CGA Mining (CGA-T, CGX-A) had a positive June quarter, reporting record gold production and throughput and intriguing exploration results from its Masbate gold mine in the Philippines.
The mine, located on its namesake island about 350 km south of the country’s capital, Manila, produced 50,817 oz. gold, up 3% from the March quarter.
During the period, the mill churned through 1.7 million tonnes averaging 1.05 grams gold per tonne, setting a new quarterly throughput record.
However, the head grade was slightly below the previous quarter’s 1.12 grams gold per tonne, which attributed to the slight bump up in cash costs.
Cash costs rose to US$784 per oz., from US$753 per oz. in the March quarter.
However, the company says the cost per tonne milled dropped to US$22.76 from US$23.24 in the previous period. CGA posted revenue of US$65.9 million.
It also listed results from 100 holes completed at Masbate during the quarter as part of its aggressive 100,000-metre, US$20-million program.
The drilling focused on resource delineation at Panique, Main Vein, Libra East, HNBNW and Colorado, as well as on step-out drilling at the Old Lady and Blue Quartz prospects.
CGA notes the best intercepts for the three months came from Libra East where infill drilling extended mineralization below the planned pit floor.
The company had planned a 39-hole program at Libra East, of which it drilled 18 holes during the quarter, with results confirming a wide, high-grade vein system extending over 500 metres in strike. It intends to complete the remaining holes in the September quarter.
The junior adds HNBNW and the Main Vein target also returned promising results.
Exploration results continue to outline the potential for resource growth at the project, writes BMO analyst Andrew Kaip in a brief note.
He adds: “The weighted average grade from the released assays of 1 gram gold per tonne over an average true width of 2.6 metres is above the Masbate indicated resource grade of 0.8 gram gold.”
Kaip has a $3.25 target price and outperform rating on the stock.
The stock ended the day up 6% at $2.19 per share.
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