Tuesday, 4 May 2010

Masbate gold project hikes output by 11% in first quarter


THE MASBATE Gold Project of Australian miner CGA Mining Ltd. reported an 11% increase in gold production for the first quarter.

In a report to the Australian Securities Exchange and the Toronto Stock Exchange, CGA Mining said total gold production for first quarter reached 40,535 ounces (oz.) of gold, 4,070 oz. more than last quarter’s 36,465 oz.

Mining operations also posted a 54% increase in the first quarter.

The company said a total of 1.2 million metric tons (MT) of ore were mined during the period, a big improvement from the 791,329 MT of ore mined from the last quarter of 2009.

The volume of ore milled went up by 3% to 1.17 million MT in the first quarter from 1.13 million MT in the last quarter of 2009.

CGA Mining is conducting a $10-million exploration program at the Masbate Gold Project, with drilling and trenching to be carried out over the next 12 months.

The miner said it repaid $38.5 million in debt during the first quarter, but still had $75.3 million in available cash on hand as of March 31.

The Masbate tenement is being held by Filminera Resources Corp., where CGA Mining unit Philippine Gold Ltd. owns 40%. The rest is owned by Zoom Mineral Holdings, Inc., where CGA also has a 40% interest.

The processing plant, meanwhile, is owned by Philippine Gold Processing and Refining Corp., a wholly owned unit of Philippine Gold.

CGA Mining’s Masbate project has a total indicated resource base of 4.55 million ounces, total inferred resource base of 3.22 million ounces, and probable reserve of 3.03 million ounces of gold.

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