30/09/2008 - 13:58

Gold project ahead of schedule: CGA

30/09/2008 - 13:58

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Perth-based CGA Mining Ltd expects to start producng gold from its $250 million Philippines project in the first quarter of next year as construction of the operation runs ahead of schedule.

Perth-based CGA Mining Ltd expects to start producng gold from its $250 million Philippines project in the first quarter of next year as construction of the operation runs ahead of schedule.

Addressing delegates a conference in Perth today, CGA technical director Geoff Jones said construction of the Masbate mine was now 85 per cent complete.

"We will be high grading Masbate in our first two years of production to achieve above 200,000 ounces of gold per annum from a starting throughput of four million tonnes per annum," Mr Jones said.

"In addition, we are pushing ahead with scoping and other expansion studies and drilling to rework reserves and resources. These were originally compiled at a price assumption of US$450 an ounce. Obviously with the price still up around US$870 per ounce, the mine is very robust with potential to add to mine life and output."

The revision is being undertaken on a price line of US$750 an ounce and includes a reoptimisation of the existing pits and starter pits at Masbate. CGA is also aiming to lift reserves to in excess of three million ounces from the current Indicated and Inferred Resource of 7.7 million ounces.

"As the mineralisation is open in all directions, we are confident of pushing the resource to at least nine million ounces," Mr Jones said.

Masbate would move to a throughput of 5 million tonnes per year of lower grade material, between years 3-8, to maintain annual gold production at the 200,000 ounce level.

The visible mineralisation at Masbate extends for 30 kilometres south of the planned mine start Masbaste with excellent untested exploration potential regionally. Masbate originally operated for 14 years from 1980 as a gold and silver operation.

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