Central Sun Mining Inc. ("Central Sun" or the "Company") (TSX:
CSM)(TSX: CSM.WT)(AMEX: SMC) is pleased to provide the following
update on its Orosi Mine Mill project and the Limon Mine. The
Company continues to make steady progress that will position
Central Sun as an emerging gold producer with expected annual
production at a rate of 125,000 ounces per year once the Orosi Mine
returns to production.
For additional information, visit our website www.centralsun.ca
for up-to-date pictures and highlights of these developments.
Orosi Mine Mill Project
Highlights
- Permit granted for construction of main transmission line
- Permit received to connect to national grid
- Central Sun receives designation as large power consumer
- All land purchases completed for transmission line
right-of-way
- Concrete work 45% complete
- ADR Plant refurbishing 70% complete
- Tailing Dam construction 20% complete
- Community improvement initiatives started in nearby town of La
Libertad
"The operations team has done an exceptional job of advancing
the construction and development of the Orosi Mill Project to
ensure that the project is completed and the mine is returned to
production. In addition, the team has continued to work closely
with the local community and the Nicaraguan Governmental agencies"
commented Peter Tagliamonte, President and CEO.
Central Sun is currently converting the Orosi Mine from a heap
leach operation to a conventional milling operation. Based on
extensive metallurgical testing, once the conversion is complete
recoveries are anticipated to increase from 38% previously achieved
from heap leaching to over 90% with the new conventional mill.
Production is expected to start in the first quarter of 2009 at a
rate of approximately 85,000 ounces of gold per year. A positive
feasibility study was completed in May 2008 by Scott Wilson from
Roscoe Postle Associates Inc. ("Scott Wilson"). Proven and probable
mineral reserves are estimated by Scott Wilson at 11.0 million
tonnes at 1.44 grams of gold per tonne containing 510,000 ounces of
gold (see Press Release dated May 8, 2008). The mill construction
is progressing as planned, and all environmental permits required
for production, including the tailings facility are in place.
The Nicaraguan Department of the Environment has granted Central
Sun the necessary environmental permits for the construction of the
main transmission line required to supply electrical power to the
Orosi Mine. In addition, Central Sun has obtained the required
permits from ENATRAL, the Nicaraguan Governmental agency
responsible for electrical power transmission. These include the
construction permit for the erection and construction of the power
line; the permit required to connect to the national grid; and the
permit recognizing Central Sun as a large power consumer, which
will enable the company to negotiate more cost effective power
rates.
Central Sun has also successfully completed the purchase of all
the land required for the right-of-way access for the transmission
line and for the main electrical/transformer substation for the
Orosi Mine. The mine is located 110 kilometres east of Managua, the
capital city of Nicaragua and 30 kilometres from the country's main
power grid. This purchase, in conjunction with the issuance of all
the required environmental permits, allows Central Sun to move
ahead with the detailed engineering required for the transmission
line. Central Sun has purchased the major electrical equipment,
supplies and sub-stations required to complete the transmission
line. Construction activities with the selected contractor are
anticipated to start in October 2008.
The construction of the mill and major facilities foundations
have been progressing well, with approximately 600 personnel,
employees and contractors, working on site. To date Central Sun has
completed 45% of the required concrete work.
The main construction contractor is on schedule. Refurbishing of
the mill's major mechanical equipment is finished and ready for
installation once the foundation concrete work is completed. The
company has also finished refurbishing and upgrading of the ADR
(Absorption, Desorption, and Recovery) plant and has started the
electrical and instrumentation upgrade.
The tailings dam construction under the engineering guidance of
Tetra Tech International is on track and progressing well with the
contractor responsible for earth moving at the tailings dam meeting
all of the scheduled commitments. The tailings facility is expected
to be commissioned at the beginning of 2009.
The Orosi laboratory expansion is in progress with construction
expected to be completed by the end of November. Commissioning is
scheduled to commence as soon as the construction is complete and
the new laboratory equipment is installed.
The company continues to emphasize safety and proper work
standards and Central Sun is proud that the Orosi Mill project has
continued to maintain an excellent safety record.
Complementing these project developments, the company has
continued to maintain a good relationship with the employees and
the community. Central Sun is involved in supporting many positive
initiatives in the area, including the "Water for Life" project for
the town of La Libertad, which includes the installation of a main
water tank and a water distribution system, as well as lighting
projects.
Limon Mine
Highlights
- On track for sales of 45,000 ounces in 2008
- Metallurgical recovery improved to 86% from 82% in 2007
- Mechanized developments started at Veta Nueva satellite
deposit to provide higher grade mill field
- Continuous improvements in equipment availability, operations
and work schedules to optimize the efficiency of the mill
facility
- Community improvement initiatives continue in nearby town of
Limon
"We are very pleased with the steady progress the operations
team has been making, especially in the recovery improvements at
the milling facilities. Santa Pancha production has been increasing
as planned and the exploration continues to outline new mineralized
zones significantly increasing the potential of Santa Pancha. The
start of development at Veta Nueva will allow the Talavera mining
teams to remain active and develop the potential of this area."
commented Peter Tagliamonte, President and CEO.
The Limon Mine has been operating continuously since 1941 and
has produced over 3,000,000 ounces of gold. The mine is a fully
mechanized underground mining operation with proven and probable
reserves of 1.4 million tonnes grading 4.89 grams of gold per tonne
containing 217,200 ounces of gold as of December 31, 2007. The
Limon Mine has been operating and meeting expectations with gold
sales remaining on track to achieve 45,000 ounces in 2008.
Recoveries at the Limon mill have increased significantly from
the 82% in late 2007 to 86% currently following upgrades to
mechanical installations and procedural improvements.
Central Sun is pleased to announce that mechanized development
has started at the satellite Veta Nueva deposit, located 4
kilometres from the Limon mill facility. The Veta Nueva deposit
will allow the Company to extract higher grade material to
supplement the mill feed. Probable mineral reserves are estimated
at 182,500 tonnes grading 5.71 grams gold per tonne containing
33,500 ounces of gold as of December 31, 2007 (see Annual
Information Form dated March 31, 2008). There is excellent
potential to expand these reserves both along strike and at
depth.
Operational improvements in ventilation and modification of work
schedules and shifts have increased productivity in both the
underground mining operation and in the mill facilities at the
Limon Mine. Costs saving initiatives have been implemented and
these are expected to reduce mining costs.
The company continues to emphasize safety and proper work
standards and Central Sun is proud that the Limon Mine operations
have continued with an excellent safety record.
Committed to making a favourable impact on local communities,
Central Sun is proud to be involved in many positive initiatives in
the area. These include the transfer of 88 company homes to local
families and the "Water for Life" project similar to the initiative
started at La Libertad, which includes the installation of a main
water tank and a water distribution system in the town of Limon.
The Company is also supporting the town's application to become a
fully recognized municipality, which will benefit the town and its
residents with tax revenue coming from the Limon Mine.
QUALIFIED PERSON
Graham Speirs, P. Eng., COO for Central Sun Mining, is the
Qualified Person responsible for the disclosure as defined by
National Instrument 43-101. The internal quality control
information were reviewed and verified by Mr. Speirs. Mr. Speirs
has read and approved this news release.
About Central Sun Mining Inc.
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 Inc. 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 news
release contains certain "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, and "forward-looking information" under similar
Canadian legislation, concerning the business, operations and
financial performance and condition of the Company. Forward-looking
statements and risk factors include, but are not limited to,
statements with respect to the implementation of the Company's
strategic plan; the future financial or operating performance of
the Company, its subsidiaries and its projects; the future price of
gold; expectation that the Orosi Mill feasibility study will be
positive; capital requirements for completion of the Orosi Mill
project; successful implementation of the Orosi Mill project; the
estimated Orosi Mill recovery rates; the estimation of mineral
reserves and resources, the realization of mineral reserve
estimates; the timing and amount of estimated future production;
costs of production; operating and exploration expenditures; mining
or processing issues; costs and timing of the development of new
deposits; costs, timing and success of future exploration;
government regulation of mining operations; permitting time lines
and permitting; labour disruptions; environmental risks;
unanticipated reclamation expenses; title disputes or claims;
limitations on insurance coverage; and the timing and possible
outcome of pending litigation and regulatory matters. Generally,
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", "anticipates" or "believes" or variations of such
words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved".
Forward-looking statements are based on the opinions and
estimates of the Company as of the date such statements are made,
and they 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 laws.
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. Caroline Arsenault Investor
Relations (416) 860-0919 x223 (416) 367-0182 (FAX) Email:
ir@centralsun.ca Website: www.centralsun.ca
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