CGA Mining (ASX: CGX, TSX: CGA) continues to exceed expectations in the production of gold at the Masbate Gold Project in the Philippines, with the company achieving a new monthly throughput production record in May.
Over the month CGA Mining processed 605,330 tonnes at a throughput rate of 870dtph and an availability of 93.51%, equating to an annual throughput rate of 7.1mtpa.
The result for the month of May is that 17,074 gold ounces were produced, with a gross value of around US$26.3 million, based on the current gold spot price of US$1540 an ounce.
Production is expected to continue to increase, with the commissioning of a supplementary crusher due in the September 2011 quarter.
CGA Mining continues to work towards boosting the resource at the project, with an aggressive US$10M exploration program underway focussed on both the conversion of additional resources to reserves and delineating new reserve and resource ounces.
Masbate is the largest gold project in the Philippines and has a total Indicated Resource base of 4.55 million ounces, a total Inferred Resource base of 3.22 million ounces and a Probable Reserve of 3.03 million ounces.
In the first year of operation the project produced over 150,000 ounces, with the May production highlighting the company is on track to produce at a rate of around 200,000 ounces annually.