CGA Announces Further Encouraging Exploration Results
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/
ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK EXCHANGE
HIGHLIGHTS
- Hole BQRC001, 5m @ 17.95 g/t Au from a depth of 59m,
including 2m @ 41.39 g/t.
- Hole BQRC004, 14 m @ 3.48 g/t Au from a depth of 68m,
including 7m @ 6.08 g/t.
- Hole BNRC012, 23m @ 1.40 g/t Au from a depth of 54m, and
including 2m @ 5.06 g/t.
"These results are seen as very encouraging, confirming the persistence
of the Porphyry Vein System, which is still open to the east. Further
drilling will be planned for both areas in order to convert the zones
into mineable reserves," said Michael Carrick, Chief Executive Officer
of CGA.
PERTH, Western Australia, July 13 /CNW/ - The Boards of CGA Mining Limited ("CGA", the "Company") (TSX Code - CGA, ASX Code - CGX) and Filminera Resources Corporation are pleased to provide an update to the exploration results announced on 1 July 2010. Further high grade drilling intercepts have been identified at the Boston-Porphyry and Blue Quartz zones, close to the southern extent of the proposed pit shell. These holes are indicated in blue in Fig. 1. Neither zone presently contributes to the Masbate Project's current 43-101 resource or reserve estimates.
To view Figure 1 please visit: http://files.newswire.ca/578/cgafig1.pdf
Blue Quartz Prospect
Set out in Table 1 are the assay results for reverse circulation holes BQRC001, BQRC002, and BQRC003.
A relatively high grade intercept occurs in BQRC001 (5m @ 17.95 g/t from 59 metres) and several relatively wide intercepts occur in BQRC002 - see Table 1. Local high grades persist to the east within narrow intercepts.
These results are encouraging, with true widths of around 20 metres in BQRC002 and BQRC003, and local relatively high grades.
Table 1: Blue Quartz Prospect - Significant Assays to Date
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Total Width Grade
Hole-ID Easting Northing RL Azimuth Dip Depth From To (m) (g/t)
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BQRC001 31170 23810 57.8 16 -60 120 27 28 1 1.99
41 44 3 2.81
including 42 43 1 5.53
54 55 1 1.58
59 64 5 17.95
including 59 61 2 41.39
97 100 3 0.75
108 111 3 0.72
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BQRC002 31090 23870 58 16 -60 120 25 28 3 0.76
41 42 1 1.31
53 54 1 0.82
82 103 21 1.60
including 92 94 2 7.11
106 116 10 1.27
including 114 115 1 5.06
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BQRC003 31008 23893 60 16 -60 120 18 19 1 0.43
22 23 1 0.5
38 39 1 2.33
66 93 23 1.78
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BQRC004 30922 23900 73 16 -60 132 29 30 1 2.26
39 40 1 0.74
68 82 14 3.48
including 75 82 7 6.03
116 117 1 3.42
124 130 6 1.23
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BQRC005 30863 23920 81 16 -60 138 44 45 1 1.66
73 81 8 0.84
83 84 1 1.52
113 119 6 0.69
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BQRC006 30800 23930 84 16 -60 120 Samples not yet
submitted
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Boston-Porphyry Prospect
All assays from drilling to date at this prospect have now been received. Additional significant intercepts are set out in Table 2.
Table 2: Boston-Porphyry Prospect - Additional Significant Intercepts,
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Total Width Grade
Hole-ID Easting Northing RL Azim Inclin Depth From To (m) (g/t)
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BNRC012 30964 24594 71 175 -60 120 54 77 23 1.40
including 63 65 2 5.06
79 84 5 1.96
87 90 3 0.95
98 99 1 1.68
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BNRC013 30965 24585 71 355 -60 120 19 27 8 1.13
37 38 1 0.54
41 42 1 0.64
57 58 1 1.16
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BNRC020 30898 24478 118 355 -60 120 6 12 6 0.68
60 61 1 1.09
101 103 2 2.14
107 108 1 0.67
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All of these holes are drilled on sections trending 355 degrees, although BNRC012 is a "scissor" hole, drilled to 175 degrees, and as a consequence has been drilled down dip (overall dip of the Porphyry vein system is about 45 degrees to about 170 degrees). The true width of the overall BNRC012 intercept from 54-90 metres is about 25 metres. The BNRC013 intersection from 19-27 metres is about true width and is on the same section, about 50 metres up-dip. Some minor faulting is inferred to explain the offset between the BNRC012 and BNRC032 intercepts and those in BNRC013 and historic holes.
The BNRC020 hole did not reach the Porphyry vein system target depth and as a result, only minor intercepts were encountered in this hole.
These results are seen as very encouraging, confirming the persistence of the Porphyry Vein System, which is still open to the east.
Future Plans
Further drilling will be planned for both areas in order to convert the zones into mineable reserves.
The Blue Quartz occurrence is open to both the east and west (as evidenced by small scale mine workings) and to depth. Holes to test along both strike directions will be planned. Several short diamond holes are also intended to intercept around 100 metres vertical depth and provide better geological information than is available from reverse circulation samples.
At Boston-Porphyry, a drill pattern will be planned to test the Porphyry Vein System to the east, and also to test its depth extents more systematically. Approximately three holes may also be directed at the isolated BNRC026 intersection.
ABOUT CGA MINING LIMITED
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CGA is listed on both the Toronto Stock Exchange and the Australian Securities Exchange. The Masbate Gold Project is the largest gold project in the Philippines and was successfully developed with first gold poured on 12 May 2009. The project has a total indicated resource base of 4.55M ounces, total inferred resource base of 3.22M ounces and a probable reserve of 3.03M ounces of gold. At steady state operations the project is forecast to produce over 200,000 ounces per annum.
The 4Mtpa plant was constructed by Leighton Contractors Asia Limited ("Leighton") without one lost time injury. The mining contract for the Masbate Gold Project has been awarded to Leighton, the largest mining contractor in the world. CGA is completing a scoping study for the expansion of the plant throughput at Masbate.
CGA has a disciplined acquisition program focused on acquiring new gold projects with a substantial initial resource with the capacity to grow materially and where the development and operational experience of CGA can be applied to enhance shareholder value.
NATIONAL INSTRUMENT 43-101 AND JORC COMPLIANCE
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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 www.sedar.com, lodged 8 July 2008.
Andrew James Vigar of Mining Associates Pty Ltd, a qualified person, has verified the resource statement for the Masbate Project as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols. The qualified person was satisfied with the verification process.
A NI 43-101 compliant report has been lodged on www.sedar.com verifying and supporting the new reserve statement made for the Masbate Project. Mr Daniel Tuffin, previously of Lower Quartile Solution Pty Ltd, a qualified person, has verified the reserve statement for the Masbate Project as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included database validation of historical drill results and review of sampling and assaying protocols. The qualified person was satisfied with the verification process.
Mr. Alfred John Gillman of Odessa Resources Pty Ltd, an independent qualified person experienced in the style of mineralisation at Segilola, has completed the resource statement for the Segilola Project as disclosed in this announcement, including verification of the sampling, analytical and test data underlying the estimate. Verification also included a site visit, database validation of historical drill results and a review of sampling and assaying protocols. The qualified person was satisfied with all of the protocols used during the drilling, sampling and in the Segilola resource estimate compilation and computation.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
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This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the drill results and the potential of such results, and other milestones related to the Masbate Gold Project and other projects, production estimates and CGA's future operating or financial performance, are forward-looking statements.. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from CGA's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of CGA's mineral projects; the need to obtain additional financing to develop CGA's mineral projects.; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for CGA's mineral projects ; and other risks and uncertainties disclosed under the heading "Risk Factors" in CGA's Annual Information Form for the year ended 30 June 2009 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.
For further information: Australian Contact: President & CEO, Michael Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email: [email protected]; US Contact: Independent Chairman, Mark Savage, Tel: +1 505 344 2822, Fax: +1 505 344 2922, Email: [email protected]
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