MEDUSA MINING LIMITED - ASX: MML

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Description

Medusa Mining Limited ("Medusa" or the "Company"), a public company listed on the ASX, AIM and the TSX, is an Australian based gold producer, focused solely on the Philippines with the following reserve and resource base:

Co-O Mine Probable Reserves: 1,041,000 tonnes at 14.9g/t Au at 500,000 ounces
Co-O Mine Indicated Reserves: 1,450,000 tonnes at 12.3g/t Au at 580,000 ounces
Co-O Mine Inferred Reserves: 2,290,000 tonnes at 9.0g/t Au at 660,000 ounces

Bananghilig Inferred Resources: 15,000,000 tonnes at 1.4g/t Au at 650,000 ounces

Medusa's corporate strategy is to become a mid-tier, 300,000 to 400,000 ounce per year, low-cost gold producer. The Company has completed the expansion of its high grade Co-O Mine operations to a production level of 100,000 annualised ounces, and is currently conducting near mine exploration to assess the possibilities of further expansion to 200,000 ounces per annum. Current cash costs at the Co-O Mine are approximately US$190 per ounce. A pipe-line of deposits is now being established with the recent addition of the Bananghilig Deposit which is expected to expand, potentially in conjunction with other nearby discoveries. Further potential upside exists for the discovery of copper and additional gold deposits within the tenement holding of more than 800km2.

Philippines Operations

he Company has witnessed an upsurge of government facilitation of mining investments for foreign companies in the Philippines, and has focused its activities in the Philippines.

On 22 December 2004 the Company announced it had completed a Heads of Agreement to merge with Philsaga Mining Corporation ("Philsaga") which owned the high grade, underground, narrow vein Co-O Gold Mine. Philsaga was a privately owned Filipino corporation.

On 4 December 2006 the merger was completed, and the Company commenced redeveloping the Co-O Mine with an initial production target of 40,000 ounces per year.

In September 2007 the Company decided to expand the production capacity by commencing a Phase I expansion to increase production to 60,000 ounces annualised by the third quarter of 2009. Phase I was completed ahead of schedule by 30 June 2009 with annualised production of approximately 65,000 ounces in the quarter.

A Phase II expansion independent of Phase I is well advanced to take production to an annualised rate of 100,000 ounces in early 2010. At the 100,000 ounces per year production rate it is anticipated that long term cash costs will be circa US$200/ounce.

Elsewhere in the Company's large tenement holding, work is progressing on a number of other gold prospects as well as the Lingig copper prospect.

Mine For

gold, copper, molybdenum

Location of operation(s)

Philippines

Address

Unit 7 , 11 Preston Street
COMO, WA, AUSTRALIA

Phone

08 9367 0601

Email

Website

http://www.medusamining.com.au/

Last Updated

18/03/2011