IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
The Board of CGA Mining Limited (“CGA”, “the Company”) (TSX Code : CGA, ASX Code : CGX) is pleased to announce a substantial increase in planned exploration expenditure at the Masbate Gold Project.
In the twelve months to 30 June 2011 CGA spent $7M on exploration, drilling 51,900m. Having now fully geared up the exploration program and with six rigs dedicated to exploration drilling, CGA is planning a near threefold increase in exploration expenditure in the next financial year.
The exploration budget for the year ended 30 June 2012 will be increased to US$20M (2011 $7M).
It is planned to undertake a total of 172,000m – 28,000m of diamond drilling and 144,000m of RC drilling. The program will be focussed principally on converting inferred resources to reserves, the Pajo region and identifying new reserves and resources from both extensions to existing pits and a number of new targets.
ABOUT CGA MINING LIMITED
CGA is listed on both the main board of the Toronto Stock Exchange and the Australian Securities Exchange. It is a member of the S&P/TSX Global Gold Index and the S&P/TSX Global Mining Index.
The Masbate Gold Project is the largest gold project in the Philippines and was successfully developed with first gold poured in May 2009. The project has a total indicated resource base of 4.55M ounces (153.41mt @ 0.92 g/t), total inferred resource base of 3.22M ounces (127.15mt @ 0.79 g/t) and a probable reserve of 3.03M ounces (92.2mt @ 1.0g/t) of gold. In its first year of operation the project produced in excess of 150,000 ounces and is on track to produce at a rate of around 200,000 ounces per annum. The 4Mtpa plant was constructed by Leighton Contractors Asia Limited (“Leighton”) without one lost time injury. The mining contract for the Masbate Gold Project was awarded to Leighton, the largest mining contractor in the world.
CGA is currently upgrading the process plant to lock in a throughput rate of 6.5Mtpa. An aggressive US$20M exploration program is underway at the Masbate Gold Project focussed on both the conversion of additional resources to reserves and delineating new reserve and resource ounces.
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.
