CGA announces a further increase in production for the quarter and a maiden
annual production in excess of 150,000 ounces at cash costs of US$548


                            JUNE QUARTERLY REPORT

                           TORONTO STOCK EXCHANGE

                                 29 JULY 2010

PERTH, Western Australia, July 29 /CNW/ -


    -   Production for the quarter continued to climb, increasing a further
        7% to 43,390 ounces

    -   Maiden annual production of 150,143 ounces at cash costs of
        US$548 per ounce

    -   A new monthly record production of 17,707 ounces was recorded in May

    -   Throughput for the quarter increased by 15% to 1,347,023 tonnes

    -   Plant throughput in May achieved an annualised rate equivalent to
        6.23 Mtpa

    -   Exploration drilling commenced during the quarter with significant
        exploration results including:

        Hole BQRC001, 5m @17.95g/t Au including 2m @ 41.39g/t
        Hole BQRC004, 14m @ 3.48 g/t Au including 7m @ 6.08 g/t
        Hole BNRC012, 23m @ 1.40 g/t Au including 2m @5.06 g/t
        Hole BNRC032, 7m@10.68 g/t Au including 3m @ 23.77 g/t

    -   Ratel Gold Limited spin off of the Segilola Gold Project and Mkushi
        Copper Project announced and approved by shareholders during the

    -   Debt and interest of US$4.2M repaid in the quarter

    -   Strong balance sheet with available cash on hand at 30 June of


                       Average                         Plant   Total   ating
                 Ore    Grade     Ore    Head   Reco-  Avail-   Prod-  Costs
                Mined   Mined   Milled  Grade   very  ability  uction   (US$
                 (t)  (g/t Au)    (t)  (g/t Au)  (%)    (%)   (oz Au)   /oz)
     Quarter 1,227,639  1.24  1,347,023  1.19   84.2   87.4    43,390    596
     Quarter 1,220,980  1.30  1,167,521  1.31   82.5   92.2    40,535    538

The operation continued to improve during the quarter with a 15% increase in ore tonnes milled and a 7% increase in gold produced. Plant throughput ramped up aggressively in the quarter. The drop in grade reflected the addition of lower grade ore to match the ramp up in milled tonnes. Mining continued to open up cut backs in preparation for sustained operations at the higher throughputs.

The improvement in the plant is best demonstrated by the performance achieved in the month of May where 17,707 ounces were produced at a mill throughput rate equivalent to 6.23 tpa and plant availability of 94.7%.

Overall cash operating costs per tonne milled for the quarter were US$18.83 (US$20.45 March quarter), unadjusted for stockpile movements and waste deferral. This was achieved inspite of the SAG mill bearing issues in April, the addition of lead nitrate (which has lead to a material increase in recoveries) and a SAG and Ball mill reline during the quarter.

Cash operating costs per ounce for the quarter of $596.23 were directly impacted by the drop off in grade as a result of continued work on setting up cut backs.

The average realised gold price during the quarter was US$1,108.67/oz (net of all hedges), with total proceeds from the sale of gold and silver of US$47.35M.


There was 1 Lost Time Injury ("LTI") during the quarter, when an electrician sustained a back injury due to a fall from a light pole. Training of staff continued to concentrate on incident investigation, tag out procedures and risk assessment across the site. The site LTI frequency rate is 1.0, with the project having 41 LTI free days at the end of the quarter.

Mining and Geology

The total volume movement was 2,204,147 BCM (2,059,926 BCM March quarter) contributing 1,227,639 tonnes (1,220,980 tonnes march quarter) of high grade ore and 864,452 tonnes (593,160 tonnes March quarter) of low grade ore. The main production areas were HMB East, Montana, Main Vein, Colorado and Binstar pits. Both Stage 1 & 2 in Colorado progressed well. HMB East is ahead of schedule and the final stage (3) is expected to start early in the next quarter. The Montana pit was completed except for a small "good-bye" cut on the ramp.

Geotechnical and resource drilling commenced during the period.


Mill throughput increased by 15% from the previous quarter to 1,347,023 tonnes (1,167,521 tonnes March quarter) whilst gold production improved by 7% to 43,390 ounces. This is a particularly good result considering the issues encountered with the SAG Mill trunnion bearing in April. These were addressed and in May an annualised throughput rate of 6.23 Mtpa was achieved. This was a major achievement in the planned ramp up in production to 6.5 Mtpa and occurred without targeted expansion improvements being undertaken to date. Whilst oxide ore was treated during this quarter it provided the information required to successfully debottleneck the plant in preparation for the treatment of competent ore.

Ore sources for the quarter were HMB East and Montana pits (transition & fresh) whilst oxide ore was mined from Main Vein Colorado and Binstar pits and the Dump 90 low grade dump.

Lead Nitrate

The use of lead nitrate continues to provide significant benefits to the operation. April production was treated mostly without lead nitrate addition and achieved an average recovery of 79.9%. The subsequent months of May and June averaged 85.7% recovery at a significantly higher feed rate (+150tph) by using lead nitrate consistently.

Monitoring of the circuit performance indicated that residence time through the CIL circuit with lead nitrate accelerating the leach kinetics, was very healthy whilst April conditions without its use were under significant pressure resulting in recoveries dropping off.

Community Relations

Continued implementation of the Social Development Management Plan ("SDMP") agreed with the local communities and government providing support and assistance in the key areas of health, education, infrastructure and livelihood assistance. The 2010 SDMP is well underway with projects agreed with the stakeholders from the eight Impact Barangays.


Exploration activities commenced this quarter with a planned annual budget of US$10m. The drilling programme has initially focussed on the Blue Quartz (660m) and Boston Porphyry prospects (3,600m). A drill program (18holes) has also been planned and pads prepared for the Capsay (Old Lady) prospect.

For a summary of the drilling results, refer to the announcements on 1 July and 14 July, with some key intercepts set out below:

    -   Hole BQRC001, 5m @ 17.95g/t Au including 2m @ 41.39g/t
    -   Hole BQRC004, 14m @ 3.48 g/t Au including 7m @ 6.08 g/t
    -   Hole BNRC012, 23m @ 1.40 g/t Au including 2m @5.06 g/t
    -   Hole BNRC032, 7m @ 10.68 g/t Au including 3m @ 23.77 g/t

The above are near mine targets and outside the current inferred and indicated resource envelopes and are considered very encouraging for the delineation of further reserves close to current pits.


The Board of CGA announced on 1 June 2010, a proposed spin off of the interests in the Segilola Gold Project and Mkushi Copper Projects by way of an initial public offering ("IPO") of Ratel Gold Limited ("Ratel"). The proposed spin off was structured to provide CGA shareholders with an opportunity to realise enhanced value for the African projects, which are at the exploration stage and provides an opportunity to better manage exposure and investment in the assets and jurisdictions.

CGA will retain a 20% interest in Ratel and a US$14m offer of new shares has been made to CGA shareholders (US$12m on a priority basis), new institutional clients of Haywood Securities Inc (the broker to the issue) and those on the President's List. Please refer to the earlier announcement on 1 June for further details. The planned IPO of Ratel is anticipated to be completed in early August 2010 and was approved by shareholders on 2 July 2010.


During the quarter all the technical inputs for the study required under the Joint Venture for the purposes of the exercise of our Option 3 (an additional 13% interest and to take our interest to 51%) were completed. We are currently in discussions with the appropriate Government agencies in an effort to optimise and clarify the applicable / appropriate tax regime and identify the optimal corporate structure. Segilola Gold Limited ("SGL") and Tropical Mines Limited have appointed Price Waterhouse Coopers to assist with the discussions with the Government.

Mining License

The designs for the open pit, waste dumps, process plant, fresh water dam, tailings storage facility have been included in a project site layout. The total area required is greater that the area of the existing Mining License ML41. An application for enlargement of the ML41 area has been submitted and is under review.


An Environmental Impact Assessment and Management Plan has been submitted to the Ministry of Environment for review prior to the obligatory public review.

Ongoing Work

A preliminary program for additional drilling has been formulated to test the lateral and depth extent of the interpreted plunge to the south of the known limits of mineralisation. In addition, SGL will drill test beneath a high grade geochemical anomaly determined to exist to the north of the known zone of mineralisation.


A conceptual study for a modular type processing facility has been undertaken by Bateman Engineering. This may lead to improved and revised estimates on both the capital and operating parameters/costs, the details of which are still currently under review.


As at 30 June 2010, group available cash was US$75.4M (including the cash reserves of FRC) after having paid the fourth interest and principal repayment on the BNP arranged project finance facility for the Masbate Gold Project of US$4.2M. The outstanding project finance facility has now reduced to US$63.4M at 30 June 2010.

At 30 June 2010, the Company had 11,902,000 options on issue. The total issued capital of the Company as at 30 June 2010 was 331,294,976 fully paid ordinary shares.


CGA is listed on both the Toronto Stock Exchange and the 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 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. At steady state operations the project is 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.


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, 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 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.

Mr. Alfred John Gillman of Odessa Resources Pty Ltd, an independent qualified person experienced in the style of mineralisation at Segilola, has completed the resource statement for the Segilola Project as disclosed in this announcement, including verification of the sampling, analytical and test data underlying the estimate. Verification also included a site visit, database validation of historical drill results and a review of sampling and assaying protocols. The qualified person was satisfied with all of the protocols used during the drilling, sampling and in the Segilola resource estimate compilation and computation.


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 reserves and resources at the Masbate Gold Project 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

                                                                    Rule 5.3
                                                                    Rule 5.3

    Appendix 5B

                 Mining exploration entity quarterly report

    Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

    Name of entity
    CGA Mining Limited

    ABN                                     Quarter ended ("current quarter")
    ---------------------------------       ---------------------------------
    88 009 153 128                          30 June 2010
    ---------------------------------       ---------------------------------

    Consolidated statement of cash flows
    Cash flows related to operating activities         Current  Year to date
                                                       quarter    (9 months)
                                                       $US'000       $US'000
    1.1  Receipts from product sales(xx)                47,380       155,832
    1.2  Payments for
         (a) exploration and evaluation                 (1,825)       (5,008)
         (b) development (including working capital
             expenditure)                               (3,470)      (12,119)
         (c) production
         (d) administration (including costs           (25,476)      (81,560)
             associated with the Ratel spin off)        (1,617)       (5,654)
    1.3  Dividends received                                  -             -
    1.4  Interest and other items of a similar
         nature received                                    50            60
    1.5  Interest and other costs of finance paid       (1,219)       (7,935)
    1.6  Income taxes paid                                   -             -
    1.7  Other - annual insurance and other taxes       (2,596)      (17,018)
               - inventory and creditors movements      (1,373)       (5,877)

         Net Operating Cash Flows                        9,854        20,721

          Cash flows related to investing activities
    1.8   Payment for purchases of:
          (a) prospects
          (b) equity investments                          (844)         (844)
          (c) other fixed assets                          (368)         (567)
    1.9   Proceeds from sale of:
          (a) prospects
          (b) equity investments
          (c) other fixed assets
    1.10  Loans to other entities                       (1,625)      (12,460)
    1.11  Loans repaid by other entities                     -             -
    1.12  Other                                              -             -

          Net investing cash flows                      (2,837)      (13,871)
    1.13  Total operating and investing cash flows
          (carried forward)
    1.13  Total operating and investing cash flows
          (brought forward)                              7,017         6,850

          Cash flows related to financing activities
    1.14  Proceeds from issues of shares, options,
          etc.                                             469       111,283
    1.15  Proceeds from sale of forfeited shares             -             -
    1.16  Proceeds from borrowings                           -             -
    1.17  Repayment of borrowings                       (3,532)      (48,675)
    1.18  Dividends paid                                     -             -
    1.19  Other (capital raising costs)                     (3)       (5,690)
          Net financing cash flows                      (3,066)       56,918

          Net increase (decrease) in cash held           3,951        63,768

    1.20  Cash at beginning of quarter/year to date     84,093        22,587
    1.21  Exchange rate adjustments to item 1.20           143         1,689
    1.22  Cash at end of quarter*                     88,187        88,187
    *    an additional US$6.048M in cash is held by Filminera Resources
    (xx) sales revenue is offset against refining and transport charges of
         $165k for the quarter

    Payments to directors of the entity and associates of the directors

    Payments to related entities of the entity and associates of the related

                                                             Current quarter
    1.23  Aggregate amount of payments to the parties
          included in item 1.2                                           370
    1.24  Aggregate amount of loans to the parties
          included in item 1.10                                            0

    1.25  Explanation necessary for an understanding of the transactions
          Payment of directors' fees, salaries, taxes, and superannuation.


    Non-cash financing and investing activities

    2.1   Details of financing and investing transactions which have had a
          material effect on consolidated assets and liabilities but did not
          involve cash flows



    2.2   Details of outlays made by other entities to establish or increase
          their share in projects in which the reporting entity has an



    Financing facilities available
    Add notes as necessary for an understanding of the position.
                                                     available   Amount used
                                                       $US'000       $US'000
    3.1   Loan facilities                                    -        63,387
    3.2   Credit standby arrangements                        -             -

    Estimated cash outflows for next quarter
    4.1   Exploration and evaluation                                   2,000
    4.2   Development - capex, excluding operational


    Reconciliation of cash

    Reconciliation of cash at the end of the
    quarter (as shown in the consolidated              Current      Previous
    statement of cash flows) to the related items      quarter       quarter
    in the accounts is as follows.                     $US'000       $US'000
    5.1   Cash on hand and at bank                      87,365        83,863
    5.2   Deposits at call                                   -             -
    5.3   Bank overdraft                                     -             -
    5.4   Other (AUD account)                              822           230
          Total: cash at end of quarter (item
          1.22)*                                       88,187        84,093
    * an additional US$6.048M in cash is held by Filminera Resources

    Changes in interests in mining tenements
                                         Nature of  Interest at  Interest at
                             Tenement     interest    beginning       end of
                            reference    (note (2))  of quarter      quarter
    6.1   Interests in
          mining tenements
          reduced or
          lapsed                  n/a          n/a          n/a          n/a
    6.2   Interests in
          mining tenements
          acquired or
          increased               n/a          n/a          n/a          n/a

    Issued and quoted securities at end of current quarter
    Description includes rate of interest and any redemption or conversion
    rights together with prices and dates.

                                                    Issue price  Amount paid
                                                            per       up per
                                Total       Number     security     security
                               number       quoted  (see note 3) (see note 3)
    7.1   Preference
    7.2   Changes during
          (a) Increases
          through issues
          (b) Decreases
          through returns
          of capital,
    7.3   +Ordinary
          securities      331,294,976  331,294,976
    7.4   Changes during
          (a) Increases
          through issues:


          Option exercises    100,000      100,000       A$0.90       A$0.90


          (b) Decreases
          through returns
          of capital,
    7.5   +Convertible
          debt securities
    7.6   Changes during
          (a) Increases
          through issues
          (b) Decreases

          Promissory notes
    7.7   Options and                                  Exercise       Expiry
          Warrants                                        price         date
          and conversion
    7.8   Issued during
    7.9   Exercised during
          Options             100,000      100,000       A$0.90       A$0.90
    7.10  Expired during
          quarter                   -            -
    7.11  Debentures
          (totals only)             -            -
    7.12  Unsecured notes
          (totals only)             -            -

    Compliance statement

    1     This statement has been prepared under accounting policies which
    comply with accounting standards as defined in the Corporations Act or
    other standards acceptable to ASX (see note 4).

    2     This statement does give a true and fair view of the matters

    Sign here: (signed)            Date: ...30 July 2010................

    (Company secretary)

    Print name:  .Hannah Hudson................


    1     The quarterly report provides a basis for informing the market how
    the entity's activities have been financed for the past quarter and the
    effect on its cash position. An entity wanting to disclose additional
    information is encouraged to do so, in a note or notes attached to this

    2     The "Nature of interest" (items 6.1 and 6.2) includes options in
    respect of interests in mining tenements acquired, exercised or lapsed
    during the reporting period. If the entity is involved in a joint venture
    agreement and there are conditions precedent which will change its
    percentage interest in a mining tenement, it should disclose the change
    of percentage interest and conditions precedent in the list required for
    items 6.1 and 6.2.

    3     Issued and quoted securities The issue price and amount paid up is
    not required in items 7.1 and 7.3 for fully paid securities.

    4     The definitions in, and provisions of, AASB 1022: Accounting for
    Extractive Industries and AASB 1026: Statement of Cash Flows apply to
    this report.

    5     Accounting Standards ASX will accept, for example, the use of
    International Accounting Standards for foreign entities. If the standards
    used do not address a topic, the Australian standard on that topic (if
    any) must be complied with.

SOURCE CGA Mining Limited

For further information: For further information: ENQUIRIES: Australian Contact, President & CEO - Michael Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email:; US Contact, Independent Chairman - Mark Savage, Tel: +1 505 344 2822, Fax: +1 505 344 2922, Email:

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