/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
11m @ 4.84g/t including 1m @ 17.40g/t
6m @ 19.09g/t including 93.60g/t
6m @ 13.28g/t including 1m @ 32.00g/t
8.1m @ 12.37g/t including 2m @ 30.20g/t
5.2m @ 9.95g/t and 0.7m @ 30.10 g/t
1m @ 81.00g/t
2.8m @ 19.98g/t including 1m @ 53.0g/t
PERTH, Western Australia, Feb. 24 /CNW/ - CGA Mining Limited ("CGA", "the
Company") has a joint venture with Tropical Mines Limited ("TML"), a private
company based in Nigeria, earning a 51% interest in the Segilola Gold Project
in Nigeria. The project is considered to be the most advanced gold exploration
project in the country and is held by Segilola Gold Limited ("SGL") with our
joint venture partner TML, a Nigerian company owned by local investors and the
The Segilola Gold Project is located at the village of Iperindo-Odo
Ijesha, near the city of Ilesha in Osun State, Nigeria. The project site is
situated within 600m of a sealed road, 18km south of the regional centre
Ilesha, the local government centre, with a population of 300,000, which is
itself located on a sealed dual carriage way, 120km north east of Lagos (the
principal international entry port and major commercial centre of Nigeria,
estimated population, 16 million).
Nigeria has a well established petro-chemical industry based in the Niger
River delta and the government of Nigeria, is now in its second term of
democratic rule. The Government has recently established the Ministry for
Solid Minerals Development to administer all mineral assets occurring in
Nigeria other than oil and natural gas.
South Western Nigeria Showing the Segilola Project Site and the Ijebu
Igbo Licence Area
To view map, please visit: http://files.newswire.ca/578/CGASegilola.doc
The project is the subject of a Mining Lease, ML41 (changed from ML19706)
that covers an area of 46 hectares within an Exploration Licence, EPL39/40
(changed from EPL 13205)) covering 16km(2).
SGL also successfully acquired the Ijebu Igbo license area which is
located on the same geological trend south west of the Segilola licenses. This
is an additional licence and being newly acquired still has to be included in
the exploration programme.
The geological setting is described as basement gneiss and Proterozoic
schist belt. The known (from previous drill hole information) mineralised zone
extends over an identified strike length of approximately 1000m. The gold
mineralisation is in the form of quartzite veins within a regional shear
system. The veins are invariably steep dipping and are commonly associated
with fractures and localised shear zones. What is commonly called the Iperendo
reef is not one vein but comprises a vein system of several
parallel-silicified zones within the Ile-Ife-Ilesha schist belt.
The gold mineralisation is known to be closely linked to silification and
phyllic alteration, and to occur together with pyrite and molybdenite. The
gold mineralisation is bound to the vein sections and to the altered wall
rocks thus forming a drillcore indicated ore body with a thickness between 5m
and 28m (average approximately 10m). The gold contents change along strike as
well in dip, grades encountered in the cores vary between (less than)1g/t and
The concentration of the gold in quartz veins and silicified zones along
major faults and fracture zones is attributed to the Pan Africa thermotectonic
event. The major fractures and shear zones, most with an overall NNE-SSW tend
appear to be a feature of the region. The regional setting is very similar to
the Ashanti and Sefwi systems in nearby Ghana, which have hosted gold
production in excess of 20 million ounces.
Project Area Geology - Segilola Prospect
To view map, please visit: http://files.newswire.ca/578/CGASegilola.doc
Prior to our interest in the project Nigerian Mining Corporation ("NMC")
and Hansa Geomin, a German resource engineering company, had undertaken
significant work at the site including the following:
- Landsat TM imagery and aerial photography;
- Geological mapping @ 1:12500;
- 1500 soil samples analysed for gold;
- 520m of costeaning;
- 100m of exploration adit;
- 400km ground magnetics;
- 10km radiometrics; and
- 2800m of diamond drilling. Holes were spaced 30m apart logged and
sampled/analysed in 1m intervals.
An assessment by a leading Australian geological firm (NH Cole &
Associates) in October 1995 included an assessment of the potential ore
reserves at the project.
A drill indicated gold mineralisation zone has been shown to exist for
950m along strike and to 150m in depth. The drilling to date suggests that a
grade in excess of 5g/t may be achievable.
The Company has not yet commissioned a technical report on the Segilola
Project, and as such is not in a position to adopt the resource and other
technical information prepared by TML or its consultants, but intends to
prepare a 43-101 compliant technical report once a resource estimate is
prepared by the Company.
CGA has reviewed the NMC database (hard copy) and the Hansa Geomin
database (digital), determined a common grid and produced plans and sections
detailing all previous drilling and excavations.
It is apparent that both the up and down dip extensions and those beyond
the 950m strike length have not been tested so the prospectivity for those
areas within the tenements is considered strong.
Recent Assay Results
The Turkish drilling company (Spektra Jeotek), is well advanced in the
current 10,000m drilling campaign with over 7,000m already drilled (76 holes).
The drill core is sent to SGS Laboratories Ltd at Tarkwa in Ghana for sample
prep and assay. The most recent set of assay results since those presented in
the December 2008 quarterly report are set out below.
TABLE 1 - Recent Assay Results at the Segilola Gold Project
To view table, please visit: http://files.newswire.ca/578/CGASegilola.doc
Work has commenced on the resource model. All results to date have been
included in the model and are encouraging, and will initially be used for
in-house resource generation to establish the scope for a feasibility study.
Further trenching has indicated both northerly and southerly extensions.
Current diamond drilling has verified the existence of this northerly
extension. This work has increased the strike length to approximately 1,050m
and it is still open.
It is expected that additional sampling and drilling may extend the known
mineralised strike length further to the North and South.
The results of the initial metallurgical testwork (bottle roll test) have
- grade of previously assayed samples is correct;
- there is a very low value in the residues from the bottle roll test;
- from the limited tests a high extraction can be expected.
ABOUT CGA MINING LIMITED
CGA is listed on the Toronto Stock Exchange and Australian Securities
Exchange. The Masbate Gold Project in the Philippines is currently under
construction and first gold production is due in the first quarter of 2009.
The project 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 4Mt pa plant is under construction by Leighton Contractors Asia Limited
("Leighton"). CGA is completing a scoping study for the expansion of the plant
throughput at Masbate. The mining contract for the Masbate Gold Project has
been awarded to Leighton, the largest mining contractor in the world. There
are currently four drilling rigs at site at the project. The Company is also
currently undertaking a 10,000m drilling program at Segilola, regarded as
Nigeria's most advanced gold property. 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 and the technical report entitled NI43-101
Technical Report, October 2008 Masbate Gold Project Masbate Island,
Philippines prepared by Lower Quartile Solutions Pty Ltd lodged on December 5,
2008. Both technical reports are available on SEDAR at www.sedar.com.
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
For further information:
For further information: ENQUIRIES, Australian Contact, President & CEO
- Michael Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email:
email@example.com; US Contact, Independent Chairman - Mark Savage, Tel:
(505) 344-2822, Fax: (505) 344-2922, Email: firstname.lastname@example.org