/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
WIRE SERVICES/
THE MASBATE GOLD PROJECT ACHIEVES COMMERCIAL PRODUCTION IN JUNE,
AND IS ON TRACK TO PRODUCE IN EXCESS OF 200 000 OUNCES
FOR THE YEAR ENDING JUNE 30, 2010.
JUNE QUARTERLY REPORT
15 JULY 2009PERTH, Western Australia, July 15 /CNW/ -HIGHLIGHTS
CGA Mining Limited ("CGA", the "Company") is pleased to report the
significant progress made on the commissioning and operation of the Masbate
Gold Project during the quarter.
- The power plant was commissioned and has been operating consistently
since then with only one short outage in the quarter.
- The quality and reliability of the power plant will assist in
achieving high levels of plant availability in the future &
underpinning expansion capacity.
- The process plant has three mills - one SAG mill and twin ball mills.
The SAG mill and one ball mill have been commissioned and the second
ball mill will be brought on line in the September quarter.
- The plant has already achieved in excess of the 500tph design
capacity, before the addition of the second ball mill.
- Metallurgical recoveries in line with expectations.
- The mining fleet was commissioned and in full production for the
quarter, achieving higher production than expected.
- The first gold pour was on 12 May 2009, and 12,975 ounces of gold and
7,872 ounces of silver were produced in the quarter.
- Grade through the mill for the quarter was approximately 1.2g/t, due
in part to commissioning the plant with softer and lower grade
material as planned.
- It is expected that the grade through the mill and availability will
lift and therefore ounces produced will increase substantially in the
September quarter
- Refining and sales arrangements have all worked smoothly with 4
shipments to the refiner made in the quarter and gold and silver
proceeds of approximately US$6.8M (average selling price of gold of
US$933.56).
- Results of a helicopter geophysical survey (the known Masbate
mineralisation has a direct magnetic & radiometric response) have
defined a new 4km strike length potassium anomaly and associated
magnetite vein response, immediately to the east of Main Vein and
within company owned exploration tenements.
- Memorandum of Agreement was signed with the local key communities
establishing cooperation between the Project and local artisanal
miners.
- Significant drilling results at the Segilola Project including;
4.5m @ 22.47g/t 4.0m @ 7.90g/t
5.7m @ 25.15g/t 3.0m @ 42.51g/t
3.4m @ 21.73g/t 1.0m @ 25.90g/t
10.7m @ 6.55g/t
To view images associated with CGA Mining's July Quarterly Report
please visit:
http://files.newswire.ca/578/CGAimages.doc
MASBATE PROJECT UPDATE
----------------------
Commissioning Update
Following the award of the Practical Completion ("PC") to Leighton
Contractors Asia Limited ("LCAL") by Phil. Gold Processing & Refining Corp.
("PGPRC") and Filminera Resources Corporation ("FRC") the following milestones
have been achieved during the quarter.
Power Station
- 1 April - initial power supply connected to the grinding circuit
control system enabling commissioning work on the mill control
circuit to commence.
- 3 April - award of practical completion of the power station contract
to LCAL by PGPRC. Sequential commissioning followed practical
completion.
- 10 April - continuous supply of 18 mega watt ("MW") from three
generators allowing commissioning of grinding mills to commence.
- 30 April - continuous availability of up to 30MW of power from the
power station.
The construction and completion of the power station at the Masbate
Project was completed in seven (7) months with the success attributable to the
excellent cooperation between LCAL, Poyry Energy Inc. (electrical design) and
PGPRC project management. The facility has continued to operate according to
design, with the power draw to date lower than originally estimated, providing
significant excess capacity in the units for backup power and the ability to
support an expansion of the plant.
Fuel Farm
- 28 February - completion of refurbishment of two (2) heavy fuel oil
("HFO") storage tanks.
- 1 March - delivery of initial HF0 order into the refurbished
facility.
- 9 March - arrival of fuel transporters and delivery of fuel to the
power station day tanks.
- Balance of fuel farm one (1) diesel storage tank was commissioned
March 22.
The fuel farm facility consists of three fuel storage tanks. Two units of
1.7M litres capacity for HFO and one unit of 1.4M litres for diesel storage.
The tanks are equipped with the associated pumping and receiving/delivery
systems. At present receiving and delivery are achieved using approved
isotainers and prime movers. In the future an investigation will be carried
out to assess the benefits of a piped receival and delivery system.
CIL Absorption
- 10 April - tank No. 1 filled with H(2)O and all intertank transfer
systems commissioned.
- 17 April - introduction of low grade ore into the grinding circuit
and subsequently to CIL circuit.
- 19 April - failure of the mill discharge pump. This brand new unit
supplied by Warman International Limited ("Warman") failed due to
catastrophic failure of the bearing assembly. A new assembly was
sourced in Western Australia, air freighted to the Philippines and
installed. Warranty procedures are currently underway.
- 27 April - introduction of run of mine ("ROM") ore.
- 12 May - first gold pour achieved, only 18 months from commencement
of construction (Nov '07).
Tailings Storage Facility
- 9 March - receipt of temporary discharge permit enabling the tailings
to enter the delivery pipeline and discharge into the facility.
- 15 April - commencement of tailings discharge into the tailings
storage facility ("TSF").The TSF has been constructed under the Mining Alliance Contract between
FRC and LCAL in accordance with a design by GHD Engineering Pty Ltd ("GHD").
The construction was observed and approved by a Philippine Government
appointed third party specialist who signed off on the Company's compliance
with the approved design. All necessary permits have been issued and are on a
rolling program of renewal to allow the authorities to ensure the system is
operating at the levels included in the design.
On 27 June, the return water line was inadvertently damaged by the mining
fleet working on the TSF, however the contained spill was limited and the line
repaired and Mines and Geosciences Board have been informed of the activities.Grinding Circuit
- 17 April - ball mill 1 ("BM1") start up.
- 17 April - SAG mill start up.
- 17 April - introduction of low grade material into the crushing and
grinding circuit.
- 26 April - restart of grinding circuit and associated commissioning
activities.
- 27 April - introduction of ROM ore and consumables into the circuit.
- 12 May - start up of ball mill 2 ("BM2") and subsequent failure of
discharge end trunnion bearings.Following the issue with the trunnion bearings, on BM2, CGA appointed
Outotec Engineering Pty Ltd ("Outotec") (grinding mill specialists) and BEC
Engineering Pty Ltd ("BEC") to carry out a review of the total grinding
circuit construction and design. The recommendations from the specialists have
been accepted by PGPRC and CGA and the improvements are being implemented
during our ramp up. The SAG mill and BM1 are operating and the circuit is now
performing reasonably consistently. In this phase (prior to introduction of
BM2) the fineness of grind has been relaxed from 80% passing 75 micron to 80%
passing 106 micron and the mining department is concentrating on the delivery
of the softer oxide and transition ore (lower grade).
Mining and Geology
354 holes were drilled during the June quarter posting a total of 15,307
meters. Drilling was done in HMB East, Montana and Binstar.
During the quarter, the results of the helicopter geophysical survey
(magnetics and radiometrics) of the Masbate exploration tenements were
received. The total survey length was 996.8 line km. In May, additional
processing, modelling and interpretation of the survey data was also
undertaken.
The processing and modelling results show that the known Masbate
mineralization (Main Vein, Colorado etc) has a direct radiometric (potassium)
and magnetic response.
Using this signature a large 4km strike length potassium anomaly and
associated magnetic vein response at Pinanaan, east of Main Vein was defined
(Figure 1 in URL above) and shows the most potential for additional gold
mineralization. In the south of the tenement additional targets occur at Bart
AG, Balete, and David Sun.
Magnetic inversion models also inferred a porphyry centre in the east of
the Masbate tenement, in an area where previous small scale copper mining has
taken place, and represent a possible porphyry copper style exploration
target.
Total production for the quarter achieved 1,216,338 cubic meters (BCM).
This was 12% above the expected production for June. Mining concentrated on
establishing the starter pits, including HMB West, HMB East, Libra West and
Libra East.
Production progressed well for the quarter with minimal issues. Training
of the local staff continued to ensure that safety, quality and production
standards are met.
Recruitment of all mining personnel progressed with most positions now
filled.
Mine development work for the quarter included the establishment of the
waste dump footprints, and the continuation of the development of the TSF. By
the end of the quarter, stage two of the TSF was ahead of schedule.
Processing and Gold Sales
Commissioning of the treatment plant continued throughout the June
quarter with the first gold pour on 12 May 2009. The tonnes milled for the
quarter were 442,523 tonnes producing 12,975 ounces. Production costs for June
were US$4.8M.
Gold shipped for the quarter was 7,238 ounces. Prior to commencement of
commercial production, most costs were capitalised with cash cost and revenue
reporting to commence in the September quarter. Total proceeds from gold and
silver sales were approximately US$6.8m, with an average gold sale price of
US$933.56.
Processing of the ROM ore commenced on 17 April, with the processing
plant exceeding the daily name plate capacity (500 tph) during June 2009.
Metallurgical recovery for the quarter was 76%. Increased plant
reliability has enabled the carbon in leach recoveries for June 2009 to be
above budget.
The powerhouse was completely commissioned on 30 April and has achieved
above 99% operational availability since commissioning.
By the end of the quarter 95% of the maintenance and operational
personnel have been trained in the principles of hazard identification, risk
assessment, and safe work procedures.Table 1 - Production Statistics
Processing Ore
-------------------------------------------------
Ore Crushed 464,627 tonne
Ore Milled 442,523 tonne
Head Grade 1.2 g/t
Recovery 76.1 %
Gold Poured 10,524 Ozs
Gold Produced 12,975 Ozs
-------------------------------------------------
Mining
-------------------------------------------------
Total Production 1,216,338 M(3)
High Grade Ore Mined 371,871 tonne
Grade 1.81 g/t
Low Grade Ore Mined 156,903 tonne
Grade 0.53 g/t
-------------------------------------------------
Safety
There was no Lost Time Injury ("LTI") reported for the quarter. The
project at the end of the quarter had achieved 109 days LTI free.
Environment and Permitting
Key activities within the Environment and Permitting Group for the quarter
included:
- monitoring activities in association with the Department of
Environment and Natural Resources;
- site review by the Multipartite Monitoring Team; and
- internal environmental monitoring to show compliance with the
statutory requirements.
Community Relations
The community relations team is now fully staffed and actively rolling out
the social development programs within the eight impacted Barangays
(villages). These efforts continue to strengthen relationships with the
communities.
Key projects and activities accomplished include, amongst others:
- Memoranda of Agreement were signed with three Barangays establishing
Small Scale Mining Cooperatives that support safe and responsible
livelihood programs outside the project's active working areas.
- Assistance to twenty-two farmers in the Katuparan area of a five
month Technology Demonstration Class on vegetable production aimed to
increase the farmers' productivity through the application of
appropriate farming technologies.
- Distribution of computers, printers, internet connection and basic
computer training to recipient Catholic Schools in the Province of
Masbate.
- Water supply line extension for the benefit of immediate households.
- Information and Education Campaign aimed to increase community
awareness on health concerns and related issues; installation of
company-community bulletin boards to maximize the reach of IECs and
the issuance of the first edition of the Masbate Gold Project
newsletter.
- Expanded program of repairs and upgrades of farm to market roads in
three impacted Barangays (villages).The implementation of these and other projects is continuing and has been
well received by the surrounding communities.
Security
During the quarter the security department has moved to its new central
location, allowing for shortened response times. The Security Department has
now also successfully started operating in a few new areas including the Gold
Room and applying lockdown procedures to the process plant. Some minor
incidents have occurred which appear to be linked to parties outside the local
communities but all have been managed and contained in line with security
protocols.
A retired Colonel with 28 years of experience in the Philippine Army has
joined the Security Department as a Senior Security Consultant.MKUSHI PROJECT UPDATE
---------------------African Eagle Resources plc, CGA's joint venture partner, arranged an
airborne electromagnetic and magnetic survey to be flown in June 2009, results
and interpretations are pending. This survey will greatly assist in further
understanding the mineral potential within the Mkushi project area and the
immediate surrounding region.SEGILOLA GOLD PROJECT UPDATE
----------------------------
Summary
- The 10,000m drilling program was completed during May and additional
drilling is planned through to 30 August.
- The strike length of the mineralised zone has been increased from the
original 900m to over 1750m and remains open.
- Encouraging assay results were received from holes to the south and
the southern extension which is a key target of the new drill
program.
- Some recent significant drilling results at the Segilola Project
include:
4.5m @ 22.47g/t including 1.4m @ 57.95g/t
5.7m @ 25.15m including 3.85m @ 35.20g/t and 1.85m @
56.61g/t
10.7m @ 6.55g/t including 2.2m @ 20.49g/t
4.0m @ 7.9g/t including 0.9m @ 28.80g/t
3.4m @ 21.73g/t
3.0m @ 42.51g/t
1.0m @ 25.90g/t
- An additional trench programme has commenced to identify parallel
systems. Preliminary metallurgical testwork confirms gold recovery
potential of plus 95%.
- The final copy of the Baseline Environmental Study was released by
Fugro Nigeria Limited.Trench Results
A total of 27 new trenches were excavated at an average width of 10m to
delineate sub-parallel veins to the east and north east of the main ore body.
Survey
The topographic survey was completed by Sphero Grid Surveys of Osogbo,
Osun State.
Environmental
The final copy of the Baseline Environmental Study was released by Fugro
Nigeria Limited. This report is a prerequisite of the requirements of the
Ministry of Mines and Steel Development and will be used for any other
environmental assessment work at the Segilola Gold Project in the future.
Diamond Drilling
A total of 23 diamond drill holes were completed during the period from
2,306m of diamond core drilling. Total meters drilled to date are 11,077m from
117 diamond drill holes.
Current drilling is continuing, with the program extended to cover an
additional 1,780m. By the end of this quarter, 786m of the extended program
had been completed and the remaining 1000m is anticipated to be completed in
the next quarter.
Strike length has been increased from the original 900m to over 1750m and
not yet closed out.
Assays
Check assays of drill core pulp samples were carried out by Genalysis
Laboratory Ghana ("Genalysis ") at their assay laboratory in Tarkwa, Ghana.
Results from SGS Laboratory Services Ghana Ltd ("SGS") and Genalysis compare
favourably.
Results were received from SGS in Ghana for 36 diamond drill holes sent
for analysis. The results from the latest set of assays are presented below in
Table 2.Table 2
Segilola Project: Drilling Results
-------------------------------------------------------------------------
In-
clined
Hole East- North- Eleva- Total Azi- inter Gold
ID ing ing tion length muth Dip From To val (g/t)
-------------------------------------------------------------------------
SGD069 702056 832147 307.1 87.0 90 -50 No significant intercept
-------------------------------------------------------------------------
SGD070A 702047 832159 304.4 80.3 90 -50 No significant intercept
-------------------------------------------------------------------------
SGD071 701928 831562 318.5 110.0 90 -60 17.00 18.00 1.0 1.40
-------------------------------------------------------------------------
SGD072 701908 831564 318.9 135.0 90 -60 38.00 43.00 5.0 3.89
---------------------------
including 42.00 43.00 1.0 15.40
-------------------------------------------------------------------------
SGD073 701912 831663 314.4 121.5 90 -75 No significant intercept
-------------------------------------------------------------------------
SGD074 701921 831591 321.6 130.0 90 -60 43.00 47.50 4.5 22.47
---------------------------
including 44.60 46.00 1.4 57.95
-------------------------------------------------------------------------
SGD075 701917 831591 320.7 200.2 90 -79 70.3 71.3 1.0 13.75
-------------------------------------------------------------------------
SGD076 701933 831562 319.1 80.0 90 -48 No significant intercept
-------------------------------------------------------------------------
SGD077 701922 831613 326.0 220.0 90 -75 63.00 68.70 5.7 25.15
---------------------------
including 64.00 67.85 3.8 35.20
---------------------------
and
including 64.00 65.85 1.8 56.61
-------------------------------------------------------------------------
SGD078 701844 831158 307.3 105.5 90 -80 56.40 62.00 5.6 2.97
---------------------------
64.00 74.70 10.7 6.55
---------------------------
including 68.20 70.40 2.2 20.49
---------------------------
78.00 82.00 4.0 7.49
---------------------------
including 80.00 80.90 0.9 28.80
-------------------------------------------------------------------------
SGD079 701821 831195 325.8 120 104 -63 94.00 108.00 14.0 2.25
---------------------------
110.60 114.00 3.4 21.73
---------------------------
including 110.6 112.6 2.0 30.13
-------------------------------------------------------------------------
SGD080 701834 831213 325.8 150 56 -60 102 103 1.0 1.05
---------------------------
107.7 115 7.3 8.99
---------------------------
including 109.50 111.95 2.4 15.29
---------------------------
and
including 113.00 115.00 2.0 13.46
---------------------------
and
including 121.00 124.30 3.3 13.35
-------------------------------------------------------------------------
SGD081 701853 831131 304.6 110.0 90 -80 30.00 44.40 14.4 2.53
---------------------------
50.00 53.00 3.0 5.46
---------------------------
including 51.00 52.00 1.0 13.90
-------------------------------------------------------------------------
SGD082 701857 831131 305.88 56.1 90 -46 34 35.7 1.7 1.96
---------------------------
including 34 34.7 0.7 3.94
-------------------------------------------------------------------------
SGD083 701922 831613 325.8 157.2 90 -85 65.35 68.35 3.0 42.51
-------------------------------------------------------------------------
SGD084 701845 831113 308.2 113 90 -80 41 47.4 6.4 1.44
---------------------------
52.4 55 2.6 6.20
---------------------------
58.4 59.9 1.5 7.44
-------------------------------------------------------------------------
SGD085 701850 831111 308.1 50 90 -46 23.7 26 2.3 1.42
-------------------------------------------------------------------------
SGD086 701901 831630 320.7 200.1 90 -82 No Significant intercepts
-------------------------------------------------------------------------
SGD087 702012 832056 334.8 198.2 90 -83 No Significant intercepts
-------------------------------------------------------------------------
SGD088 701978 831872 320.0 190.3 90 -82 162 163 1.0 25.90
---------------------------
178 179 1.0 1.19
-------------------------------------------------------------------------
SGD089 701986 831959 328.2 180.7 90 -83 No Significant intercepts
-------------------------------------------------------------------------
SGD090 701832 831210 325 180.9 90 -80 No Significant intercepts
-------------------------------------------------------------------------
SGD091 701855 831055 318.2 52 90 -60 30 32 2.0 2.18
-------------------------------------------------------------------------
SGD092 701806 831002 329.8 80 90 -60 37 41 4.0 0.65
-------------------------------------------------------------------------
SGD093 701786 830948 331.7 72 90 -60 48.1 49 0.9 9.61
-------------------------------------------------------------------------
SGD094 702147 832202 311.3 90 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD095 702160 832252 316.01 73.4 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD096 702162 832303 316.9 82.4 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD097 702181 832301 314.48 63.3 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD098 702195 832353 318.35 71 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD099 701775 830900 331.71 66.6 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD099 701775 830900 331.71 66.6 90 -60 20.7 22.5 1.8 3.16
---------------------------
36 40 4.0 2.41
---------------------------
including 38.1 39 0.9 8.65
-------------------------------------------------------------------------
SGD100 701763 830850 331.71 73 90 -60 37.9 40.5 2.6 1.77
---------------------------
including 37.9 38.8 0.9 4.11
---------------------------
44 45 1.0 1.59
---------------------------
49 50.8 1.8 0.95
---------------------------
including 50.1 50.8 0.7 1.41
-------------------------------------------------------------------------
SGD101 701752 830800 331.71 70 90 -60 36 42 6.0 0.63
-------------------------------------------------------------------------
SGD102 701720 830750 310.19 70 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD103 701708 830700 310.19 69.1 90 -60 16 18 2.0 1.45
-------------------------------------------------------------------------
SGD104 701697 830650 310.19 71 90 -60 No Significant intercepts
-------------------------------------------------------------------------
SGD105 701834 831055 312.33 116 90 -88 Results Pending
-------------------------------------------------------------------------
SGD106 701801 831002 329.80 99 90 -83 Results Pending
-------------------------------------------------------------------------
SGD107 701770 830948 331.90 132.8 90 -84 Results Pending
-------------------------------------------------------------------------
SGD108 701697 830650 310.19 149.6 90 -80 Results Pending
-------------------------------------------------------------------------
Significant assays assumed (greater than)0.7 g Au/tNote: Inclined interval represents the length of assayed portion down the
hole and at the inclination of the hole. This is not necessarily
representative of a true width.
Metallurgical Testing
Additional samples were sent for metallurgical testwork (bottle roll
test) to provide additional and ongoing confirmation of the good gold recovery
potential (95%+). Additional metallurgical testwork is planned for the next
quarter.CORPORATE
---------As at 30 June 2009, group cash was US$23.1M (including the cash reserves
of FRC) and we made the first interest and principal repayment on the BNP
arranged project finance facility for the Masbate Gold Project of $3.5M,
leaving a balance due of $76.8M at 30 June 2009.
The Company undertook a private placement during the quarter, issuing
14,815,000 shares at C$1.35, raising gross proceeds of C$20,000,250. The
proceeds are being used to supplement general working capital during the
initial months of production at the Masbate Gold Mine.
The Company issued 1,690,000 options at A$1.70 and 150,000 options at
A$1.50 during the quarter to new employees for the Masbate operational team,
pursuant to the employee share option plan. During the quarter, 105,000
employee options were exercised for gross proceeds of A$88,250.
At 30 June 2009, the Company had 14,460,000 options and 5,575,000
outstanding warrants on issue. The total issued capital of the Company as at
30 June 2009 was 269,206,976 fully paid ordinary shares.ABOUT CGA MINING LIMITED
------------------------CGA is listed on the Toronto Stock Exchange and Australian Securities
Exchange. The Masbate Gold Project in the Philippines was successfully
constructed and first gold poured on 12 May 2009. The project, which is
currently ramping up to full production, has a total indicated resource base
of 4.55M ounces, total inferred resource base of 3.22M ounces and a probable
reserve of 3.03M ounces of gold. It is currently forecast to produce over
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 has been awarded to Leighton, the largest mining contractor in
the world. CGA is completing a scoping study for the expansion of the plant
throughput at Masbate.
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 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 anticipated dates for construction and production, and
other milestones related to the Masbate Gold Project and other projects;
estimates of capital and operating costs, recovery rates, production estimates
and estimated economic return; and CGA's future operating or financial
performance, are forward-looking statements. Information concerning mineral
reserve and resource estimates including statements regarding the conversion
of inferred resources to reserves also may be deemed to be forward-looking
statements in that it reflects a prediction of the mineralization that would
be encountered if a mineral deposit were developed and mined. 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 the Masbate Gold Project; the
need to obtain additional financing to develop the Masbate Gold Project; the
possibility of delay in development programs or in construction projects and
uncertainty of meeting anticipated program milestones for the Masbate Gold
Project; and other risks and uncertainties disclosed under the heading "Risk
Factors" in CGA's Annual Information Form for the year ended 30 June 2008
filed with the Canadian securities regulatory authorities on the SEDAR website
at www.sedar.com.Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
-------------------------------------------------------------------------
CGA Mining Limited
-------------------------------------------------------------------------
ABN Quarter ended ("current quarter")
--------------------------------- ---------------------------------
88 009 153 128 30 June 2009
--------------------------------- ---------------------------------
Consolidated statement of cash flows
--------------------------
Current Year to date
Cash flows related to operating activities quarter (12 months)
$US'000 $US'000
--------------------------
1.1 Receipts from product sales during
commissioning period (will be offset
against capitalised pre-production
expenditure) 6,789 6,789
1.2 Payments for
(a) exploration and evaluation (857) (6,371)
(b) development (including working
capital expenditure) (10,535) (105,618)
(c) production
(d) administration (1,187) (4,244)
1.3 Dividends received
1.4 Interest and other items of a similar
nature received 7 348
1.5 Interest and other costs of finance paid (2,344) (4,480)
1.6 Income taxes paid
1.7 Other (Business development) (391) (787)
--------------------------
Net Operating Cash Flows (8,518) (114,363)
-------------------------------------------------------------------------
Cash flows related to investing activities
1.8 Payment for purchases of:
(a)prospects
(b)equity investments
(c) other fixed assets (72) (192)
1.9 Proceeds from sale of:
(a)prospects
(b)equity investments
(c)other fixed assets
1.10 Loans to other entities (6,629) (23,825)
1.11 Loans repaid by other entities
1.12 Other (payment of deferred acquisition
cost) - (4,500)
--------------------------
Net investing cash flows (6,701) (28,517)
--------------------------
1.13 Total operating and investing cash
flows (carried forward) (15,129) (142,880)
-------------------------------------------------------------------------
1.13 Total operating and investing cash
flows (brought forward) (15,129) (142,880)
-------------------------------------------------------------------------
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options,
etc. 17,933 38,564
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings - 87,607
1.17 Repayment of borrowings (2,936) (2,936)
1.18 Dividends paid
1.19 Other (capital raising costs) (959) (2,073)
--------------------------
Net financing cash flows 14,038 121,161
-------------------------------------------------------------------------
Net increase (decrease) in cash held (1,181) (21,719)
1.20 Cash at beginning of quarter/year to date 23,886 44,781
1.21 Exchange rate adjustments to item 1.20 (120) (477)
1.22 Cash at end of quarter(*) 22,585 22,585
-------------------------------------------------------------------------
(*) an additional US$567,582 in cash is held by Filminera Resources
Corporation
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
----------------
Current quarter
$US'000
----------------
1.23 Aggregate amount of payments to the parties
included in item 1.2 325
----------------
1.24 Aggregate amount of loans to the parties included
in item 1.10 -
-------------------------------------------------------------------------
1.25 Explanation necessary for an understanding of the transactions
---------------------------------------------------------------------
Payment of directors' fees, salaries, taxes, and superannuation.
---------------------------------------------------------------------
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did not
involve cash flows
---------------------------------------------------------------------
n/a
---------------------------------------------------------------------
2.2 Details of outlays made by other entities to establish or increase
their share in projects in which the reporting entity has an
interest
---------------------------------------------------------------------
n/a
---------------------------------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
--------------------------
Amount
available Amount used
$US'000 $US'000
--------------------------
3.1 Loan facilities - 76,366
--------------------------
3.2 Credit standby arrangements - -
-------------------------------------------------------------------------
Estimated cash outflows for next quarter
-------------
$US'000
-------------
4.1 Exploration and evaluation 912
-------------
4.2 Development - capex, excluding operational expenditure. 999
-------------------------------------------------------------------------
Total 1,911
-------------------------------------------------------------------------
Reconciliation of cash
--------------------------
Reconciliation of cash at the end of the
quarter (as shown in the consolidated Current Previous
statement of cash flows) to the related items quarter quarter
in the accounts is as follows. $US'000 $US'000
-------------------------------------------------------------------------
5.1 Cash on hand and at bank 22,487 23,494
--------------------------
5.2 Deposits at call
--------------------------
5.3 Bank overdraft
--------------------------
5.4 Other (AUD account) 98 392
-------------------------------------------------------------------------
Total: cash at end of quarter
(item 1.22)(*) 22,585 23,886
-------------------------------------------------------------------------
(*) an additional US$567,582 in cash is held by Filminera Resources
Corporation
Changes in interests in mining tenements
------------------------------------------------
Nature of Interest at Interest at
Tenement interest beginning end of
reference (note (2)) of quarter quarter
------------------------------------------------
6.1 Interests in mining
tenements
relinquished,
reduced or lapsed n/a n/a n/a n/a
------------------------------------------------
6.2 Interests in mining
tenements acquired
or increased n/a n/a n/a n/a
------------------------------------------------
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion
rights together with prices and dates.
----------------------------------------------------
Amount paid
Issue price up per
per security security
Total Number (see note 3) (see note 3)
number quoted (cents) (cents)
----------------------------------------------------
7.1 Preference
+securities
(description)
----------------------------------------------------
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital,
buy-backs,
redemptions
-------------------------------------------------------------------------
7.3 +Ordinary
securities 269,206,976 269,206,976
----------------------------------------------------
7.4 Changes during
quarter
(a) Increases
through issues
Private
placement 14,815,000 14,815,000 C$1.35 C$1.35
Option
exercises 105,000 105,000
(b) Decreases
through returns
of capital,
buy-backs
-------------------------------------------------------------------------
7.5 +Convertible
debt securities
(description)
----------------------------------------------------
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
-------------------------------------------------------------------------
7.7 Options Exercise
(description price Expiry date
and conversion
factor)
----------------------------------------------------
7.8 Issued during
quarter 1,690,000 1,690,000 A$1.70 2/4/2014
----------------------------------------------------
150,000 150,000 A$1.50 30/6/2014
----------------------------------------------------
7.9 Exercised
during quarter 105,000 105,000
----------------------------------------------------
7.10 Expired during
quarter
-------------------------------------------------------------------------
7.11 Debentures
(totals only) - -
--------------------------
7.12 Unsecured notes
(totals only) 25,000
--------------------------
Compliance statement
1 This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations Act or
other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters
disclosed.
Sign here: (signed) Date: ...15 July 2009................
(Company secretary)
Print name: .Hannah Hudson................
Notes
1 The quarterly report provides a basis for informing the market how
the entity's activities have been financed for the past quarter and the
effect on its cash position. An entity wanting to disclose additional
information is encouraged to do so, in a note or notes attached to this
report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in
respect of interests in mining tenements acquired, exercised or lapsed
during the reporting period. If the entity is involved in a joint venture
agreement and there are conditions precedent which will change its
percentage interest in a mining tenement, it should disclose the change
of percentage interest and conditions precedent in the list required for
items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is
not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to
this report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards
used do not address a topic, the Australian standard on that topic (if
any) must be complied with.
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:
(505) 344-2822, Fax: (505) 344-2922, Email: marksavage@comcast.net
