/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
PERTH, Western Australia, Jan. 26 /CNW/ - The Board of CGA Mining Limited
(ASX Code: CGX, TSX Code: CGA) and Phil. Gold Processing and Refining Corp.
are pleased to announce that the principal contractor, Leighton Contractors
Asia Limited ("LCAL") has commenced commissioning significant components of
the plant at the Masbate Gold Project.
The commissioning of the plant is being carried out on a sectional basis
as and when individual components of the processing and power plants are
completed to ensure that an integrated overall project (power, process plant
and tailings), completion date is achieved.
LCAL has wet commissioned, as required in the EPC contract a number of
areas of the project including the crusher, raw water and process water supply
system, the compressors, blowers and the agitators in the CIL circuit. Ore
commissioning of the crushing circuit has also been completed. The development
of the power station and fuel delivery facility is progressing according to
plan. The construction of Phase 1 of the tailings dam will be completed by the
first week of February.
The ore commissioning phase of the process plant is currently on track
for practical completion by the end of February 2009 followed by the power
station a week later. The first gold pour is anticipated in March 2009, in
line with original expectations.
The mining fleet is now on site and preproduction mining is well
underway. Construction of Phase 1 of the run of mine ("ROM") pad adjacent to
the primary crusher station is completed and ore is being stockpiled ahead of
CGA's operating team is largely in place in preparation for the ore
commissioning phase and to take control of the operation post commissioning.
All major consumables have been procured and are either on site or on route to
Mr. Christopher Waller has been appointed to oversee all of the
commissioning teams i.e. process plant, power plant and ore delivery, during
the ore commissioning. Mr. Waller carried out a similar function for Newmont
at the 7.5Mtpa Ahafo Gold Project in Ghana.
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 4Mtpa 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 on site.
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
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 new 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
For further information:
For further information: 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