CGA breaks records, grows holdings

WITH its sixth successive quarter of rising production and throughput, gold miner CGA Mining has extended its reach in the Philippines after reaching settlement with the owners of the King-king copper-gold project.
CGA breaks records, grows holdings CGA breaks records, grows holdings CGA breaks records, grows holdings CGA breaks records, grows holdings CGA breaks records, grows holdings

Touted as one of the largest undeveloped copper-gold deposits in the world with a measured and indicated equivalent copper-gold resource of 791.5 million tonnes at 0.815 grams per tonne gold equivalent for 20.7 million equivalent ounces, and a further 2.75Moz of gold equivalent in the inferred category, King-king is now owned by CGA spin-off Ratel Gold after it struck a strategic alliance with owner US-based Russell Mining & Minerals Inc.

Ratel acquired a 60% interest in the property from Russell Mining for 80 million shares, as well as the issue of a further 75 million shares at the completion of a feasibility study.

Russell Mining, in coordination with local partner Nationwide Development Corporation (Nadecor), was earning its stake in the project in return for funding and preparing a feasibility study, which was estimated to cost $US43.5 million ($A43.86 million), and by paying Nadecor $US7.5 million and funding the first $US12.8 million of Nadecor's ultimate 40% contribution towards development costs.

Ratel also intends to spin off its existing African interests into a new float.

The latest quarter was again one of records for CGA with 48,373oz of gold produced from its Masbate mine at a cash operating cost of $US587/oz, compared to production of 43,390oz at costs of $596/oz in the June quarter.

A total of 1.19Mt of ore was mined at an average head grade of 1.21gpt gold, with mill throughput of 1.44Mt a new quarterly record. The previous rate was 1.34Mt in June.

Cash and liquid assets at the end of the quarter stood at $US125.6 million, after a loan repayment of $US4.3 million. The outstanding project finance facility now stands at $59.8 million.

Shares in CGA were up 6.59% in morning trade to $2.75.

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