CGA Mining Limited - Quarterly Activities Report

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

CGA ANNOUNCES SEPTEMBER QUARTERLY REPORT

ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE
30 OCTOBER 2012

HIGHLIGHTS

PERTH, Western Australia, Oct. 30, 2012 /CNW/ -

• Proposed merger with B2Gold Corp. ("B2Gold") announced, representing an offer price of C$3.18 per share based on the ratio of 0.74 and the last traded price of B2Gold prior to announcement of the proposed merger
  
  
• On budget gold production from the plant of 47,646 ounces (June Qtr 50,817 ounces)
  
  
• Mill throughput 6% above budget at 1,702,574 tonnes (June Qtr 1,728,751 tonnes)
  
  
• Cost per tonne was $23.41  (June Qtr $22.76)
  
  
• Cash operating cost US$837/oz (June Qtr $784/oz)
  
  
• Gross project operating cash flow of US$23.6M (June Qtr $28.8M)
  
  
• Cash and liquid assets as at 30 September 2012 were US$182.6M (Jun Qtr US$151.4M)
  
  
• Summary of significant exploration drilling intersections for the quarter

Location	Hole ID	Intercept width	Grade (g/t Au)	Depth From
Blue Quartz	BQRC070	28m	1.51	152m
	BQRC072	10m	5.13	17m
	BQRC073	24m	1.45	2m
	BQRC089	28m	1.30	21m
Libra East	LERC059	111m	1.08	221m
	LERC061	51m	1.74	121m
	LERC062	44m	1.34	44m
	LERC063	37m	1.12	60m
	LERC067	28m	1.61	145m
	LERC070	25m	1.13	187m
	LERC072	73m	1.31	100m
Main Vein	MV026	23m	3.02	143m
	MV026	78m	1.44	176m
Libra West	LWRC010	25m	1.81	surface
	LWRC010	21m	2.30	195m
HMBNW	HMBNW031	25m	1.30	122m
	HMBNW036	20m	1.82	128m
	HMBNW037	28m	2.11	27m
	HMBNW037	17m	1.79	56m
	HMBNW038	18m	6.74	175m
	HMBNW041	19m	3.53	130m
Colorado	COL042	35m	1.39	93m
Montana	MONRC003	14m	1.37	130m
	MONRC003	25m	1.37	178m
	MONRC010	32m	1.54	44m

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)
September Quarter	1,598,297	1.06	1,702,574	1.04	83.3	93.8	47,646	837
June Quarter	1,599,837	1.06	1,728,751	1.05	83.3	93.4	50,817	784

Processing

The process plant throughput was 6% above budget at 1,702,574 tonnes at 1.04g/t (June Qtr 1,728,751 tonnes at 1.05g/t). The process plant continues to operate in a steady state and above expectations.

Gold production was 47,646 oz (June Qtr 50,817oz) at a recovery of 83.3% (June Qtr 83.3%).

Plant availability remained good at 93.8% (June Qtr 93.4%) 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 6.8mtpa.

Cash costs rose slightly to $837/oz (June Qtr $784/oz). This is mainly attributable to reduced gold production and accounting adjustments.

Cash costs per tonne milled were $23.41 compared to $22.76 in the June quarter and were mainly impacted by increased accounting adjustments related to deferred mining. The unadjusted cost per tonne mill actually fell to $22.12 from the March quarter of $22.40.

The gross project operating cash flow before working capital for the quarter was US$23.640M (June Qtr US$28.758M) from gross gold proceeds of sale of US$58.035M.

Safety

There was one Lost Time Injury in the quarter when a contractor working on a mill reline injured his finger. At the end of the quarter the site had achieved 83 days without a lost time injury and an LTI Frequency rate of 0.17.

Mining and Geology

Mine production increased 5% to 2,492,527 BCM (June Qtr 2,370,565 BCM) to produce 1,598,297 tonnes of ore (June Qtr 1,599,837 tonnes) from Colorado, Binstar, HMB East and Main Vein pits. Main Vein and Colorado pits continued to be the main production areas producing a mix of oxide and transitional ore for the plant.

Optimisation Study

The Lycopodium Optimisation Study has identified a number of options for upgrading plant capacity via stepped increases in capital expenditure and in light of the announced proposed merger with B2Gold, discussions on the various options are being conducted with B2Gold.

Exploration and Near Mine Resource Drilling Summary

Drilling this quarter was split between resource infill and step out work within the mining area on both Filminera Resources and Vicar Mining leases; drilling along strike into the EP10 exploration lease and initial drilling of six holes into a series of geophysical targets at the Baleno gold-copper porphyry prospect. Drilling totalled 5,834.9m of reverse circulation, 12,138.4m of diamond core and 3,448.3m of RC / core tail.

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 and Blue Quartz North holes also returned encouraging results.

The contract regional mapping and sampling crew completed the mapping program within the Vicar Mining Properties near Pajo Hill and demobilised during the quarter.  Their mapping has indicated an extension to the Grandview structure within the Vicar Mining lease, west of the Pajo Hill Prospect.

At the Baleno gold-copper porphyry prospect, drilling was completed during the quarter. Further ground work is anticipated including soil geochemical sampling program in the near future.

Drilling Statistics for September Quarter 2012

Locations	RC		RC / Diamond Tail		Diamond
	Holes	Metres	Holes	Metres	Holes	Metres
Blue Quartz					4	886.3
Colorado	4	1,024
Libra East					2	837
Montana	5	413
Main Vein					13	3,863
Old Lady	5	628.9	5	1,092.1	3	705.5
Young Lady	1	120	4	830.8	1	133
Panique	22	3,649	5	1,525.4
Baleno Cu					6	3,136.3
Pajo Hill					13	2,577.3

Drilling Activities

Drilling at Blue Quartz continued on the untested "North Splay" with 4 diamond holes for 886.3m completed.  The program was suspended late in the quarter when Drill Corp Rig 15 required an engine swap. More encouraging results were received during the period from North Splay holes BQRC064 to BQRC093. Better results include (true widths) 14m @ 2.70g/t Au, 17m @ 1.51g/t Au, 14m@ 1.45g/t Au, 13m @ 1.07g/t Au and 23m @ 1.30g/t Au.  More infill holes have been planned and drilling will start as soon as a rig is available.   Infill holes to test for depth extensions of the Blue Quartz main zone have been completed and samples processed for assay during the quarter. Pads have been prepared for holes planned to test the Blue Quartz NE IP anomaly with drilling to commence once rigs become available from other programs.

Main Vein North Split diamond core drilling continued this quarter with 13 holes completed (3,863m). Drilling was completed on the structurally complex western end of the Doris vein where it converges with the Libra East Vein.  Drilling along the western extent of North Split has encountered wide zones of quartz mineralisation that extend to at least 200 metres below the floor of the current pit design. The ore zones taper off at depth however maintain a very wide thickness (around 45 metres) down to around 170 metres below the pit floor.

The main structure which contains the bulk of the mineralisation is interpreted to be a continuation of the Doris Vein. A lesser substructure to the south of Doris has been identified with locally some very high grades within it. There are also continuations of other structures to the north of the Doris vein, however these are thinner. Better intersections include (true widths); 17m @ 1.20g/t Au, 15m @ 3 .84g/t Au, 23m@ 1.01g/t Au, 14m@ 3.02g/t Au, 47m @ 1.44g/t Au, 15m @ 1.21g/t Au and 16m @ 1.10g/t Au.

Drilling at Libra East was completed during the quarter with LERC073 terminating at 466m.  Results received to date confirm the presence of a consistent, wide, high grade vein system extending over 500m strike.  All of the holes reported in the month are resource conversion holes and lie within the current pit design. They confirm the existing interpretation of a wide gold-bearing mineralised zone. LERC066 lies below the current pit design within the newly defined extension to the west along the main Libra East trend.  After the new block model is delivered, any significant inferred resource remaining will be targeted for further drilling if necessary.

All results from the 11 holes drilled at Libra West have been received.  Results indicate good grades but moderately thin intersections. All holes in this program are below the floor of the current pit design and may form part of a new mineable zone after the new block model update becomes available. It is likely that additional shallower level holes will be required as a follow up to this program.  Better results from this zone include 4m @ 4.97g/t Au, 7m @ 2.90g/t Au, 6m @ 2.69g/t Au, 15m@ 1.81g/t Au and 9m @ 2.30g/t Au.

All HMB North West Holes returned in the quarter intersected the main HMB North West structure below the floor of the current pit design. Holes in this program show the width and grade varies significantly along the strike of the structure at depth. A further program of drill holes has been planned at HMB North West to convert likely inferred material. This program comprises 19 holes for 3,350 metres, planned for the next quarter.

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 for 1,024m were completed.

Drilling at Panique continued with RC drilling and RC/Diamond tailed holes with 22 RC holes for 3,649m and 5 RCD holes for 1,525.4m drilled during the quarter.  Results received show mostly thin widths for the Dabu structure.  Further drilling is planned for the southern end of Dabu Structure.

Drilling continued at Old Lady prospect this quarter with 13 holes (2,426.5m) completed.  A further 2 holes will be drilled to complete this current program targeting the depth extensions of the mineralisation.  Results received for the Quarter indicate the width of the mineralised zone decreases at depth with a corresponding decrease in grade.  Best intersection received for the quarter was from ODRC056, 10m @ 1.14g/t Au from 15m.  Additional drilling will depend on pending results.

Drilling resumed during the quarter at Montana North with one hole, MONRC014, completed at 92m and 3 holes MON013, 015, 016 suspended short of target depth due to high water flows.  Assays were received during the month for holes MONRC001 - 009 (Note; MONRC002 abandoned before reaching target mineralized zone). Intersections in holes MONRC001 - 008 have delineated additional mineralization below the old Montana Pit. Along strike, 100m to the NW of the old Montana Pit, MONRC009 has confirmed the good width and grade intersection in MONRC010 extends down dip to ~ 80m vertical.  Better intersections include: 20m @ 1.54g/t Au, 14m @ 1.37g/t Au, 17m @ 1.37g/t Au, and 7m @ 1.17g/t Au.  An additional 6 drill pads have been prepared following the arc like westerly trend of the structure, with drilling in progress.

Drilling commenced at Young Lady Prospect during the quarter.  A total of 6 holes were completed for 1,083.80m.  Up to 20m of mineralized quartz was intersected in holes WYRC001, 005 and 006.  The structure appears to thin out towards the east as shown in WYRC003, WYRC004, however further drilling is required to fully understand this zone.  No results are available yet.

Drilling at the Vicar Mining Property at Pajo Hill started during the quarter.  A total of 13 diamond drill holes have been drilled during the Quarter for a total of 2577.30m.  Wide intersections of quartz veining and stock work zones have been reported from most of the holes.  Drilling is ongoing with no results received as yet.

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 6 holes totalling 3,136.3m of DD Core.  Assay results were received for the first 3 holes.   A work program will be organised for geochemical sampling and detailed mapping of the area when all assays are received and data compiled and interpreted.

Regional Mapping & Sampling

The regional mapping team completed some follow up work over the Pajo Hill area during the quarter, completing their contract. The work covered the area South West, West and North West of the Pajo Hill area.  A wider section of mineralized quartz veining was mapped North West of the Grand View structure which is about sub-parallel to the Pajo Structure.  Rock chip samples have returned grades of up to 10g/t Au.

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

Libra East

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
LERC054	30075	25432	1141	204	-50	242.8	66	114	48	30	0.85
							176	243	66.8	38	0.79
LERC056	29747	25344	1090	25	-68	337	0	5	5	4	1.03
LERC058	29893	25407.6	1124.1	17	-78	321.5	278	316	37	13	0.73
LERC059	30093.2	25530.4	1160.7	200	-46	659.5	100	106	6	5	1.92
							109	113	4	3	1.45
							221	332	111	74	0.86
							339	400	61	38	0.93
							403	418	15	11	0.99
							444	460	16	12	0.49
							468	498	30	22	0.65
							597	605	8	6	1.03
							630	644	14	9	0.64
LERC061	29928.9	25395.7	1125.6	22	-71	294.8	121	172	51	29	1.74
LERC062	30073.4	25433	1141.2	22	-81	162	71	88	17	4	0.68
							96	140	44	10	1.34
LERC063	29983.8	25406.9	1126.3	32	-69	220.1	37	42	5	2	1.01
							60	97	37	17	1.12
							173	182	9	7	1.22
LERC064	30148	25484	1137	185	-62	308	49	72	23	11	1.05
							146	159	13	6	1.39
LERC065	29689	25416	1098	358	-65	212.6	144	148	4	2	0.61
							184	197	13	8	0.99
LERC066	29727	25414.4	1098.4	27	-66	226	158	162	4	3	2.36
							168	185	17	11	1.27
LERC067	30079	25486	1154	224	-52	303.2	23	33	10	6	1.43
							145	173	28	12	1.61
LERC068	30219	25471	1113	202	-56	114	0	10	10	5	0.54
LERC069	30219	25471	1113	202	-53	86	17	22	5	3	0.55
LERC070	30218	25467	1113	202	-53	270.1	25	33	8	5	0.58
							187	212	25	17	1.13
LERC071	30105	25563	1162	203	-48	371	139	151	12	9	0.63
							182	193	11	7	1.32
							236	253	17	10	0.80
							333	352	19	16	1.09
LERC072	30080	25486	1155	205	-46	204	100	173	73	44	1.31
LERC073	30092	25532	1161	200	-60	466	118	130	12	7	0.76

HMBNW

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
HMBNW031	29815	25825	1091	35	-54	225	122	147	25	12	1.30
HMBNW032	30126.9	25470	1140.1	53	-50	140	6	13	7	5	1.17
HMBNW033	30150.8	25561.5	1134.8	234	-58	160	14	46	32	15	0.63
HMBNW034	30124.7	25460.9	1140	54	-63	162	102	121	19	9	0.99
HMBNW035	30148.3	25479.2	1137	54	-62	60	49	59	10	7	0.61
HMBNW036	29874	25764	1121	209	-54	199	1	10	9	7	1.52
							128	148	20	12	1.82
HMBNW037	29906	25786	1119	28	-57	127	27	55	28	16	2.11
							56	73	17	11	1.79
HMBNW038	29902	25721	1123	30	-60	226	175	193	18	9	6.74
HMBNW040	29953	25756	1132	30	-58	94	1	6	5	4	1.49
HMBNW041	29798.8	25829.2	1090.6	26	-50	196.5	130	149	19	11	3.53
HMBNW042	30179.1	25570.5	1124.3	242	-54	120	23	27	4	2	0.69
							30	35	5	3	0.76
							41	48	7	4	0.52
							77	79	2	1	1.21
							82	100	18	10	0.94
HMBNW039	29759.4	25836.9	1081.7	28	-43	290.3	6	11	5	4	0.44
							147	156	9	6	0.83
							248	252	4	3	0.55
HMBNW043	30222	25468	1113	238	-70	130	2	9	7	4	1.28
HMBNW044	30221	25467	1113	237	-50	100	2	9	7	4	0.81

Libra West

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
LWRC001	29660	25793	1062	222	-58	196	16	20	4	2	3.54
							166	176	10	6	0.79
LWRC002	29661	25753	1062	201	-67	194	157	166	9	5	1.46
LWRC003	29661	25753	1062	201	-59	166	132	139	7	4	4.97
LWRC004	29662.4	25718.9	1060.9	186	-47	110	65	76	11	7	2.90
							75	86	9	6	2.69
LWRC005	29662.5	25720.2	1060.7	186	-63	143	62	66	4	2	4.76
							106	113	7	3	3.22
							120	125	5	2	2.47
LWRC007	29657.5	25792.2	1062.3	247	-52	210	165	169	4	2	0.92
LWRC008	29662.5	25720	1060.9	215	-60	115	76	86	10	4	3.13
LWRC009	29653.7	25538.8	1090.7	15	-47	216	7	10	3	2	1.38
							181	186	5	3	2.44
							188	192	3	2	0.81
LWRC010	29654.7	25537.8	1091	32	-52	216	0	25	25	15	1.18
							114	121	7	4	4.51
							133	136	3	2	8.16
							195	216	21	9	2.30
LWRC011	29655	25537	1091	57	-53	286	0	23	23	13	0.92
							238	244	6	2	3.78

Main Vein North Split

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
MV021	29736.7	25154.5	1079.8	20	-28	245.5	6	46	20	10	0.80
							102	110	8	7	0.46
							117	168	51	43	0.70
							186	195	9	7	0.55
							210	230	20	17	1.20
MV023	29735.7	25152.1	1081.4	20	-52	333	4	26	22	11	0.84
							111	132	21	15	3.84
							147	154	7	5	7.87
							157	168	11	8	1.41
							183	200	17	14	0.59
							220	240	20	15	0.57
							243	259	16	12	0.73
							272	279	7	5	3.45
MV024	29715	25134	1078	338	-53	308	19.6	38	18.4	15	0.74
							168	228	60	44	0.94
MV026	29715.3	25133.5	1079	338	-60	343.8	0	5	5	4	1.33
							10	36	26	23	1.01
							132	137	5	3	3.11
							143	166	23	14	3.02
							176	254	78	47	1.44
							274	282	8	6	0.72
MV028	29735	25154	1080	1	-70	353.5	9.4	25	15.6	15	1.21
							228	242	13.6	8	0.58
							261	284	23.5	14	0.69
MV030	29735	25154	1079	1	-62	349	4	22.5	18.5	16	1.10
							187	255	68	41	0.92
MV029	29715	25133	1079	338	-66	410.2	13	24.8	11.8	10	0.78
							236	265	29	18	0.85
							272	290	18	11	0.59

Colorado

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
COL036	30204	26967	1263	243	-64	251	89	96	7	3	1.65
							108	120	12	5	0.78
COL041	30093	26985	1270	62	-51	180	0	6	6	5	1.13
							67	100	33	25	0.78
COL042	30071	27023	1270	62	-62	260	93	128	35	28	1.39
COL043	30143	27163	1260	230	-52	287	45	65	20	18	0.64
							112	141	29	15	0.59

Panique - Dabu

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
PQRC103	30302.5	24576.2	1145	233	-68	200	138	160	22	10	0.68
							179	183	4	2	0.44
PQRC104	30303.1	24576.4	1145	260	-67	186	158	164	6	4	2.06
PQRC109	30172	24763	1145	229	-45	144	1	48	47	34	0.86	Atlas Mining Dump
PQRC110	30155	24784	1145	249	-45	196	41	53	12	8	0.66	Atlas Dump
PQRC111	30156	24785	1145	249	-56	210	29	34	5	3	1.02	Atlas Dump
							164	175	11	6	0.84	Dabu Vein
PQRC112	30172	24802	1145	245	-56	244	7	11	4	2	0.50	Atlas Dump
PQRC114	30173	24764	1145	229	-57	184	0	29	29	20	0.58	Atlas Dump
							152	159	7	4	1.63	Dabu Vein

Blue Quartz

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
BQRC060	30897.7	24030.2	1108	45	-58	151.75	54	80	26	14	2.70
							108	123	15	8	0.53
BQRC064	30934.6	23992.6	1094	57	-58	102	80	83	3	2	1.26
BQRC065	30912.5	23984.3	1092.5	57	-57	147	20	30	10	6	1.00
							110	117	7	4	4.45
BQRC066	30945.2	24010.9	1094.3	64	-52	95	23	28	5	3	1.53
							32	39	7	4	3.29
							70	76	6	4	2.27
BQRC067	30950	23980	1086	59	-58	90	72	83	11	6	1.24
BQRC068	30963.9	23998.4	1085.2	59	-55	78	2	12	10	6	1.85
							29	32	3	2	1.71
							44	48	4	3	1.77
							67	72	5	3	3.76
BQRC069	30895.1	23991.6	1098.8	47	-57	154	141	144	3	2	0.84
BQRC070	30898.1	23969.9	1085	57	-56	198	0	13	13	8	0.62
							152	180	28	17	1.51
BQRC071	30905.4	23944.6	1077.9	59	-56	193.5	4	12	8	5	0.62
							24	61	37	28	0.95
							65	71	6	4	0.66
							74	84	10	6	0.91
							113	122	9	5	0.81
BQRC072	30876.4	24055.9	1119.4	48	-57	149	17	27	10	6	5.13
							38	48	10	6	0.57
							87	101	14	8	0.60
BQRC073	30907.1	24087.8	1122.4	48	-58	126	2	26	24	14	1.45
							37	40	3	2	3.08
							47	53	6	4	1.03
BQRC074	30891.8	24075.2	1119.9	48	-58	126	36	41	5	3	0.51
							48	51	3	2	1.57
							57	65	8	5	4.49
							68	71	3	2	1.37
							75	78	3	2	8.17
BQRC075	30848.7	24073.8	1128.4	39	-57	162	18	29	11	6	0.58
							44	55	11	6	0.73
BQRC076	30860	24089.5	1133.3	39	-58	129	69	81	12	7	1.20
BQRC077	30847.9	24121.5	1140.4	37	-58	96	1	5	4	3	1.29
							9	17	8	5	7.67
							29	43	14	8	1.19
BQRC078	30830.1	24106	1135.2	37	-50	109	70	78	8	5	0.90
BQRC079	30831.3	24105.2	1132.1	37	-57	135	77	90	13	8	0.58
BQRC080	30869.3	24102.8	1135.2	39	-50	116	25	46	21	13	1.07
BQRC081	30971.2	23968.1	1078	63	-60	117	55	57	2	1	5.44
							63	78	15	8	1.46
BQRC082	30822	23982	1094	17	-56	51	34	40	6	4	0.46
BQRC083	31043.3	23846.5	1060.3	15	-57	171	149	155	6	3	1.38
BQRC084	31109.4	23782.7	1047.5	16	-57	224	90	95	5	3	0.67
							162	179	17	10	0.47
BQRC085	31148	23804	1048	17	-57	158	122	126	4	2	1.32
BQRC086	31184	23803	1051	16	-57	150	109	115	6	4	0.86
BQRC087	31201	23828	1054	16	-57	114	25	30	5	3	0.93
BQRC088	31025	23784	1047	14	-59	264	192	199	7	2	1.62
BQRC089	30995	23918	1069	16	-50	78	21	49	28	23	1.30
BQRC090	30798	23902	1066	19	-57	189	134	144	10	7	1.03
							167	180	13	8	2.00
BQRC091	30929	23899	1064	37	-60	120	70	86	16	9	1.77
BQRC093	30929	23898	1064	51	-71	144	22	27	5	3	0.56

Old Lady

Hole-ID	Easting	Northing	RL	Azm	Dip	Total Depth	From	To	Down Hole Width (m)	True Width (m)	Grade (g/t)	Comments
ODRC045	31901.5	23586.8	1088	202	-60	188	165	168	3	2	0.59
ODRC047	31901.5	23586.8	1088	202	-60	188	148	155	7	5	0.70
							183	190	7	5	0.53
							195	201	6	4	0.76
ODRC048	31829	23648	1067	205	-60	193	149	158	9	6	1.06
ODRC049	31848.9	23566	1082.7	217	-70	155	0	3	3	2	1.53
							126	130	4	2	1.15
ODRC053	32077	23569.8	1076.1	204	-60	266	2	6	4	2	3.08
ODRC050	31849	23547	1081	202	-60	186	111	118	7	5	0.43
ODRC052	31791	23584	1060	205	-60	126	89	100	11	7	0.63
ODRC053	32077	23569.8	1076.1	204	-60	266	2	6	4	2	3.08
							157	177	20	18	0.51
ODRC056	32173	23404	1103	180	-60	81	15	30	15	10	1.14
							48	61	13	9	0.65

• 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 September 2012, cash and liquid assets were US$182.6M (June quarter: $151.4M).  Cash and bullion on hand represented US$122.6M of that balance - including the cash reserves of Filminera Resources Corporation while cash and bullion at 30 June was US$110.1M. This was after having paid the interest and principal repayment on the BNP arranged project finance facility for the September quarter of US$4.5M.  The outstanding project finance facility has now reduced to US$22.9M at 30 September 2012 (30 June 2012: $27.2M).  During the quarter, 50,000 outstanding options due to expire on 30 September 2012 and 40,000 options due to expire on 17 November 2013 were exercised for total gross proceeds of A$91,000,150,000 unexercised options expired and 250,000 unexercised out of the money options issued to employees now resigned were cancelled, per the terms of the Employee Option Scheme.

At 30 June 2012, the Company had 5,831,250 options on issue and the total issued capital was 337,865,726 fully paid ordinary shares.

On September 19, 2012, the Company announced it had entered into a definitive Merger Implementation Agreement ("Merger Agreement") to merge B2Gold Corp. ("B2Gold") and the Company at an agreed exchange ratio of 0.74 B2Gold common shares for each CGA share held, which represents a purchase price of approximately C$3.18 per CGA share (based on the closing share prices on 17 September 2012, being just prior to announcement).  The proposed merger has received strong endorsement from both shareholders and the wider investment community. It will be implemented by way of a Scheme of Arrangement under the Australian Corporations Act 2001 ("Scheme").  Upon completion of the Scheme, existing B2Gold shareholders and CGA shareholders will own approximately 62% and 38%, respectively, of the issued common shares of the combined company.  There are a number of conditions precedent such as shareholder approval by both CGA and B2Gold shareholders and it is subject to traditional terms and conditions for transactions of this nature.

Mark Savage, who has been a director and Chairman of the Board since April 2000, has indicated his intention to step down from the Board, effective from the date of the Annual General Meeting of shareholders - 28 November 2012. Mark has overseen the successful development of the Company, through to the recent announcement of the proposed merger with B2 Gold, which at the date of the announcement valued the Company at in excess of $1.1bn. The entire Board of CGA would like to express their sincere gratitude to Mark Savage for the outstanding contribution he has made to CGA.

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 2012 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.

 

 

PDF available at: http://stream1.newswire.ca/media/2012/10/30/20121030_C3158_DOC_EN_19841.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]