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


                            JUNE QUARTERLY REPORT
                                 18 JULY 2008

    PERTH, Western Australia, July 18 /CNW/ -

                             QUARTERLY HIGHLIGHTS

    -   1,980m of diamond drilling completed already at the Segilola Project
        in Nigeria, the most advanced gold project in the country with
        drilling highlights including:

           SGD003 with 4m at 4.97 g/t including 1m at 15.00g/t
           SGD006 with 5m at 15.22 g/t including 1m at 31.70 g/t & 1m at
            26.4 g/t
           SGD008 with 8m at 3.42g/t
                  with 5m at 4.36g/t
           SGD009 with 4m at 9.72g/t including 1m at 22.40g/t
           SGD011 with 11m at 4.66g/t

    -   Feasibility Study continuing and progressing well for the Mkushi
        Copper Project in Zambia

    -   New drill results received at Mkushi, including:

           25m at 2.14% Cu
           13m at 2.91% Cu
           18m at 2.39% Cu
           22m at 1.86% Cu
           10m at 2.11% Cu
           21m at 1.70% Cu

    -   Masbate construction continues to be ahead of schedule by 2 weeks

    -   Masbate construction currently 63% complete, with engineering and
        design 69% complete

    -   All refurbishment works completed on the SAG mill and in transit to
        the Philippines

    -   Leighton to manage construction of an on site power station at
        Masbate including the installation of 5 Wartsila generator units with
        a combined 30 mw capacity

    -   All project finance facility documents signed for the
        US$80.3m project finance facility and full syndication completed to
        4 banks by BNP Paribas

    -   Development expenditure on Masbate to June 30 of US$68.7M and total
        cash reserves of US$45.35M

    -   Environmental monitoring commenced on site at Masbate.

    -   Significant drill intercepts on site at Masbate including:

           10m @ 1.93 g/t
            5m @ 10.60 g/t

    The Masbate Gold Project development in the Philippines continued to be
the focus of attention during the period April to June. CGA Mining Limited
("CGA", "the Company") also continued with the necessary investigation and
compilation of the Feasibility Study for the Mkushi Copper Project in Zambia.
The Spectra drill rig enabled the Company to complete a significant amount of
diamond drilling at the Segilola Gold Project in Nigeria with some expected
high grade results.

    Construction of the plant is continuing with Leighton Contractors
(Philippine) Incorporated ("Leighton") who are operating under a fixed price
lump sum contract ("EPC").
    Expenditure under the EPC is US$55.7M which represented 63% completion as
at 30 June 2008. Actual progress on site was also 63% complete and engineering
design by Lycopodium Engineering Pty Ltd ("Lycopodium") is 69% complete.

    For images please see

    EPC Contract
    The following summarises the activities during the quarter.

    -   Completion and commissioning of the permanent 300 man accommodation
        and messing facility.
    -   Earthworks for the process water ponds commenced. A geotechnical
        investigation regarding the stability of the area was carried out and
        suitable precautions implemented. Clay lining has commenced.
    -   All CIL tankage is to full height and structural steelwork
        installation on top of the tanks has commenced (42% complete). Pipe
        and launder work has commenced on the tankage and four of the tanks
        have been sand blasted and painted.
    -   Concrete sand bunding around the tanks is 40% complete.
    -   Concrete works in connection with the primary crusher are complete.
    -   Ore surge bin and conveyor foundations have commenced.
    -   Civil works in the reagent mixing area have started.
    -   All mills (SAG & BALL) foundations are complete.
    -   Off site fabrication of structural steel for the mill feed, pebble
        crushing, CIL top of tank, gold room and reagent mixing area are on

    For images please see

    SAG Mill Refurbishment
    The refurbishment of the semi autogenous ("SAG") mill has been completed
at Weir Minerals (Australia) Ltd's workshop in Edmonton, Canada. The mill
components were transported to Seattle, USA and then onto a cargo vessel for
shipment to the Philippines where they are expected for arrival towards the
end of July 2008.
    The mill motors refurbishment is also complete and the motors and gear
boxes are scheduled to leave the USA in early August.

    For images please see

    SAG mill refurbishment did not identify any major structural issues and
the mill will arrive onsite in early August in as new condition. SAG mill
installation is scheduled to begin on site early August. Mill installation is
within the Leighton EPC scope.

    Ball Mill Refurbishment
    The refurbishment of the two ball mills is 90% complete with the two mill
shells to be shipped from Cebu to the Masbate project site during the week
starting 14 July. The remaining componentry is being fabricated/repaired at
Tiger Engineering Works in Manila and is planned to be dispatched to site
during July. The installation of the mills on site will begin during August
and is within the Leighton EPC scope. The required additional two mill motors
have been ordered with the scheduled date of delivery not expected to affect
the project completion timeline.

    Tailings Storage Facility ("TSF")
    The TSF construction preliminary work was commenced as a variation to the
Mining Alliance Contract (Leighton/Filminera Resources Corporation ("FRC")).
The sequence of construction has been altered from the original GHD
Engineering Pty Ltd plan to better meet the on site conditions.
    As at the end June the completed work represented 27% of the designed
main embankment Stage 1 construction. Negotiations for the additional works,
to be completed prior to project commissioning in February, are ongoing.

    For images please see

    Power Station
    The Company with the assistance of Poyry Energy Inc. (electrical
engineers) and Leighton identified a number of power generation units which
were suitable for power supply at Masbate. Final negotiations with owners of
the power supply units in Taiwan and China were completed and initial (10%)
payments to secure the selected units have been made. The final installation
of a purpose built power station building at Masbate will comprise three (3)
6.3 mega watt (mw) and two (2) 5.5 mw generators. The units are powered by
slow speed heavy fuel oil. Negotiations are underway for the dismantling,
shipping and construction of the on site power station.
    FRC will invite the three main fuel supply companies in the Philippines
to tender for the supply of bunker fuel for the power station along with
diesel fuel oil for the mining equipment and suitable lubricants for both

    For images please see

    Permanent 300 Man Camp
    Construction of the camp was completed so as to enable Leighton to
install the majority of their skilled construction workers in this facility.
Final commissioning and hand over of the facility will be carried out at the
completion of the EPC activities.

    For images please see

    Main Office
    The building originally used as a hospital/clinic during operations in
the 1980's is being rehabilitated and fitted out to a standard suitable to
serve the purpose as a general office to accommodate the administration,
mining and geology departments.

    Guest House
    The guest house accommodation and kitchen has been refurbished so as to
be suitable for visitors to the project site.

    Assay Laboratory
    Negotiations have commenced with the two (2) suitable contractors for the
fit out and operation of an accredited on site laboratory. FRC is in the
process of designing a suitable building for the laboratory.

    The existing construction clinic will be expanded/relocated to a standard
suitable for a mining operation. As the project is positioned close to the
permanent medical facility at Aroroy town, a complete hospital is not
required. An FRC ambulance is available to transport patients requiring
medical attention/hospitalisation to Aroroy.

    Security / Comrel Office
    The existing project general office is being transformed to accommodate
the security and community relations function.

    Mining and Geology
    During the quarter the Company announced an updated resources estimate
completed by Mining Associates Pty Ltd which reported a 62% increase in
resources. The new resource based on a US$750 / oz gold prices and a 0.36 g/t
cut-off is:

    Indicated Resources - 153.41 Mt @ 0.92 g/t containing 4.55 M ounces
                          of gold

    Inferred Resources - 127.15 Mt @ 0.8 g/t containing 3.22 M ounces of

    As the Company is planning to adopt a bulk mining approach to the
exploitation of these resources, following an initial period of high grading,
a revised geotechnical algorithm was used as compared to the 2006 estimate.
The result is therefore considered conservative in grade and it is expected
that the grade will be elevated when the mineral reserve estimate is
    Lower Quartile Solutions Pty Ltd ("LQS") has been commissioned to
optimise the resource estimate by the application of updated economic
parameters and to produce a revised mineable reserves statement including a
final mine plan. The mine production schedule will be further optimised to
mine only those resources that report grades above 0.7 g/t. Initial
indications (prior to final starter pit design) show that the average run of
mine grade for the first two years will exceed 2.0 g/t with a strip ratio of
less than 1 to 2 (ore t: waste t).
    The mobile equipment fleet has been ordered and will be delivered in
November so as to conform to the three (3) month pre production mining

    During the quarter the Company continued with its exploration program in
areas of known mineralisation refer Figure 1 which is outside the recently
compiled resources area (Panique). The more significant results included those
in Table 1 below.

    Table 1 - Assay Results of the Month for the Masbate Project

    Hole        Northing    Easting    RL     To     From     Down     Grade
    ID                                                        Hole     g/t
    MVBNRC04    24659       30684      +54    9      12       3        1.02
    MVBNRC04    24659       30684      +54    26     32       6        1.15
    MVBNRC09    24651       30747      +45    1      11       10       1.93
    MVBNRC09    24651       30747      +45    45     47       2        1.11
    MVBNRC03    24660       30685      +54    12     14       2        1.97
    MVBNRC03    24660       30685      +54    34     35       1        3.52
    MVBNRC03    24660       30685      +54    38     39       1        16.69
    MVBNRC05    24700       30723      +54    5      10       5        10.60
    MVBNRC02    24832       30783      +70    28     31       3        1.00
    MVBNRC02    24832       30783      +70    34     40       6        2.73
    MVBNRC05A   241708      30730      +53    13     24       11       1.67
    MVBNRC05A   241708      30730      +53    107    117      10       1.57
    PNQRC63     24257       30514      +147   28     30       2        5.60
    PNQRC69     24227       30696      +138   102    104      2        3.76
    PNQRC69     24227       30696      +138   115    118      3        1.77
    PNQRCD04    24891       30305      +151   70     73       3        1.60
    PNQRCD8     24829       30328      +136   101    104      3        1.37
    PNQRCD8     24829       30328      +136   107    117      10       1.78
    MVBNRC01    24714       30670      +76    6      14       8        2.30
    MVBNRC01    24714       30670      +76    24     25       1        2.34
    MVBNRC10A   24681       30785      +40    72     73       1        2.11
    MVBNRC11    24721       30818      +44    46     53       7        2.50
    MVBNRC13    24597       30768      +67    45     46       1        1.97

                Figure 1 - Plan View Showing Holes (In Green)

    The Masbate Gold Project has now operated a total of 281 days from
commencement of construction on September 24, 2007. As of June 30, the project
has accumulated site wide, a total of 2,491,744 man hours worked. Safety
statistics are compiled and benchmarked from September 24, 2007 which was the
date of actual work commencing. As of June 30, the project has operated 37
days since the previous lost time incident. The previous best record was 244
days worked with no lost time incident. FRC continues to build the capability
of its safety department and improve coordination with that of Leighton and
other contractors operating on the site. FRC remained in compliance with all
regulatory authorities.
    During the quarter, several safety training exercises were conducted in
compliance with the safety training program of the Company.

    The Masbate Gold Project remains in compliance with all environmental
laws and regulations.
    During the quarter water, air and sound have all been monitored such to
ensure these elements are within the allowable regulated limits.
    It has been identified that silt fences and settling ponds should be
installed to further improve the quality of the water entering the Panique
Creek. This is planned to be implemented early in July.
    The Company has adopted a Mining Forest, Green Philippines and Tree for
Life Programs as prescribed by the Government.

    The project continues to operate within a secure environment with no
major security breaches to report. During the quarter the staffing resources
of the security department have been increased in concert with the increased
activity related to the development of the Panique Tailings Storage Facility.
    The focus during the quarter has been on the prioritization, development
and implementation of required policies and procedures. Further development of
the emergency response team through training has been planned for the coming

    Community Relations
    Ongoing efforts by way of community projects, employment, training and
information dissemination is further enhancing the community relationships.
During the quarter FRC continued its thrust to provide more labor
opportunities for the locals of Masbate in line with its efforts to bring the
Masbate Gold Project closer to the community.  The target of 70/30 (number of
locals from Masbate to others) hiring ratio of people hired by FRC, Leighton,
the Mining Department and Security is being exceeded.

                     Off Loading Barge at Masbate Jetty

    As of 30 June 2008, the group has spent US$68.7M on the development of
the Masbate Gold Project with total cash reserves at the same date of
US 45.34M (including the cash reserves of Filminera Resources Corporation).

    Project Finance Facility
    During the quarter, full facility documentation for the US$80.3m facility
was signed and syndication completed by BNP Paribas, the bank arranging the
debt financing for the project. The banking syndicate will comprise 4 banks,
namely BNP Paribas, Standard Chartered, West LB and DZ Bank. The conditions
precedent to first drawdown are nearing completion, and are principally
procedural in nature now, with first drawdown currently expected at the end of
July 2008. As part of the initial drawdown process, the independent engineers
have undertaken a review of cost to complete and have allowed for an
additional contingency amount of US$5m (or 3% of the total budget of US$154M
which includes the additional power station costs of US$29m).

    Mkushi Project Update
    The feasibility study ("FS"), being prepared in accordance with the
definition of such as stipulated in the NI 43-101, is progressing in line with
the schedule and remains on track for completion during the last quarter of
    Snowden Mining Industry Consultants Pty Ltd ("Snowdens") has completed
preparation of a resource estimate for the project and is preparing an NI
43- 101 compliant technical report. The global mineral resource has been
assigned an indicated classification according to the 2004 edition of the JORC
Code and NI 43-101.
    The resource estimate includes all drill results and data available up to
29 March 2008, but since March additional significant assay results have been
received and these will be included in any resource update.
    Exploration work being carried out by our partner African Eagle Resources
plc ("AFE") has continuing during the quarter.  At the Munda prospect, AFE
completed ten RC drill holes and six diamond drill holes for a total of 2223m.
 Visible sulphides were intersected in all the diamond holes, showing that
mineralisation extends over a strike length of 2km, but the assay results have
not yet been received.
    Multi-element assay results were received for the regional soil
geochemical survey, a 400m grid over an area of 400km(2) for a total of 2500
samples.  The results revealed low contrast copper anomalies at several
locations and showed an apparent concentric zoning around the main mineralized
area, indicative of an alteration system associated with the Munda Granite.
With the regional exploration programme now almost complete, AFE commissioned
a unified interpretation of the geochemical, geophysical and remotely sensed
    AFE has also commissioned a helicopter electromagnetic ("VTEM") survey to
search for additional blind mineralisation at depth. The QA/QC is being
conducted in accordance with standard exploration practices.

    Feasibility Study - Summary
    Metplant Engineering Services/Bateman Engineering Pty Ltd ("Metplant"),
the principal consulting group carrying out the FS for the process plant area,
have made substantial progress, having signed off on the project
specification, the design criteria and the mass balance, and are now drafting
layouts. The mechanical equipment lists have been prepared and requests for
quotations on the major items have been issued to suppliers. The crushing
plant, which will be of a modular layout, is being designed by FL Schmidt
Minerals Pty Ltd in conjunction with Metplant.
    The application for a full mining licence was submitted after the Zambian
government lifted its recent moratorium on applications. We received a
"Notification of successful validation" of the application and now await
setting of the conditions and fees during the next phase of the approval
    Snowdens has completed the resource evaluation, assigning a JORC and NI
43-101 compliant indicated classification to the mineral resource, with
results set out below.
    Discussions are advanced with the two main power suppliers in Zambia to
provide a secure supply of power to the operation. A review of diesel
generation will be undertaken for completeness.
    Neil Seldon & Associates Ltd has been engaged to provide copper price
forecasts, and smelter terms and to assist in negotiating preliminary
concentrate off-take arrangements in Zambia.
    The FS is on track for completion in the last quarter of 2008.

    Resource Drilling & Estimation
    Snowdens, an independent resource consultant based in Perth, has
completed their resource estimate for the Mkushi Copper Project to both JORC
and 43-101 guidelines.
    After reviewing the drilling and sampling data underlying the resource
estimate, Snowdens were of the opinion that the resource could be assigned an
indicated classification in accordance with the 2004 edition of the JORC Code
and NI 43-101. Snowdens visited the site on the 15 to 20 of April 2008 to
review the mineralization and data collection procedures.
    The deposit forms a sequence of en-echelon pods of chalcopyrite
mineralisation hosted by granitic schist over a strike length of approximately
1.9 km and with a width of about 230 m. Mineralisation occurs from near
surface, a few metres, down to approximately 250 m with each pod being several
metres to tens of metres thick. The chalcopyrite mineralisation has been
defined by three-dimensional geological interpretation at a nominal grade
cut- off of 0.1% copper. As a result the mineral envelope contains significant
internal dilution.
    The Mineral Resource estimate was undertaken using Datamine Studio
version 3 software and based on data and mineral interpretations provided by
CGA on 29th March 2008. Block ordinary kriging was used to estimate copper and
density into a constrained cell model reflecting the interpreted
mineralization. Copper grades were capped at a maximum grade of 8.48 % copper
prior to estimation. No capping was applied to density. Search ellipse radii
and variogram ranges used in the estimation reflect the spatial continuity and
the observed mineralisation trends. Orientation of the search ellipse and
variograms was controlled locally using the orientation of the mineralisation
through the application of Datamine Studio's dynamic anisotropy method.
Estimates were placed into parent cells with dimensions of 5m x 10m x 10.
These parent cells were subdivided into sub cells of 2.5m x 5m x 1m for better
volume definition. Moisture content was not applicable as only dry mass was
    The model assumes open pit mining is possible for all the defined
resource. There will be a NI 43-101 technical report lodged for the resource
statement which will cover the key assumptions, parameters and methods used to
estimate the mineral resource.
    The mineralization envelopes were defined by geological interpretation at
a nominal cut-off grade of 0.1% Cu. The resource blocks contain significant
internal dilution. The global mineral resource estimates at a series of
cut- off grades are presented in Table 2.

                                   Table 2
         Mkushi Copper Project: May 2008 mineral resource tabulation
         (fresh material only) at a series of copper cut-off grades

    Cut-off Grade                     Tonnes                    Total Copper
        Cu (%)                         (Mt)                        (Cu %)
        0.1                            26.9                         0.64
        0.2                            23.2                         0.71
        0.3                            18.5                         0.83
        0.4                            14.9                         0.95
        0.5                            12.0                         1.07
        0.6                            9.8                          1.18
        0.7                            8.1                          1.30
        0.8                            6.7                          1.41
        0.9                            5.6                          1.52
        1.0                            4.7                          1.63

    The mineral resource estimate based on a cut-off grade of 0.3 % copper is
18.5 Mt at a grade of 0.83 % copper, at a copper price of US$3.00/lb.

    Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The study work to date does not show any indication that
the mineral resource would be materially affected by an known environmental,
permitting, legal, title, taxation, socio-political, marketing.
    Mining licence applications are in order and the Environmental Impact
Assessment has been completed and submitted. There are no indications from a
pre review of any environmental issues. Relocation of some Zambian locals, who
were given permission to reside within the farm lease, is covered within the
environmental issues previously raised by the government department. Liaison
with the local communities has been ongoing and the general response from the
community is that they welcome this project into an area which has no large
industry, only limited commercial farming and subsistence farming.
    Permission to draw water form the local river has been applied for and
has been given the full support of the ministry and the Lunsemfwa Hydro Power
Corporation Ltd who have water right boundaries covering the area in question.
    The site is easily accessed by the main northern highway (a sealed road)
from Lusaka to Kapiri Mposhi, where the main sealed highway to the northeast
and Tanzania is followed for 15 kilometers, at which point an existing gravel
road (30 km) leads to the project site. The site is at an altitude of 1100 m
ASL. Plentiful water and electrical power is available nearby. It is
approximately 123 km SSE of Ndola, the Copperbelt provincial centre, and some
45 km SW from the town of Mkushi. (Refer to Figure 2).

                       Figure 2: Project Location Map

    There are two forms of power supply easily accessible in the area: Zesco
and the Lunsemfwa Hydro Power supply.

    The new taxation system announced earlier this year in Zambia has been
reviewed and at this stage does not negate the potential viability of the
project. This will however, be the subject of detail financial analysis later
    Research into the marketing of the copper concentrate has strongly
indicated that off-take sales agreements would be negotiable within Zambia
itself. This has been supported following direct discussions with off-take
    Several significant assay results received since the current resource
estimate was made in March 2008 and these were not included in the estimate.
Some of these results relate to the close spaced vertical RC programme ("VRC")
drilled on a 10m x 10m grid at G Zone. These, along with other significant
recent diamond drill ("DD") and RC results can be seen in Table 3

                                   Table 3
       Mkushi Project: Significant Intersections (greater than) 0.5% Cu

                                                             INTER-  Cu
    MMUP002  G ZONE   731526  8457267          -90    8   16    8  0.93  VRC
    MMUP003  G ZONE   731528  8457276          -90    0    5    5  1.17  VRC
    MMUP005  G ZONE   731514  8457260          -90   14   25   11  1.37  VRC
    MMUP007  G ZONE   731515  8457271          -90   20   25    5  1.21  VRC
    MMUP008  G ZONE   731519  8457281          -90    5   25   20  1.53  VRC
    MMUP009  G ZONE   731527  8457288          -90    8   25   17  1.26  VRC
    MMUP013  G ZONE   731540  8457325          -90    9   25   16  1.69  VRC
    MMUP014  G ZONE   731543  8457336          -90    3   25   22  1.86  VRC
    MMUP015  G ZONE   731546  8457312          -90    6    8    2  1.04  VRC
    MMUP015  G ZONE   731546  8457312          -90   16   25    9  2.25  VRC
    MMUP016  G ZONE   731550  8457322          -90   14   25   11  1.78  VRC
    MMUP017  G ZONE   731552  8457332          -90    0    7    7  1.89  VRC
    MMUP017  G ZONE   731552  8457332          -90   12   25   13  2.91  VRC
    MMUP018  G ZONE   731555  8457340          -90    0   25   25  2.14  VRC
    MMUP019  G ZONE   731557  8457347          -90   15   22    7  2.07  VRC
    MMUP026  G ZONE   731534  8457339          -90   23   25    2  1.62  VRC
    MMUP028  G ZONE   731533  8457347          -90   22   30    8  2.48  VRC
    MMUP029  G ZONE   731538  8457354          -90   25   31    6  2.08  VRC
    MMUP033  G ZONE   731533  8457264          -90   22   25    3  1.20  VRC
    MMUP034  G ZONE   731537  8457271          -90    0   14   14  1.16  VRC
    MH142    H ZONE   731102  8456725    142   -50   53   71   18  2.39   DD
    MH142    H ZONE   731102  8456725    142   -50  138  142    4  1.16   DD
    MH142    H ZONE   731102  8456725    142   -50  145  148    3  1.73   DD
    MH142    H ZONE   731102  8456725    142   -50  167  170    3  1.99   DD
    MH142    H ZONE   731102  8456725    142   -50  180  186    6  9.04   DD
    MH145    H ZONE   731279  8456974    142   -50  111  128   18  0.54   DD
    MH145    H ZONE   731279  8456974    142   -50  131  133    2  1.17   DD
    MH145    H ZONE   731279  8456974    142   -50  147  157   10  2.11   DD
    MH161    H ZONE   731266  8456809    142   -55   93   94    1  2.78   RC
    MH162    H ZONE   731209  8456720    142   -55   37   43    6  1.21   RC
    MMUGT2   H ZONE   731210  8456850    120   -55   17   32   15  0.58   DD
    MMUGT2   H ZONE   731210  8456850    120   -55   50   71   21  1.70   DD
    MMUGT2   H ZONE   731210  8456850    120   -55   74   88   14  0.72   DD
    MMUGT2   H ZONE   731210  8456850    120   -55  155  163    8  0.95   DD

    The interval mentioned in the above table refers to the in-hole inclined

    Metallurgical Testwork
    Preliminary test work was conducted at AMMTEC Ltd at their Balcatta
facility in Western Australia. This test work was to establish the design
criteria for process and plant design. The results of the programme indicate a
potential 96% recovery of copper using conventional copper sulphide flotation
technology. The ore as tested does not have any significant levels of other
onerous minerals and thus would not likely to experience any smelter
penalties. The grade of the core samples sent for testing ranged between 0.77%
and 2.04%, with an estimated average of about 1.50% based on core assays.
Additional recent test work has subsequently confirmed the recovery of at
least 96%.
    The test work so far has shown that the process can provide for a
concentrate of 30% copper. This indicated that there is a potential for
economic extraction of the copper mineralization at the Mkushi Project.

    Reserve Calculation
    An optimisation of the resource model has been commenced by LQS, based on
economic and mining parameters currently available. It is anticipated that
these will be refined as additional supplier information becomes available. A
first-pass reserve calculation is currently expected in the next quarter.

    The application for the mining licence was re-submitted on 1 May 2008,
when the Zambian government lifted its moratorium on new applications. On
26 June a "Notification of successful validation" was prepared which confirms
that the area applied for is 61.5 square kilometres. We duly acknowledged this
notification and now await the conditions and fees to be set during the next
phase of the approval process.

    Discussions are in progress with the education department concerning the
relocation of the basic school and associated facilities, which are currently
situated close to the mine site. The relocation will provide an opportunity to
build improved facilities for the community.

    The two containers, holding the Turkish drill rig accessories and
consumables, supplied by Spektra Jeotek Sanayi Ve Ticaret A.S. ("Spektra),
were cleared by customs authorities in the first week of April. They were
transported to site where the Turkish drilling crew and supervisors offloaded,
assembled and commissioned the drill rig. The main drilling programme has now
    Fugro Environmental Consultants have been approached in connection with
conducting an environmental baseline study, as required to be done on the
project site to meet statutory and technical obligations.
    Samples are now being sent regularly via DHL to the assay laboratories in
Accra, Ghana, for analysis. Several assay results have already been returned
and are presented in the tables and sections below.
    A qualified land surveyor is currently being sought in Nigeria to
complete surveys for both our requirements and governments.
    Compensation for the loss of farm crops and food gardens is ongoing to
enable drill pad clearance to continue in line with drilling requirements.

    Field Work
    Drill pad construction and access track clearing in preparation for the
Spektra Drill Rig continued during the quarter, using manual labour to avoid
damage to cash crops planted in the area. A total of 17 drill pads were
constructed during the period, complementing those previously prepared, which
has enabled 25 diamond core drill holes to be completed. More drill pads are
being prepared for the existing proposed holes.

    Trench Results
    No new trenches were done during the period. However, results have been
received from the trench samples sent to SGS Laboratories Services, Ghana, Ltd
("SGS"). Encouraging trench results received from trenches north of drill hole
G41 are:

    Trench 2260N 10m @ 9.96 g/t Au includes 4m @ 14.22 g/t Au
    Trench 22331N 6m @ 2.57 g/t Au

    These are depicted in Figure 3.

    More trench samples are yet to be assayed which are being kept in the
compound at Ilesha.
    Surveying of all trenches is being planned along with the survey of
existing infrastructure, drilled holes and planned holes. Work is currently
under way to clear collars and trenches in preparation for the survey team.

    For images please see

    Diamond Drilling
    Since April 2008, diamond drilling has been carried out on the project
site mainly by Spektra with a minor contribution from Tanylag Drilling Ltd,
Nigeria ("Tanylag"). Tanylag has recently obtained the appropriate equipment
required to carry out the drilling in a more efficient manner and their
progress has improved.
    Spektra has drilled approximately 1875m of diamond core from a total of
22 holes since the commencement of the main drilling campaign. We are now
seeing assay results returns from SGS Laboratories in Ghana.
    Table 4 shows the holes drilled and the assay values returned as of
23 June 2008. At that time there had been in excess of 1980m of diamond core
drilling completed, being the combined Spektra and Tanylag results.

    For images please see

    During the quarter, the Board of CGA announced the issue of 950,000
employee options under the Employee Option Plan. The issue was made in
connection with a number of key appointments made to establish both the
development and operating team for the Masbate Gold Project. The options have
an expiry date of 31 March 2013 and an exercise price of A$1.80. 365,000
options were exercised during the quarter for total cash proceeds of A$236,750
and 625,000 warrants were exercised for cash proceeds of C$643,750. At 30 June
2008, the Company had 9,535,000 options and 5,625,000 outstanding warrants on
issue. The total issued capital of the Company as at 30 June 2008 was
233,201,976 fully paid ordinary shares.
    During the quarter, the Company completed a private placement of fully
paid ordinary shares raising gross proceeds of C$35m through the issue of
21,212,000 new shares at C$1.65 (approx A$1.74). The private placement was
marketed on a best efforts basis by way of brokered private placement with
Haywood Securities Inc. as agent (the "Agent"). For their services, the Agent
received an aggregate commission of 5.0% of the gross proceeds.


    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, 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.
    With regard to the Mkushi Copper Project, Matthew Nimmo of Snowdens is
the qualified person and has verified the resource statement 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.


    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

    Appendix 5B

                   Mining exploration entity monthly 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                                         Month ended ("current month")
    -------------------------                   -----------------------------
    88 009 153 128                              June 2008
    -------------------------                   -----------------------------

    Consolidated statement of cash flows

                                                       Current  Year to date
    Cash flows related to                              quarter  (nine months)
     operating activities                              US$'000       US$'000
    1.1  Receipts from product sales and
          related debtors                                    -             -

    1.2  Payments for (a) exploration and evaluation    (1,503)       (7,308)
                      (b) development                  (26,998)      (63,353)
                      (c) production
                      (d) administration                (1,278)       (4,699)

    1.3  Dividends received
    1.4  Interest and other items of a
          similar nature received                          132         1,346
    1.5  Interest and other costs of finance paid       (5,403)       (9,125)
    1.6  Income taxes paid
    1.7  Other - Business development                     (355)         (701)

         Net Operating Cash Flows                      (35,405)      (83,840)

         Cash flows related to investing activities

    1.8  Payment for purchases of: (a)prospects
                                   (b)equity investments
                                   (c)other fixed assets    (5)         (155)
    1.9  Proceeds from sale of:    (a)prospects
                                   (b)equity investments
                                   (c)other fixed assets
    1.10  Loans to other entities
    1.11  Loans repaid by other entities
    1.12  Other (provide details if material)

          Net investing cash flows                          (5)         (155)

    1.13  Total operating and investing cash flows
           (carried forward)                           (35,410)      (83,995)


    1.13  Total operating and investing cash flows
           (brought forward)

          Cash flows related to financing activities

    1.14  Proceeds from issues of shares, options,
           etc.                                         35,078        75,619
    1.15  Proceeds from sale of forfeited shares
    1.16  Proceeds from borrowings                           -        25,000
    1.17  Repayment of borrowings
    1.18  Dividends paid
    1.19  Other (provide details if material)

                                                        35,708       100,619
          Net financing cash flows

          Net increase (decrease) in cash held            (333)       16,623

    1.20  Cash at beginning of quarter/year to date     44,805        25,399
    1.21  Exchange rate adjustments to item 1.20            78         2,528
    1.22  Cash at end of quarter                        44,551        44,551

    (*) Filminera Resources Corp. has an additional $0.787m in cash.

    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                                          348
    1.24  Aggregate amount of loans to the parties
           included in item 1.10                                           -

    1.25  Explanation necessary for an understanding of the transactions


          Payment of 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                                     -             -
    3.2  Credit standby arrangements                         -             -

    Estimated cash outflows for next quarter
    4.1  Exploration and evaluation                                    2,816
    4.2  Development                                                  62,317
         Total                                                        65,133

    Reconciliation of cash

    Reconciliation of cash at the end of the       Current       Previous
    quarter (as shown in the consolidated          quarter       quarter
    statement of cash flows) to the related items  US$'000       US$'000
    in the accounts is as follows.
    5.1  Cash on hand and at bank                       40,842        34,200
    5.2  Deposits at call                                3,059         9,030
    5.3  Bank overdraft                                      -             -
    5.4  Other (provide details)

         AUD Account                                       429         1,376
         AUD Deposit                                       221           199
         Total: cash at end of quarter (item 1.22)      44,551        44,805

    Changes in interests in mining tenements

                                           Nature of  Interest at  Interest
                               Tenement    interest    beginning   at end of
                               reference   (note (2))  of quarter  quarter
    6.1  Interests in mining
         tenements relinquished,
         reduced or lapsed             -           -           -           -
    6.2  Interests in mining
         tenements acquired
         or increased                  -           -           -           -

    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.

                                                                 Amount paid
                                                   Issue price   up per
                                                   per security  security
                                     Number        (see note 3)  (see note 3)
                       Total number  quoted        (cents)       (cents)
    7.1  Preference
    7.2  Changes
         during quarter
         (a) Increases
         through issues
         (b) Decreases
         through returns
         of capital,
    7.3  +Ordinary
         securities    233,201,976   233,201,976
    7.4  Changes during
         (a) Increases
         through issues
         (b) Decreases
         through returns
         of capital,
    7.5  +Convertible
         debt securities
    7.6  Changes during
         (a) Increases
         through issues
         (b) Decreases
    7.7  Options
         and conversion
    7.8  Issued during
         quarter          950,000       950,000       AUD$1.80             -
    7.9  Exercised during
         quarter          365,000       365,000       AUD$0.65      AUD$0.65
    7.10 Expired during
    7.11 Debentures
         (totals only)
    7.12 Unsecured notes
         (totals only)     25,000

    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/does not(*) (delete one) give a true and fair
        view of the matters disclosed.

    Sign here:  "signed"                 Date:   18 July 2008

    (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 report.

    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.

For further information:

For further information: Australian Contact: President & CEO - Michael
Carrick, Tel: +610 8 9263 4000, Fax: +61 8 9263 4020, Email:; US Contact: Chairman - Mark Savage, Tel: (505)
344-2822, Fax: (505) 344-2922, Email:

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