/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK EXCHANGE
PERTH, Western Australia, Sept. 20, 2011 /CNW/ - The Board of CGA Mining
Limited ("CGA", "the Company") (TSX Code : CGA, ASX Code : CGX) is pleased to announce that it has agreed to acquire 100% of the
interests of Bloomsbury Holdings Limited in the companies owning a
direct and indirect interest in the highly prospective Pajo MPSA,
immediately to the north of our Colorado Pit. Exploration activities
have already commenced on the MPSA with the first hole drilled,
returning 85m @ 0.85g/t Au including 14m @ 1.26g/t Au from surface. The assays were conducted by SGS at their onsite laboratory using Fire
Assay techniques with a 50g charge.
The entire hole was mineralised and was drilled to intersect the central
- northern end of the mineralised zone from the eastern side of the
hill. Due to drilling difficulties the hole was stopped in
mineralisation. The intercept showed the same style of mineralisation,
degree of alteration and multi-veining that is seen in the immediately
adjacent Colorado deposit, which together with Main Vein in the south
of the property, are the two main deposits of the Masbate Gold Project.
Logging of completed holes and comparisons with the historical holes
shows that most of the historical drilling did not penetrate the full
width of the mineralised zone and any previous resource estimations
would have underestimated the size of the zone.
The initial Pajo exploration program consists of 3000m of RC drilling
(22 holes) and 4850m of diamond core drilling (20 holes) and will
target the central 500m strike of the main mineralised zone. The holes
will have a target vertical depth of 140m and a line spacing of 40m. To
date 12 RC holes have been completed and this is only the first of the
assays to be returned.
The Pajo program is part of a total exploration program of US$20M which
will include 172,000m of drilling on the Masbate tenements for fiscal
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 153,410,000 tonnes @ 0.92g/t Au giving 4.55M
ounces of gold, total inferred resource base of 127,150,000 tonnes @
0.79g/t Au giving 3.22M ounces of gold and a probable reserve of
92,236,000 tonnes @ 1.02g/t Au giving 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 is completing a US$15M investment
program designed to upsize throughput to 6.5Mtpa at Masbate. Once this
is completed and the SAG mill brought back on line 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 Geoff.G.Jones, F.Aus.I.M.M.CP Mng, CGA's Consulting Engineer, 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, 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
2010 filed with the Canadian securities regulatory authorities on the
SEDAR website at sedar.com.
Image with caption: "Topographic map of Pajo (CNW Group/CGA Mining Limited)". Image available at: http://photos.newswire.ca/images/download/20110920_C4886_PHOTO_EN_3483.jpg
SOURCE CGA Mining Limited
For further information:
| Australian Contact |
President & CEO - Michael Carrick
| US Contact |
Independent Chairman - Mark Savage
| Tel: +61 8 9263 4000 |
Fax: +61 8 9263 4020
| Tel: +1 505 344 2822 |
Fax: +1 505 344 2922