Australian mining outfit, CGA Mining Limited, has announced it would be investing in a 750 000 tonnes per year gold project in Osun State.

According to a report by Vanguard newspaper, Michael Carrick, the company's president and chief executive officer, told the recent Mining Indaba Conference in Cape Town that the firm has a 51% stake in the Segilola Gold Project in Nigeria.

Carrick said that Nigeria has significant geological potential.

He said the 750 000 tonnes per annum will yield a production profile in excess of a 100 000 ounces a year and that the company expects the cash cost to be under $300 an ounce.

CGA Mining is currently conducting a bankable feasibility study of the project which is expected to be finished by the end of June 2010.