boardroom radio, page-7

Saw this article today, there's plenty of Canadian money for developments - this one in Zambia. Was Canada the source JK said he had had 'encouraging discussions' with?

By James West
MidasLetter.com
Thursday, March 12, 2009
There is plenty of capital available for companies with significant 43-101 compliant gold resources with a near-term production scenario on the immediate horizon. CGA Mining Limited (TSX.V:CGA, ASX:CGX) just completed a $25 million raise to augment its current cash position. The company is building the $170 million Masbate Gold Mine in the Philippines, which is expected to begin producing in excess of 200,000 ounces annually of gold by Q209.

The Masbate Project is an extensively studied, advanced stage development project with 55,686m of reverse circulation drilling and 58,757m of diamond drilling.

CGA’s updated resource at Masbate is 7.7 million ounces of gold, of which 3 million ounces is in a reserve category. The initial cash operating cash costs for the Masbate project are forecast to be US$400/oz. With initial annual production of 200,000 oz commencing next month, this will result in substantial free cash flow as the company also has secured a 6 year corporate income tax holiday. CGA has 254 million shares out, and with a recent price of CA$1.49 per share, has a market capitalization of just under $378 million, rendering a price of $49 per ounce in the ground with gold at $900.

There is significant additional exploration upside at Masbate. The known resources at Masbate extend over a strike length of 3.5 kilometres trending in a north westerly direction. The exploration effort will not only be to add to the existing resources base, but to locate additional high grade zones so as to extend the forecast high grading period of operations.

The area immediately south of the Main Vein pit contains underground workings from past operations. The mineralization surrounding these previous workings has not been tested and is considered a highly prospective source of additional resources.