CGA announces new 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
PERTH, Western Australia, June 30 /CNW/ - The Board of CGA Mining Limited (TSX Code : CGA, ASX Code : CGX) is pleased to provide an update on the recently announced exploration program at the Masbate Gold Project. The program is focussed principally on three key areas:
- upgrading of Inferred Resources;
- close to mine targets outside current resources; and
- grass roots regional exploration.
Initially the exploration has been targeting both inferred extensions of the ore bodies and close to mine targets outside the current resource envelope. The results to date are considered to be very encouraging in that relatively wide intervals of mineralisation have been encountered in areas outside the current inferred and indicated resource envelopes.
Exploration drilling at Masbate during the June quarter has concentrated on two near mine zones, Boston-Porphyry and Blue Quartz - see Figure 1 below.
To view Figure 1 please visit:
http://files.newswire.ca/578/300610_CGA_fig1.pdf
The Boston-Porphyry area includes the Porphyry Vein System (this is a historic prospect name, and has no connotation of mineralisation style), which trends at a high angle (bearing 060 degrees) to the broader trend of the main Masbate mineralization trend (~320 degrees ). Drilling has been on two general azimuths testing these two trends - holes drilled to 020 degrees are to test for repetitions of the Main Masbate trend; holes drilled to 350 degrees are to test the Porphyry Vein System. Significant intercepts are set in Table 1 below.
Table 1: Significant Intercepts, Boston-Porphyry Area
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Total Width Grade
Hole-ID Easting Northing RL Azimuth Inclin Depth From To (m) (g/t)
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BNRC012 30963 24594 70.7 350 -60 120 Results awaited
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BNRC013 30965 24585 70.7 350 -60 120 Results awaited
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BNRC020 30898 24478 117.8 350 -60 120 Some results awaited
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BNRC018 30832 24520 101 350 -60 107 47 48 1 0.72
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57 69 12 0.99
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83 84 1 6.42
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92 93 1 0.53
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BNRC019 30923 24514 105 350 -60 120 0 4 4 0.83
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21 22 1 0.58
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25 26 1 1.23
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28 29 1 3.66
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52 53 1 0.55
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55 61 6 0.99
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70 71 1 0.47
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80 82 2 0.58
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84 85 1 0.80
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86 89 3 1.27
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94 99 5 5.27
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includes 96 97 1 18.01
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BNRC026 31032 24370 136 20 -60 120 0 2 2 0.84
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102 109 7 10.68
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includes 102 105 3 23.77
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111 114 3 0.96
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BNRC032 30967 24558 77 350 -60 120 8 9 1 0.48
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13 16 3 0.81
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36 37 1 0.58
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61 73 12 0.71
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BNRC035 30992 24582 66 350 -60 120 36 46 10 3.77
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includes 36 37 1 11.88
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and 41 46 5 4.71
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Holes BNRC018, 019, 032 and 035 have returned intercepts below and along strike from historic drilling of the Porphyry prospect (all of which was shallow). Hole BNRC026 was drilled to test for repetitions of the Main Masbate trend, although the geometry of the intercept 102-109m in this hole is not yet understood. Further results for the Boston-Porphyry area are pending.
The Blue Quartz area lies along strike from the historic Dabu-Panique underground workings, mined during the Atlas Consolidated era in the 1980s and 1990s. It is well outside the Masbate resource area, and within the northern boundary of recently-granted exploration permit EP-010-2010-V. The drilling was to test below shallow drilling from the Atlas period, and was intended to confirm that mineralisation continued to depth. Intersections of interesting width have been returned, and suggest potential for a pittable resource.
Significant intercepts to date are set out in Table 2. Not all assays have been received at time of writing.
Table 2: Significant Intercepts, Blue Quartz Area
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Total Width Grade
Hole-ID Easting Northing RL Azimuth Inclin Depth From To (m) (g/t)
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BQRC001 31170 23810 58 20 -60 120 Results awaited
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BQRC002 31090 23870 58 20 -60 120 Results awaited
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BQRC003 31008 23893 60 20 -60 120 0 24 No assays
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38 39 1 2.33
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66 93 23 1.78
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BQRC004 30922 23900 73 20 -60 120 29 30 1 2.26
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39 40 1 0.74
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68 82 14 3.48
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including 75 82 7 6.03
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116 117 1 3.42
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124 130 6 1.23
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BQRC005 30863 23920 81 20 -60 120 44 45 1 1.66
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73 81 8 0.84
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83 84 1 1.52
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113 119 6 0.69
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BQRC006 30800 23930 84 20 -60 120 Results awaited
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The results are considered very encouraging in that relatively wide intervals of mineralisation have been encountered in areas outside the current inferred and indicated resource envelopes.
Follow up drilling is planned for both areas.
Drilling at the Capsay-Old Lady prospect, about 1,100 metres south east of Blue Quartz, is expected to commence in the coming week.
Given the encouraging results identified to date, the program will be further intensified as new targets are identified, to aggressively pursue extentions to both reserves and resources.
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. 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 and 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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