By Oscarline Onwuemenyi
ABUJA â€” A top Australian Mining Company, CGA Mining Limited, announced on Friday at the Mining Indaba Conference in Cape Town , South Africa that it would be investing in a 750,000 tons per annum gold project in Osun, which will yield a minimum production profile of in excess of 100,000 ounces a year.
Speaking at the third day of the conference which attracted mining executives across the world, investors, analysts, financiers, journalists and policy makers, the President and Chief Executive Officer, CGA Mining Limited. Mr. Micheal Carrick explained that the company had a 51 per cent stake in the Segilola Gold Project in Ijesha, Osun State , Nigeria .
Describing the preliminary results from the gold project as exceptional, Carrick confirmed that Nigeria has great geological potential, especially as the Ghanaian belt where extensive mining is taking place extended down into Nigeria .
According to him, â€œWe have just done a first part of drilling, just over 10,000 meters and we have proven a very high quality initial resources of over 600,000 ounces.
â€œWe have only drawn down to 150,000 meters, but the grade is 6.7 grams per ton and the recovery is 96 per cent. The deposit is open and there is a substantial evidence of parallel zones of mineralisation.
â€œThe grade is exceptional, I think more 50 per cent of gravity.â€
Carrick confirmed that the company was currently doing a bankable feasibility study of the project in accordance with the joint venture which it will finish by the end of June 2010.
He added, â€œWe anticipate building a project with number of 750,000 tons per annum, which will yield a minimum production profile of in excess of a 100,000 ounces a year and we will expect cash cost to be under $300 an ounce.â€
Recalling how the company came into Nigeria , Carrick said â€œthe Nigeria Government went down to Tanzania and saw that we developed gold there which led to a tremendous investment in the gold sector into Tanzania and we were invited into the country and awarded the gold project there.â€