CGA Mining Limited - Announcement to the Australian Securities Exchange and Toronto Stock Exchange



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

    SATISFACTION OF CONDITIONS PRECEDENT TO PROJECT FINANCE FACILITY
    

    PERTH, Western Australia, Aug. 19 /CNW/ - The Board of CGA Mining Limited
("CGA", "the Company") (ASX Code : CGX, TSX Code : CGA) is pleased to announce
that all the conditions precedent to drawdown under the BNP Paribas arranged
US$85M project finance facility have now been satisfied and unconditional
drawdown is available under the facility.
    The project finance facility requires limited hedging. The current plan
calls for puts to cover approximately 50,000 ounces at US$800/ounce, and
forward sales of approximately 210,000 ounces. Half of this program has
already been successfully executed (puts at US$800/ounce and forward sales at
an average price of US$859/ounce). The balance of the program will be put in
place prior to the second drawdown.

    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 forecast 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 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. A 30,000m drilling program (10,000m of
which has already been completed) is currently underway at Masbate. CGA is
completing a Feasibility Study into the Mkushi Copper Project in Zambia, which
is due for completion in December 2008. 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 general manager, technical,
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.

    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
"Caution Regarding Forward-Looking Statements" in CGA's Annual Information
Form for the year ended 30 June 2007 filed with the Canadian securities
regulatory authorities on the SEDAR website at www.sedar.com.





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

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CGA Mining Limited

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