CGA Mining Limited (TSX: CGA, ASX: CGX): CGA is focused on their Masbate open-pit mine in the Philippines. The company has already defined over 7 million ounces with plenty of exploration potential remaining. After acquiring the project in March 2007, CGA moved quickly to put it into production with the first gold pour taking place in May 2009. The current plan is to produce around 200,000 ounces per year, but an increased production rate can be achieved through an expansion of the processing plant.
Lake Shore Gold Corp. (TSX: LSG): Lake Shore is an emerging producer based in the prolific Timmins mining camp of northern Ontario and Quebec. The company is run by an experienced management team and is ramping up production to 200,000 ounces per year by 2011 from two 100%-owned mines. Lake Shore also has great exploration potential at their Thunder Creek joint venture with West Timmins Mining, where the partners have reported multiple high grade intercepts, including 83.4 meters of 12.75 g/t.
La Mancha Resources (TSX: LMA): La Mancha was created in 2006 from the fusion of the gold assets of AREVA with exploration properties of La Mancha Resources Inc. We are expecting La Mancha’s attributable production in Australia and Africa to increase to 150,000 ounces in 2011. The greatest exploration potential for La Mancha lies at the Hassai property in Sudan, where drilling is beginning to outline what could become a major gold-copper VMS deposit.
Medusa Mining Limited (ASX: MML, AIM: MML): Like CGA, Medusa is based in the Philippines and is operating the high grade Co-O mine. The mine is on track to increase production to 100,000 ounces per annum with very low cash costs of US$200/ounce. Medusa is aggressively drilling on the property and has recently announced a doubling of reserves.
Norseman Gold Plc (ASX: NGX, AIM: NGL): Norseman operates Australia’s longest continually operated gold mine called the Norseman Gold Project. After undergoing operational restructuring in late 2008, the company has been successful at reducing costs and increasing production. Norseman has been producing gold at a rate of around 80,000 ounces per annum, but the company’s goal is to increase production to over 100,000 ounces by filling capacity at their underutilized mill.
Price, Jul-31-09 2011 Earnings Est, 2011 P/E
CGA Mining Ltd. $1.46 $0.34 4.3 x
Lake Shore Gold Corp. $3.24 $0.35 9.3 x
La Mancha Resources $0.93 $0.22 4.2 x
Medusa Mining Ltd. A$2.69 A$0.57 4.7 x
Norseman Gold Plc A$0.70 A$0.23 3.0 x
