CGA announces record quarterly gold production and plant throughput

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

JUNE QUARTERLY REPORT
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND
AUSTRALIAN SECURITIES EXCHANGE
31 JULY 2012

HIGHLIGHTS


  • Record gold production from the plant of 50,817 ounces (March Qtr 49,199 ounces)
  • Record mill throughput of 1,728,751 tonnes (March Qtr 1,586,549 tonnes)
  • Average throughput rate for the quarter equivalent to 6.9mtpa
  • Cost per tonne fell to $22.76 from $23.24 in the March Qtr
  • Cash operating cost US$784/oz (March Qtr $753/oz)
  • Gross project operating cash flow of US$28.8M
  • Cash and liquid assets as at 30 June 2012 were US$151.4M
  • Summary of significant exploration drilling intersections for the quarter

Location Hole ID Intercept width Grade (g/t Au) Depth From
Libra East LERC040 24m 1.37 surface
  LERC040 13m 1.96 252m
  LERC042 36m 2.24 90m
  LERC044 28m 1.47 131m
  LERC047 73m 1.30 177m
  LERC049 26m 1.85 193m
  LERC060 25m 1.77 152m
Main Vein MV019 53m 1.28 204m
Panique PQRC094 10m 1.59 116m
  PQRC096 12m 1.43 30m
HMBNW HMBNW026 22m 1.27 167
  HMBNW028 19m 1.24 187m
Old Lady ODRC042 27m 1.20 129m
Colorado COL035 24m 1.36 71m

 

PERTH, Western Australia, July 31, 2012 /CNW/ -

MASBATE GOLD PROJECT UPDATE

  Ore Mine
(t)
Average
Grade
Mined
(g/t Au)
Ore
Milled (t)
Head
Grade
(g/t Au)
Recovery
(%)
Plant
Availability
(%)
Total
Production
(oz Au)
Cash
Operating
Costs
(US $/oz)
June
Quarter
1,599,837 1.06 1,728,751 1.05 83.3 93.4 50,817 784
March
Quarter
1,611,639 1.11 1,586,549 1.12 86.4 94.1 49,199 753

Processing

The process plant throughput increased 9% to 1,728,751 tonnes at 1.05g/t (March Qtr 1,586,549 tonnes at 1.12g/t) which is a new quarterly throughput record.

Gold production increased 3% to a new quarterly record of 50,817 oz (March Qtr 49,199 oz) at a recovery of 83.3% (March Qtr 86.4%). The movement in the recovery % was affected primarily by decreased residence time.

Plant availability remained good at 93.4% (March Qtr 94.1%) with all areas of the plant performing well.  The SAG mill continued to operate trouble free since recommissioning on 25 December with average throughput rates for the quarter of 6.9mtpa.

Cash costs rose slightly to $784/oz (March Qtr $753/oz). This is mainly attributable to reduced feed grade to the mill.

Cash costs per tonne milled continued to fall to $22.76 compared to $23.24 in the March quarter.

The gross project operating cash flow before working capital for the quarter was US$28.758M (March quarter was US$29.896M) from gross gold proceeds of sale of US$65.915M.

Safety

There were no Lost Time Injuries in the quarter with the site achieving 398 days without a lost time injury to result in an LTI Frequency rate of 0.

Mining and Geology

Mine production eased 7% to 2,370,565 BCM (March Qtr 2,547,823 BCM) to produce 1,599,837 tonnes of ore (March Qtr 1,611,639 tonnes) from Colorado, Binstar, HMB East and Main Vein pits. Main Vein and Colorado pits were the major sources of ore as Binstar pit, which has provided the majority of ore this year, will be completed in the September quarter.

Optimisation Study

The Lycopodium Optimisation Study to determine the options for upgrading plant capacity via stepped increases in capital expenditure nears completion with capital and operating estimates under final consultant review.

Exploration and Near Mine Resource Drilling Summary

Drilling this quarter was split between the Mining Lease area targeting resource infill and upgrade at Panique,  Main Vein, Libra East, Libra West, Montana, HMBNW, and  Colorado. Similar drilling was conducted at Blue Quartz and Old Lady prospects within EP -010-2010-V, and 3 exploration holes drilled to test a Cu - Au porphyry target at the Baleno Copper prospect.  A total of 12,285m of reverse circulation ("RC"), 6,847m of diamond core, and 2,415m of RC / core tail drilling were completed.

The best results for the quarter were returned from Libra East where infill drilling has extended the mineralisation below the planned pit floor. HMBNW and Main Vein North Split holes also returned encouraging results.

Regional mapping and sampling continued this quarter completing coverage of the southern extent of EP-010-2010-V (EP10). Results received from this program have identified another anomalous drainage not associated with previously mapped veins or workings.

At the Baleno Cu / Au porphyry prospect, an IP survey was completed during the quarter and produced a number of chargeable anomalies. Drill testing commenced and minor copper mineralisation was noted in the core from two of the holes completed.

Drilling Statistics for June Quarter 2012

Locations RC RC / Diamond Tail Diamond
  Holes Meters Holes Meters Holes Meters
Blue Quartz 28 3539.5        
Colorado 4 742     1 811
HMB North West 14 2089     1 290.3
Libra West 11 1970        
Libra East 8 1448 6 1578.9 4 1594.5
Montana 8 1332        
Main Vein         7 2268
Old Lady 2 312 3 836.4 3 636
Panique 5 852        
Baleno Cu         3 1247.1

Drilling Activities

At Blue Quartz, drilling concentrated on the untested "north splay" with 23 holes, 2556m, completed.  The first results from this program are very encouraging with intersections up to 10m and grades in the 2 - 5 g/t Au range. Results were received for holes completed last quarter in the Blue Quartz Link Zone between Blue Quartz and Old Lady prospects. This area is low lying with no outcrop. Results indicate the mineralised structure is continuous however the grade and widths of mineralisation intersected so far are of lower tenor than Blue Quartz or Old Lady. There is some indication the structure may be offset to the north and further drilling is planned to test this possibility. Drilling also commenced on a 20 hole infill and depth extension program designed to test the down dip extent of the main Blue Quartz mineralisation. So far 9 holes have been completed in this program (no assay results received). In the next quarter the infill program will be completed and a further 8 holes (960m) are planned to test a parallel resistivity anomaly that lies 100m to the NE of the Blue Quartz trend.

At Main Vein North Split diamond core drilling has continued this quarter with 7 holes completed (2268m). Drilling concentrated on the structurally complex western end of the Doris vein where it converges with the Libra East Vein (no results from these holes). Results were received for MV019 which successfully intersected the Main Vein North Split structure (53m @ 1.28 g/t Au from 204m). A further 24 holes, 13,596m, are planned to test the depth extents of the North Split mineralisation below the current pit floor.

Results were received for the last 8 holes in the Binstar Deeps drill program. Drilling here targeted the Star and Binstar Footwall Split veins with a series of holes drilled from the eastern margin of the Binstar Pit to test for extensions of the mineralisation below the planned pit floor. These holes intersected near surface mineralisation within the current pit design. Previous holes in this program successfully delineated additional mineralisation below the planned pit floor in the central Binstar pit area.

At Libra East the current 39 hole program (10,161m) was designed to test the depth extent of the mineralisation and the eastern end of the system. This quarter 18 holes were drilled (4621m). The holes were a combination of RC, RC with diamond tail, and fully diamond cored. Results received this quarter confirm the presence of a consistent, wide, high grade vein system extending over 500m strike. This drill out program is planned to be completed next quarter.

At HMBNW a 17 hole program was completed during the quarter with 14 RC holes, 2089m and one core hole, 290.3m. Assay results from the first 3 holes of the program indicate, there is good potential to increase resources here.

At Colorado the current drilling program is designed to infill previous wide spaced drilling, particularly beneath the planned pit floor. This quarter 4 RC holes were completed before drilling was suspended due to drilling equipment issues
Late in the quarter a rig was moved back to Panique to recommence drilling the central and southern extensions of the Panique vein with 5 holes completed for 852m. Results received during the quarter for holes targeting this vein were encouraging with moderate widths and grades up to 12m @ 1.43g/t Au intersected.  Drilling will move south during the next quarter to test the southern extensions of these veins.

Drilling continued at Old Lady prospect this quarter with 8 holes, (1784.4m) completed. A further 9 holes will be drilled to complete this current program targeting the depth extensions of the mineralisation.  Results from a further 14 holes are outstanding so a final indication of the depth potential for this prospect will not be known until next quarter.

At Libra West holes are planned to convert Inferred resources to Indicated along the eastern part of Libra West Vein and below the old pit floor. An extra two holes are designed as exploration holes to test the continuity of the vein structure to the west where there is no drilling to date. During the quarter 11 holes, 1970m were completed. No assay results have been received as yet.

At Montana, 23 holes are planned to convert inferred resources to indicated resources below the old pit. The block model reveals a total of 1,205,970 tonnes at 1.78g/t Au (69,000oz) in the inferred category for this domain. This quarter 8 holes for 1332m were completed. In addition further drilling is planned along strike to the NW into the Vicar tenement. This area has never been drilled and represents an excellent prospect for delineating additional near mine resources.

The Baleno prospect is located 4km to the SE of the mining area and is centred on a small historic open pit containing copper mineralisation hosted in diorite. Work completed during the quarter included completion of an IP / Resistivity survey and drill testing 3 chargeable anomalies (1247.1m). Geological logging has identified minor copper mineralisation. Logging and partial assays for BPDH002 indicate one of the chargeable targets may be a pyritic, carbonaceous sediment.

Regional Mapping & Sampling

The regional mapping team continued working in the south of Exploration Permit area covering all of the remaining area this quarter.  A total of 316 stream and 361 rock chip samples were taken.

In addition to the anomalies reported last quarter, results from -80# stream sampling have identified an anomaly at Bart- Ag East;  a strongly anomalous drainage with multiple anomalous streams draining an area of 1.5 km2 adjacent to the eastern boundary of the exploration lease due east of the Bart - Ag prospect.

Table of Anomalous Intersections

PANIQUE

Hole-ID Easting Northing RL Azm Dip Total
Depth
From To Down
Hole
Width
(m)
True
Width
(m)
Grade
(g/t)
PQRC077 30442 24662 1083 243 -43 126 16 18 2 1.68 0.83
              48 50 2 1.68 0.5
              99 100 1 0.84 1.28
              111 118 7 5.87 2.84
PQRC078 30382 24748 1115 250 -60 136 10 11 1 0.64 1.88
              25 26 1 0.64 1.93
              29 32 3 1.93 1.77
              35 39 4 2.57 0.38
              44 49 5 3.21 1.19
              54 55 1 0.64 0.77
              63 64 1 0.64 1.86
              77 78 1 0.64 2.14
              97 98 1 0.64 1.02
              105 112 7 4.5 1.16
              124 125 1 0.64 0.71
PQRC080 30405 24772 1112 8 -56 155 3 5 2 1.39 0.45
              8 13 5 3.47 0.63
              35 36 1 0.69 0.46
              49 52 3 2.08 0.46
              96 103 7 4.86 0.54
              110 118 8 5.56 0.68
              137 138 1 0.69 0.49
              146 150 4 2.78 0.78
PQRC082 30358 24741 1116 249 -50 108 1 2 1 0.77 0.47
              8 12 4 3.06 0.97
              50 51 1 0.77 0.45
              56 60 4 3.06 0.53
              64 66 2 1.53 0.74
              70 73 3 2.3 0.41
              77 81 4 3.06 0.51
PQRC091 30471 24474 1120 240 -60 140 5 7 2 1.29 0.42
              15 18 3 1.93 0.41
              34 36 2 1.29 0.46
              109 117 8 5.14 1.38
PQRC094 30487 24453 1120 242 -60 154 18 22 4 2.57 0.85
              42 43 1 0.64 1.32
              49 50 1 0.64 0.93
              87 88 1 0.64 0.41
              109 110 1 0.64 0.68
              116 126 10 6.43 1.59
              145 150 5 3.21 0.47
PQRC095 30535 24375 1119 244 -64 163 53 54 1 0.59 0.99
              62 67 5 2.94 0.69
              107 108 1 0.59 2.24
              114 130 16 9.4 0.69
PQRC096 30526 24369 1119 243 -60 139 30 46 16 10.28 1.17
              76 79 3 1.93 0.62
              92 95 3 1.93 4.05
              107 119 12 7.71 0.8
PQRC097 30559 24340 1112 248 -60 181 83 87 4 2.57 0.98
              124 131 7 4.5 0.71
              141 143 2 1.29 0.86
              149 151 2 1.29 0.72
              163 168 5 3.21 0.53
PQRC098 30527 24404 1112 242 -66 174 101 114 13 7.27 0.95
              118 128 10 5.59 0.82
PQRC099 30503 24427 1112 242 -60 150 70 74 4 2.57 1.24
              91 97 6 3.86 0.71
              113 115 2 1.29 0.44
PQRC101 30573 24320 1117 246 -60 198 30 31 1 0.64 0.47
              40 41 1 0.64 0.48
              83 84 1 0.64 0.99
              120 121 1 0.64 0.5
              125 128 3 1.93 0.92
              143 146 3 1.93 0.35

BINSTAR

Hole-ID Easting Northing RL Azm Dip Total
Depth
From To Down
Hole
Width
(m)
True
Width
(m)
Grade
(g/t)
BMVDH027 30611 25228 1079 247 -44 219.5 27 28 1 0.83 6.64
              97 101 4 3.32 0.8
              136 137 1 0.83 1.03
              202 205 3 2.49 0.57
              218 219 1 0.83 1.79
              271 273 2 1.66 0.97
BMVDH028 30610 25228 1079 247 -52 309.2 7.9 10 2.1 1.56 2.94
              18 19 1 0.74 1.21
              59 65 6 4.46 0.59
              89 90 1 0.74 0.52
              98 99 1 0.74 0.48
              102 104 2 1.49 0.62
              149 150 1 0.74 1.03
              166 167 1 0.74 0.79
              228 229 1 0.74 0.47
              252 253 1 0.74 0.79
              273 275 2 1.49 1.22
              286 287 1 0.74 0.94
BMVDH029 30592 25304 1078 273 -34 57.6 0 8 8 7.31 1.05
BMVDH030 30598 25304 1078 273 -44 274 3 9 6 4.97 1.22
              51 52 1 0.83 0.45
              56 57 1 0.83 0.45
              69 71 2 1.66 0.55
              93 94 1 0.83 0.44
              144 145 1 0.83 0.42
              150 151 1 0.83 0.99
              158 159 1 0.83 0.67
              176 177 1 0.83 0.41
              182 186 4 3.32 1.6
              192 193 1 0.83 0.44
              199 203 4 3.32 0.68
BMVDH031 30592 25304 1078 254 -36 279.2 1 12 11 9.89 0.88
              78 79 1 0.90 0.65
              107 111 4 3.60 0.66
              121 122 1 0.90 0.6
              125 127 2 1.80 0.97
              135 136 1 0.90 0.43
              140 141 1 0.90 0.41
              152 161 9 8.09 1.5
              164 166 2 1.80 0.47
              172 173 1 0.90 0.45
              176 178 2 1.80 1.22
              182 183 1 0.90 0.62
              211 212 1 0.90 0.56
              215 216 1 0.90 0.6
              220 221 1 0.90 0.56
BMVDH032 30592 25303 1078 254 -46 286.9 1 2 1 0.81 1.42
              4 5 1 0.81 1.15
              7 12 5 4.05 1.3
              77 78 1 0.81 1.14
              85 86 1 0.81 0.41
              90 91 1 0.81 0.57
              173 174 1 0.81 0.56
              179 180 1 0.81 0.79
              189 190 1 0.81 0.59
              201 202 1 0.81 0.87
              263 264 1 0.81 0.54
BMVDH033 30598 25303 1078 273 -64 373.1 3 4 1 0.59 0.79
              8 11 3 1.76 0.72
              59 60 1 0.59 2.27
              67 68 1 0.59 0.56
              88 89 1 0.59 1.39
              91 95 4 2.35 0.96
              96 97 1 0.59 0.52
              103 105 2 1.18 2.14
              106 107 1 0.59 1.88
              138 139 1 0.59 0.83
              321 324 3 1.76 1.23
              347 348 1 0.59 0.79
BMVDH034 30563 25377 1076 280 -58 233 30 37 7 4.68 1.13
              75 82 7 4.68 0.95
              176 180 4 2.68 0.4
              188 189 1 0.67 1.23
MV019 30286 25230 1080 327 -65 389.4 35 36 1 0.57 2.01
              44 45 1 0.57 1.39
              55 68 13 7.46 1.82
              204 257 53 30.40 1.28
              265 265 2 1.15 0.71
              269 271 2 1.15 0.45
              313 315 2 1.15 0.88
              339 340 1 0.57 1.11
              361 363 2 1.15 0.56
MV020 30318 25273 1080 350 -64 242.2 1 2 1 0.59 0.63
              10 11 1 0.59 0.81
              15 17 2 1.18 0.82
              39 40 1 0.59 0.44
              48 58 10 5.88 0.46
              65 66 1 0.59 1.71
              84 85 1 0.59 0.51
              99 105 6 3.53 0.39
              109 110 1 0.59 0.45
              113 114 1 0.59 4.48
              127 135 8 4.70 0.61
              140 141 1 0.59 0.41
              164 165 1 0.59 0.55
              169 170 1 0.59 0.42
              175 176 1 0.59 1.03
              198 199 1 0.59 0.78

LIBRA EAST

Hole-ID Easting Northing RL Azm Dip Total
Depth
From To Down
Hole
Width
(m)
True
Width
(m)
Grade
(g/t)
LERC035 30138 25462 1139 202 -63 289 126 135 9 5.42 0.89
LERC037 29830 25328 1102 19 -69 292 33 46.4 13.4 6.90 0.73
              50 52 2 1.03 2.66
              56 57 1 0.52 0.81
              61 62 1 0.52 0.58
              65 66 1 0.52 0.52
              69 70 1 0.52 0.56
              82 102 20 10.30 0.65
              127 130 3 1.55 0.64
              148 149 1 0.52 0.72
              175 176 1 0.52 0.48
              269 271 2 1.03 0.5
              283 285 2 1.03 0.74
              289 290 1 0.52 0.54
LERC038 30148 25502 1137 202 -63 138 1 2 1 0.60 0.69
              35 36 1 0.60 0.58
              64 65 1 0.60 0.51
              74 79 5 3.01 0.51
              116 120 4 2.41 0.56
LERC039 30145 25450 1139 202 -45 319 0 2 2 1.64 0.82
              6 16 10 8.19 0.55
              40 41 1 0.82 0.51
              44 50 6 4.91 0.62
              62 75 13 10.65 0.66
              120 123 3 2.46 0.56
              160 161 1 0.82 0.57
              198 213 15 12.29 0.89
              216 219 3 2.46 1.21
              228 229 1 0.82 0.4
              238 239 1 0.82 0.61
              245 246 1 0.82 1.14
              250 294 44 36.04 0.61
              296 306 9.5 7.78 0.81
              307 319 12.6 10.32 0.85
LERC040 29684 25348 1090 356 -60 305.4 0 24 24 15.43 1.37
              33 34 2 1.29 1.03
              38 42 4 2.57 0.78
              86 87 1 0.64 0.49
              95 97 2 1.29 1
              104 105 1 0.64 0.53
              115 117 2 1.29 0.52
              134 135 1 0.64 0.59
              171 172 1 0.64 0.41
              245 246 1 0.64 1.47
              249 250 1 0.64 0.74
              252 265 13 8.36 1.96
              270 272 2 1.29 1.01
              274 275 1 0.64 0.41
              279 288 9 5.79 0.77
              290 291 1 0.64 0.43
              293 295 2 1.29 0.59
              299 300 1 0.64 0.47
LERC041 29830 25326 1102 48 -65 362 1 3 2 1.15 1.67
              19 25 6 3.44 0.52
              56 57 1 0.57 0.69
              63 64 1 0.57 0.92
              67 68 1 0.57 0.46
              72 73 1 0.57 0.92
              77 80 3 1.72 0.51
              85 86 1 0.57 1.01
              91 99 8 4.59 1.17
              117 120 3 1.72 0.6
              121 122 1 0.57 0.72
              127 132 5 2.87 0.64
              138 142 4 2.29 0.76
              151 152 1 0.57 0.59
              155 157 2 1.15 0.98
              162 163 1 0.57 0.77
              207 209 2 1.15 1.09
              216 217 1 0.57 1.71
              256 263 7 4.02 0.55
              273 283 10 5.74 0.68
              316 317 1 0.57 0.71
LERC042 29573 25497 1064 327 -75 170.1 0 1 1 0.42 18.8
              12 16 4 1.69 1.04
              20 21 1 0.42 0.43
              54 60 6 2.54 0.52
              65 70 5 2.11 0.4
              73 74 1 0.42 0.45
              90 126 36 15.21 2.24
              134 149 15 6.34 1.35
LERC043 29694 25328 1087 17 -60 356.1 0 14 14 9.00 1.29
              63 73 10 6.43 1.4
              77 78 1 0.64 0.51
              83 84 1 0.64 0.42
              86 87 1 0.64 0.42
              100 106 6 3.86 0.9
              134 135 1 0.64 0.69
              140 141 1 0.64 0.65
              164 165 1 0.64 0.79
              276 311 35 22.50 0.78
LERC044 29630 25472 1070 18 -80 225.15 106 108 2 0.68 0.49
              127 128 1 0.34 0.81
              131 159 28 9.58 1.87
              192 193 1 0.34 0.45
LERC045 29822 25345 1102 15 -52 265.1 46 48 2 1.49 0.74
              63 64 1 0.74 1.35
              77 78 1 0.74 0.89
              100 102 2 1.49 2.54
              104 105 1 0.74 0.8
              123 124 1 0.74 0.4
              131 132 1 0.74 0.4
              139 140 1 0.74 0.95
              144 149 5 3.72 0.74
              154 155 1 0.74 0.55
              167 168 1 0.74 0.4
              174 175 1 0.74 0.71
              178 182 4 2.97 0.61
              187 190 3 2.23 0.97
              196 206 10 7.43 0.93
              208 209 1 0.74 0.49
              213 214 1 0.74 0.97
              229 230 1 0.74 1.23
              264 265 1 0.74 0.95
LERC046 29702 25368 1090 11 -58 246.1 0 14 14 9.37 1.05
              16 19 3 2.01 0.59
              21 22 1 0.67 0.45
              74 75 1 0.67 0.46
              124 127 3 2.01 4.61
              133 134 1 0.67 0.54
              139 140 1 0.67 0.58
              154 155 1 0.67 0.43
              157 159 2 1.34 1.33
              190 192 2 1.34 2
              195 217 22 14.72 1.43
              219 220 1 0.67 0.56
LERC047 29574 25498 1063 98 -81 275.3 54 55 1 0.33 0.46
              61 62 1 0.33 1.08
              65 71 6 1.95 0.67
              101 102 1 0.33 0.62
              164 168 4 1.30 1.61
              177 186 9 2.93 4.53
LERC048 29951 25426 1125 22 -66 182 4 5 1 0.56 0.4
              20 21 1 0.56 0.61
              30 87 57 31.87 1.34
              89 90 1 0.56 0.4
              93 94 1 0.56 0.46
              98 102 4 2.24 0.68
              103 104 1 0.56 0.49
              133 146 13 7.27 1.24
              148 149 1 0.56 0.79
              154 155 1 0.56 0.47
              175 176 1 0.56 0.89
LERC050 30010 25439 1124 22 -61 108 0 3 3 1.89 3.27
              8 9 1 0.63 0.61
              14 23 9 5.66 0.73
              24 36 12 7.55 1.12
              40 42 2 1.26 1.31
              54 55 1 0.63 0.5
              64 65 1 0.63 0.49
              73 75 2 1.26 0.77
              77 94 17 10.70 2.66
              102 107 5 3.15 1.3
LERC051 29914 25444 1126 23 -66 168 0 1 1 0.56 0.4
              6 7 1 0.56 0.42
              20 21 1 0.56 0.44
              35 37 2 1.12 0.54
              39 40 1 0.56 0.48
              44 46 2 1.12 0.67
              55 59 4 2.24 0.49
              61 93 32 17.89 0.99
              95 96 1 0.56 0.7
              101 107 6 3.36 0.6
              111 112 1 0.56 0.43
              113 115 2 1.12 0.45
              120 138 18 10.07 0.93
LERC052 30149 25449 1138 183 -54 239.4 9 10 1 0.72 0.43
              12 14 2 1.44 0.56
              16 18 2 1.44 1.33
              34 36 2 1.44 1.04
              42 43 1 0.72 0.51
              77 79 2 1.44 0.84
              81 92 1 0.72 0.7
              92 96 4 2.88 3.07
              107 111 4 2.88 0.68
              119 120 1 0.72 0.59
              121 122 1 0.72 0.76
              126 127 1 0.72 0.47
              132 138 6 4.32 0.87
              139 140 1 0.72 0.51
              143 144 1 0.72 0.44
              156 158 2 1.44 1.94
              163 164 1 0.72 1.35
              176 177 1 0.72 0.43
LERC060 30074.6 25432.17 1141.4 160 -81 214 65 68 3 0.98 0.61
              78 86 8 2.60 0.65
              102 107 5 1.63 0.45
              126 135 9 2.93 0.62
              142 145 3 0.98 0.67
              152 177 25 8.14 1.77
              186 191 5 1.63 0.69

HMBNW

Hole-ID Easting Northing RL Azm Dip Total
Depth
From To Down
Hole
Width
(m)
True
Width
(m)
Grade
(g/t)
HMBNW024 30104.7 25674.66 1158 224 -50 80 15 18 3 2.30 1.7
              48 52 4 3.06 0.54
              57 60 3 2.30 0.51
              66 72 6 4.60 0.86
HMBNW025 29987 25642 1160 60 -61 178 38 45 7 4.41 1.12
              48 49 1 0.63 0.44
              55 56 1 0.63 0.61
              68 69 1 0.63 0.67
              114 116 2 1.26 0.82
              132 148 16 10.07 1.26
HMBNW026 29968 25638 1157 32 -60 206.9 97 98 1 0.64 1.56
              132 133 1 0.64 0.56
              146 147 1 0.64 0.93
              167 188 22 14.14 1.27
              193 194 1 0.64 0.63
              202 203 1 0.64 0.47
HMBNW027 29918 25716 1127 66 -60 158 19 20 1 0.64 0.43
              33 34 1 0.64 0.42
              47 50 3 1.93 0.91
              88 89 1 0.64 0.42
              114 116 2 1.29 0.68
              119 129 10 6.43 1.54
              130 131 1 0.64 0.42
              134 140 6 3.86 3.75
HMBNW028 29852 25747 1122 20 -52 256.3 0 7 7 5.20 2.1
              13 17 4 2.97 0.74
              47 49 2 1.49 1.24
              54 57 3 2.23 0.52
              63 66 3 2.23 2.85
              128 138 10 7.43 1.02
              136 137 1 0.74 3.38
              142 143 1 0.74 1.01
              187 206 19 14.12 1.24
              230 233 3 2.23 0.71
              240 242 2 1.49 1.48
              249 251 2 1.49 2.16

COLORADO

Hole-ID Easting Northing RL Azm Dip Total
Depth
From To Down
Hole
Width
(m)
True
Width
(m)
Grade
(g/t)
COL027 30540 26044 1034 64 -71 205.4 10 14 4 1.94 1.37
COL032 30585 25997 1039 64 -60 184.2 0 6 6 3.86 1.75
              10 15 5 3.21 0.36
              23 24 1 0.64 0.6
              76 84 8 5.14 0.58
              100 106 6 3.86 0.59
              155 156 1 0.64 0.46
COL033 30141 27037 1274 242 -58 264 12 13 1 0.67 0.56
              24 25 1 0.67 0.56
              32 37 5 3.35 0.82
COL034 30113 26824 1275 62 -65 115 4 6 2 1.15 0.93
              12 20 8 4.59 0.61
              24 39 15 8.60 0.63
              55 56 1 0.57 0.43
              60 66 6 3.44 1.79
              69 72 3 1.72 0.55
              75 81 6 3.44 0.64
              87 88 1 0.57 0.54
              113 114 1 0.57 0.45
COL035 30052 26878 1275 240 -60 96 0 11 11 7.07 1.37
              14 19 5 3.21 0.62
              21 25 4 2.57 0.55
              32 33 1 0.64 0.56
              41 42 1 0.64 0.46
              44 45 1 0.64 0.41
              63 63 1 0.64 0.64
              67 69 2 1.29 3.28
              71 95 24 15.43 1.36
CODD001 29822 26626.5 1181.4 65 -45 811 0 6.6 6.6 5.41 0.48
              84 86 2 1.64 0.96
              109 111 2 1.64 0.49
              655 660 5 4.10 0.42

OLD LADY

Hole-ID Easting Northing RL Azm Dip Total
Depth
From To Down
Hole
Width
(m)
True
Width
(m)
Grade
(g/t)
ODRC042 32036 23547 1093 168 -57 289.3 29 30 1 0.68 0.58
              33 34 1 0.68 5.57
              61 62 1 0.68 0.5
              97 99 2 1.36 0.59
              122 123 1 0.68 0.59
              129 156 27 18.41 1.2
              159 160 1 0.68 0.56
              164 165 1 0.68 0.51
              189 193 4 2.73 0.51
              251 252 1 0.68 0.47
              260 261 1 0.68 0.48
ODRC041 31941 23593 1087 180 -60 285.6 186 187 1 0.64 0.49
              195 196 1 0.64 3.25
              260 261 1 0.64 0.43
ODRC043 32004.1 23592 1080 180 -60 274 137 147 10 6.43 0.55
              152 155 3 1.93 0.4
              169 177 8 5.14 1.8
              229 230 1 0.64 1.23
ODRC044 31909.4 23541 1100 180 -60 177 64 70 6 3.86 0.55
              92 104 11 7.07 0.6
              130 142 12 7.71 0.6
ODRC045 31901.5 23587 1088 202 -60 188 10 22 12 7.71 0.91
              36 41 5 3.21 0.63
              53 58 5 3.21 0.77
              80 91 11 7.07 0.64
              103 114 11 7.07 0.98
              132 137 5 3.21 0.62
              145 148 3 1.93 0.53
ODRC046 31884.2 23666 1065 204 -60 300.4 119 120 1 0.64 2.08
              127 136 9 5.79 1.01
  • No top cut
  • 0.40 lower cut off
  • Maximum 2.0m internal waste
  • Minimum diluted grade 0.40
  • True widths calculated and presented

CORPORATE

As at 30 June 2012, cash and liquid assets were US$151.4 (March quarter: $153.9M).  Cash and bullion on hand represented US$110.1M of that balance - including the cash reserves of Filminera Resources Corporation while cash and bullion at 31 March was US$99.2M. This was after having paid the interest and principal repayment on the BNP arranged project finance facility for the June quarter of US$4.5M.  The outstanding project finance facility has now reduced to US$27.2M at 30 June 2012 (March quarter: $31.4M).  During the quarter, 50,000 outstanding options due to expire on 30 June 2012 were exercised for total gross proceeds of A$32,500 and 150,000 unexercised out of the money options expired. At 30 June 2012, the Company had 6,471,250 options on issue and the total issued capital was 337,775,726 fully paid ordinary shares.

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 measured and indicated resource base of 5.13M ounces of gold, total inferred resource base of 2.83M ounces of gold and a proven and probable reserve of 3.097M 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$12M 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 100,000m of drilling as part of US$20M expenditure 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.

The information in this news release that relates to the 2011 mineral resource estimate is based on information compiled by Mr. Andrew Vigar, who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Vigar is a full time employee of Mining Associates Limited. Verification of the data included site visit, database validation of historical drill results and review of sampling and assaying protocols. Mr. Vigar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code") and as a Qualified Person NI 43-101. Mr. Vigar consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this news release that relates to the 2011 mineral reserve estimate is based on information compiled by Mr. Stephen Jones, who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Jones is an employee of Golder Associates Pty Ltd. Verification of the data included  site visit, validation of operating procedures and equipment and the ability of the mine site to mine the reserves.  Mr. Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the JORC Code and as a Qualified Person under NI 43-101. Mr. Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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

PDF available at: http://stream1.newswire.ca/media/2012/07/31/20120731_C3771_DOC_EN_16547.pdf

SOURCE: CGA Mining Limited

For further information:

ENQUIRIES

Australian Contact    
President & CEO - Michael Carrick

Tel:  +61 8 9263 4000
Fax:  +61 8 9263 4020
Email:  mcarrick@cgamining.com

US Contact
Independent Chairman - Mark Savage

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

Profil de l'entreprise

CGA Mining Limited

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