CGA Mining announces new high grade drilling results at its Segilola Gold Project,including 4m @ 105.15g/t



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

                               1 SEPTEMBER 2009

           ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND
           ------------------------------------------------------
                           TORONTO STOCK EXCHANGE
                           ----------------------

               The new high grade drilling intercepts include:

        4m @ 105.15g/t; including 3m @ 135g/t and 1m at 15.6g/t
       41.8m @ 3.76g/t; including 2.6m @ 12.32g/t and 16m @ 6.88g/t
                     7.8m @ 5.71g/t; including 1m @26.05g/t
                    12.5m @ 9.95g/t; including 2.5m @ 32.24g/t
                    10.7m @ 7.29g/t; including 3.7m @ 12.03g/t
                       6m @ 11.58g/t; including 1.8m @ 34.55g/t
                      15m @ 5.38g/t; including 3m @ 18.85g/t
                    11.3m @ 6.59g/t; including 1m at 37.7g/t
                      10m @ 7.25g/t; including 2m @ 16.1g/t, and
                   18.35m @ 3.71g/t; including 2m @ 20.4g/t
    

    VANCOUVER, Sept. 1 /CNW/ - CGA Mining Limited ("CGA", "the Company") is
earning a 51% interest in the Segilola Gold Project in Nigeria, a project
considered to be the most advanced gold exploration project in the country. It
is held by Segilola Gold Limited ("SGL") in joint venture with our partner
Tropical Mines Limited ("TML"), a Nigerian company owned by local investors
and the Nigerian Government.

    Location

    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 of Mines
and Steel 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/CGA_Mining.doc
    

    Licences

    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, located on
the same geological trend south west of the Segilola licenses, and is
currently reviewing other potential areas in Nigeria.

    Geology

    The geological setting is described as basement gneiss and Proterozoic
schist belt. The known mineralised zone has been extended to over a strike
length of approximately 1500m. The gold mineralisation is in the form of
quartzite veins. The veins are invariably steep dipping and are commonly
associated with fractures and 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 changes along strike as
well in dip, grades encountered in the cores vary between (less than)1g/t and
136g/t.
    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 trend
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/CGA_Mining.doc
    

    Resource Potential

    An assessment by a leading Australian geological firm 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
over 1500m along strike and to 150m in depth. The drilling to date suggests a
grade in excess of 5g/t may be achievable.
    The Company has commissioned a technical report on the Segilola Project,
and will soon be in a position to present a resource estimate and a 43-101
compliant technical report.
    CGA has reviewed the previous databases and 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 1500m strike length have not been tested so the prospectivity for those
areas within the tenements is considered strong. It is also quite possible for
parallel systems to be present and the existence of these have yet to be
adequately tested.

    Recent Assay Results

    The Turkish drilling company we introduced to the project, Spektra
Jeotek, has now completed the current drilling campaign and a total sum of 119
holes have been drilled from almost 12 000m of diamond core drilling. 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
June 2009 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/CGA_Mining.doc
    

    Additional results are added to the resource model and CGA has now
engaged the services of an independent professional to develop a resource
model based on these results. It is expected that a resource, compliant to
both NI 43-101 and JORC guidelines, will be published in the near future. It
is this resource that will form the basis for a feasibility study.

    Additional Potential

    Additional trenching and soil sampling of the area has also been
undertaken to look at a wider area. It is expected that additional sampling
and drilling may extend the known mineralised strike length further.

    Metallurgical Testing

    Additional metallurgical testwork (bottle roll test) has been completed
which confirms previous results of high extraction rates ((greater than)94%)
using the cyanide process.
    Detailed metallurgical testwork has now commenced at Ammtec Ltd, Perth,
to determine the design criteria for a process plant.

    ABOUT CGA MINING LIMITED

    CGA is listed on both the Toronto Stock Exchange and Australian
Securities Exchange. The Masbate Gold Project is the largest gold project in
the Philippines and was successfully developed with 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 with a probable reserve of 3.03M ounces of gold. The project 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.
    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.





For further information:

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

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