New High Grade Vein SystemNEW HIGH GRADE VEIN SYSTEM DISCOVERED RECENT SUCCESSFUL DRILLINGRESULTS INCLUDING: 37M @ 3.57 G/T AU; 19M @ 9.39 G/T AU; 27M @ 9.88 G/TAU; 42M @ 10.51 G/T AU; 29M @ 4.70 G/T AU; MASBATE GOLD PROJECT IN THEPHILIPPINES
Hopefully this news triggers CGA's growth in the stock market for the long term
CGA Mining Ltd.is undertaking a drill program at the Masbate gold project, with theaim of converting known resources to reserves, as well as delineatingadditional near-surface resources. The company is confident of addingsignificantly to the current probable reserve of 1.98 million ounces ofgold (37.4 million tonnes at 1.65 grams per tonne).
Recent drilling at the Masbate gold project, in the Philippines, hasdelineated a new high-grade vein system adjacent to the Libra Northplanned open pit, and within 200 metres of the four-million-tonne peryear Cil plant site that is currently under construction. Thismineralization is close to surface, as shown in drill hole MEXRC12,where 42 m at 10.51 g/t gold, were intersected from one metre downhole.A summary of the most recent results is reported in the table.
This area, Libra North, was not previously drilled, and, during theplant site sterilization drilling program that was conducted in late2007, four holes were drilled at the northern end of the planned Librapit to close off mineralization. Several holes intersected or ended insignificant mineralization and follow-up drilling was completed inJanuary to further understand the importance of this new vein.
Initial geological interpretation suggests that the goldmineralization in this vicinity is related to the presence ofmetasediments in the area and that the high-grade intercepts areassociated with the intersection of the Libra vein with thesechemically reactive rocks.
Once all results are returned from the laboratory, additionaldrilling will be planned in the Libra North area, where, currently,mineralization is open to the south and downdip. Four samples from thisnewly discovered vein have been sent to Australia for metallurgicaltesting.
Further drilling at Masbate is continuing in the Panique area, wherean inferred resource of 900,000 ounces (15.3 million tonnes at 1.87g/t) is known to exist; currently, two drill rigs are operating on a24-hour basis. This drilling aims to convert the resource from inferredto measured and indicated.
In 2008, a total of 25,000 m of resource definition drilling isplanned at Masbate. A third rig is scheduled to arrive on site inApril.