A maiden resource has been reported by CGA Mining (ASX: CGX, TSX: CGA) for its Segilola Gold Project of 620,000 ounces of gold.
The Segilola gold project is located in Osun State, 120km north east of Lagos (principal port and commercial centre of Nigeria, and 18km South of Ilesha, the local government centre.
The resources estimate was carried out by Odessa Resources Pty Ltd, an independent geological and resource consultancy in Western Australia.
Wholly owned CGA Mining subsidiary Segilola Gold Limited (SGL) generated the resource from a first pass drilling campaign of 12,166m in 119 holes ranging in depth from 40m to 220m.
The deposit remains open along strike (existing strike length of 1.9km) and at depth. Additional drilling may be undertaken in the future to expand the resource.
Follow up drilling is currently being planned, and a feasibility study is underway in accordance with the Joint Venture Agreement requirements.
The company said in a statement the deposit lends itself to being exploited by open pit mining methods. The metallurgical characteristics of the ore are amenable to fully conventional CIL processing techniques.
Under the terms of Joint Venture Agreement, SGL is to carry out and sole-fund exploration and the preparation of a FS for the Segilola project, within three years of the JV formation.
SGL have the right to earn up to a 51% interest in the project. On 6 November 2008 Segilola was granted 25% equity in the license.