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Century Mining reports high grade gold intercepts from the addition of diamond drill holes into computer model

Published: 17:03 07 Apr 2009 EDT

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Some companies, despite their producing mines and even positive earnings, remain underfollowed and in all likelihood, undervalued. We had the good fortune of meeting one of them at the Cambridge Conference in Calgary. Canadian Venture listed Century Mining Corporation (TSX.V: CMM) emerging mid-tier gold producer with assets in Canada and Peru. The company announced today the discovery of several high-grade gold intercepts, which are the result of an ongoing data entry and computer modelling project.

CMM currently operates San Juan underground gold mine in Peru and Lamaque underground mine in Val-d’Or, Quebec. Current production is from San Juan mine and the company is about to restart Lamaque to be back in production through the proposed $65 million financing. Lamaque actually went into production in the spring of 2007, but is currently in the back burner.

It is important to highlight that CMM has continued its exploration efforts at the Sigma-Lamaque complex even during these challenging days. Clearly, the company is keen on adding shareholder value and is well aware that going into hibernation is unlikely to help those aspirations. Since announcing upgraded gold resources on February 25, these discoveries have identified three new zones of mineralized geologic structures on the Sigma side of the complex. Newly identified mineralized zones are the result of six diamond drill holes recently added to the existing Lamaque Mine database from surface to 2,000 feet extending north, west and south from previously modeled areas.

Drill holes 1243 and 1676 are believed to be indications of mineralized shears while holes 369, 10875 and 9251 indicate the presence of dykes similar to those which were historically mined by bulk mining methods. Dykes, Shears and Flat Veins are among the most common deposit types in the Lamaque Mine Complex which hosts mineralization in quartz-tourmaline veins. This style of mineralization has been mined successfully by both room and pillar of the flat veins and sub-level stoping of the dykes and shears. Historically, over 9.2 million ounces of gold have been successfully mined from the Lamaque Complex.

Sigma Lamaque complex has a NI 43-101 compliant Proven plus Probable Reserve of 17.49 million tonnes grading 1.46g/t gold containing 820,300 Oz gold. Its open pit Measured and indicated resource amounts to 4.495 million tonnes grading 2.19g/t gold containing 317,000 Oz gold and the inferred resource amounts to 14.737 million tonnes grading 1.92g/t gold containing 907,700 Oz gold. Its underground measured and indicated resource is 3.923 million tonnes grading 4.99g/t gold containing 630,000 Oz gold while the inferred resource is 10.10 million tonnes grading 5.26g/t gold containing 1,708,000 Oz gold.

Once CMM secures financing, the company is expected to hasten its march towards production at Lamaque. With currently high gold prices, Lamaque becomes distinctly economic and would help CMM finance its operations. The company also has exploration projects such as Colina Dorada Property in Peru and Northbelt leases in the Northwest Territories. In addition, CMM has interests in Alaska with the Treadwell Mine as the anchor project on the Juneau Gold Belt.

We will keep our investors updated on CMM and its progress. Markets are currently seeking producing gold companies with potential to increase their output. CMM has producing properties and is also about to increase its output with Lamaque expected to be back in business soon.

About Century Mining Corporation

Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124 ounces of gold, respectively.

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