Announcement to the Australian Securities Exchange and Toronto Stock Exchange



    
    MASBATE PROJECT DEVELOPMENT UPDATE

    -  Leighton Contractors Notice of Intent - construction contractor
    -  Lycopodium - engineering component for the Masbate Gold Project
    -  Long lead items - SAG mill and ball mills acquired
    -  BNP Paribas mandated as Debt Financiers
    

    PERTH, Australia, April 4 /CNW/ - CGA Mining Limited is pleased to
provide an update on the Masbate Gold Project.

    Construction Contractors-Notice of Intent
    -----------------------------------------

    The Board of CGA Mining Limited ("CGA", "the Company") is pleased to
announce that it has issued a Notice of Intent to Leighton Contractors
("Leighton") as the EPCM contractor for development of the Masbate Gold
Project in the Philippines. Leighton is an Australian market leader in
infrastructure and project development and a highly respected provider of
contract mining services. Leighton has a dedicated and established office in
Manila and has had extensive experience in the region, having recently
developed a similar plant in the Philippines.
    Lycopodium Limited ("Lycopodium"), a highly respected Australian
engineering consulting firm has agreed to form a strategic alliance with
Leighton and will be responsible for all process engineering and detailed
design associated with the development of the Masbate Project. Lycopodium
fulfilled a similar role with Leighton on a recent development in the
Philippines and CGA is pleased to secure the benefit of these two contractors,
with valuable first hand experience in the region that will enhance both the
efficiency and cost effectiveness of our development program. Lycopodium has
also worked with our management team on previous gold development projects,
demonstrating a successful track record of quality service, meeting both
budgets and agreed timelines.
    Detailed agreements are currently being negotiated and a Notice of Intent
has been issued, allowing Leighton and Lycopodium to commence work on a number
of initiatives in preparation for the development and ensuring the commitment
of Leighton and Lycopodium to the development of the project.

    Long Lead Items Secured
    -----------------------

    The Company has successfully completed the acquisition of the key long
lead items for the development program at the Masbate project with a primary
SAG mill and two secondary Ball mills now secured and paid for. The SAG mill
is currently located in Spokane, Washington in the United States and the two
Ball mills are in storage in Cebu in the Philippines. The acquisition of these
existing plant items will materially reduce the development timeline, with
Leighton currently expecting a development schedule of approximately
12 months, which is attractive relative to other comparable projects in the
development phase.

    Mandate of Project Financiers
    -----------------------------

    BNP Paribas ("BNPP"), one of the world's largest and most respected
financial groups, with a strong presence in the resource market has been
mandated to provide and underwrite a project finance facility for development
of the Masbate Project. BNPP has already undertaken extensive due diligence on
the project, with the independent technical experts having completed their
review on the development program as set out in the Bankable Feasibility
Study.

    Activity on Masbate Island
    --------------------------

    A security incident occurred on Tuesday 3 April 2007 on site in the
equipment area. There were no injuries and damage to equipment was very
limited. The reasons for this incident are not fully understood at this time.
With the recent change in project sponsorship and the project now moving
forward, CGA is committed to a strong community relations program particularly
in health, education and sustainable development. CGA will pursue an open
dialogue with all stakeholders to ensure any issues which do arise are
resolved.

    %SEDAR: 00021775E




For further information:

For further information: Australian Contact, President & CEO - Michael
Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email:
mcarrick@cgamining.com; US Contact, Chairman - Mark Savage, Tel: (505)
344-2822, Fax: (505) 344-2922, Email: marksavage@comcast.net

Organization Profile

CGA Mining Limited

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CENTRAL ASIA GOLD LIMITED

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