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


                               29 OCTOBER 2008
                         SEPTEMBER QUARTERLY REPORT

    PERTH, Western Australia, Oct. 29 /CNW/ -

                             QUARTERLY HIGHLIGHTS

    -   Development of the Masbate Gold Project remains on budget (US$159.9M
        including the power station) and ahead of schedule.

    -   53% increase in total probable reserves for the Masbate Gold Project,
        now estimated as 92.2Mt @ 1.02g/t containing 3.03M ounces of gold.

    -   Development expenditure on the Masbate Project to September 30 of
        US $110.8M, total cash reserves of US$34.6M (including cash held by
        Filminera Resources Corporation) and available debt facilities of
        US $51.1M.

    -   The Project is currently fully funded with no additional capital
        needs based on current forecasts.

    -   Masbate construction was 69% complete as at 30 September 2008.

    -   Three 6.4MW and two 5.5MW power generation units along with the
        ancillaries have been dismantled and shipped to the Philippines
        during the quarter. Installation of the generators at the Masbate
        Gold Project site to commence in October 2008.

    -   All conditions precedent under the BNP Paribas US$80.3M debt facility
        satisfied and the first drawdown of US$39.2M was made during the

    -   3,924m of diamond drilling completed at the Segilola Project in
        Nigeria, the most advanced gold project in the country with new high
        grade drilling highlights including:

           SGD014 with 11m at 2.02 g/t including 1m at 8.07g/t
             and with 6m at 6.35 g/t including 1m at 27.8 g/t
           SGD015 with 21m at 4.48 g/t including 3m at 15.55 g/t
             and 2m at 14.52 g/t

    -   The Baseline Environmental Study started at the Segilola Project
        during the period by the Fugro Environmental Consultant team.

    The Masbate Gold Project development in the Philippines continued to be
the focus of attention during the September quarter with significant progress
made at the Project, which was 69% complete as at 30 September 2008. CGA
Mining Limited ("CGA", "the Company") also continued with diamond drilling at
the Segilola Gold Project in Nigeria and the preparation of a Feasibility
Study at the Mkushi Copper Project in Zambia.


    Construction of the process plant and ancillary services is continuing
under the Engineering Procurement Construction Contract ("EPC Contract") with
Leighton Contractors Asia Limited ("Leighton").
    Expenditure for the Masbate Gold Project as of 30 September was
US$110.8 million and development was assessed as being 69% complete.

    To view Masbate Process Plant Construction as at 30 September, please

    EPC Contract

    The following summarises the activities during the quarter:

    -   CIL tankage is complete;
    -   reagent and ancillary tankage 90% complete;
    -   ball mill 1 & 2 shell installation completed;
    -   fresh water, process water and event ponds are complete;
    -   gold room civil construction is complete;
    -   lime storage shed civil construction is complete;
    -   raw water pump house civil construction is complete;
    -   primary crusher mechanical installation is 88% complete; and
    -   SAG mill civils & subsole plate installations are complete.

    SAG Mill Refurbishment / Installation

    As reported in the previous report the refurbishment of the semi
autogenous grinding ("SAG") mill was completed by Weir Minerals (Australia)
Limited in Edmonton, Canada and shipped to the Philippines.
    The mill and components arrived on site and are presently being prepared
for installation. The mill motors have also been rehabilitated and are
presently awaiting freighting to the Philippines, they are due to arrive on
site early December.

    Ball Mill Refurbishment / Installation

    The refurbishment of the mills was completed in the engineering workshop
in Cebu Philippines and transported to site. The gearboxes are being
refurbished by ABB Australia Pty Ltd in Perth, Australia and due for shipment
to the Philippines during November. The mill motors (4 of) are on site. The
shell sections (4 of) were lifted into place in late September and the ends
bolted on in early October.

    To view Ball Mills, please visit:

    Mill Electrics

    A senior electrical engineer from BEC Engineering Pty Ltd, a Perth based
electrical engineering company specialising in resources industry
installations, has mobilised to site to supervise Leighton in the design and
installation of the mill electrics and control systems.

    Tailing Storage Facility

    The main embankment construction achieved a height of +18m i.e. 90%
completion of the planned Stage 1 height of +20m above sea level ("ASL"). A
refurbished crusher required to produce 5mm aggregate to be installed as
filter material arrived on site and will be commissioned early in the next
    The emergency spillway at +18m ASL protecting the main embankment has
commenced. Development of the canal (emergency spillway) protecting the
division embankment has been started. At completion of the canal the equipment
will return to the division embankment construction which must be completed to
+31m ASL prior to process plant operation.

    To view Pipe Laying and Installation at Tailings Access Road, please

    To view Overview of Plant Tailing Storage Facility Main Embankment,
please visit:

    Pre-production Mining

    During the quarter Lower Quartile Solutions Pty Ltd ("LQS") carried out a
re-optimistion of the mineral resources and a re-estimation of mineral
reserves. The optimum open pit outlines (pitshells) formed the basis for the
starter pit designs enabling the layout of mine access roads and the run of
mine ("ROM") pad to be finalised. The rehabilitation and development of the
access roads incorporating existing roads, from the previous Atlas Mining and
Development Corporation operation, has commenced. The starter pit areas have
been cleared of vegetation, and boundaries marked out and where appropriate,
waste stripping has commenced. All waste material is to be used to construct
the ROM pad.

    Power Station

    Phil. Gold Processing Refining Corp. ("PGPRC"), a 100% subsidiary of the
Company, has purchased three 6.4 mega watt ("MW") and two 5.5MW power
generation units in Taiwan and China. During the quarter the units along with
the ancillaries were dismantled and shipped to the Philippines. A contract has
been entered into with Leighton for the design and construction of a 30MW
(nominal) power station to supply sufficient power to ensure four of the units
will be able to start and operate the complete project requirements allowing
the fifth unit to be on standby or under refurbishment.
    As at 30 September, the foundations for the five generators and the
building itself had been completed. A suitable barge has been reserved to
transport the five generators from storage in Manila to be installed on the
completed foundations at the project site at the end of October.
    The responses to the fuel supply tender have been received and it is
planned to award a contract to a major fuel supplier in the immediate future.


    Main Office - Rehabilitation of the original hospital/clinic building to
a design suitable as a main office, continued during the quarter.

    Assay Laboratory - The design of the assay laboratory has been finalised
following the award of the operational assaying contract to SGS Australia Pty
Ltd (a member of the SGS Group (Société Générale de Surveillance).
Construction will be completed in time to meet the process plant completion

    Clinic - A design was approved and construction commenced on the clinic,
which is to be purpose equipped, to cope with the needs of a large open pit
mining operation and associated process facilities.

    Mining and Geology

    An updated independent mineral reserve estimate has been prepared by LQS,
resulting in a significant increase in reserves.
    Total probable reserves are now estimated as 92.2Mt @ 1.02g/t containing
3.03 million ounces of gold. This represents an increase in reserves of 53%
from the figure reported in the Feasibility Study dated 30 April 2006 prepared
by IMC Consultants Pty Ltd.
    Table 1 below summarises the results of the upgrade of probable reserves.

           Table 1 - 2008 Updated Masbate Probable Reserve Estimate
    Area                         Ore Tonnes        Grade          Ounces
    Holy Moses Basalt            57,242,000         1.03       1,888,000
    Main Vein                    22,967,000         1.00         736,000
    Colorado                     11,398,000         1.02         374,000
    Montana                         629,000         1.68          34,000
    Total                        92,236,000         1.02       3,032,000

    The probable reserve is based on a gold price of US$750 and also includes
an additional mining recovery allowance of 95% (which is more conservative
than the May 2006 mineral reserve estimation). The reserves will be sourced
from 3 major independent pits and a number of smaller surrounding pits, with
the average strip ratio (W:O) now materially reduced to 1.05:1 (the original
average strip ratio was 3.43:1). As part of the study LQS has optimised the
mining schedule for the initial two years of production, during which time it
is planned to mine approximately 8Mt of ore at an average grade of 2.02 g/t.
    The detailed review of the geological model and subsequent analysis of
current price and mining cost projections allowed for expansion of the
previously defined pits. Estimation of the mineral reserve was completed in
accordance with the Canadian Securities NI 43-101 by LQS. An economic cut-off
grade of 0.4 g/t, updated mining, processing and administration costs and the
application of the results from recent metallurgical recovery test work were
applied to the mineral resource.
    A computer based open pit optimisation routine was used to determine the
appropriate mining limits (area and depth), taking account of all
environmental requirements in connection with open pit mining and waste
    We currently have four rigs on site focussed on exploration activities
and these updated reserves do not include results from recently completed
drilling in the Panique area (8,005m), or drilling in the Main Vein / Boston
area (3,986m). Assaying results from both these areas have been returned and
geological interpretation and block modelling will be completed by the end of
the December 2008 quarter. Further increases in resources and subsequently
reserves are expected, including additional higher grade reserves which we
would expect to extend the high grade period of mining beyond the current 2
year plan.
    In light of the significant increase in reserves and scale of the
project, a higher throughput option is under consideration, focussed on
maximising grade and throughput over the first 10 years of the project. The
preliminary assessments indicate that a significant increase in throughput may
be achievable with only nominal additional capital. The existing plant layout
would not require modification as it has been designed to allow for and to
accommodate additional tankage and crushing capacity if required. This
analysis will be compared to existing mine plans to ensure we maximise the
financial return of the project.


    During the quarter a fourth drilling rig was mobilised to site. The two
reverse circulation ("RC") rigs are focusing on grade control drilling within
the outlines of the starter pits. The two diamond drill ("DD") rigs are
working on resource definition and on three planned deep (+300m) holes beneath
the known resources depth limits to determine the economic potential in those
    In July, an encouraging intersection of 67m @ 1.19 g/t was determined at
the eastern extension of the Aquarius Vein and follow up drilling is planned.
For the balance of the quarter the drilling focused on extensions to the
Montana mineralisation (high grade) and the deep drilling.

    To view On-going Grade Control RC Drilling Activity at the Binstar Area,
please visit:


    Leighton has now achieved in excess of 2 million man hours without any
lost time injury and were awarded a commendation during the recent visit to
site by the Hon Mr. Simon Crean MP, Australia's Trade Minister.
    During the quarter several safety training services were conducted in
compliance with the safety training program of the Company.


    Continuous monitoring and proper implementation of environmental programs
has ensured the operation of the Masbate Gold Project is in compliance with
all environmental laws and regulations including the Environmental Clearance
Certificate granted for the project development.
    A suitable location for a new solid waste disposal ("SWD") site was
required to be established due to the re-opening of the Binstar pit (the
previous SWD site).


    The security situation remained stable during the quarter.

    Community Relations ("Comrel")

    The Company's commitment to help improve the quality of life in the
communities continues to be the focus of attention for the Comrel team.
Current Comrel projects are mainly focused toward providing classrooms that
are conducive to improved community education. An initiative toward education
of matters dealing with improved health and nutrition was also introduced.


    As of September 30, 2008 the group has spent US$110.8 million on the
development of the Masbate Gold Project. The budget forecast is
US$159.9 million. Total cash reserves as of the same date are US$34.6 million
(including cash held by Filminera Resources Corporation) and undrawn but
available facilities of US$51.1 million.

    Mkushi Project Update


    The detailed feasibility study ("FS") is progressing in line with the
schedule and remains on track for completion during the December quarter.
Exploration has shown that there is potential for additional resources to be

    Resource Estimation

    The NI 43-101 compliant technical report for Munshiwemba has been
completed by Snowden Mining Industry Consultants Pty Ltd ("Snowdens"). The
report confirms the global mineral resource estimate also prepared by Snowdens
in July 2008 and has assigned it an Indicated classification according to the
2004 edition of the JORC Code and NI 43-101. The new report, entitled "CGA
Mining Limited: Mkushi Copper Project Zambia Independent Technical Report
August 2008 prepared by Snowdens" was lodged with SEDAR on 3 September 2008
and is available to download from

    Regional Exploration Drilling Results

    CGA's joint venture partner African Eagle Resources Plc, who has
responsibility for exploration outside the core area at Mkushi, has now
received all results from their 2,223m drilling programme on the Munda
Prospect, conducted between March and June 2008. (Refer to Table 1). The
results are promising and indicate that there is potential for additional
copper resources within three kilometres of the main Munshiwemba deposit. The
location of drill holes and induced polarisation targets are shown in
Figure 1.
    To date, mineralized zones which seem likely to provide additional
resources, if satellite pits can be developed, have been identified at three
locations: Munda, Coloquo and Mtuga.

    To view Table 1 - Munda Prospect: Significant Results Summary, please

    To view Figure 1 - Munda Prospect: Drill Hole Locations & IP Targets,
please visit:

    Detailed Feasibility Study

    Metallurgical test work has been carried out by AMMTEC Ltd at their
Balcatta facility in Western Australia. This test work has established that a
simple conventional copper sulphide flotation technology gives in excess of
96% recovery, generating a concentrate with 30% copper. The ore as tested does
not have any significant levels of deleterious minerals and thus would not
experience any smelter penalties.
    The principal consulting group carrying out the FS for the process plant
area is Metplant Engineering Services/Bateman Engineering Pty Ltd
("Metplant"). Metplant has signed off on the project specification, the design
criteria and the mass balance, completed the design layouts and prepared
mechanical equipment lists. Metplant has also issued requests for quotations
to suppliers for all the major items. The crushing plant, which will be of a
modular layout, is being designed by FL Schmidt Minerals Pty Ltd in
conjunction with Metplant.
    Discussions advanced further with the two main power suppliers in Zambia
over the provision of a secure supply of power to the operation. An
independent review into the two main suppliers, their proposals and the
alternative option of diesel power generation was reviewed. A memorandum of
understanding has now been signed with Lunsemfwa Hydro Power Company Ltd.
    The mine design and scheduling work was carried out by Lower Quartile
Solutions Ltd ("LQS"), a Perth based mining consultant, with contract mining
costs provided by Moolmans of South Africa (part of the Aveng Group).
    An optimisation of the resource model is being carried out by LQS, based
on economic and mining parameters previously available.
    The application for a full Large Scale Mining Licence for a period of
twenty five years was approved on 22 July 2008 by the Zambian government. The
fees for the Mining Licence (11973-HQ-LML) have been paid and the Ministry of
Mines and Mineral Development ("MoMMD") is in the process of issuing the
licence certificate.
    An Environmental Impact Assessment ("EIA") and Resettlement Action Plan
("RAP") have been submitted to the Environmental Council of Zambia ("ECZ") for
approval. ECZ is required to review and decide on approval within 60 working
days and a response is expected during the December quarter.
    The FS will also address copper pricing assumptions, marketing issues and
any resolution of the currently onerous tax regime being implemented by the
Zambian Government. A review of all these matters will be critical in
assessing any commitment to development of the project.



    Drilling continued during the quarter with the total amount of drilled
metres by Spektra Jeotek AS ("Spektra") of 3,671m from 41 holes as of
30 September 2008. Assays were received from 10 diamond drill holes showing
encouraging results. Ten other drill holes have been sent to Ghana and we are
awaiting the full assay results.
    Core logging and sample preparation is ongoing at the Ilesha Camp, which
also includes digital data capture and data entry into the drill hole
    Ongoing drill pad clearance with an excavator is being achieved to keep
ahead of the drill advance.
    A local surveying contractor was engaged to pickup drill hole collars,
trench sample locations and infrastructure. Initial collar pick-up of old and
new holes has been received and data is being processed.
    Environmental Consultants (Fugro Consultants Nigeria Limited) were
contracted, and an initial site visit was completed for an environmental
baseline survey of the project site. Liaison and community issues included a
half day stoppage of drilling due to plot holder permission to drill, and
state immigration issues involving drillers visa and entry documentations,
which were handled in accordance with established procedures and work

    Field Work

    Drill pad and access track construction is ongoing, using an excavator
(PC300). Dimensions for the drill sites required are 12m long X 10m wide for
each pad. A total of 27 drill pads were constructed during the period of which
some have been drilled as shown on the drill plan attached.
    All field crew have been dedicated to the drilling program as the
drilling moved towards the northern end of the prospect. Manual labour is
being used to transfer fuel and equipment to the drill sites due to bad road
conditions as a result of heavy rainfall during the period.


    A contract surveyor and crew completed survey pick-ups of the drill
collars, trenches, sample locations and infrastructure at the project site. A
preliminary survey report has been released and has been checked and verified.
The final report is expected during the next quarter.


    The Fugro Environmental Consultant team were engaged during the period to
start on the Baseline Environmental Survey. Initial work involved water, soil
and air sampling. They also conducted a survey involving the local inhabitants
of the project area. Reporting on this work is expected during the next

    Diamond Drilling

    A total of 21 diamond drill holes were completed during the period
totalling 1,857m for a total year to date meters of 3,924m from 46 drill holes
drilled to date (from all drilling contractors).
    Drilling is continuing as scheduled, with on average two holes having
been drilled on each section. Holes are planned on an average of 25m between
sections and 25m down dip distances between holes. All sections are proposed
to be drilled from the south (Section 388725N) to the north (Section 389610N),
with the majority of section lines having been drilled by at least 2 holes
each. The exception being from section 389120N to 389170N, which is the area
where the old mill pond is situated. This area will be drilled during the dry
season (12 holes planned in this area).

    To view Spektra Drilling on Site at Segilola Gold Project, please visit:


    Turn around time for assays from SGS Laboratory Services (Ghana) Ltd
("SGS") in Ghana has previously been a problem, mainly due to previous
Ghanaian customs procedures. However, due to some recent changes of
procedures, and our own recent reviews of the system, the turn around time has
reduced significantly with the last batch having the basic assay results
returned in under 6 weeks.
    Results were received from SGS in Ghana for 10 diamond drill holes sent
for analysis. An additional 10 holes have recently been cleared in Accra and
assay results are awaited. The results of the holes are as presented below in
Table 2.

    To view Table 2 - Segilola Project: Drilling Results, please visit:

    Significant assays assumed (greater than)0.7 gAu/t
    The interval mentioned in the above table refers to the in-hole inclined
    We are awaiting final assay results for a further 18 holes.


    During the quarter all the conditions precedent to drawdown under the BNP
Paribas arranged US$80.3M project finance facility were satisfied and
unconditional drawdown is available under the facility. The Company made its
first drawdown of US$39.2M under the facility on 4 September 2008. The project
finance facility requires limited hedging which has been executed. A hedging
program of US$800 puts covering 46,079 ounces and forward sales covering
214,337 ounces at an average price of approximately US$859 has been
successfully executed during the quarter.
    During the quarter 50,000 warrants were exercised for cash proceeds of
C$51,500. At 30 September 2008, the Company had 9,535,000 options and
5,575,000 outstanding warrants on issue. The total issued capital of the
Company as at 30 September 2008 was 233,876,976 fully paid ordinary shares.


    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 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 (22,000m of which has now 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.


    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 new NI 43-101 compliant report will be lodged shortly on
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.


    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

    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                                    Quarter ended ("current quarter")
    -------------------------              ---------------------------------
    88 009 153 128                         30 September 2008
    -------------------------              ---------------------------------

    Consolidated statement of cash flows

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

    1.2  Payments for (a) exploration and evaluation   (2,658)        (2,658)
                      (b) development
                      (c) production                  (45,309)       (45,309)
                      (d) administration(*)

         (*)administration cash flows at
          30 September include annual audit fee
          and annual listing fees.                     (1,248)        (1,248)
    1.3  Dividends received                                 -              -
    1.4  Interest and other items of a similar nature
          received                                         57             57
    1.5  Interest and other costs of finance paid        (418)          (418)
    1.6  Income taxes paid                                  -              -
    1.7  Other (Business development)                    (116)          (116)

         Net Operating Cash Flows                      (49,691)      (49,691)

         Cash flows related to investing activities

    1.8  Payment for purchases of: (a)prospects              -             -
                                   (c)other fixed
                                                           (46)          (46)
    1.9  Proceeds from sale of:    (a)prospects              -             -
                                   (c)other fixed
    1.10  Loans to other entities                            -             -
    1.11  Loans repaid by other entities                     -             -
    1.12  Other (provide details if material)                -             -
          Net investing cash flows                         (46)          (46)
    1.13  Total operating and investing cash flows
           (carried forward)                           (49,737)      (49,737)

    1.13  Total operating and investing cash flows
           (brought forward)                           (49,737)      (49,737)

          Cash flows related to financing activities

    1.14  Proceeds from issues of shares, options,
           etc.                                             48            48
    1.15  Proceeds from sale of forfeited shares             -             -
    1.16  Proceeds from borrowings                      39,200        39,200
    1.17  Repayment of borrowings                            -             -
    1.18  Dividends paid                                     -             -
    1.19  Other (provide details if material)                -             -
          Net financing cash flows                      39,248        39,248

          Net increase (decrease) in cash held         (10,489)      (10,489)

    1.20  Cash at beginning of quarter/year to date     44,781        44,781
    1.21  Exchange rate adjustments to item 1.20            39            39
    1.22  Cash at end of quarter(*)                     34,331        34,331
        (*)an additional US$268,784 in cash is held by Filminera Resources

    Payments to directors of the entity and associates of the directors

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

    1.23  Aggregate amount of payments to the parties
           included in item 1.2                                         (318)
    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 directors' fees, salaries, bonus, taxes, and


    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                                 51,100       39,200
    3.2  Credit standby arrangements                          -            -

    Estimated cash outflows for next quarter
    4.1  Exploration and evaluation                                    1,864
    4.2  Development                                                  40,009
         Total                                                        41,873

    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                         9,902       40,842
    5.2  Deposits at call                                23,500        3,059
    5.3  Bank overdraft                                       -            -
    5.4  Other (AUD account)                                929          880
         Total: cash at end of quarter
          (item 1.22)(*)                                 34,331       44,781
         (*)an additional US$268,784 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 relinquished,
         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.

                                                                 Amount paid
                                                   Issue price   up per
                                                   per security  security
                          Total        Number      (see note 3)  (see note 3)
                          number       quoted      (cents)       (cents)
    7.1  Preference
    7.2  Changes during
         (a) Increases
         through issues
         (b) Decreases
         through returns
         of capital,
    7.3  +Ordinary
         securities       233,876,976  233,876,976
    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                                       Exercise
                                                          price  Expiry date
         and conversion
    7.8  Issued during
         quarter                    -            -            -            -
    7.9  Exercised during      50,000                            22 November
         quarter             Warrants            -       C$1.03         2010
    7.10  Expired during
          quarter                   -            -            -            -
    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 give a true and fair view of the matters

    Sign here:  (signed)             Date: ...29 October 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

For further information:

For further information: Australian Contact: President & CEO - Michael
Carrick, Tel: +61 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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CGA Mining Limited

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