www.cgamining.com
CGA Mining (ASX:CGX, TSX:CGA) and its subsidiaries, is a producing gold mining company, with its principal asset being the +200,000 ounce per annum Masbate Gold Mine in the Philippines. The Masbate Gold Project has total resources of approximately 7.7m ounces and and reserves of 3m ounces.
The Masbate Gold Project is the largest operating gold project in the Philippines. Construction on the process plant was successfully completed in February 2009, less than 2 years after acquisition of the project, with the construction and installation of the power plant completed in April 2009. First gold was poured on 12 May 2009, with over 1 tonne of gold poured by September 09 and total production in excess of 150,000 ounces in the first year of operation. The project is forecast to produce over 200,000 ounces per annum and an expansion to 6.5mtpa is planned in 2010/2011 to further increase the production profile of the project.
The Company is focussed on enhancing the value of the Masbate Gold Project by both production growth and an aggressive exploration program on the highly prospective tenements and identifying new growth opportunities, through judicious and profitable acquisition programmes.
CGA Mining's quarterly results see record gold production at Masbate project
CGA Mining (TSX:CGA, ASX:CGX) announced Friday quarterly results that saw the company land its seventh consecutive quarter of increases in gold production and throughput.
The company's prime project is the Masbate gold property, which was acquired by CGA in March 2007, and is now the largest operating gold project in the Philippines. In the first year of operations, the project produced in excess of 150,000 ounces of gold.
For the quarter ending December 31, 2010, CGA achieved a record 50,330 ounces of gold production - a 4% increase over the previous quarter. Mill throughput rose 7% to 1.5 million tonnes of ore.
The company said cash operating costs were $613 per ounce, versus $587 per ounce in the September quarter, a result of slightly reduced recovery rates.
Revenue from gold sales saw 36% sequential growth to $68.5 million in the quarter as the company recorded an average gold price of US$1,228/oz, versus US$1,119/oz for the September quarter.
CGA also said that in line with the 6.5mtpa plant expansion plan at Masbate, orders were placed for a 400tph supplementary crushing circuit, which will be designed to ensure the 6.5mtpa throughputs are achieved when the ore blend becomes "harder". Initial construction for the upgrade has already begun, it added.
During the last quarter, the company conducted 9,401 metres of reverse circulation drilling and 2,383 metres of diamond core drilling at Masbate as part of its exploratory efforts. Some significant intersections include 4 metres at 8.99 g/t gold in hole BSST019; 6 metres at 3.37 g/t gold in hole PORP008; 9 metres at 3.41g/t gold in hole PORP009; and 3 metres at 9.63 g/t gold in hole PORP017.
At year-end, CGA had US$240M in cash and liquid assets - a 62% sequential increase following an investment in the 20.7M equivalent gold ounce King-king Gold Copper project. The company invested in the project through its acquisition of an interest in Ratel Gold last year.
