CGA Mining (ASX: CGX, TSX: CGA) has reported that exploration drilling at the Masbate Gold Project is now underway, with 55,000m of drilling and 15,000m of trenching planned to be carried out in the next 12 months.
Initial work will concentrate on proving up the current 5m ounces of inferred resources by infill drilling both along strike and down dip of existing reserves.
Two rigs will be drilling a program that is planned to include 10,000 meters of RC drilling combined with 20,000 meters of diamond core drilling.
Also geochemical and refined aeromagnetic work will be conducted on the newly permitted EP-010-2010-V (formerly ExPA 0039-V), with a focus to rapidly generating drill targets on this highly prospective ground.
This tenement has an area of more than 52 sq. kilometres, and includes a number of known lightly explored vein systems, some of which have been mined at small scale during the last century.
An airborne combined magnetic and radiometric survey has indicated the presence of significant fault structures trending through these vein systems, and the potassium channel radiometrics suggests extensive areas of altered rock which may be prospective.
The company said once this target generation is completed and priorities have been identified, an additional two drill rigs will be mobilised to the tenement area to undertake a further 15,000m of RC drilling, 10,000m of diamond core drilling and 15,000m trenching.
CGA will spend more than US$10m in the next 12 months on the highly prospective areas surrounding the mine.
Disclosure: The author holds no positions in the company