TORONTO, ONTARIO (TSX: CSM)(TSX: CSM.WT)(AMEX: SMC) has
scheduled a conference call for analysts and investors on
Wednesday, April 30, 2008 at 1:30 p.m. (Eastern) to provide an
update on its exploration and operations activities.
Conference Call
To participate in the conference call, please dial 416-695-9753
or 1-888-818-4097 about five minutes prior to the start of the
call.
EXPLORATION UPDATE
Limon Mine Area
Central Sun Mining Inc. has completed seven (7) diamond drill
holes totaling 2,291 m of a planned 10,000 metre program in the
Limon Mine area. Results of the first three holes were previously
reported in press releases dated January 29, 2008 and February 20,
2008, respectively. The first three holes successfully intersected
a major new zone that significantly extends the potential downdip
and on strike extensions of the Santa Pancha orebody as shown on
the vertical longitudinal section (Figure 1). The Santa Pancha
orebody, which has the highest grade of the Limon Mine area
deposits, is currently being mined on the 100 metre level at a
reserve grade of approximately 5.6 g Au/t.
To see Figure 1, please visit the following link:
http://media3.marketwire.com/docs/csfig1.pdf.
Holes LM-08-004 to LM-08-006 tested the potential extension of
this new zone from 120m to 250m further south of Hole LM-08-003
which intersected 4.54 g Au/t over 15.0m true width. All three
holes intersected wide zones of alteration principally
silicification and carbonatization that ranged from 25m to 40m in
true width. Hole LM-08-004 intersected two mineralized zones
grading 7.22 g Au/t over 3.4m true width and 2.57 g Au/t over 2.6m
true width. Lower grade values were returned from Hole LM-08-05
(2.78 g Au/t over 2.7m true width) and in LM-08-006, in which
carbonate alteration was predominant, no significant values were
returned.
A deeper series of holes approximately 100m below the first six
holes was commenced with Hole LM-08-007. This hole intersected a
12m wide (true width) zone of quartz veining and quartz vein
breccia but returned only low grade values. Hole LM-08-008
intersected a 12m wide (true width) mineralized zone; assays on
this hole are pending. Complete drilling results are listed in
Table 1.
Dr. Bill Pearson, P.Geo., Executive Vice President, Exploration
commented, "Drilling continues to confirm that the Santa Pancha
structure is very extensive and remains open at depth. However,
closer spaced drilling is required to fully assess the resource
potential of this zone. One additional deep hole further south will
be completed and then the drill spacing will be tightened to
approximately 50m centres to better define the distribution of gold
mineralization within this extensive structure."
The Santa Pancha structure, located about 4 kilometres east of
the Limon processing plant, strikes N20E and extends for
approximately 2.5 kilometres along strike. The target zone being
tested as shown on the longitudinal section (Figure 1) extends for
approximately 650 metres along strike from the No. 2 shaft area
southwards to the No. 8 shaft. The drill holes completed to date
have confirmed that the favourable structure extends to a vertical
depth of at least 350 m.
Orosi Mine Area
Exploration drilling totaling 10,000m is planned for the Orosi
Mine area. An initial five holes totalling 762 metres were
completed on the Santa Maria, Mojon and Santa Elena structures in
the mine area as recommended by Scott Wilson Roscoe Postle
Associates Inc. Results of these drill holes which confirmed
previous reverse circulation drilling are listed in Table 2. These
results are being incorporated into the updated mineral resource
estimate being completed by Scott Wilson as part of the Orosi Mill
feasibility study.
Drilling of 1,903 m in 10 holes has been completed to test the
San Juan vein structure, a potential open pittable target, located
about 5km south of the mine area. These holes tested the structure
over approximately an 800m strike length to a vertical depth of
180m. All but one hole intersected gold mineralized quartz
veins/vein breccias. Significant results from the first seven (7)
holes for which assay results have been received include 19.55g
Au/t (17.58 cut) over 1.2m true width and 2.48 g Au/t over 5.7m
true width. Table 2 gives complete results.
Recent geological and petrological work by Dr. Robert Hodder,
P.Geo., a well known specialist in epithermal gold systems, has
better characterized the nature and distribution of alteration
related to the gold mineralization at Orosi. Diatreme-type breccias
appear to be an important control on the distribution of
mineralization with vuggy silica and quartz-adularia veins being
important indicators for areas of gold mineralization. Dr. Hodder
concludes that none of the deposits studied thus far appear to have
bottomed-out in a geological sense. Further he notes the importance
of post-mineral faults in displacing mineralized zones opening up
possibilities for additional target areas especially in topographic
lows resulting from down dropped blocks. A detailed geological
mapping program is currently in progress in the general mine area
to apply this new geological information and identify additional
target areas for drilling.
Induced Polarization/Resistivity surveys have begun at Orosi to
target mineralization in the potential northeastern extention of
the Mojon-Crimea and Santa Maria structures.
Mestiza-La India Area
At Mestiza-La India, located 70 kilometres east of Limon,
Magnetic, Resistivity and Induced Polarization (IP) surveys have
been conducted on approximately 45 line kilometres of new
exploration grid oriented perpendicular to the Tatiana vein
crossing the Mestiza property, along with geological mapping,
sampling, prospecting and data compilation. Preliminary geological
mapping indicates it is likely that a complete epithermal system is
exposed from the lower intrusive at La India 10 kilometres to the
southeast to high level quartz veins at Mestiza. Vertically, the
system appears to extend from about 500 metres to perhaps as much
as 900 metres. Historic production from 1938 to 1955 at La India
was 575,000 ounces of gold from 1.73 million tonnes grading 13.4 g
Au/t. The Tatiana vein on the Mestiza property contains an inferred
mineral resource of 558,000 tonnes at 8.80 g Au/t containing
158,600 ounces of gold (see Annual Information Form dated March 31,
2008 posted on SEDAR).
Significantly higher resistivity anomalies are associated with
all of the major veins that are known on the property including the
Tatiana, Espinito, Guapinol, and Constancia-America showings. These
anomalies persist to the maximum search depth of the dipole array
(n equals 8, a equals 25m). Resistivity and IP data show that the
anomaly associated with the Espinito vein strengthens with depth
where it is paired with a second resistive structure. A much
stronger resistivity high with a strike length over 800 m is
associated with the Guapinol vein in the middle of the Mestiza
property. This anomaly persists to the maximum depth sampled in
both the resistivity and chargeability data. It provides a high
priority drill target.
A north-south trending resistive structure is located in the
previously unexplored southwest part of the grid. This trend is
potentially the northward strike extension of the La India vein
onto the Mestiza property.
Eight (8) targets have been outlined for drilling including the
Guapinol, Espinito, Norte de La India, and Tatiana anomalies.
Planning is underway for a 2,500 m drill program to evaluate these
anomalies beginning in June 2008.
Dr. Christopher J. Hale, P. Geo. the qualified person for the
geophysical programs commented, "I am very pleased with the high
quality work that CSM's team has been doing at Mestiza. Central Sun
enjoys the flexibility offered by an in-house Nicaraguan technical
team provided with the latest in instrumentation. Resistivity in
particular has been shown to be an excellent technique to target
the silicious vein systems on the property and at depths
approaching a hundred metres. CSM has been quick to recognize that
modern geophysical surveys can target drilling to evaluate
discoveries systematically and efficiently."
SAMPLING, ASSAYING AND QUALITY CONTROL
The core (NQ 47.6 mm) is logged, photographed and then sawn in
half with one-half sent to the laboratory for analysis and the
other half retained and stored on site. All core samples were
prepared and assayed at the Company's Limon Mine laboratories. The
Limon mine laboratory has a separate preparation circuit for
exploration samples so that these are prepared and analyzed
separately from run-of-mine samples. Samples for the Orosi drill
program will be analyzed at the Orosi Mine laboratory. A second
circuit is currently being installed at the Orosi laboratory;
however, no run-of-mine samples are currently being assayed at this
facility.
Both the Limon and Orosi Mine laboratories use normal industry
procedures. The entire half-core samples are crushed to pass
10-mesh-size sieve, a 1/4 split is then pulverized to have greater
than 90% passing the 200-mesh-sized sieve to produce a 100 gram
homogenized sub-sample. A one-assay ton aliquot (a 29.2 gram
sub-sample) is used for fire assaying with an atomic absorption
(AA) or gravimetric finish to determine gold concentration.
Internal quality control includes the use of blanks, duplicates and
standards in every batch of samples. The Company also conducts
internal check assaying. Regular external check assays are
performed at a certified Canadian commercial laboratory and
certified external reference standards are inserted into each
batch.
Table 1A: Summary of Drilling Results, Santa Pancha, Limon Mine area
----------------------------------------------------------------------------
Gold Zone
Hole(i) From To Core True (g/t)
(m) (m) Length Width -----------------------------
(m) (m) Uncut Cut(ii)
----------------------------------------------------------------------------
LM-08-003 254.9 272.3 17.3 15.1 4.54 Santa Pancha
----------------------------------------------------------------------------
LM-08-004 245.9 249.8 3.9 3.4 2.57 Santa Pancha
----------------------------------------------------------------------------
256.6 259.6 3.0 2.6 7.22 Santa Pancha
----------------------------------------------------------------------------
LM-08-005 283.5 286.3 2.8 2.7 2.78 Santa Pancha
----------------------------------------------------------------------------
304.4 307.2 2.9 2.8 0.84 Santa Pancha
----------------------------------------------------------------------------
LM-08-006 263.6 272.8 9.2 8.3 0.04 Santa Pancha
----------------------------------------------------------------------------
297.8 301.9 4.2 3.8 0.28 Santa Pancha
----------------------------------------------------------------------------
LM-08-007 367.8 370.5 2.7 2.1 0.99 Santa Pancha
----------------------------------------------------------------------------
374.8 377.9 3.1 2.4 0.69 Santa Pancha
----------------------------------------------------------------------------
(i) All holes are NQ core size
(ii) High sample assays capped at 25 Au g/t following the practice at the
Santa Pancha mine; the cut values were established geostatistically.
Table 1B: Collar Coordinates and Orientation of Drill Holes, Santa Pancha,
Limon Mine
----------------------------------------------------------------------------
Hole Easting Northing Elev. Length Az(i) Dip(i)
----------------------------------------------------------------------------
LM-08-003 19423.0 13441.0 60.5 315.9 291 degrees -60 degrees
----------------------------------------------------------------------------
LM-08-004 19385.5 13407.0 65.0 306.5 270 degrees -70 degrees
----------------------------------------------------------------------------
LM-08-005 19459 13350 60.0 352.6 270 degrees -70 degrees
----------------------------------------------------------------------------
LM-08-006 19439 13300 61.0 336.7 270 degrees -70 degrees
----------------------------------------------------------------------------
LM-08-007 19507.5 13354 63.5 182.9 291 degrees -65 degrees
----------------------------------------------------------------------------
(i) All measurements are in metres except Azimuth (Az) and Dip which are
measured in degrees.
Table 2A. Summary of Drilling Results, Santa Maria, Santa Elena, Mojon y San
Juan, Orosi Mine
----------------------------------------------------------------------------
Gold Zone
Hole(i) From To Core True (g/t)
(m) (m) Length Width -----------------------------
(m) (m) Uncut Cut(ii)
----------------------------------------------------------------------------
Check Drill Program recommended by Scott Wilson Roscoe Postle Limited
----------------------------------------------------------------------------
SM-08-001 40.1 50.1 7.2 6.3 7.89 6.10 Santa Maria
----------------------------------------------------------------------------
SM-08-002 98.1 111.8 13.7 11.9 3.76 3.52 Santa Maria
----------------------------------------------------------------------------
SE-08-001 27.1 31.2 4.2 3.6 3.00 Santa Elena
----------------------------------------------------------------------------
MJ-08-001 141.5 153.4 11.9 10.4 4.53 Mojon
----------------------------------------------------------------------------
MJ-08-002 166.6 173.9 7.3 6.4 2.97 Mojon
----------------------------------------------------------------------------
Drill Program San Juan Target
----------------------------------------------------------------------------
SJ-08-001 No Vein San Juan
----------------------------------------------------------------------------
SJ-08-002 142.3 146.7 4.4 3.8 1.05 San Juan
----------------------------------------------------------------------------
SJ-08-003 153.9 157.2 1.4 1.2 19.55 17.58 San Juan
----------------------------------------------------------------------------
SJ-08-004 30.6 47.2 6.6 5.7 2.48 San Juan
----------------------------------------------------------------------------
SJ-08-005 42.1 46.1 3.9 3.5 1.13 San Juan
----------------------------------------------------------------------------
SJ-08-006 22.7 27.9 5.2 4.5 1.16 San Juan
----------------------------------------------------------------------------
45.3 49.3 4.0 3.5 1.76 San Juan
----------------------------------------------------------------------------
(i) All holes are NQ core size
(ii) High sample assays capped at 25 Au g/t following the practice at the
Santa Pancha mine; the cut values were established geostatistically.
Table 2B: Collar Coordinates and Orientation of Drill Holes, Santa Maria,
Santa Elena, Mojon and San Juan, Orosi Mine
----------------------------------------------------------------------------
Hole Easting Northing Elev. Length Az(i) Dip(i)
----------------------------------------------------------------------------
Check Drill Program requested by Scott Wilson Roscoe Postle Limited
----------------------------------------------------------------------------
SM-08-001 50238.1 49853.3 514.6 99.1 331 -46 degrees
----------------------------------------------------------------------------
SM-08-002 50260.8 49810.5 525.7 150.9 330 -35 degrees
----------------------------------------------------------------------------
SE-08-001 49935.3 50151.2 541.7 125.1 328 -48 degrees
----------------------------------------------------------------------------
MJ-08-001 48437.8 49347.6 542.8 190.1 329 -46 degrees
----------------------------------------------------------------------------
MJ-08-002 48499.9 49333.4 531.5 192.7 331 -46 degrees
----------------------------------------------------------------------------
Drill Program San Juan Target
----------------------------------------------------------------------------
SJ-08-001 51642.6 48827.5 497.5 57.9 170 -60 degrees
----------------------------------------------------------------------------
SJ-08-002 51641.0 48829.0 500 161.5 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-003 51545.0 48790.0 510 240.8 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-004 51594.0 48736.0 496 115.8 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-005 51499.0 48630.0 510 120.4 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-006 51430.0 48555.0 499 135.6 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-007 51355.0 48481.0 495 150.9 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-008 51268.0 48427.0 478 129.5 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-009 51248.0 48448.0 463 192.0 135 -50 degrees
----------------------------------------------------------------------------
SJ-08-010 51285.4 51185.3 482 89.9 135 -50 degrees
----------------------------------------------------------------------------
(i) All measurements are in metres except Azimuth (Az) and Dip which are
measured in degrees.
QUALIFIED PERSON
Dr. Bill Pearson, P. Geo., Executive Vice President, Exploration
for Central Sun Mining, is the Qualified Person responsible for the
management of the exploration program and disclosure of the drill
results as defined by National Instrument 43-101. The laboratory
process reported herein and the internal quality control
information are reviewed regularly by Dr. Pearson. Dr. Pearson has
read and approved this news release.
About Central Sun Mining
The Company is a growing gold producer with mining and
exploration activities focused in Nicaragua. The Company operates
the Limon Mine in Nicaragua and is converting the Orosi Mine in
Nicaragua to conventional milling to increase the annual gold
output. It also holds an option to acquire a 100% interest in the
Mestiza gold property which is located 70 kilometres east of the
Limon Mine. The Company is focused on efficient and productive
mining practices to establish high quality and cost effective
operations. Central Sun Mining is committed to growth by optimizing
current operations, expanding mineral reserves and resources at
existing mines as well as exploring its extensive land
holdings.
Cautionary Note Regarding Forward-Looking Statements: This press
release contains "forward-looking statements", within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to,
statements with respect to the completion of the Company's new
strategic plan, the future financial or operating performance of
the Company, its subsidiaries and its projects, the future price of
gold, estimated recoveries under the milling plan, the estimation
of mineral reserves and resources, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, capital for the mill project,
operating and exploration expenditures, costs and timing of the
development of new deposits, outcome, costs and timing of future
exploration, requirements for additional capital, government
regulation of mining operations, environmental risks, reclamation
expenses, title disputes or claims, limitations of insurance
coverage and the timing and possible outcome of pending litigation
and regulatory matters. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved".
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to:
general business, economic, competitive, political and social
uncertainties; the actual results of current exploration
activities; actual results of reclamation activities; conclusions
of economic evaluations; changes in project parameters as plans
continue to be refined; future prices of gold; possible variations
of ore grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; political instability,
insurrection or war; delays in obtaining governmental approvals or
required financing or in the completion of development or
construction activities, as well as those factors discussed in the
section entitled "General Development of the Business - Risks of
the Business" in the Company's annual information form for the year
ended December 31, 2006 on file with the securities regulatory
authorities in Canada and the Company's Form 40-F on file with the
Securities and Exchange Commission in Washington, D.C. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements that
are incorporated by reference herein, except in accordance with
applicable securities law.
Cautionary Note to U.S. Investors Concerning Estimates of
Measured, Indicated or Inferred Resources
The information presented uses the terms "measured", "indicated"
and "inferred" mineral resources. United States investors are
advised that while such terms are recognized and required by
Canadian regulations, the United States Securities and Exchange
Commission does not recognize these terms. "Inferred mineral
resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the
basis of feasibility or other economic studies. United States
investors are cautioned not to assume that all or any part of
measured or indicated mineral resources will ever be converted into
mineral reserves. United States investors are also cautioned not to
assume that all or any part of an inferred mineral resource exists,
or is economically or legally mineable.
Contacts: Central Sun Mining Inc. Andre Bharti Investor
Relations (416) 869-0919 Email: ir@centralsun.ca
ClearStream Energy Servi... (TSX:CSM)
Historical Stock Chart
From Jun 2024 to Jul 2024
ClearStream Energy Servi... (TSX:CSM)
Historical Stock Chart
From Jul 2023 to Jul 2024
