CGA ANNOUNCES LATEST EXPLORATION RESULTS

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK EXCHANGE

PERTH, Western Australia, May 25, 2011 /CNW/ -

HIGHLIGHTS

Hole LERC001, 6m @ 1.34g/t Au from a depth of 149m.

Hole LERC001, 9m @ 1.55 g/t Au from a depth of 169m.

Hole LERC001, 5m @ 1.04 g/t Au from a depth of 180m.

Hole LERC002, 14m @ 2.25g/t Au from a depth of 131m

Hole CWD119, 37m @ 0.95g/t Au from a depth of 38m.

Hole CWD119, 30m @ 1.57 g/t Au from a depth of 92m.

Hole MVRC043, 7m @ 7.11g/t Au from a depth of 4m.

Hole MVRC046, 11m @ 1.95g/t Au from a depth of 57m.

Hole MVRC049, 17m @ 1.90 g/t Au from a depth of 17m.

Hole MVRC052, 17m @ 1.88 g/t Au from a depth of 0m.

Hole MVRC055, 32m @ 1.98 g/t Au from a depth of 74m.

The Boards of CGA Mining Limited ("CGA", the "Company") (TSX: CGA) (ASX: CGX) and Filminera Resources Corporation are pleased to provide additional new exploration results from recent drilling.  High grade drilling intercepts have been identified at Libra East which is immediately adjacent to the Main Vein Pit. An extension of highly mineralised quartz veining has also been identified immediately to the north of the current planned Colorado Pit.

See http://files.newswire.ca/578/CGA_Mining_Figure_1.pdf for Fig. 1: Location of Libra East and Colorado Holes.

The Libra East pit forms the north western end of the planned Main Vein Pit. The current design is limited by drill data and not mineralisation extents. Three holes of a 13 hole program have been completed, with partial assays returned for holes LERC001 and LERC002. These results are very encouraging and point to potential for adding additional resources at Libra East.

The Grandview Pit forms the northern part of the main Colorado Pit. Recent exploration drilling 300m to the NNW of Grandview has intersected a mineralised quartz vein - stockwork system which appears to be an extension of the mineralisation currently being mined. Further drilling, including scissor holes, is planned for this area.

A program of resource infill drilling is also being conducted in the planned Main Vein Pit. The 41 hole program is targeting the inferred section of 4 major veins within the Binstar zone as well as the Main Vain zone itself. To date 25 holes have been drilled with results returned for the first 13. As expected, broad zones of mineralisation have been intersected in the majority of the holes. The drilling results were analysed by McPhar Geoservices (Philippines) Inc.

Set out in Table 1 are the results for the better intersections of the drilling in the 3 areas.

Hole-ID Easting Northing RL Azm Dip Total
Depth
 From  To  Down Hole 
Width (m)
True
 Width (m) 
 Grade 
(g/t)
Comments
LERC001 29750.286 25397.99 98.813 28 -65  222.6  149  155  6 4 1.34  
              157 166 9 6 0.86  
              169 178 9 6 1.55  
including             173 174 1   3.6  
              180 185 5 3 1.04  
LERC002 29750.545 25398.669 98.868 28 -54 184.3 131 145 14 13  2.25  
including             135 139 4   3.27  
CWD119 29886.435 27593.02 172.198 50 -55 126 38 75 37 ? 0.95  Not enough data to 
estimate true width
              92 122 30 ? 1.57 Not enough data to
estimate true width
including             99 100 1   3.96  
including             101 102 1   4.67  
including             103 104 1   4.43  
including             106 107 1   4.67  
including             111 112 1   7.63  
including             114 115 1   4.08  
 MVRC043  30536.873 24980.076 85.036 254 -61 88 4 11 7 3 7.11  
including             4 6 2   23.64  
MVRC044  30528.426   25026.625  84.878 250 -61 97 4 8 4 2 1.15  
MVRC046 30560.234 24934.38 84.871 250 -58 111 0 8 8 7 1.07  
including             1 2 1   3.89  
              57 68 11 8 1.95  
including             86 87 1   3.95  
MVRC047 30580.187 24920.819 84.835 75 -71 151 10 16 6 2 1.65  
including             14 15 1   5.87  
              32 36 4 2.5 2.23 Void from 36 - 38m
              91 97 6 4.7 1.77  
MVRC048 30530.179 25004.092 84.886 66 -71 148 34 40 6 6 1.11 Void from 40 - 43m
              43 49 6 6 1.61  
              123 127 4 2.4 1.55  
MVRC049 30558.188 24965.28 84.942 73 -68 124 0 15 15 14 1.41  
including             3 4 1   3.86  
including             9 10 1   3.05  
              17 34 17 8 1.9  
including             23 25 2   5.49  
              81 90 9 6 1.44  
including             86 87 1   3.95  
MVRC050 30576.09 24892.013 85.161 253 -54 145 3 25 22 15 2.67  
including             15 17 2   16.91  
including             22 23 1   3.51  
              38 69 31 18 1.37  
including             49 50 1   3.89  
              92 106 14 7 1.42  
including             96 97 1   5.4  
MVRC052 30603.301 24796.589 109.385 34 -63 139.5 0 17 17 8 1.84  
including             5 6 1   5.31  
including             10 11 1   8.35  
including             12 13 1   5.34  
MVRC053 30590.451 24777.711 110.03 34 -70 78 42 46 4 1.4 1.22  
MVRC055 30569.015 24818.603  110.128   221   -58  153 53 66 13 7 1.01  
including             58 59 1   3.34  
              74 106 32 17 1.98  
including             88 93 5   4.58  
including             99 100 1   7.17  
including              103  104 1   3.15  

ABOUT CGA MINING LIMITED

CGA is listed on both the main board of the Toronto Stock Exchange and the Australian Securities Exchange.  It is a member of the S&P/TSX Global Gold Index and the S&P/TSX Global Mining Index.

The Masbate Gold Project is the largest gold project in the Philippines and was successfully developed with first gold poured in May 2009. The project has a total indicated resource base of 4.55M ounces (153.41mt @ 0.92 g/t), total inferred resource base of 3.22M ounces (127.15mt @ 0.79 g/t)and a probable reserve of 3.03M ounces (92.2mt @ 1.0g/t) of gold.  In its first year of operation the project produced in excess of 150 000 ounces and is on track to produce at a rate of around 200,000 ounces per annum.  The 4Mtpa plant was constructed by Leighton Contractors Asia Limited ("Leighton") without one lost time injury. The mining contract for the Masbate Gold Project was awarded to Leighton, the largest mining contractor in the world.

CGA is currently upgrading the process plant to lock in a throughput rate of 6.5Mtpa. An aggressive US$10M exploration program is underway at the Masbate Gold Project focussed on both the conversion of additional resources to reserves and delineating new reserve and resource ounces.

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 www.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 www.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 the drill results and the potential of such results, and other milestones related to the Masbate Gold Project and other projects, 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 www.sedar.com.

 

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
Email:  mcarrick@cgamining.com 
        Tel:  +1 505 344 2822
Fax:  +1 505 344 2922
Email: marksavage@comcast.net

 

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CGA Mining Limited

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