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Masbate gold project hits record output

THE DAILY output of the Masbate gold project has reached a new record high, Australian miner CGA Mining Ltd. said in a disclosure.

The Masbate gold project processed 22,562 metric tons (MT) of ore last Nov. 27, higher than its previous record of 21,831 dry MT of ore last Nov. 10, the miner said.

The new daily record is equivalent to an annual processing rate of 7.5 million MT, above the design capacity of four million MT per annum, it added.

“[T]he performance of the plant in November demonstrates the outstanding upside potential of this project and the quality of both the operating team and development in Masbate,” Michael J. Carrick, president, was quoted as saying in the statement.

In its annual report for the fiscal year 2009-2010 that ended June, the miner said that while the processing plant at the mine has a design throughput of only four million MT of ore per annum, the output level during the first year of operations reached six million MT of ore.

For the fiscal year, gold produced at the Masbate Gold Project exceeded of 150,000 ounces. The miner sees annual gold production of 200,000 ounces from the site after completing the expansion of the mine in 2011.

The miner had invested $15 million on the site to further increase the throughput level to 6.5 million MT of ore per year to achieve an annual production of 200,000 ounces of gold. The investment was on top of the initial $10 million set aside for exploration around the existing mine.

First gold poured in May 12, 2009 at the Masbate gold project, which has a total indicated resource base of 153.41 million MT of ore with a grade of 0.92 grams of gold per MT.

The Masbate gold project is operated by Filminera Resources Corp., which does the mining, and the Philippine Gold Processing and Refining Corp., which processes the ores.

CGA Mining Ltd. owns the Masbate mine indirectly through its 40% ownership of Filminera and 100% ownership of Philippine Gold Processing and Refining Corp. The remaining 40% in Filminera is owned by a local company where CGA Mining holds a 40% stake.



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