/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, Aug. 5 /CNW/ -
- Hole ODRC001, 9m @ 1.35 g/t Au from a depth of 60m.
- Hole ODRC001, 3m @ 3.59 g/t Au from a depth of 101m, including 1m
@ 7.34g/t Au.
- Hole ODRC003, 3m @ 3.02 g/t Au from a depth of 3m.
- Hole ODRC003, 10m @ 1.70 g/t Au from a depth of 22m
- Hole ODRC003, 4m @ 1.85 g/t Au from a depth of 94m.
- Hole ODRC004, 12m @ 3.00 g/t Au from a depth of 51m, including 2m
@ 10.34 g/t Au.
- Hole ODRC004, 10m @ 4.92 g/t Au from a depth of 81m, including 1m
@ 42.71 g/t Au.
- Hole ODRC005, 6m @ 1.91g/t Au from 0.0m, including 3m @ 2.88 g/t
- Hole ODRC006, 7m @ 1.18 g/t Au from a depth of 32m.
- Hole ODRC006, 16m @ 1.20g/t Au from a depth of 48m
- Hole ODRC007, 25m @ 2.13 g/t Au from a depth of 29m, including 14m
@ 3.22 g/t Au
"These new drill results are interpreted as the south easterly extension of the recently announced Blue Quartz Prospect, some 500m to the south east and have resulted in a series of high grade intercepts over a strike length of 1.5km south east of the current pits. Drilling is continuing in this area and more results are expected when assays are received." said Michael Carrick, Chief Executive Officer of CGA.
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 the Capsay/Old Lady Prospect, immediately adjacent to the Blue Quartz Prospect. These holes are indicated in blue in Fig. 1. The zone is again outside the Masbate Project's current 43-101 resource or reserve estimates.
See http://files.newswire.ca/578/CGA_Capsay.pdf for Fig. 1 and Table 1 outlining the location of significant drill intercepts for Capsay/Old Lady Prospect
The Capsay/Old Lady Prospect lies 3.5kms from the Masbate Plant site and approx 1.5kms from the southern limit of the exisiting Main Vein pit. It is interpreted as the SE extension of the recently announced Blue Quartz Prospect (see 1 July 2010 announcement) and lies 500m to the SE of Blue Quartz Prospect.
Set out in Table 1 are the assay results for reverse circulation holes ODRC001 to ODRC007.
Relatively wide intercepts occur in ODRC001 (9m @ 1.35g/t from 60m), ODRC003 (10m @ 1.70g/t from 22m), ODRC004 (12m @ 3.0g/t from 51m and 10m @4.82g/t from 81m), ODRC006 (16m @ 1.20g/t from 48m) and ODRC007 (25m @ 2.13g/t from 29m).
Previous mining by Atlas Mining Corporation at Capsay/Old Lady from open pit and underground operations produced 544,867 tonnes at a grade of 1.97 g/t Au.
The current 37 hole RC Drilling Program is initially planned on an average 50m x 50m grid pattern to cover the known mineralized quartz veins at the Capsay/Old Lady Prospect. 17 RC drill holes have been completed with results received only for the 5 holes reported above.
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 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 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$10Mpa exploration program is underway at the Masbate Gold Project. CGA has recently spun out its African assets in Ratel Gold Limited (TSX: RTL).
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 2009 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.
SOURCE CGA Mining Limited
For further information: For further information: Australian Contact: President & CEO - Michael Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email: firstname.lastname@example.org; US Contact: Independent Chairman - Mark Savage, Tel: +1 505 344 2822, Fax: +1 505 344 2922, Email: email@example.com