/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES
PERTH, Western Australia, Feb. 3, 2012 /CNW/ - The Board of CGA Mining
Limited ("CGA", "the Company") (TSX Code : CGA, ASX Code : CGX) is
pleased to report the first month of production, following the repairs
to the SAG mill, has resulted in a throughput of 479,305 tonnes for
January, compared to December of 263,762 tonnes - an 82% increase in
throughput for the month. Throughput was impacted by bedding down the
circuit at the start of the month and having a scheduled ball mill
reline for a week.
The mill feed grade was 1.15g/t (December 1.17g/t) and the recovery was
87% (December 90.5%), resulting in production for the month of January
of 15,352ozs (December 8,947ozs), up 71% for the month.
Once the ball mill was brought back on line at the end of the month,
throughput was at a steady state 6.5mtpa production rate.
ABOUT CGA MINING LIMITED
CGA is listed on the main board of the Toronto Stock Exchange and ASX.
The Masbate Gold Project in the Philippines was successfully
constructed with first gold poured mid 2009. The project has a total
indicated resource base of 4.55M ounces of gold, total inferred
resource base of 3.22M ounces of gold and a probable reserve of 3.03M
ounces of gold.
The 4Mtpa designed plant was constructed by Leighton Contractors Asia
Limited ("Leighton") without one lost time injury. The mining contract
for the Masbate Gold Project has been awarded to Leighton, the largest
mining contractor in the world. CGA has completed a US$15M investment
program designed to upsize throughput to 6.5Mtpa at Masbate. The
project is forecast to produce at a rate of over 200,000 ounces per
annum (year ended 30 June 2011: 190,033 ounces).
CGA has an aggressive exploration strategy. It is planned to undertake
172,000m of drilling at a cost of US$20M over the next twelve months.
CGA has a disciplined acquisition program focused on acquiring new gold
projects with a substantial initial resource with the capacity to grow
materially and where the development and operational experience of CGA
can be applied to enhance shareholder value.
NATIONAL INSTRUMENT 43-101 AND JORC COMPLIANCE
Mr Mark Turner, BE Min(Hons), M.Aus.I.M.M.CP Man, CGA's Chief Operating
Officer, is acting as the Qualified Person in compliance with NI 43-101
and JORC reporting requirements with respect to this announcement. He
has prepared and or supervised the preparation of the scientific or
technical information in this announcement and confirms compliance with
NI43-101 and JORC requirements.
Further information relating to the Masbate Project is included in the
technical report entitled Technical Report on the Mineral Resources of
the Masbate Deposit, Masbate Province, Republic of the Philippines for
CGA Mining Limited prepared by Mining Associates Pty Ltd and available
on SEDAR at sedar.com, lodged 8 July 2008.
Andrew James Vigar of Mining Associates Pty Ltd, a qualified person, has
verified the resource statement for the Masbate Project as disclosed in
this announcement, including sampling, analytical and test data
underlying the estimate. Verification of the data included numerous
site visits, database validation of historical drill results and review
of sampling and assaying protocols. The qualified person was satisfied
with the verification process.
A NI 43-101 compliant report has been lodged on sedar.com verifying and
supporting the new reserve statement made for the Masbate Project. Mr
Daniel Tuffin, previously of Lower Quartile Solution Pty Ltd, a
qualified person, has verified the reserve statement for the Masbate
Project as disclosed in this announcement, including sampling,
analytical and test data underlying the estimate. Verification of the
data included database validation of historical drill results and
review of sampling and assaying protocols. The qualified person was
satisfied with the verification process.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This announcement includes certain "forward-looking statements" within
the meaning of Canadian securities legislation. All statements, other
than statements of historical fact, included herein including, without
limitation, statements regarding milestones related to the Masbate Gold
Project, production estimates and CGA's future operating or financial
performance, are forward-looking statements. Forward-looking statements
involve various risks and uncertainties and are based on certain
factors and assumptions. There can be no assurance that such statements
will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from CGA's
expectations include uncertainties related to fluctuations in gold and
other commodity prices and currency exchange rates; uncertainties
relating to interpretation of drill results and the geology, continuity
and grade of mineral deposits; uncertainty of estimates of capital and
operating costs, recovery rates, production estimates and estimated
economic return; the need for cooperation of government agencies in the
development of CGA's mineral projects; the need to obtain additional
financing to develop CGA's mineral projects; the possibility of delay
in development programs or in construction projects and uncertainty of
meeting anticipated program milestones for CGA's mineral projects; and
other risks and uncertainties disclosed under the heading "Risk
Factors" in CGA's Annual Information Form for the year ended 30 June
2011 filed with the Canadian securities regulatory authorities on the
SEDAR website at sedar.com.
SOURCE CGA Mining Limited
For further information:
| Australian Contact || || || || || US Contact |
| President & CEO - Michael Carrick || || || || || Independent Chairman - Mark Savage |
| Tel: || +61 8 9263 4000 || || || || || Tel: || +1 505 344 2822 |
| Fax: || +61 8 9263 4020 || || || || || Fax: || +1 505 344 2922 |
| Email: email@example.com || || || || || Email: firstname.lastname@example.org |