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CGX - Central Asia Gold

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Vainglorious

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I'm slightly surprised CGX has not been mentioned on ASF.

Anyhow, here is the low down:

CGX got burnt in a JV with one of those ex-commie 'stans. So sad.

Market hates the stock (assuming people have even heard of them)

Now selling for less than cash backing of $58,000,000 (with no liabilities)

Currently doing due diligence of farm-in projects in Africa.

Who says you can't buy a dollar for 90c?


DISCLAIMER: I own shares in CGX.
 
Cash settlement of disputed project. Cash backing increased from 0.48 to 0.62/share. Share price on the move.

Do the happy dance. Go white boy. Go white boy. Go white boy.

Company is still cheap.


DISCLAIMER: I think it is obvious I own this stock
 
Does this company need to change its name to Central Asia Uranium before members of this board get excited?

Somebody is prepared to sell you $1 for 77c and not a peep of agreement or disagreement from this board.

However, if someone says a company may at some undefined time in the future find an unknown quantity of uranium, that deserves copious amounts of analysis. Or we have endless prognositications about chart patterns - tops become double tops become triple tops become trading ranges become ......




 
CGX

Stock: CGX (spiel posted by a poster on the PRU forum - to give credit where credit's due)

Summary:
- 161 Million Shares
- 7,450,000 options Exercisable @ 60c (Expiring 31st August 2009)
- Market Cap = $90 Million @ 56c per share
- No Debt
- $30 Million in the Bank
- Top 20 Shareholders = 87.76% (largely institutionally owned)
- Roadshow in a weeks time

Masbate Gold Project (100% Interest) - Philippines
- CGX acquired the Masbate Gold Project for $51 US Million which is equivalent to $10.06/resource ounce. CGX issued a bunch of shares to Thistle at 65c.
- 5.071 Million Ounces of gold
- BFS completed in 2006 for a 4Mtpa operation
- Based on previous BFS, CAPEX is $95US Million, Production 171k Oz/year, Cash Cost $339US/Oz
- Currently in the process of further optimising the project based on the existing BFS. They are aiming for a production target of 200000 ounces/year at a cash cost of $300US/ounce.
- Production in the last quarter of 2008

Mkushi Copper Project (51% JV with AFE http://au.finance.yahoo.com/q/bc?s=A...=on&z=m&q=l&c=)
- Former open pit and underground mines at Zambia. Archive data from previous operators indicates that the Mkushi area as a whole contains a global exploration target of the order of 30 million tonnes averaging 1.2% copper, or more than 350,000 tonnes of contained copper. The Company’s drill programme has intercepted copper mineralisation over a strike length of 7km to a vertical depth of at least 150m and has to date defined about one quarter of the deposit to JORC standard. Independently audited JORC Inferred Mineral Resource already represents 80,000 tonnes of contained copper.

Segilola Gold Project (51% JV)
- Potential open pit resource of 800 000oz at a grade of over 5 g/t gold based on previous work by a German company which completed a comprehensive programme including detailed mapping, 1500 soil samples, 520m of trenching, 100m of exploration audits (underground tunnels) and 2800m of diamond drilling.
- They will commence a 10 000m, 86 hole, diamond drilling programme before the end of June.
 
At 10:30am yesterday, 3,000,000 shares were crosstraded at $0.69. Today, another 3,025,834 shares crossed at $0.69.



Anyone watching this??
 
Up 13.5% today on low volume, closing at $0.80 which sets a new high for the year.

In addition to FlyBoy's post above:

- Market cap is $129m as at close of trade 12/09/07.
- $40m in the bank (+$9.1m from recent sale of interests in FCF Mining Corp)
- CGX = CGA Mining Ltd (no longer Central Asia Gold) - www.cgamining.com

Masbate Gold Project
- CGX has secured preliminary credit approval for a US$65m finance facility from BNP Paribas.
- Leighton and Lycopodium to be awarded fixed price lump sum contract this quarter for construction.
- Mineral Processing Permit to be granted this quarter.
- 5.071moz Au resource (3.3moz indicated and 1.77moz inferred incl. probable reserves of 1.984moz)

Mkushi Copper Project
- 10.7mt @ 0.73% for 80,000t Cu (0.3% c/o) inferred at H-Zone alone (representing 1/4 of the deposit).
- Updated resource estimate to be released this quarter (incl. other zones)
- Recent drilling at H-Zone returned grades > 0.95%.


Lots to come over the next couple of months. Current market cap is assigning $89m for the three projects (disregarding all other interests). Considering that CGX have a 5moz gold resource and are paving the way to be a 200k+oz/yr producer, this IMO is still screaming buy (DYOR).
 
Ok this is now getting really interesting,

(I simply cannot believe how this company has been overlooked during the last 6 months by ASF members!)

Trading halt announced Friday pending an announcement by the company, on top of a fantastic breakout from 68c to 1.08 over the past 3-4 weeks!

On top of the ongoing Cu drilling programme at Mkushi in Zambia, the 500,000 oz prospective gold project in Nigeria, the company recently awarded the construction project for the Masbate project (indicated 3.3M oz)in the Philippines to Leighton Contractors. This is the kind of company I look for, almost unheard of by most people, but quietly goes about it's business while assembling a quality portfolio of projects.

Remember that the majority of this company is owned by institutional investors, and their reported cash reserves recently were close to $30M.

Anyone care to speculate where this will end up?...does anyone care?!

jman2007
 
Hi jman,

Trading halt is likely to be a US$65m placement on TSX to complement the US$65m financing from BNP Paribas.

I agree with you, this is one hot stock that has been totally overlooked....and there's plenty more upside to come!

A resource estimate for Mkushi Copper Project will be out this quarter, along with their soil and trench sampling results for Segilola Gold Project.

Masbate Gold Project is progressing well, just waiting now for final credit approval before construction begins. I think it's safe to say that CGX are now committed. Should be in production by 1Q 2009.

PoG on the rise. 5Moz Au resource for Masbate alone (incl probable mining reserve of 2Moz). Cashed up. 19% stake in AIM:MTL's Runruno Gold Project (23Mt @ 2.3g/t for 1.7Moz Au).
 
Hey Alphaman,

Thanks for the info

Good to see you're still in on this one, not too much more to add at the moment, but you've pretty much hit the nail on the head; potential upside to this stock is mouth-watering. Don't know too much about the financing from BNP Paribas at this stage, probably worth my while reading up about that.

CGX seem very well positioned to take advantage of the upsurge in Au prices, as far as I know long-lead items such as grinding mills etc have been secured for Masbate, so CGX's committment to the project now almost looks certain.

Eagerly awaiting the Mkushi Cu results....

jman2007

 
This baby was up 16% on TSX overnight. Closed at C$1.22. Should be a good day today for those who hold CGX. Momentum is building up on the buy side, just hope they don't get pulled before the opening bell. Still in trading halt.
 
Well the $65M placement didn't make too much of a splash on the ASX, possibly CGX still a bit of an unknown quantity to Aust investors, although sellers are still aggressively bidding the price up with a nice parcel of 30,000 shares sitting at 1.10

I think CGX's approach at Masbate to environmental concerns and liason with the local population will be a key to this projects success or otherwise. I read today that a local village in the Phillipines is threatening to cut off the water supply of an Aust gold-mining company, and are actually taking them to court. Foreign mining companies in the Phillipines have had somewhat of a love/hate relationship with local people, and it is a good opportunity for CGX to lead from the front.

Undoubtedly future sp triggers will be the resource estimate for the Mkushi Copper Project, along with their soil and trench sampling results for the Segilola Gold Project (which I believe is Nigeria's most advanced Au project).

Very happy to keep holding this one.

jman2007
 
Momentum building up again,

Sellers certainly making the buyers work for it, 5c gain today to 1.10, lowest seller in line bidding at 1.15. Should be another intesresting day tomorrow for CGX holders. Optimisation studies for Masbate now out, have to say I am impressed at the level of detail that has gone into this release, CGX seem to be marketing the project quite well.

A couple of key points here:

1.) Average annual gold production over the first 8 years of the mine life is forecast at 206,000 ounces plus silver credits at a cash operating cost of US$306/oz.

2.) The reserves and resources of the project are as follows:

Indicated Resources 59.3mt @ 1.55g/t containing 3.0m oz
Inferred Resources 33.7mt @ 1.63g/t containing 1.8m oz

(Both of the above were calculated at a 0.7 g/t cut-off and US$450 / ounce gold price).

3.) Low Grade Indicated Resources 18.65 mt @ 0.61 g/t containing 0.4m oz
Probable Reserves 37.4 @ 1.65 g/t containing 1.984m oz

4.) The construction time frame is currently estimated at 15 months, and consequently gold production is targeted for the first quarter of calendar 2009.

Arrangements are almost complete for the first $65M drawdown for project financing, arrangements are also underway for construction of the tailings dam facility and power station. Looking forward to news from Mkushi Cu and the Segilola Au projects too, both relatively advanced projects in the (possible) making themselves.

Good luck to all CGX holders
Cheers jman2007
 
Morning,

Seems to be approaching some resistance around 1.20, although still up 2c on the back of an average day so far on the ASX. News from Mkushi could provide a trigger for further gains however.

Cheers
jman2007
 
Just broke the resistance at $1.20, it has been doing really well since buying in middle September. Does anyone know if there is a planned announcement to be made today, or is it just more day trading? have to say it is doing this on some really small volumes.

Spartn

:viking:
 

Agreed Spartn,

the volumes themselves haven't been huge, but pushed through to 1.30'ish relatively easily once it broke thru 1.20. I think I picked my parcel up in mid Aug, fast turning into a star performer in my porfolio since then.

I might head along to the shareholder meeting on 15th Nov in light of the rather "technical" announcement CGX made on the 24th. There are a lot of interwoven interests behind the scenes here, if someone could provide a clear breakdown of interests would be much appreciated!

Cheers
jman2007
 
Been a bit quiet on this thread lately,

Masbate looks like it is progressing to schedule, probable mining reserves are as follows: 37.4mt @1.65g/t containing 1.984m oz

What is favourable in this case is the conservative gold price of US$450/oz used to determine the optimum pit shell used in the DFS, so basically more of the resource could be converted into a reserve once the project is up and running (63% of the indicated resource was converted to a probable reserve).

In the first 1-2 years of production, they will be targeting high grade ore, so there is the potential to generate some serious cash flow early in the mine life. Average annual Au production over the first 8 years of mine life is forecast to be 206,000 oz plus Ag credits resulting in a forecast cash operating cost of US$306/oz, very favourable in view of the prevailing Au price imo.

On other fronts, I'm looking forward to the release of the pre feasibility study for the Mkushi Cu project due out in the final qt of 2007, lets hope they can stick to this timetable, the BFS compilation is scheduled to start immediately thereafter. Apparently the Zambian Govt is aware of the project and is very keen on its redevelopment.

There was some pretty heavy trading in CGX on Friday, 1.3M shares traded, I wonder if we will see 1.50 reached this week, the sellers are really making the buyers work for it atm!
 
Looks like it's on,

Yesterdays break confirmed, with another 20c gained today to leave price currently at 1.85, perhaps some people know something about this company that I don't?...obviously happy to keep holding this one.

Cheers
jman2007
 
Hey jman, CGX has been screaming up the charts! :bananasmi

I think the Mkushi Copper results will give this one a bit more of a boost. Still waiting though, but shouldn't be much longer....happy to hold.
 
alphman said:
Hey jman, CGX has been screaming up the charts! :bananasmi

I think the Mkushi Copper results will give this one a bit more of a boost. Still waiting though, but shouldn't be much longer....happy to hold.
Click to expand...

Wow thsi one has really taken off recently!

But still no news yet?

"Business Description
CGA Mining Limited (CGX, formerly Central Asia Gold Limited) is a gold and copper exploration company with the projects located in Nigeria and Zambia. CGA has changed its name in December 2006, following withdrawal from all projects in the Kyrgyz Republic and has refocused on opportunities in Zambia and Nigeria"
 

Hi Michael,

IMO as it has become clear that CGX basically now look fully committed to development of the Masbate Au project, the speculation and thus the risk have reduced considerably, hence the increased interest in this stock. IMO, CGX are one of the most promising, cashed-up juniors on the ASX. As Alphaman said, some news around the corner regarding a prospective Cu project in Zambia could give this one another push. I'd be surprised if they don't start getting some brokerage coverage soon, if they haven't already.

Cheers
jman2007
 
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