Medusa Mining
Medusa Mining is an expanding gold producer in the Philippines, listed on the London AIM and the Australian ASX. Medusa's gold production operations are very robust due to its high grades and low production costs, and over the next 12 to 18 months should expand considerably from an initial annualised 40,000oz as new multiple mines are brought into production to feed a central milling facility. Medusa is focused on expanding its resource base and production profile to benefit not only shareholders but also its employees and local communities. The Company’s exploration upside is rated as excellent for the discovery of new gold and copper-gold deposits.
Medusa Mining increases gold resource to 0.862 million ounces
Medusa Mining, the owner and operator of the Co-O Gold Mine in the Philippines, announced a 17% increase in its JORC compliant resources to 0.862 million ounces with an average grade of 10.72 grams per tonne gold.
The resource update is part of a wider resource definition and exploration drilling program at the Co-O Mine in advance of an increase in gold production to 100,000 ounces of gold per annum by 2010.
Medusa stated that the high grade nature of the gold veins, and uniformity, that it would also be reporting future resources with a zero grams per tonne gold cut-off grade, as only 2.7% of the total resource fell between zero and three grams per tonne gold. Medusa also added that additional drilling at the western fringe of the deposit required further infill drilling before it could be included in the resource.
The new resource estimate as of 21 July 2008 is 2.5 million tonnes of indicated and inferred resources grading a combined 10.72 grams per tonne gold for 0.862 million ounces of gold using a zero grams per tonne gold cut-off.
Geoff Davis, Managing Director Medusa Mining, summarised:
"The resource statement extends the deposit to in excess of one million ounces including past production and we are very optimistic that this figure will be further increased by the on-going drill programme.
"The grade of the deposit continues to be maintained, and with the discovery of new mineralisation in new orientations, in conjunction with advancing geological knowledge, these factors all highlight the potential to increase the deposit size in the future."
Other Medusa Mining articles
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24/10/08 Medusa Mining has a lot going for it as a low cost gold producer
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25/07/08 Medusa Mining reaffirms target of 100,000 ounces of gold production by 2010
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13/05/08 Medusa Mining – Interview Transcript
Other Medusa Mining news
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31/10/08 Medusa Mining increases gold production by 35%
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24/09/08 Medusa Mining says Crosby Capital offer "inadequate and opportunistic"
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19/09/08 Medusa Mining leaps on approach from Crosby Capital
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26/08/08 Medusa Mining updates JORC reserve estimate for Co-O Mine
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15/08/08 Medusa Mining announces discovery of magnetite-copper-gold porphyry
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11/06/08 Medusa Mining to drill at Kamarangan in two weeks
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04/06/08 Medusa Mining firms on discovery of more gold veins
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07/05/08 Medusa Mining hits wide, high grade gold vein
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07/04/08 Medusa Mining extends length of Co-0 vein system
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26/03/08 Medusa Mining secures mineral production sharing agreement