Ballarat Mine Performance:-
- The high grade Mako Lode in the Llanberris compartment was accessed ahead of schedule in February. A total of 408 metres of underground lateral development was completed during the quarter.
- 18,279 tonnes at an average gold grade of 9.0 g/t processed.
- 4,610 ounces of gold bullion recovered, and 3,701 ounces sold.
- A$6M received from the sale of gold bullion, at an average price of A$1,613 per ounce.
- Initial expectations for high gold grade production were met.
Ballarat Mine Exploration:-
- The Mako Lode Inferred Resource1 increased by 25% to 160,000 tonnes at 9.5g/t Au (ranging between 6-11 g/t Au) for 47,700 ounces of gold.
- Step out drilling of the Mako Lode Resource reports high grade gold intersections to the north and high visible gold contents in drilling to the south of Mako, increasing expectations to add further to this Resource in both directions.
- Five areas are identified as having resource potential from within the Britannia-Mako exploration target, where two underground diamond drill rigs continue target testing.
- Formal agreement signed with Navarre Minerals Ltd allowing them to farm into the company’s Sebastian and Raydarra projects north of Bendigo, with first ground geophysics surveying at Raydarra generating targets to be drill tested by Navarre in the June quarter.
All Scrip Take-Over Offer by LionGold Corp of Singapore
- On 16 April 2012, the directors of Castlemaine Goldfields recommended a takeover offer from Singapore Stock Exchange listed LionGold Corp Ltd which values the company at $A55 million.
- The off market takeover bid values CGT shares at 18.4 cents per share - a 62% premium to the last trading day VWAP for CGT shares on 13 April 2012, and a 51.7% premium to the 30 day VWAP for CGT shares, up to the last day of trading before the bid was announced.
- CGT Shareholders will receive 2 LionGold shares for every 9 CGT shares held.
- LionGold has gold exploration and mining projects in Ghana and Mali and has a market capitalisation of ~A$600M.
- LionGold has also subscribed for 33,913,000 new Castlemaine shares at a price of 11.5 cents per share raising approximately $3.9 million in new equity capital.
- The offer is unanimously recommended by the Castlemaine board in the absence of a superior proposal.
- Cash on hand as at 31st March was $12.8M. Proceeds from the share placement are expected to be received in the week of 23 April.
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