TORONTO, ONTARIO (TSX: CSM.WT)(AMEX: SMC) -
CONFERENCE CALL
Central Sun Mining Inc. (the "Company") has scheduled a
conference call for analysts and investors on Wednesday, July 2,
2008 at 11:00 am. (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
conference call.
A live audio webcast of the conference call will be available at
www.centralsun.ca.
An archived recording of the call will be available at
416-695-5800 or 1-800-408-3053 (Passcode 3265545#) until July 09,
2008 11:59 p.m. An archived recording of the webcast will also be
available on the Company's website.
EXPLORATION UPDATE
Limon Mine Area
Drilling has continued on the new Santa Pancha southern
extension to follow up on the promising results from the initial
discouvery drilling previously reported and as shown on vertical
longitudinal section below in Figure 1. Central Sun Mining Inc. has
completed 14 diamond drill holes totaling 4,441 metres of a planned
10,000 metre program in the Limon Mine area. The Santa Pancha
orebody, which has the highest grade within 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.
"We are very excited about the high grades and significant
widths being discovered by Dr. Pearson and his exploration team"
commented Peter Tagliamonte, President and CEO, "it really shows
the potential of the area and with the ongoing exploration program
we are confident in our ability to define this new discovery and to
grow it into a considerably larger production base for the Limon
Mine."
Commencing with Hole LM-08-10 the drill program has focused on
defining a mineral resource in the new extension area with drill
hole spacing at approximately 50 metres by 50 metres. Complete
drilling results are listed below in Table 1 and shown in Figure
1.
Significant results from the first definition holes are as
follows:
- 8.76 g Au/t (6.21 cut) over true width of 15.4 metres in
LM-08-13
- 6.70 g Au/t over true width of 6.6 metres in LM-08-14
- 6.25g Au/t over true width of 5.0 metres in LM-08-10
- 7.43 g Au/t over true width of 3.8 metres in LM-08-12
Holes LM-08-008 and LM-08-009 were part of a deeper series of
holes approximately 100 metres below the first six holes. A 34
metre wide (true width) altered and mineralized zone was
intersected in LM-08-009 which returned 3.83 g Au/t over a true
width of 2.0 metres.
Dr. Bill Pearson, P.Geo., Executive Vice President, Exploration
commented, "Drilling is contining to confirm the potential for a
significant mineral resource in this zone. The closer spaced
drilling is providing better definition of the distribution of gold
mineralization within this extensive structure. Downhole induced
polarization surveys will also be carried out to aid in outlining
the full extent of the strong zones of silicification with which
the best grade mineralization is associated."
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 in 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 metres.
Orosi Mine Area
Exploration drilling totaling a minimum of 10,000 metres is
planned for the Orosi Mine area of which 7,140 metres in 40 holes
have been completed to date including the check holes previously
reported that were recommended by Scott Wilson (758 metres in 5
holes). Targets being tested as shown below in Figure 2 include
Mojon SW, Victoria-Santa Maria, San Juan, Los Angeles and Quernos
do Oro. In addition, an induced polarization geophysical survey has
been completed covering a potential strike extension of 3
kilometres of the Mojon-Crimea and associated structures northeast
of the mine.
Drilling of 2,036 metres in 12 holes has been completed to test
the San Juan vein structure, a potential open pittable target,
located about 5 kilometres south of the mine area. These holes
tested the structure over approximately an 800 metre strike length
to a vertical depth of 180 metres. All but one hole intersected
gold mineralized quartz veins/vein breccias. Significant results
previously reported from the first six (6) holes (see press release
April 30, 2008) include 19.55g Au/t (17.58 cut) over 1.2 metres
true width and 2.48 g Au/t over 5.7 metres true width. Significant
results from the new holes include 18.28 g Au/t (13.26 cut) over
1.9 metres true width in SJ-08-07 and 2.86 g Au/t over 7.6 metres
true width in SJ-08-08. Table 2 gives complete results. Compilation
of new drill data with historical drill data is being completed to
outline the best areas for resource definition.
A detailed mapping program including re-interpretation of
previous geological data in conjunction with new diamond drilling
and petrological work by Dr. Robert Hodder, P.Geo., a well known
specialist in epithermal gold systems, working with the Central Sun
exploration team has outlined a number of new targets along the
Mojon-Crimea structure which hosts the majority of the mineral
resources outlined to date at Orosi. A particular focus has been
the potential extension to the southwest of the current pit design
limits on Mojon. Seven (7) holes totaling 1,548 metres have
completed to test potential new structures. Results on these holes
are pending.
Trenching on the Cuernos de Oro structure located 2 kilometres
north of the mine has been completed with results pending. Drilling
to test this structure over a strike length of 1 kilometre has now
commenced.
In the Victoria-Santa Maria area, twelve (12) holes totaling
2,618 metres have been completed at approximately 100 metre spacing
to test the structure between the two mining areas that previously
had very little drilling. All holes have intersected mineralized
structures. Results have been received for the first five (5) holes
only but no significant values were returned.
Induced Polarization/Resistivity surveys totaling 38.6 line
kilometres in 21 lines have been completed to explore the potential
strike extension over approximately 3 kilometres of the
Mojon-Crimea structures as well as satellite structures to the
immediate northeast of the mine area. This survey has outlined a
number significant anomalies including two major chargeability
anomalies 1.2 kilometres and 2.5 kilometres northeast of the mine
area respectively, as shown below in Figure 2. The chargeability
response likely results from sulphide mineralization in an
alteration envelope. These anomalies are highly prospective for
gold. Significantly, the chargeability is stronger at depth than at
the surface which explains why this area has received little
previous attention and there is a lack of small miner activity. Dr.
Chris Hale, P.Geo. consulting geophysicist who supervised the work
and is a Qualified Person as defined by National Instrument 43-101
has recommended an initial program of 8 drill holes to test these
anomalies. The targets have been ground checked and the hole
locations confirmed. Drilling commenced at the end of June.
Dr. Bill Pearson, P.Geo. commented "The program at Orosi has
accelerated significantly over the past two months with our
improved understanding of the geology and distribution of gold
mineralization. It is evident that the Mojon-Crimea structure
extends much further to the northeast and the results of the IP
survey have outlined strong anomalies on this structure as well as
satellite ones with excellent potential to host significant gold
mineralization. In addition, we have obtained a number of positive
drilling results but also have a large backlog of some 1,500
samples pending. The completion of the new office and core logging
facilities has greatly improved the efficiency of our exploration
team."
Mestiza-La India Area
At Mestiza-La India, located 70 kilometres east of Limon, as
previously reported, 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 that a complete epithermal system is
exposed from the lower intrusive at La India 10 kilometres to the
southeast to an area of high level quartz veining 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 Technical Report
dated March 31, 2008 posted on SEDAR). This vein has now been
traced for a strike length of 5 kilometres.
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 of over 800 metres
is associated with the Guapinol vein in the middle of the Mestiza
property. This anomaly persists to the maximum depth as 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 metre drill program to evaluate
these anomalies beginning in August 2008. Geological mapping,
sampling and prospecting is continuing with trenching of selected
areas also planned.
SAMPLING, ASSAYING AND QUALITY CONTROL
The core (NQ 47.6 mm) was 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.
The Limon Mine laboratory uses 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
-------------------------------------------------------------------------
Hole(i) From To Core True Gold Zone
(metres) (metres) Length Width (g/t)
(metres) (metres) ---------------------------
Uncut Cut(ii)
-------------------------------------------------------------------------
LM-08-008 351.61 355.98 4.37 3.3 1.12 Santa Pancha
-------------------------------------------------------------------------
LM-08-009 302.17 304.62 2.45 2.0 3.83 Santa Pancha
-------------------------------------------------------------------------
LM-08-010 216.30 221.73 5.43 5.0 6.25 Santa Pancha
-------------------------------------------------------------------------
LM-08-011 202.61 206.75 4.14 3.9 1.45 Santa Pancha
-------------------------------------------------------------------------
LM-08-012 229.15 233.80 4.65 3.8 7.34 Santa Pancha
-------------------------------------------------------------------------
LM-08-013 195.97 214.25 18.28 15.4 8.76 6.21 Santa Pancha
-------------------------------------------------------------------------
LM-08-014 305.06 312.32 7.26 6.6 6.70 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 Elevation Length Az(i) Dip(i)
(metres)
----------------------------------------------------------------------
LM-08-008 19484.00 13465.00 60.00 402.40 291 -61
----------------------------------------------------------------------
LM-08-009 19457.00 13404.10 61.00 368.15 284 -71
----------------------------------------------------------------------
LM-08-010 19393.40 13598.50 56.00 248.70 291 -60
----------------------------------------------------------------------
LM-08-011 19363.50 13463.50 64.00 247.40 291 -42
----------------------------------------------------------------------
LM-08-012 19363.50 13463.50 64.00 266.86 291 -57
----------------------------------------------------------------------
LM-08-013 19385.00 13555.98 60.04 272.85 291 -58
----------------------------------------------------------------------
LM-08-014 19457.50 13404.10 61.00 346.60 284 -52
----------------------------------------------------------------------
(i) All measurements are in metres except Azimuth (Az) and Dip which
are measured in degrees.
Table 2A. Summary of Drilling Results San Juan and
Victoria-Santa Maria Areas, Orosi Mine
--------------------------------------------------------------------------
Hole(i) From To Core True Gold Zone
(metres) (metres) Length Width (g/t)
(metres) (metres) -------------------------
Uncut Cut(ii)
--------------------------------------------------------------------------
San Juan Target
--------------------------------------------------------------------------
SJ-08-007 50.29 55.16 4.87 4.3 2.13 San Juan
--------------------------------------------------------------------------
62.93 65.07 2.14 1.9 18.28 13.26 San Juan
--------------------------------------------------------------------------
SJ-08-008 60.96 69.70 8.74 7.6 2.86 San Juan
--------------------------------------------------------------------------
SJ-08-009 117.87 119.87 2.00 4.0 0.59 San Juan
--------------------------------------------------------------------------
SJ-08-010 40.97 48.28 7.31 6.7 2.27 San Juan
--------------------------------------------------------------------------
SJ-08-011 151.37 157.19 5.82 5.1 1.31 San Juan
--------------------------------------------------------------------------
Drill Program Victoria-Santa Maria Target
--------------------------------------------------------------------------
VICSM-08-001 87.24 89.14 1.90 2.0 1.57 Vict-Sta. Ma.
--------------------------------------------------------------------------
VICSM-08-002 nsv Vict-Sta. Ma.
--------------------------------------------------------------------------
VICSM-08-003 nsv Vict-Sta. Ma.
--------------------------------------------------------------------------
VICSM-08-004 nsv Vict-Sta. Ma.
--------------------------------------------------------------------------
VICSM-08-005 nsv Vict-Sta. Ma.
--------------------------------------------------------------------------
(i) All holes are NTW 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.
(iii) nsv equals no significant values
Table 2B: Collar Coordinates and Orientation of Drill Holes, San Juan,
Victoria-Santa Maria, Mojon, Los Angeles and Mojon targets, Orosi Mine
--------------------------------------------------------------------------
Hole Easting Northing Elevation Length Az(i) Dip(i)
(metres)
--------------------------------------------------------------------------
San Juan
--------------------------------------------------------------------------
SJ-08-007 51355.00 48481.00 495.00 150.82 135 -50
--------------------------------------------------------------------------
SJ-08-008 51268.00 48427.00 478.00 129.54 135 -50
--------------------------------------------------------------------------
SJ-08-009 51248.00 48448.00 463.00 192.02 135 -50
--------------------------------------------------------------------------
SJ-08-010 51285.37 51185.33 482.00 234.69 135 -50
--------------------------------------------------------------------------
SJ-08-011 48934.51 51751.47 503.06 220.90 150 -60
--------------------------------------------------------------------------
SJ-08-012 51077.90 48309.12 474.25 132.58 170 -47
--------------------------------------------------------------------------
Victoria-Santa Maria
--------------------------------------------------------------------------
VICSM-08-001 49969.92 49553.89 477.50 316.99 330 -56
--------------------------------------------------------------------------
VICSM-08-002 50047.90 49623.16 502.01 225.55 330 -45
--------------------------------------------------------------------------
VICSM-08-003 50068.16 49587.56 491.66 278.89 330 -50
--------------------------------------------------------------------------
VICSM-08-004 49877.60 49516.45 473.86 220.98 330 -50
--------------------------------------------------------------------------
VICSM-08-005 49909.05 49463.36 492.53 201.16 330 -55
--------------------------------------------------------------------------
VICSM-08-006 49815.17 49427.71 498.51 164.59 330 -47
--------------------------------------------------------------------------
VICSM-08-007 49815.51 49427.06 489.62 160.02 330 -70
--------------------------------------------------------------------------
VICSM-08-008 49623.77 49506.80 453.12 280.41 150 -35
--------------------------------------------------------------------------
VICSM-08-009 49582.59 49427.22 457.84 245.36 150 -40
--------------------------------------------------------------------------
VICSM-08-010 49620.10 49362.26 448.89 152.40 150 -40
--------------------------------------------------------------------------
VICSM-08-011 49591.94 49199.19 467.68 246.88 325 -45
--------------------------------------------------------------------------
VICSM-08-012 49549.81 49284.49 466.81 123.44 360 -50
--------------------------------------------------------------------------
Los Angeles
--------------------------------------------------------------------------
AN-08-001 51827.83 49380.99 505.83 152.09 160 -50
--------------------------------------------------------------------------
AN-08-002 51941.03 49431.90 504.35 149.35 160 -50
--------------------------------------------------------------------------
AN-08-003 51656.26 49358.64 498.95 263.04 160 -50
--------------------------------------------------------------------------
Mojon
--------------------------------------------------------------------------
MJ-08-003 47999.94 49299.72 543.76 131.06 360 -50
--------------------------------------------------------------------------
MJ-08-004 47902.97 49269.62 559.37 249.93 360 -45
--------------------------------------------------------------------------
MJ-08-005 47901.57 49431.37 577.82 193.54 360 -45
--------------------------------------------------------------------------
MJ-08-006 48337.04 49553.42 569.64 274.32 190 -60
--------------------------------------------------------------------------
MJ-08-007 48235.88 49554.97 577.16 196.59 190 -50
--------------------------------------------------------------------------
MJ-08-008 47900.00 49330.00 573.90 166.41 180 -60
--------------------------------------------------------------------------
MJ-08-009 47981.00 49177.00 552.00 71.62 330 -45
--------------------------------------------------------------------------
(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 by road 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, exploring its extensive land holdings
and seeking strategic mergers or acquisitions in the Americas.
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, 2007 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.
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/csm0702a.pdf
To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/csm0702b.pdf
Contacts: Central Sun Mining Inc. Andre Bharti Investor
Relations (416) 860-0919 Email: ir@centralsun.ca Website:
www.centralsun.ca
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