Century steps up work at Sigma

Vancouver — Aspiring gold producer Century Mining (CMM-V) has drawn further on its financing facility to fund ongoing development of its recently acquired Sigma mine, near Val d’Or, Que.

The company has now sold a total of $7.9 million in convertible debentures to merchant bank Endeavour Mining Capital (EDV-T).

Century Mining recently issued $1.1 million of the debentures convertible into common shares at 44 per share. Last fall, the company issued $6.8 million in principal amount of the debentures to the merchant bank, convertible at 51 per share. Endeavour has also been issued 2.4 million warrants exercisable into shares at 44 apiece.

The latest tranche of the financing comes on the heels of a $2-million private placement of 5.7 million units (shares plus warrants) priced at 35 apiece.

Century acquired the past-producing Sigma mine in mid-2004 from bankrupt McWatters Mining for $25.9 million. The acquisition included the Sigma and Lamaque deposits, a 5,000-tonne-per-day carbon-in-pulp plant, and associated infrastructure.

Mining equipment is now on site, and the mill should be activated later in March.

In 2005, Sigma is slated to produce 90,000 oz. at a cash cost under US$290 per oz.

Closely spaced reverse-circulation drilling is under way in an attempt to upgrade resources to the status of reserve.

McWatters purchased the Sigma-Lamaque mine from Placer Dome (PDG-T) in 1997 for about US$13 million and subsequently spent more than $34 million expanding the mill and beginning open-pit mining (previously mining was from underground).