Good news, bad newsMarket today reacted accordingly... still good for long run IMHO.
PERTH, Western Australia, July 11, 2011 /CNW/ - CGA Mining Limited("CGA" or "the Company") (TSX: CGA, ASX: CGX) announced today thatannual production for the year ended 30 June 2011 from the Masbate GoldProject increased by 27% to 190,033 ounces (2010: 150,141) of gold.
This production was achieved from a throughput level for the periodwhich increased by 37% to 6,152,561 dry tonnes milled (2010:4,148,408t). The detailed operating results for the June quarter willbe released before the end of the month.
Production however for the current September 2011 quarter will beimpacted whilst mechanical repairs are carried out on the SAG mill. CGAhas extensive insurance policies which are available for both repairsand loss of profits claims, subject to normal deductibles. A crack inone of the segments in the discharge end of the SAG mill was identifiedyesterday, Sunday July 10, 2011. The SAG mill was shut down and willnow be disassembled and repaired. Whilst full technical assessments arenot yet available it is currently estimated that these repairs willcost in the order of
.5M and may take approximately three months tocomplete.
The crushing and grinding circuit at the Masbate Gold Project currentlycomprises a primary crusher, a SAG mill followed by two ball mills. Itis proposed that in the interim, the settings on the primary crusherwill be adjusted and the feed conveyors reconfigured to bypass the SAGmill, allowing for a softer blend of ore to be fed directly to the twoball mills. It is currently estimated that these adjustments can bedone within a period of approximately 4 weeks. This interim circuitwill also be further enhanced shortly through the bringing on line ofthe new supplementary crusher, construction of which is also welladvanced. The new supplementary crusher is currently forecast to bebrought on line approximately two weeks later. It is currentlyanticipated that this interim circuit can achieve a throughput level ofapproximately 400t - 500t/hr until the full capacity of 700t/hr isrestored.
Full capacity of the plant will therefore be restored during the nextquarter.