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



    6m @ 9.93 g/t and 27m @ 9.88 g/t


    PERTH, Western Australia, Jan. 31 /CNW/ - During the three months ending
31 December, CGA Mining Limited's ("CGA", the "Company") activities focused on
commencing construction of the Masbate Gold Project in the Philippines and the
finalisation of the detailed assessment of the Mkushi Cooper project in
Zambia, which demonstrated positive economics allowing for the project to move
forward to the formal feasibility study stage.

    During the December quarter, the Company secured the necessary equity
funding to enable a commitment to development of the Masbate Gold Project and
construction was commenced. As at 31 December 2007, the following provides an
update of activities that were underway.

    Process Plant & Infrastructure Construction

    On 5 November 2007 each of Philippine Gold Processing and Refining
Corporation ("PGPRC") a wholly owned subsidiary of CGA and Filminera Resources
Corporation ("FRC") executed agreements with Leighton Contractors (Asia)
Limited ("Leighton") and Leighton Holdings Limited ("LHL") for the Fixed Price
Lump Sum ("FPLS") design and construct contracts for a total scope of works of
US$84.9M. Lycopdium Engineering ("Lycopodium") will be sub-contacted by
Leighton and will be responsible for all design matters.
    LHL is one of Australia's largest and most highly regarded construction
and mining contractors.
    The FPLS contracts are executed in US dollars, ensuring that Leighton is
responsible for any currency movements under their scope of work.
    Lycopodium commenced detailed plant design during the previous quarter
which enabled preliminary earth works on site to commence prior to the
execution date.

    Masbate Project Construction
    General Site Layout:

    Subsequent to the execution of the contract Leighton placed orders for
all major mechanical and electrical equipment and as of 31 December all
deliveries of such equipment were on schedule.

    During the quarter the following on site construction activities

    -   Mobilisation and commissioning of the concrete batch plant and
        associated crushing facility.
    -   Contract labour accommodation and messing facility.
    -   Permanent 300 man accommodation and messing facility.
    -   Earthworks associated with the grinding (mills) section of the
        process plant.
    -   Earthworks associated with the CIL tankage.
    -   Concrete foundations.
    -   Mobilisation of the tower crane - presently 5 days ahead of schedule.
    -   Excavation and earthworks required for the primary crusher

    Construction is due for completion in December 2008. The project is
forecast to produce over 200,000 ounces of gold per annum.

    Masbate Project Construction
    CIL Tanks:

    As of 31 December, progress in the CIL tankage area was one week (7 days)
ahead of schedule and construction of the contract workers camp and the
permanent camp were 9 days and 4 days respectively ahead of schedule. All
permits associated with building and occupying of the facilities have been

    Mill Refurbishment

    During the quarter FRC engaged Weir Services Australia Pty Ltd (a
subsidiary of Wier International Services), a company specialising in grinding
mills, mine pump design and supply. The previously purchased, semi autogenous
("SAG") mill was transported from Spokane Washington State to Weirs
engineering workshop facility in Edmonton, Canada where refurbishment work has
commenced and is on schedule and due for completion in April. The two ball
mills located in Cebu, Philippines will also be refurbished by Weir, in the
Philippines and in Australia. Work has also commenced on these units.


    FRC signed a Letter of Intent with D.M. Consunji Inc. ("DMCI") for the
permanent supply of electrical power to the project. It is envisaged that a
coal fired boiler will use coal from the nearby DMCI controlled, Semarara Coal
Mine. The coal can be barged to, and off loaded at, the project site. Thermax
Limited, a Mumbai, India, based and experienced power generation / boiler
design engineering company has been commissioned to carry out an investigation
of the most appropriate technology / facility to meet the power demands for
the project, whilst ensuring that the Philippine emissions requirements are


    FRC is in the final stages of negotiating the supply of contract mining
services via an Alliance type agreement with Leighton. The contract will be
for six (6) years and will include the supply of all mining / earth moving
equipment, maintenance facilities and people to exploit the resources
according to the agreed mining schedule of 4.0 Mtpa in years 1 and 2 and
5.0 Mtpa in years 3 to 6. The six year schedule includes a period of three (3)
months prior to process plant commissioning.

    Tailings Dam

    FRC commissioned GHD Engineering ("GHD") a Perth based engineering
company specialising in tailings dam, hydrology and infrastructure with an
office in Manila to carry out detailed engineering and design of an
appropriate tailings storage facility at the Masbate Site. As of 31 December,
GHD had issued general arrangement drawings and the necessary engineering
parameters to allow the Manila office to carry out the detailed design.


    During the quarter a diamond drill and a reverse circulation drill were
mobilised to site to initially carry out geotechnical and sterilisation
investigations at the process plant and tailings dam sites. The rigs have
subsequently been used to test the prospectivity of some areas in the
immediate vicinity of known resources at Masbate. Initially the Boston area to
the south of the planned Main Vein pit was investigated.
    A summary of the most recent results is reported in Table 1 below.
    The Boston area lies immediately along strike and to the south of the
current designed Masbate open pits (Figure 1); this was previously mined and
produced approximately 25,000 ounces of recovered gold from a small open pit.
The latest drilling has concentrated on testing strike extents of the known
mineralisation and also locating parallel vein and stock-work zones.

    Figure 1
    Boston And Panique Areas - Drill Program:

    The Boston area is particularly favourable as a proportion of the
mineralisation is oxide and will have positive metallurgical characteristics.
    Drilling is now underway on the adjacent Panique vein system where an
inferred resource of 900,000 ounces Au has already been delineated. This new
drilling program is designed to close up the drill spacing and enable this
resource to be converted to reserve status.

                                   Table 1
                     Boston Area Significant Intercepts

    Hole       North   East   From   To   Interval   Au     Material  Drill
    ID           m       m      m     m      m       g/t
    BTNRC04     TBA     TBA    13    17      4       1.34       Oxide    RC
                               19    23      4       9.66       Oxide    RC
    BTNRC07     TBA     TBA    15    17      2       1.17       Fresh    RC
    BTNRC08     TBA     TBA    49    51      2       1.28       Oxide    RC
    BTNRC10A    TBA     TBA     1     9      8       0.97       Oxide    RC
                               16    17      1       5.77       Oxide    RC
                               19    22      3       2.29  Transition    RC
                               24    33      9       1.25  Transition    RC
    BTNRC12     TBA     TBA     3     4      1       1.12       Oxide    RC
                               10    12      2       1.03       Oxide    RC
                               14    19      5       1.07       Fresh    RC
    BTNRC16     TBA     TBA    39    41      2       2.63  Transition    RC
                               46    48      2       0.63       Fresh    RC
                               41    48      7       1.49       Fresh    RC
    BTNRC19     TBA     TBA     9    12      3       0.54       Oxide    RC
                               14    16      2       0.66  Transition    RC
                               20    26      6       1.04       Fresh    RC
                               38    41      3       4.62       Fresh    RC
                               53    54      1       2.96       Fresh    RC
    BTNRC34A    TBA     TBA    38    39      1      16.34       Fresh    RC
                               42    43      1       1.25       Fresh    RC

    A recently carried out drill program in the Libra area and the proximity
to the process plant site is detailed in Figure 2. As can be seen, the
identified mineralisation is outside the planned pit outlines and represents
an opportunity to add to the reserve base.
    The area has been interpreted as dissimilar to the main mineralisation at
Masbate. Current interpretation suggests that the gold mineralisation in this
vicinity is related to the presence of metasediments and the high grade
intercepts are related to the intersection of the Libra vein with the
chemically reactive rocks. Table 2 summarises the latest drilling results.

    Figure 2 - Plan View showing KYZ (Libra) area and position of recent
drill holes:

                                   Table 2
                      Libra Zone Significant Intercepts

    Hole         North    East       Dip      From    To   Interval    Grade
    ID             m       m       Degrees      m      m       m         g/t
    MEXRC 01A    25715    29565       60        0      2       2        2.08
                                                5     11       6        2.68
                                               21     58      37        3.57
    MEXRC 02     25746    29526       60        4     10       6        9.93
    MEXRC 04     25769    29485       60       26     53      27        9.88
    MEXRC 06     25796    29440       60        6      7       1        8.56

    Masbate Safety

    The site has adopted the Safety Policies and Procedures of Leighton to
ensure uniformity across the project site. On 31 January 2008, Leighton will
achieve 500,000 man hours without any lost injury time. This is a milestone to
the project and there will be a formal function to recognise this achievement.

    Community Relations

    As previously announced, the Social Development and Management Program
("SDMP") has been approved by the Mines and Geosciences Bureau and outlines a
comprehensive community relations and improvement program to ensure focus is
given to local community issues and an enhancement of benefits to the local
barangays (villages) and Masbate Island as a whole. We have already commenced
implementation of several programs including:

    -   construction of a 3.2-km water supply line that benefits Barangay
        Panique with a population of around 6000;
    -   construction of Chapels, Waiting Sheds, Basketball Courts, Repair of
        School Buildings, Construction of Daycare Centers, Parents/Teachers
        Multi-purpose Buildings;
    -   livelihood projects such as crop production by allowing residents of
        impacted barangays to farm in company lands; and
    -   purchase of an ambulance for project use as well as for use of the
        surrounding communities.

    FRC has also focussed on maintaining and continuing to improve good
relations with the local religious groups and communities including the

    -   attendance in PTCA Meetings and Teachers' Conferences;
    -   participation in sports and cultural programs during sitio, barangay
        and town fiestas;
    -   spearheading religious activities in Sto Nino Parish of the
        surrounding communities in the mine complex; and
    -   sponsoring one-night social activities for the Aroroy annual town

    Representatives of FRC were also afforded an opportunity to meet with the
President of the Philippines, President Gloria-Macapagal Arroyo in December
who was very supportive of both the project and our efforts in moving it
successfully into the construction phase.


    As of 31 December 2007, the group had spent approximately US$29M on
construction of the project, with total cash reserves at 31 December 2007 of
US$60.7M (including the cash reserves of FRC)

    Project Finance Facility

    The project finance facility being arranged by BNP Paribas is progressing
well and final documentation is close to being signed. As with all project
finance facilities it is subject to normal conditions precedent, which are
presently on track to be satisfied for a drawdown in the second quarter of


    PGPRC also successfully secured the Board of Investment's approval for a
minimum 6 year income tax holiday from the commencement of operation,
currently expected to be in the first quarter 2009. There is also potential to
extend by a further 2 years for a total income tax holiday of 8 years.

    New Appointment

    FRC, the holder of the licence also appointed Mr Cris Acosta, a highly
regarded Philippine National, as President of the company. Mr Acosta has spent
over 10 years with Shell in both London and the Philippines, most recently
dealing with Government relations and external affairs. He was a special
assistant to the President of the Philippines from 1992 - 1995, was a
commissioned officer in the armed forces of the Philippines, attended the
United States Military Academy at West Point, New York, won the Fulbright
Scholarship to both the Massachusetts Institute of Technology (where he
completed his Master of Science, MBA and PhD) and Cornell University (where he
received his Master of Engineering degree), and earned a postgraduate
certificate in cross sector partnership at the University of Cambridge. Mr.
Acosta is also a Chartered Financial Analyst charter holder and a Fellow of
the Institute of Corporate Directors in the Philippines.

    CGA has completed a detailed study designed to assess the viability of
developing a 1.6mtpa open pit copper mine processing facility and associated
infrastructure and ancillaries at the Mkushi Copper Project in Zambia ("the
    The Study has been undertaken by the CGA technical team supported by
independent technical consultants when required.
    The analysis from the Study supports that the project is economically
viable at current prices and the joint venture now intends to commit to the
preparation of a detailed feasibility study, including the release of a NI
43-101 compliant report by an independent qualified person. The Study was
prepared on the basis of drill results only up to the end of August but
drilling has continued beyond August and the NI 43-101 report will report on
all drilling results for the project.
    The detailed feasibility study is scheduled for completion by the end of
calendar 2008, at which time the joint venture will then make a decision on
the development of the project. This coincides with the scheduled completion
of construction of the Masbate Gold Project in the Philippines, and allows
experienced project staff to relocate from the Philippines to Zambia.

    Capital Estimate

    The estimated capital requirement as determined by the Study (based
primarily on work carried out by Metplant Engineering Services Pty Ltd) is
US$61M, including a contingency of U$5M. The estimated breakdown of the
capital cost is set out below.

    Mine                                                           3,300,000
    Infrastructure, Buildings and Utilities                       15,700,000
    Process Plant                                                 33,100,000
    EPCM                                                           8,800,000

                                              TOTAL            US$60,900,000


    The Mkushi deposit is within the original Exploration License No. PL114
which is surrounded by a new, larger Exploration License No. PL290. Both
licenses are held by Mkushi Copper Joint Venture Company ("MCJV") which is a
joint venture 51% owned by Seringa Mining Company ("Seringa") (100% controlled
by CGA) and 49 % by Katanga Resources Company ("Katanga") (100% controlled by
African Eagle Resources plc). African Eagle Resources plc ("AFE") is listed on
the Alternative Investment Market in London.

    Figure 3
    Map Of Area Showing Licences And Core Area:


    The project is located in Zambia, some 220 kilometers north east of the
capital city of Lusaka and 35 kilometers east of the regional township of
Kapiri Mposhi. 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 (20 km) leads to the project site. The site is at an
altitude of 1100m ASL. Plentiful water and electrical power is available
nearby from the Lumsemfwa HEP facility.


    The Mkushi Deposit is a shear hosted sub vertical suite of mineralization
extending over a distance of two (2) kilometers and is exposed by way of an
existing open pit over a length of 800m. This is part of a broader mineralized
belt extending over more than 12 kilometers within the licenced tenements. The
deposit is structurally complex, hosted by metamorphic gneissic rocks, and
associated with a suite of felsic intrusive rocks, with evidence of several
generations of faulting. The mineralization pinches and swells along strike
and to depth. Copper mineralization has been identified to 300m vertical
    The deposit was originally developed by an Italian mining company in the
1970's and operated for 5yrs, producing 2.2M tonnes of ore at a grade of about
0.98% copper which was processed in a small concentration facility (part of
which still exists on site) to produce 78,000 tonnes of copper concentrate at
a grade of 24%Cu. The concentrate was sold to smelters within Zambia.
    The project is located close to the southern end of the Zambian
Copperbelt, however the style of mineralization is quite different to that of
the stratabound deposits for which the copper belt is well known.
    Exploration drilling carried out by Katanga in the period prior to CGA's
involvement totaled almost 10,000 m. Subsequent to the formation of the joint
venture in May 2007 an additional 16,000 m of diamond drilling and 6,100 m of
reverse circulation ("RC") has been carried out. As part of the Study, CGA has
combined all of the previous drilling and sampling data into a digital
database and reviewed the geological interpretation.
    The database contains 81 drill holes, and 8,000 core and 3,600 RC chip
sample assays.
    The geological interpretation and orebody evaluation were conducted by
CGA using an experienced geologist appropriately experienced in the copper
sulphide style of mineralization and resource modeling.


    CGA appointed African Mining Consultants ("AMC" a Zambian Company) to
review the geotechnical conditions within the existing pit on site and then
develop a set of design parameters on which to base the preliminary open pit
design. AMC Consultants ("AMCC" - Australian Company) with involvement from
CGA and Seringa carried out an optimization of the in-house generated
geological model and developed a preliminary open pit.
    The recommendation from AMC is that the pit slopes could be designed for
a final overall angle of up to 70 degrees. Density measurements were
established from the geological core generated form the drilling operations.
    Review of the hydrogeological records and recent observation of the pit
walls (the existing pit was completely dewatered to enable a complete
geological interpretation), suggests that the mine will not generate
significant water.
    The Study assumes an annual production rate of 1.6M tonnes per annum with
an 18 month pre-production period. The mining sequence would likely progress
from the north to the south along the strike of the deposit.
    The mine is planned to utilize a mining contractor, with 60t haul trucks
combined with 100t excavators. Indicative rates have been sourced from a
Zambian based contractor, a South African and an Australian contractor, based
on the preliminary pit designs.
    At this stage the mine is planned to operate on a two shift per day
basis, six days a week. The use of local labour would be maximized with mining
contractors experienced in mine development and operations likely to be used
for the initial development and training of local operators.


    The collection of appropriate drill core samples and the supervision of
the test programme was supervised by a consultant metallurgist with 40 years
experience in Australia and overseas. CGA carried out a comprehensive test
work programme on 196kg of sample which was made up by quartering core from a
total of 12 diamond drill holes, and representing three depth zones which
covered the entire mineralized zones. The programme was conducted at AMMTEC
Laboratories in Perth.
    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.

    Ore Processing

    Due to their previous experience in sulphide developments, Metplant
Engineering Pty Ltd were commissioned to design and cost the planned process
plant. The planned facility will comprise primary crushing followed by single
stage autogenous milling. A standard flotation circuit followed by a pressure
filter/drying process is proposed to be constructed to recover a concentrate
from the run-of-mine ore. The concentrate is planned to be trucked to nearby
(200km) smelters in Zambia for sale.

    Tailings Disposal

    D. Cooper and Associates planned and supervised the tailings disposal
investigation and testwork. Process plant tailings would be sent to an
appropriately designed and constructed impoundment located nearby to the
processing facility.
    The tailings dam is planned to be constructed as to allow surplus water
to be recovered and returned for use in the process plant.

    Environmental Impact

    CGA commissioned AMC to carry out a baseline study and to produce an
environmental brief which sets the guidelines for a full environmental impact
assessment to be conducted as a part of any feasibility study. The
investigation did not highlight any significant issues that may affect any
development at the project area. The single identified issue is that of the
existing tailings dump, which is eroding and requires remedial action. CGA has
received confirmation from the regulatory body that the previous operators,
not the current joint venture, are responsible for any remediation. CGA is
considering enclosing the existing tailings within a new development so as to
mitigate any possible remedial action.

    Infrastructure and Utilities

    Process water can be sourced from either the nearby Lumsemfwa River, from
a dam to be constructed on the Lumsemfwa or one of its tributaries. A final
decision will be made as part of any feasibility study.
    Potable water could be sourced from the nearby river and treated to an
acceptable standard.
    Electrical power can be sourced from either an existing National Grid
power line, located 300m north of the planned open pit or from the nearby
Lumsemfwa hydrostation. Power in Zambia is presently charged at US$0.34 per
    It is proposed to upgrade the existing gravel road to allow for all year
round access of people and materials.
    Domestic suppliers of consumables, presently supplying the requirements
of the Zambian copperbelt, would likely be contracted to deliver into
appropriately designed and constructed buildings established onsite at Mkushi.

    Future Exploration

    Katanga is the manager and operator of the exploration activities outside
of the immediate project (core) area at Mkushi. A number (+ 5) of prospective
zones have been identified as prospective and will be investigated using
either diamond drilling or RC drilling during the project development phase.

    Zambian Taxation System

    The Finance Minister in Zambia has recently announced that the country
intends to introduce a new tax regime to include a windfall tax of +25% on the
incremental price where the copper price is between $2.50/lb and $3.00/lb; to
a maximum of +75% on the incremental price on copper prices above $3.50/lb.
They have also announced a reduction in the depreciation allowance. The new
tax regime will be included in the analysis to be prepared during completion
of the detailed feasibility study and release of the NI43-101 report.

    Exploration Results

    Drilling on the project continued through the quarter and the significant
assay results from the quarter are indicated in the following table.
    The results are encouraging and have extended the resource potential of
the three principal mineralisation zones H, L and G Zones. The promising
results from L Zone, including MH080 14m at 1.23%Cu and 9m at 1.93% Cu,
highlight the potential of L zone at depth and are the target of ongoing
drilling. Additional copper anomalism has been located in drilling the hanging
wall to both L and H Zones and this will be further targeted in the ongoing
drilling programmes.

    TORONTO, Jan. 31 /CNW/ -

                                   Table 3
             Mkushi Significant Results - (greater than)1.0% CU

    Hole No    Prospect     East     North    From    To  Width   Cu %  Type
    MH078        L ZONE   731093   8456896     126   129      3   1.31    DD
    MH078        L ZONE                        138   143      5   1.49    DD
    MH080        L ZONE   731096   8456828     229   243     14   1.23    DD
    MH080        L ZONE                        247   255      9   1.93    DD
    MH081        L ZONE   731024   8456822     109   119     10   1.07    DD
    MH081A       L ZONE   731024   8456822     113   122      9   0.96    DD
    MH081A       L ZONE                        249   258      9   1.08    DD
    MH082        L ZONE   730979   8456760     117   119      2   2.75    DD
    MH083        H ZONE   731164   8456705      28    31      3   2.95    DD
    MH083        H ZONE                         64    66      2   2.10    DD
    MH083        H ZONE                         85    86      1   1.61    DD
    MH084        L ZONE   731050   8456855     112   115      3   0.76    DD
    MH084        L ZONE                        137   144      7   1.26    DD
    MH084        L ZONE                        206   207      1   3.95    DD
    MH085        H ZONE   731216   8456882      25    30      5   1.03    DD
    MMU046       G ZONE   731543   8457094       7    12      5   1.45    DD
    MMU047       G ZONE   731522   8457506      87    96      9   2.05    DD
    MMU047       G ZONE                        103   109      6   0.98    DD
    MMU049  MUNSHIWEMBA   731582   8457578      34    38      4   0.98    DD
    MMU050  MUNSHIWEMBA   731623   8457676      17    20      3   1.99    DD
    MMU050  MUNSHIWEMBA                         31    57     26   1.75    DD
    MMU051  MUNSHIWEMBA   731596   8457631      48    57      9   2.71    DD

    The Environmental Impact Assessment is expected to be completed by AMC
Consultants early in the first quarter of 2008. In the meantime an
Environmental Commitment Statement has been prepared and presented. The
geotechnical programme has been planned and commenced with an initial site
visit in December with geotechnical drilling to be carried out in January of
2008. Several mine plan options have been generated along with reviews of the
locations, and alternatives, for the various items of infrastructure.
    Work has commenced on roofing and plastering of the Mkushi Copper Mine
High School new classroom block community project and is expected to be
finished for the school new year.

    The agreements with Spektra Jeotek AS ("Specktra"), a Turkish drilling
company, have been ratified and, after delays due to unseasonal weather, the
drill rig was dispatched and shipped to Nigeria. The containers holding the
crawler mounted diamond drill rig and the ancillary equipment required for the
contract arrived in Lagos port in late December and are awaiting customs
clearance, which is expected shortly. Arrangements have already been put in
place to transport the drill rig and associated equipment to site after which
the main exploration and resource drilling programme will commence.
    The Turkish drill crew have been assigned, as have the supervisors and
regional managers in charge of the drill crews. Visa applications will be made
to get these personnel into Nigeria as soon as possible and in time for the
clearance of the equipment from customs.
    Spektra has a highly skilled, experienced and competent team of staff and
technicians who also operate and maintain their rigs. They have almost
25 years of background in the drilling industry and are currently operating
mainly in the mineral resource industry. Spektra has drilled, and is currently
drilling, for various national and multinational companies all around the
world and is operating in: Morocco; Algeria; Serbia; Turkey; Azerbeijan; Iran;
Pakistan; Yemen and Turkey.
    Sufficient drill sites have been prepared in advance to cater for both
the local drilling rig and the commencement of the Spektra rig.
    The trenching and sampling is continuing. Batch samples have been sent to
Accra in Ghana for lab assay and results are expected early in 2008.
    Reviews of additional properties in Nigeria with mineral potential have
also been undertaken during the quarter.

    On 22 November 2007 CGA closed its private placement of
48,200,000 ordinary shares in the capital of the Company and 25,000 units
(with attaching warrants) for a total capital raising of US$65M. The proceeds,
in combination with a US$65 million senior debt facility being arranged by BNP
Paribas, are planned to be used to fund the construction of the Company's
Masbate Gold Mine in the Philippines.
    During the quarter, CGA issued 2.025M 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 in the
    During the quarter 805,000 options were exercised for total cash proceeds
of $491,250.

    National Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101") is a rule developed by Canadian Securities Administrators, which
establishes standards for all public disclosure an issuer makes of scientific
and technical information concerning mineral projects.
    Mr Geoff.G.Jones, F.Aus.I.M.M.CP Mng, is acting as the Qualified Person
in compliance with NI 43-101 with respect to this announcement. He has
prepared and or supervised the preparation of the scientific or technical
information in this announcement. Mr Jones is a fellow of the Australasian
Institute of Mining and Metallurgy (AusIMM), and a consultant to CGA.
    The information of a technical nature in this report is based on
information compiled by, or under the supervision of, and approved by
Mr Geoff G Jones. The drilling results were assayed by Genalysis Laboratory
Services Pty Ltd in Perth, Western Australia.
    Mr Jones has sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration and is recognised as a
Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Resources' and is
a Qualified Person under National Instrument 43 - 101. Mr Jones consents to
the inclusion in the report of the matters based on their information in the
form and context in which it appears.

    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
    Note: This is the first report for the Company in US dollars following a
    change in the functional and reporting currency of the Company from
    Australian to US dollars at 1 December 2007.

    ABN                                         Month ended ("current month")
    -----------------------------              ------------------------------
    88 009 153 128                                             December 2007
    -----------------------------              ------------------------------

    Consolidated statement of cash flows

                                                                     to date
                                                        Current         (six
    Cash flows related to                               quarter       months)
     operating activities                               US$'000      US$'000

    1.1  Receipts from product sales and
          related debtors                                     -            -

    1.2  Payments for (a) exploration and evaluation     (1,646)      (3,856)
                      (b) development                   (26,916)     (28,025)
                      (c) production                         -             -
                      (d)administration                 (810)(*)      (1,318)
    1.3  Dividends received                                   -            -
    1.4  Interest and other items of a similar
          nature received                                   497          982
    1.5  Interest and other costs of finance paid        (3,729)      (3,729)
    1.6  Income taxes paid                                    -            -
    1.7  Other -Business development                          -            -
         Net Operating Cash Flows                       (32,604)     (35,946)
        (*) Includes annual audit, tax and shareholder
            reporting costs.

         Cash flows related to investing activities
    1.8  Payment for purchases of: (a)prospects               -            -
                                   (b)equity investments
                                   (c) other fixed assets
    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                             -            -
    1.13 Total operating and investing cash flows
          (carried forward)                             (32,604)     (35,946)

    1.13 Total operating and investing cash flows
          (brought forward)                             (32,604)    (35,946)
         Cash flows related to financing activities
    1.14 Proceeds from issues of shares, options, etc.   39,500       39,527

    1.15 Proceeds from sale of forfeited shares               -            -
    1.16 Proceeds from borrowings                        25,000       25,000
    1.17 Repayment of borrowings                              -            -
    1.18 Dividends paid                                       -            -
    1.19 Other (provide details if material)                  -            -
         Net financing cash flows                        64,500       64,527
         Net increase (decrease) in cash held            31,896       28,581

    1.20 Cash at beginning of quarter/year to date       22,909       25,914
    1.21 Exchange rate adjustments to item 1.20             151          461
    1.22 Cash at end of quarter                        54,956(*)    54,956(*)
    (*) Filminera Resources Corp. has an additional $5.5m 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                                           406
    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, bonus, 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                         US$'000
    4.1  Exploration and evaluation                                    3,391
    4.2  Development                                                  35,685
         Total                                                        39,076

    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              quarter    quarter
     items in the accounts is as follows.                 US$'000    US$'000
    5.1  Cash on hand and at bank                          51,983      1,728
    5.2  Deposits at call                                       -          -
    5.3  Bank overdraft                                         -          -
    5.4  Other (provide details)
         AUD Account                                        2,781     21,159
         AUD Deposit                                          192        117
         Total: cash at end of quarter (item 1.22)         54,956     23,004

    Changes in interests in mining tenements
                                        Nature of   Interest at  Interest at
                             Tenement    interest  beginning of       end of
                            reference   (note (2))      quarter      quarter
    6.1  Interests in
          reduced or
          lapsed                    -            -            -            -
    6.2  Interests in
          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
                              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      210,554,976  210,554,976
    7.4  Changes during
          (a) Increases
          through issues
          (b) Decreases
          through returns
          of capital,
          buy-backs        48,200,000   48,200,000
    7.5  +Convertible debt
    7.6  Changes during
         (a) Increases
         through issues
         (b) Decreases
    7.7  Options
          and conversion
    7.8  Issued during
          quarter           8,500,000            0            0            0
    7.9  Exercised
          quarter             805,000      805,000         0.61         0.61
    7.10 Expired
    7.11 Debentures
          (totals only)
    7.12 Unsecured notes
          (totals only)        25,000            0

    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: 31 January 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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