opportunities to improve the 43-101 resource profile relative to what was published in the past.


7) Century received the US$5M Performance Hurdle A amount at the end of April (a month ago), but I am still concerned about the cash situation. The 1.5 to 2 month operations delay will likely subsequently delay access to the next US$8.5M from escrow. They need to do a run rate of 70,000 ounces of production for 4 consecutive months in order to access the US$8.5M. Even though they can use the SJ ounces in the calc, I don`t see 400 tpd at Lamaque as cutting it. Even if they reach 4.7 g/t planned grade, they still need Lamaque to contribute close to 1,000 tpd for 4 consecutive months. At best, we are looking at mid Q4 before we can access the US$8.5M. There are tonnes of costs we need to address way before then, including daily operating costs, significant accounts payables, BD development, exploration, Corporate G&A, development of the North Wall starting in Q4, etc.

If it was strictly the management team of the past, without Finskiy and Scola and company, I would be concerned about this being a serious issue. However, that`s not the case this time around. I am concerned, but I don`t see it as a problem. There WILL eventually be a solution. As a first stage remedy, I would like to see Finskiy and Scola convert $5M of their $15M worth of warrants.


8) The DB prepaid gold sales payment increases to 667 ounces per month starting in June (from 200 per month from Jan to May). I am not concerned because we can supply the ounces from SJ if the 1.5 to 2 Lamaque delay has impacted our abilities at Lamaque.