Central Sun Expands Potential Production Pipeline With the Cerro Quema Property
26 Gennaio 2009 - 2:30PM
Marketwired
Central Sun Mining Inc. (TSX: CSM)(NYSE Alternext US: SMC)
("Central Sun" or the "Company") is pleased to announce that it has
regained majority control (60%) of the Cerro Quema gold property in
Panama.
Peter Tagliamonte, President and Chief Executive Officer of
Central Sun, commented: "We are very pleased with the return of the
Cerro Quema property. Central Sun intends to immediately review the
geological, engineering and construction work that has been
completed on the property. The return of a 60% interest in Cerro
Quema provides Central Sun with an additional potential future
stream of gold development and production opportunity in our
operating base of Central America. Once we have completed our
review of the current stage of development at the Cerro Quema
property, we will provide further updates."
Cerro Quema
Central Sun holds a 60% interest in the Cerro Quema Project
located in Panama. A NI 43-101 feasibility study completed in May
2004 for the previous owners, RNC Gold Inc., which is available on
www.sedar.com, indicated positive economics.
While previous studies indicated strong potential for Cerro
Quema, Central Sun considers these as historical estimates and
cautions investors that the project economics need to be updated in
light of current economics and gold prices.
The Cerro Quema project area is located on the Azuero Peninsula
in Los Santos Province of southwestern Panama, about 45 kilometers
southwest of the provincial city of Chitre and about 190 kilometers
southwest of Panama City. Central Sun originally acquired the 60%
interest in the Cerro Quema Project from Yamana Gold through an
equity asset transaction in 2006. Central Sun subsequently sold its
interest in the property (see October 1, 2007 press release). The
60% interest in Cerro Quema was returned to Central Sun after the
purchaser defaulted on the payment due on December 31, 2008.
Linear Gold Debenture
In conjunction with its previously announced business
combination with Linear Gold Inc. ("Linear"), Central Sun is
pleased to announce that it has completed a CDN$2.5 million
debenture financing with Linear. Amounts outstanding under the
debenture will become intra-corporate debt upon the successful
completion of the business combination. The debenture shall be
repayable within 60 days of any termination of the proposed
business combination. In certain circumstances, Central Sun can
elect to repay any amount outstanding under the debenture through
the issue of Central Sun common shares.
About Central Sun
Central Sun Mining Inc. is a gold producer with mining and
exploration activities focused in Nicaragua. Central Sun 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 a 60% interest in the Cerro Quema Project in
Panama, a 100% interest in La India property and an option to
acquire a 100% interest in the Mestiza gold property both of which
are located 70 kilometres by road east of its operating Limon Mine.
The Company is focused on efficient and productive mining practices
to establish high quality and cost effective operations. Central
Sun 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 Information This press
release contains "forward-looking information" within the meaning
of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements regarding
the terms of the proposed business combination with Linear Gold and
the benefits of such combination, exploration prospects, the
identification of mineral reserves and resources, costs of and
capital for exploration and development projects, exploration and
development expenditures, timing of future exploration and
development activities, expected production, 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, forward-looking information 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 information is based on various assumptions and
on the best estimates of CSM as of the date hereof, and is subject
to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or
achievements of CSM to be materially different from those expressed
or implied by such forward-looking information, including but not
limited to: transaction risks; risks relating to the completion of
the transaction with Linear Gold and the integration of the two
companies following combination; general business, economic,
competitive, political and social uncertainties; the actual results
of current exploration activities; delay or failure to receive
board or regulatory approvals; timing and availability of external
financing on acceptable terms; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined;
future prices of mineral prices; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; and, delays in obtaining
governmental approvals or required financing or in the completion
of activities, and as well as those risks identified under "Risk
Factors" disclosure sections in the documents filed under the
profile of CSM on SEDAR from time to time. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information 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 information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
Contacts: CENTRAL SUN MINING INC. Peter Tagliamonte President
and Chief Executive Officer (416) 860-0919 Email:
ir@centralsun.ca
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