CGA announces record quarterly gold production and plant throughput

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/

JUNE QUARTERLY REPORT
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND
AUSTRALIAN SECURITIES EXCHANGE
31 JULY 2012

HIGHLIGHTS

• Record gold production from the plant of 50,817 ounces (March Qtr 49,199 ounces)
  
• Record mill throughput of 1,728,751 tonnes (March Qtr 1,586,549 tonnes)
• Average throughput rate for the quarter equivalent to 6.9mtpa
• Cost per tonne fell to $22.76 from $23.24 in the March Qtr
  
• Cash operating cost US$784/oz (March Qtr $753/oz)
  
• Gross project operating cash flow of US$28.8M
  
• Cash and liquid assets as at 30 June 2012 were US$151.4M
  
• Summary of significant exploration drilling intersections for the quarter

Location	Hole ID	Intercept width	Grade (g/t Au)	Depth From
Libra East	LERC040	24m	1.37	surface
	LERC040	13m	1.96	252m
	LERC042	36m	2.24	90m
	LERC044	28m	1.47	131m
	LERC047	73m	1.30	177m
	LERC049	26m	1.85	193m
	LERC060	25m	1.77	152m
Main Vein	MV019	53m	1.28	204m
Panique	PQRC094	10m	1.59	116m
	PQRC096	12m	1.43	30m
HMBNW	HMBNW026	22m	1.27	167
	HMBNW028	19m	1.24	187m
Old Lady	ODRC042	27m	1.20	129m
Colorado	COL035	24m	1.36	71m

 

PERTH, Western Australia, July 31, 2012 /CNW/ -

MASBATE GOLD PROJECT UPDATE

	Ore Mine (t)	Average Grade Mined (g/t Au)	Ore Milled (t)	Head Grade (g/t Au)	Recovery (%)	Plant Availability (%)	Total Production (oz Au)	Cash Operating Costs (US $/oz)
June Quarter	1,599,837	1.06	1,728,751	1.05	83.3	93.4	50,817	784
March Quarter	1,611,639	1.11	1,586,549	1.12	86.4	94.1	49,199	753

Processing

The process plant throughput increased 9% to 1,728,751 tonnes at 1.05g/t (March Qtr 1,586,549 tonnes at 1.12g/t) which is a new quarterly throughput record.

Gold production increased 3% to a new quarterly record of 50,817 oz (March Qtr 49,199 oz) at a recovery of 83.3% (March Qtr 86.4%). The movement in the recovery % was affected primarily by decreased residence time.

Plant availability remained good at 93.4% (March Qtr 94.1%) with all areas of the plant performing well.  The SAG mill continued to operate trouble free since recommissioning on 25 December with average throughput rates for the quarter of 6.9mtpa.

Cash costs rose slightly to $784/oz (March Qtr $753/oz). This is mainly attributable to reduced feed grade to the mill.

Cash costs per tonne milled continued to fall to $22.76 compared to $23.24 in the March quarter.

The gross project operating cash flow before working capital for the quarter was US$28.758M (March quarter was US$29.896M) from gross gold proceeds of sale of US$65.915M.

Safety

There were no Lost Time Injuries in the quarter with the site achieving 398 days without a lost time injury to result in an LTI Frequency rate of 0.

Mining and Geology

Mine production eased 7% to 2,370,565 BCM (March Qtr 2,547,823 BCM) to produce 1,599,837 tonnes of ore (March Qtr 1,611,639 tonnes) from Colorado, Binstar, HMB East and Main Vein pits. Main Vein and Colorado pits were the major sources of ore as Binstar pit, which has provided the majority of ore this year, will be completed in the September quarter.

Optimisation Study

The Lycopodium Optimisation Study to determine the options for upgrading plant capacity via stepped increases in capital expenditure nears completion with capital and operating estimates under final consultant review.

Exploration and Near Mine Resource Drilling Summary

Drilling this quarter was split between the Mining Lease area targeting resource infill and upgrade at Panique,  Main Vein, Libra East, Libra West, Montana, HMBNW, and  Colorado. Similar drilling was conducted at Blue Quartz and Old Lady prospects within EP -010-2010-V, and 3 exploration holes drilled to test a Cu - Au porphyry target at the Baleno Copper prospect.  A total of 12,285m of reverse circulation ("RC"), 6,847m of diamond core, and 2,415m of RC / core tail drilling were completed.

The best results for the quarter were returned from Libra East where infill drilling has extended the mineralisation below the planned pit floor. HMBNW and Main Vein North Split holes also returned encouraging results.

Regional mapping and sampling continued this quarter completing coverage of the southern extent of EP-010-2010-V (EP10). Results received from this program have identified another anomalous drainage not associated with previously mapped veins or workings.

At the Baleno Cu / Au porphyry prospect, an IP survey was completed during the quarter and produced a number of chargeable anomalies. Drill testing commenced and minor copper mineralisation was noted in the core from two of the holes completed.

Drilling Statistics for June Quarter 2012

Locations	RC		RC / Diamond Tail		Diamond
	Holes	Meters	Holes	Meters	Holes	Meters
Blue Quartz	28	3539.5
Colorado	4	742			1	811
HMB North West	14	2089			1	290.3
Libra West	11	1970
Libra East	8	1448	6	1578.9	4	1594.5
Montana	8	1332
Main Vein					7	2268
Old Lady	2	312	3	836.4	3	636
Panique	5	852
Baleno Cu					3	1247.1

Drilling Activities

At Blue Quartz, drilling concentrated on the untested "north splay" with 23 holes, 2556m, completed.  The first results from this program are very encouraging with intersections up to 10m and grades in the 2 - 5 g/t Au range. Results were received for holes completed last quarter in the Blue Quartz Link Zone between Blue Quartz and Old Lady prospects. This area is low lying with no outcrop. Results indicate the mineralised structure is continuous however the grade and widths of mineralisation intersected so far are of lower tenor than Blue Quartz or Old Lady. There is some indication the structure may be offset to the north and further drilling is planned to test this possibility. Drilling also commenced on a 20 hole infill and depth extension program designed to test the down dip extent of the main Blue Quartz mineralisation. So far 9 holes have been completed in this program (no assay results received). In the next quarter the infill program will be completed and a further 8 holes (960m) are planned to test a parallel resistivity anomaly that lies 100m to the NE of the Blue Quartz trend.

At Main Vein North Split diamond core drilling has continued this quarter with 7 holes completed (2268m). Drilling concentrated on the structurally complex western end of the Doris vein where it converges with the Libra East Vein (no results from these holes). Results were received for MV019 which successfully intersected the Main Vein North Split structure (53m @ 1.28 g/t Au from 204m). A further 24 holes, 13,596m, are planned to test the depth extents of the North Split mineralisation below the current pit floor.

Results were received for the last 8 holes in the Binstar Deeps drill program. Drilling here targeted the Star and Binstar Footwall Split veins with a series of holes drilled from the eastern margin of the Binstar Pit to test for extensions of the mineralisation below the planned pit floor. These holes intersected near surface mineralisation within the current pit design. Previous holes in this program successfully delineated additional mineralisation below the planned pit floor in the central Binstar pit area.

At Libra East the current 39 hole program (10,161m) was designed to test the depth extent of the mineralisation and the eastern end of the system. This quarter 18 holes were drilled (4621m). The holes were a combination of RC, RC with diamond tail, and fully diamond cored. Results received this quarter confirm the presence of a consistent, wide, high grade vein system extending over 500m strike. This drill out program is planned to be completed next quarter.

At HMBNW a 17 hole program was completed during the quarter with 14 RC holes, 2089m and one core hole, 290.3m. Assay results from the first 3 holes of the program indicate, there is good potential to increase resources here.

At Colorado the current drilling program is designed to infill previous wide spaced drilling, particularly beneath the planned pit floor. This quarter 4 RC holes were completed before drilling was suspended due to drilling equipment issues
Late in the quarter a rig was moved back to Panique to recommence drilling the central and southern extensions of the Panique vein with 5 holes completed for 852m. Results received during the quarter for holes targeting this vein were encouraging with moderate widths and grades up to 12m @ 1.43g/t Au intersected.  Drilling will move south during the next quarter to test the southern extensions of these veins.

Drilling continued at Old Lady prospect this quarter with 8 holes, (1784.4m) completed. A further 9 holes will be drilled to complete this current program targeting the depth extensions of the mineralisation.  Results from a further 14 holes are outstanding so a final indication of the depth potential for this prospect will not be known until next quarter.

At Libra West holes are planned to convert Inferred resources to Indicated along the eastern part of Libra West Vein and below the old pit floor. An extra two holes are designed as exploration holes to test the continuity of the vein structure to the west where there is no drilling to date. During the quarter 11 holes, 1970m were completed. No assay results have been received as yet.

At Montana, 23 holes are planned to convert inferred resources to indicated resources below the old pit. The block model reveals a total of 1,205,970 tonnes at 1.78g/t Au (69,000oz) in the inferred category for this domain. This quarter 8 holes for 1332m were completed. In addition further drilling is planned along strike to the NW into the Vicar tenement. This area has never been drilled and represents an excellent prospect for delineating additional near mine resources.

The Baleno prospect is located 4km to the SE of the mining area and is centred on a small historic open pit containing copper mineralisation hosted in diorite. Work completed during the quarter included completion of an IP / Resistivity survey and drill testing 3 chargeable anomalies (1247.1m). Geological logging has identified minor copper mineralisation. Logging and partial assays for BPDH002 indicate one of the chargeable targets may be a pyritic, carbonaceous sediment.

Regional Mapping & Sampling

The regional mapping team continued working in the south of Exploration Permit area covering all of the remaining area this quarter.  A total of 316 stream and 361 rock chip samples were taken.

In addition to the anomalies reported last quarter, results from -80# stream sampling have identified an anomaly at Bart- Ag East;  a strongly anomalous drainage with multiple anomalous streams draining an area of 1.5 km2 adjacent to the eastern boundary of the exploration lease due east of the Bart - Ag prospect.

Table of Anomalous Intersections

PANIQUE

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)
PQRC077	30442	24662	1083	243	-43	126	16	18	2	1.68	0.83
							48	50	2	1.68	0.5
							99	100	1	0.84	1.28
							111	118	7	5.87	2.84
PQRC078	30382	24748	1115	250	-60	136	10	11	1	0.64	1.88
							25	26	1	0.64	1.93
							29	32	3	1.93	1.77
							35	39	4	2.57	0.38
							44	49	5	3.21	1.19
							54	55	1	0.64	0.77
							63	64	1	0.64	1.86
							77	78	1	0.64	2.14
							97	98	1	0.64	1.02
							105	112	7	4.5	1.16
							124	125	1	0.64	0.71
PQRC080	30405	24772	1112	8	-56	155	3	5	2	1.39	0.45
							8	13	5	3.47	0.63
							35	36	1	0.69	0.46
							49	52	3	2.08	0.46
							96	103	7	4.86	0.54
							110	118	8	5.56	0.68
							137	138	1	0.69	0.49
							146	150	4	2.78	0.78
PQRC082	30358	24741	1116	249	-50	108	1	2	1	0.77	0.47
							8	12	4	3.06	0.97
							50	51	1	0.77	0.45
							56	60	4	3.06	0.53
							64	66	2	1.53	0.74
							70	73	3	2.3	0.41
							77	81	4	3.06	0.51
PQRC091	30471	24474	1120	240	-60	140	5	7	2	1.29	0.42
							15	18	3	1.93	0.41
							34	36	2	1.29	0.46
							109	117	8	5.14	1.38
PQRC094	30487	24453	1120	242	-60	154	18	22	4	2.57	0.85
							42	43	1	0.64	1.32
							49	50	1	0.64	0.93
							87	88	1	0.64	0.41
							109	110	1	0.64	0.68
							116	126	10	6.43	1.59
							145	150	5	3.21	0.47
PQRC095	30535	24375	1119	244	-64	163	53	54	1	0.59	0.99
							62	67	5	2.94	0.69
							107	108	1	0.59	2.24
							114	130	16	9.4	0.69
PQRC096	30526	24369	1119	243	-60	139	30	46	16	10.28	1.17
							76	79	3	1.93	0.62
							92	95	3	1.93	4.05
							107	119	12	7.71	0.8
PQRC097	30559	24340	1112	248	-60	181	83	87	4	2.57	0.98
							124	131	7	4.5	0.71
							141	143	2	1.29	0.86
							149	151	2	1.29	0.72
							163	168	5	3.21	0.53
PQRC098	30527	24404	1112	242	-66	174	101	114	13	7.27	0.95
							118	128	10	5.59	0.82
PQRC099	30503	24427	1112	242	-60	150	70	74	4	2.57	1.24
							91	97	6	3.86	0.71
							113	115	2	1.29	0.44
PQRC101	30573	24320	1117	246	-60	198	30	31	1	0.64	0.47
							40	41	1	0.64	0.48
							83	84	1	0.64	0.99
							120	121	1	0.64	0.5
							125	128	3	1.93	0.92
							143	146	3	1.93	0.35

BINSTAR

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)
BMVDH027	30611	25228	1079	247	-44	219.5	27	28	1	0.83	6.64
							97	101	4	3.32	0.8
							136	137	1	0.83	1.03
							202	205	3	2.49	0.57
							218	219	1	0.83	1.79
							271	273	2	1.66	0.97
BMVDH028	30610	25228	1079	247	-52	309.2	7.9	10	2.1	1.56	2.94
							18	19	1	0.74	1.21
							59	65	6	4.46	0.59
							89	90	1	0.74	0.52
							98	99	1	0.74	0.48
							102	104	2	1.49	0.62
							149	150	1	0.74	1.03
							166	167	1	0.74	0.79
							228	229	1	0.74	0.47
							252	253	1	0.74	0.79
							273	275	2	1.49	1.22
							286	287	1	0.74	0.94
BMVDH029	30592	25304	1078	273	-34	57.6	0	8	8	7.31	1.05
BMVDH030	30598	25304	1078	273	-44	274	3	9	6	4.97	1.22
							51	52	1	0.83	0.45
							56	57	1	0.83	0.45
							69	71	2	1.66	0.55
							93	94	1	0.83	0.44
							144	145	1	0.83	0.42
							150	151	1	0.83	0.99
							158	159	1	0.83	0.67
							176	177	1	0.83	0.41
							182	186	4	3.32	1.6
							192	193	1	0.83	0.44
							199	203	4	3.32	0.68
BMVDH031	30592	25304	1078	254	-36	279.2	1	12	11	9.89	0.88
							78	79	1	0.90	0.65
							107	111	4	3.60	0.66
							121	122	1	0.90	0.6
							125	127	2	1.80	0.97
							135	136	1	0.90	0.43
							140	141	1	0.90	0.41
							152	161	9	8.09	1.5
							164	166	2	1.80	0.47
							172	173	1	0.90	0.45
							176	178	2	1.80	1.22
							182	183	1	0.90	0.62
							211	212	1	0.90	0.56
							215	216	1	0.90	0.6
							220	221	1	0.90	0.56
BMVDH032	30592	25303	1078	254	-46	286.9	1	2	1	0.81	1.42
							4	5	1	0.81	1.15
							7	12	5	4.05	1.3
							77	78	1	0.81	1.14
							85	86	1	0.81	0.41
							90	91	1	0.81	0.57
							173	174	1	0.81	0.56
							179	180	1	0.81	0.79
							189	190	1	0.81	0.59
							201	202	1	0.81	0.87
							263	264	1	0.81	0.54
BMVDH033	30598	25303	1078	273	-64	373.1	3	4	1	0.59	0.79
							8	11	3	1.76	0.72
							59	60	1	0.59	2.27
							67	68	1	0.59	0.56
							88	89	1	0.59	1.39
							91	95	4	2.35	0.96
							96	97	1	0.59	0.52
							103	105	2	1.18	2.14
							106	107	1	0.59	1.88
							138	139	1	0.59	0.83
							321	324	3	1.76	1.23
							347	348	1	0.59	0.79
BMVDH034	30563	25377	1076	280	-58	233	30	37	7	4.68	1.13
							75	82	7	4.68	0.95
							176	180	4	2.68	0.4
							188	189	1	0.67	1.23
MV019	30286	25230	1080	327	-65	389.4	35	36	1	0.57	2.01
							44	45	1	0.57	1.39
							55	68	13	7.46	1.82
							204	257	53	30.40	1.28
							265	265	2	1.15	0.71
							269	271	2	1.15	0.45
							313	315	2	1.15	0.88
							339	340	1	0.57	1.11
							361	363	2	1.15	0.56
MV020	30318	25273	1080	350	-64	242.2	1	2	1	0.59	0.63
							10	11	1	0.59	0.81
							15	17	2	1.18	0.82
							39	40	1	0.59	0.44
							48	58	10	5.88	0.46
							65	66	1	0.59	1.71
							84	85	1	0.59	0.51
							99	105	6	3.53	0.39
							109	110	1	0.59	0.45
							113	114	1	0.59	4.48
							127	135	8	4.70	0.61
							140	141	1	0.59	0.41
							164	165	1	0.59	0.55
							169	170	1	0.59	0.42
							175	176	1	0.59	1.03
							198	199	1	0.59	0.78

LIBRA EAST

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)
LERC035	30138	25462	1139	202	-63	289	126	135	9	5.42	0.89
LERC037	29830	25328	1102	19	-69	292	33	46.4	13.4	6.90	0.73
							50	52	2	1.03	2.66
							56	57	1	0.52	0.81
							61	62	1	0.52	0.58
							65	66	1	0.52	0.52
							69	70	1	0.52	0.56
							82	102	20	10.30	0.65
							127	130	3	1.55	0.64
							148	149	1	0.52	0.72
							175	176	1	0.52	0.48
							269	271	2	1.03	0.5
							283	285	2	1.03	0.74
							289	290	1	0.52	0.54
LERC038	30148	25502	1137	202	-63	138	1	2	1	0.60	0.69
							35	36	1	0.60	0.58
							64	65	1	0.60	0.51
							74	79	5	3.01	0.51
							116	120	4	2.41	0.56
LERC039	30145	25450	1139	202	-45	319	0	2	2	1.64	0.82
							6	16	10	8.19	0.55
							40	41	1	0.82	0.51
							44	50	6	4.91	0.62
							62	75	13	10.65	0.66
							120	123	3	2.46	0.56
							160	161	1	0.82	0.57
							198	213	15	12.29	0.89
							216	219	3	2.46	1.21
							228	229	1	0.82	0.4
							238	239	1	0.82	0.61
							245	246	1	0.82	1.14
							250	294	44	36.04	0.61
							296	306	9.5	7.78	0.81
							307	319	12.6	10.32	0.85
LERC040	29684	25348	1090	356	-60	305.4	0	24	24	15.43	1.37
							33	34	2	1.29	1.03
							38	42	4	2.57	0.78
							86	87	1	0.64	0.49
							95	97	2	1.29	1
							104	105	1	0.64	0.53
							115	117	2	1.29	0.52
							134	135	1	0.64	0.59
							171	172	1	0.64	0.41
							245	246	1	0.64	1.47
							249	250	1	0.64	0.74
							252	265	13	8.36	1.96
							270	272	2	1.29	1.01
							274	275	1	0.64	0.41
							279	288	9	5.79	0.77
							290	291	1	0.64	0.43
							293	295	2	1.29	0.59
							299	300	1	0.64	0.47
LERC041	29830	25326	1102	48	-65	362	1	3	2	1.15	1.67
							19	25	6	3.44	0.52
							56	57	1	0.57	0.69
							63	64	1	0.57	0.92
							67	68	1	0.57	0.46
							72	73	1	0.57	0.92
							77	80	3	1.72	0.51
							85	86	1	0.57	1.01
							91	99	8	4.59	1.17
							117	120	3	1.72	0.6
							121	122	1	0.57	0.72
							127	132	5	2.87	0.64
							138	142	4	2.29	0.76
							151	152	1	0.57	0.59
							155	157	2	1.15	0.98
							162	163	1	0.57	0.77
							207	209	2	1.15	1.09
							216	217	1	0.57	1.71
							256	263	7	4.02	0.55
							273	283	10	5.74	0.68
							316	317	1	0.57	0.71
LERC042	29573	25497	1064	327	-75	170.1	0	1	1	0.42	18.8
							12	16	4	1.69	1.04
							20	21	1	0.42	0.43
							54	60	6	2.54	0.52
							65	70	5	2.11	0.4
							73	74	1	0.42	0.45
							90	126	36	15.21	2.24
							134	149	15	6.34	1.35
LERC043	29694	25328	1087	17	-60	356.1	0	14	14	9.00	1.29
							63	73	10	6.43	1.4
							77	78	1	0.64	0.51
							83	84	1	0.64	0.42
							86	87	1	0.64	0.42
							100	106	6	3.86	0.9
							134	135	1	0.64	0.69
							140	141	1	0.64	0.65
							164	165	1	0.64	0.79
							276	311	35	22.50	0.78
LERC044	29630	25472	1070	18	-80	225.15	106	108	2	0.68	0.49
							127	128	1	0.34	0.81
							131	159	28	9.58	1.87
							192	193	1	0.34	0.45
LERC045	29822	25345	1102	15	-52	265.1	46	48	2	1.49	0.74
							63	64	1	0.74	1.35
							77	78	1	0.74	0.89
							100	102	2	1.49	2.54
							104	105	1	0.74	0.8
							123	124	1	0.74	0.4
							131	132	1	0.74	0.4
							139	140	1	0.74	0.95
							144	149	5	3.72	0.74
							154	155	1	0.74	0.55
							167	168	1	0.74	0.4
							174	175	1	0.74	0.71
							178	182	4	2.97	0.61
							187	190	3	2.23	0.97
							196	206	10	7.43	0.93
							208	209	1	0.74	0.49
							213	214	1	0.74	0.97
							229	230	1	0.74	1.23
							264	265	1	0.74	0.95
LERC046	29702	25368	1090	11	-58	246.1	0	14	14	9.37	1.05
							16	19	3	2.01	0.59
							21	22	1	0.67	0.45
							74	75	1	0.67	0.46
							124	127	3	2.01	4.61
							133	134	1	0.67	0.54
							139	140	1	0.67	0.58
							154	155	1	0.67	0.43
							157	159	2	1.34	1.33
							190	192	2	1.34	2
							195	217	22	14.72	1.43
							219	220	1	0.67	0.56
LERC047	29574	25498	1063	98	-81	275.3	54	55	1	0.33	0.46
							61	62	1	0.33	1.08
							65	71	6	1.95	0.67
							101	102	1	0.33	0.62
							164	168	4	1.30	1.61
							177	186	9	2.93	4.53
LERC048	29951	25426	1125	22	-66	182	4	5	1	0.56	0.4
							20	21	1	0.56	0.61
							30	87	57	31.87	1.34
							89	90	1	0.56	0.4
							93	94	1	0.56	0.46
							98	102	4	2.24	0.68
							103	104	1	0.56	0.49
							133	146	13	7.27	1.24
							148	149	1	0.56	0.79
							154	155	1	0.56	0.47
							175	176	1	0.56	0.89
LERC050	30010	25439	1124	22	-61	108	0	3	3	1.89	3.27
							8	9	1	0.63	0.61
							14	23	9	5.66	0.73
							24	36	12	7.55	1.12
							40	42	2	1.26	1.31
							54	55	1	0.63	0.5
							64	65	1	0.63	0.49
							73	75	2	1.26	0.77
							77	94	17	10.70	2.66
							102	107	5	3.15	1.3
LERC051	29914	25444	1126	23	-66	168	0	1	1	0.56	0.4
							6	7	1	0.56	0.42
							20	21	1	0.56	0.44
							35	37	2	1.12	0.54
							39	40	1	0.56	0.48
							44	46	2	1.12	0.67
							55	59	4	2.24	0.49
							61	93	32	17.89	0.99
							95	96	1	0.56	0.7
							101	107	6	3.36	0.6
							111	112	1	0.56	0.43
							113	115	2	1.12	0.45
							120	138	18	10.07	0.93
LERC052	30149	25449	1138	183	-54	239.4	9	10	1	0.72	0.43
							12	14	2	1.44	0.56
							16	18	2	1.44	1.33
							34	36	2	1.44	1.04
							42	43	1	0.72	0.51
							77	79	2	1.44	0.84
							81	92	1	0.72	0.7
							92	96	4	2.88	3.07
							107	111	4	2.88	0.68
							119	120	1	0.72	0.59
							121	122	1	0.72	0.76
							126	127	1	0.72	0.47
							132	138	6	4.32	0.87
							139	140	1	0.72	0.51
							143	144	1	0.72	0.44
							156	158	2	1.44	1.94
							163	164	1	0.72	1.35
							176	177	1	0.72	0.43
LERC060	30074.6	25432.17	1141.4	160	-81	214	65	68	3	0.98	0.61
							78	86	8	2.60	0.65
							102	107	5	1.63	0.45
							126	135	9	2.93	0.62
							142	145	3	0.98	0.67
							152	177	25	8.14	1.77
							186	191	5	1.63	0.69

HMBNW

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)
HMBNW024	30104.7	25674.66	1158	224	-50	80	15	18	3	2.30	1.7
							48	52	4	3.06	0.54
							57	60	3	2.30	0.51
							66	72	6	4.60	0.86
HMBNW025	29987	25642	1160	60	-61	178	38	45	7	4.41	1.12
							48	49	1	0.63	0.44
							55	56	1	0.63	0.61
							68	69	1	0.63	0.67
							114	116	2	1.26	0.82
							132	148	16	10.07	1.26
HMBNW026	29968	25638	1157	32	-60	206.9	97	98	1	0.64	1.56
							132	133	1	0.64	0.56
							146	147	1	0.64	0.93
							167	188	22	14.14	1.27
							193	194	1	0.64	0.63
							202	203	1	0.64	0.47
HMBNW027	29918	25716	1127	66	-60	158	19	20	1	0.64	0.43
							33	34	1	0.64	0.42
							47	50	3	1.93	0.91
							88	89	1	0.64	0.42
							114	116	2	1.29	0.68
							119	129	10	6.43	1.54
							130	131	1	0.64	0.42
							134	140	6	3.86	3.75
HMBNW028	29852	25747	1122	20	-52	256.3	0	7	7	5.20	2.1
							13	17	4	2.97	0.74
							47	49	2	1.49	1.24
							54	57	3	2.23	0.52
							63	66	3	2.23	2.85
							128	138	10	7.43	1.02
							136	137	1	0.74	3.38
							142	143	1	0.74	1.01
							187	206	19	14.12	1.24
							230	233	3	2.23	0.71
							240	242	2	1.49	1.48
							249	251	2	1.49	2.16

COLORADO

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)
COL027	30540	26044	1034	64	-71	205.4	10	14	4	1.94	1.37
COL032	30585	25997	1039	64	-60	184.2	0	6	6	3.86	1.75
							10	15	5	3.21	0.36
							23	24	1	0.64	0.6
							76	84	8	5.14	0.58
							100	106	6	3.86	0.59
							155	156	1	0.64	0.46
COL033	30141	27037	1274	242	-58	264	12	13	1	0.67	0.56
							24	25	1	0.67	0.56
							32	37	5	3.35	0.82
COL034	30113	26824	1275	62	-65	115	4	6	2	1.15	0.93
							12	20	8	4.59	0.61
							24	39	15	8.60	0.63
							55	56	1	0.57	0.43
							60	66	6	3.44	1.79
							69	72	3	1.72	0.55
							75	81	6	3.44	0.64
							87	88	1	0.57	0.54
							113	114	1	0.57	0.45
COL035	30052	26878	1275	240	-60	96	0	11	11	7.07	1.37
							14	19	5	3.21	0.62
							21	25	4	2.57	0.55
							32	33	1	0.64	0.56
							41	42	1	0.64	0.46
							44	45	1	0.64	0.41
							63	63	1	0.64	0.64
							67	69	2	1.29	3.28
							71	95	24	15.43	1.36
CODD001	29822	26626.5	1181.4	65	-45	811	0	6.6	6.6	5.41	0.48
							84	86	2	1.64	0.96
							109	111	2	1.64	0.49
							655	660	5	4.10	0.42

OLD LADY

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)
ODRC042	32036	23547	1093	168	-57	289.3	29	30	1	0.68	0.58
							33	34	1	0.68	5.57
							61	62	1	0.68	0.5
							97	99	2	1.36	0.59
							122	123	1	0.68	0.59
							129	156	27	18.41	1.2
							159	160	1	0.68	0.56
							164	165	1	0.68	0.51
							189	193	4	2.73	0.51
							251	252	1	0.68	0.47
							260	261	1	0.68	0.48
ODRC041	31941	23593	1087	180	-60	285.6	186	187	1	0.64	0.49
							195	196	1	0.64	3.25
							260	261	1	0.64	0.43
ODRC043	32004.1	23592	1080	180	-60	274	137	147	10	6.43	0.55
							152	155	3	1.93	0.4
							169	177	8	5.14	1.8
							229	230	1	0.64	1.23
ODRC044	31909.4	23541	1100	180	-60	177	64	70	6	3.86	0.55
							92	104	11	7.07	0.6
							130	142	12	7.71	0.6
ODRC045	31901.5	23587	1088	202	-60	188	10	22	12	7.71	0.91
							36	41	5	3.21	0.63
							53	58	5	3.21	0.77
							80	91	11	7.07	0.64
							103	114	11	7.07	0.98
							132	137	5	3.21	0.62
							145	148	3	1.93	0.53
ODRC046	31884.2	23666	1065	204	-60	300.4	119	120	1	0.64	2.08
							127	136	9	5.79	1.01

• No top cut
• 0.40 lower cut off
• Maximum 2.0m internal waste
• Minimum diluted grade 0.40
• True widths calculated and presented

CORPORATE

As at 30 June 2012, cash and liquid assets were US$151.4 (March quarter: $153.9M).  Cash and bullion on hand represented US$110.1M of that balance - including the cash reserves of Filminera Resources Corporation while cash and bullion at 31 March was US$99.2M. This was after having paid the interest and principal repayment on the BNP arranged project finance facility for the June quarter of US$4.5M.  The outstanding project finance facility has now reduced to US$27.2M at 30 June 2012 (March quarter: $31.4M).  During the quarter, 50,000 outstanding options due to expire on 30 June 2012 were exercised for total gross proceeds of A$32,500 and 150,000 unexercised out of the money options expired. At 30 June 2012, the Company had 6,471,250 options on issue and the total issued capital was 337,775,726 fully paid ordinary shares.

ABOUT CGA MINING LIMITED

CGA is listed on the main board of the Toronto Stock Exchange and ASX.  The Masbate Gold Project in the Philippines was successfully constructed with first gold poured mid-2009. The project has a total measured and indicated resource base of 5.13M ounces of gold, total inferred resource base of 2.83M ounces of gold and a proven and probable reserve of 3.097M ounces of gold.

The 4Mtpa designed 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 has completed a US$12M investment program designed to upsize throughput to 6.5Mtpa at Masbate. The project is forecast to produce at a rate of over 200,000 ounces per annum (Year ended 30 June 2011: 190,033 ounces).

CGA has an aggressive exploration strategy. It is planned to undertake 100,000m of drilling as part of US$20M expenditure over the next twelve months.

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

Mr Mark Turner, BE Min(Hons), M.Aus.I.M.M.CP Man, CGA's Chief Operating Officer, 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.

The information in this news release that relates to the 2011 mineral resource estimate is based on information compiled by Mr. Andrew Vigar, who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Vigar is a full time employee of Mining Associates Limited. Verification of the data included site visit, database validation of historical drill results and review of sampling and assaying protocols. Mr. Vigar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code") and as a Qualified Person NI 43-101. Mr. Vigar consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this news release that relates to the 2011 mineral reserve estimate is based on information compiled by Mr. Stephen Jones, who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Jones is an employee of Golder Associates Pty Ltd. Verification of the data included  site visit, validation of operating procedures and equipment and the ability of the mine site to mine the reserves.  Mr. Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the JORC Code and as a Qualified Person under NI 43-101. Mr. Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

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 milestones related to the Masbate Gold Project, 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 2011 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com. 

PDF available at: http://stream1.newswire.ca/media/2012/07/31/20120731_C3771_DOC_EN_16547.pdf

SOURCE: CGA Mining Limited

ENQUIRIES

Australian Contact    
President & CEO - Michael Carrick

Tel:  [phone]
Fax:  [phone]
Email:  [email protected]

US Contact
Independent Chairman - Mark Savage

Tel:  [phone]
Fax:  [phone]
Email: [email protected]