Medusa Mining
Medusa is an expanding gold producer in the Philippines, listed on the Australian Stock Exchange (ASX;MML), London AIM (AIM: MML) and Toronto Stock Exchange (TSX: MLL) markets. With an expanding resource base now at 1.2million ounces at 13.3g/t gold and production on track to achieve 60,000 ounces annualised in Q3 09 and 100,000 ounces annualised early 2010, it is anticipated that long term cash costs will be approximately US$200/ounce. Numerous new discoveries of gold and copper-gold are anticipated in the future within the large regional tenement package totalling 820km². The operations are an integral part of the local communities.
Medusa Mining completes re-interpretation of the resource model for the Co-O Mine
Australian-based gold producer Medusa Mining (ASX/AIM: MML, TSX: MLL), through its Philippines operating company Philsaga Mining Corporation, has wrapped up a re-interpretation of the resource model for the Co-O Mine, located in the Philippines.
The revised resource is JORC and NI 43-101 compliant, with a large number of drill hole intersections are yet to be included in the re-interpretated resource model.
This re-interpretation has marginally decreased the Inferred Resources but maintained the Indicated Resources taking into account production and stockpiles.
This now provides an accurate development based model for expanding the mine to the east. Thirty-five veins have now been modelled with resources and more are expected to be identified. Future resource updates will be done annually in June-July.
In addition, estimates of the conceptual potential target size** of the Co-O Mine using various parameters indicate a range from 3,000,000 ounces in 9,300,000 tonnes to 7,000,000 ounces in 22,000,000 tonnes using a grade range of 9 to 11 g/t gold with a preferred average grade of the current resources of 10 g/t gold.
Medusa Managing Director Geoff Davis said the re-interpretation based on on-vein development now provides a solid foundation for growing the mineral resources on the east of the Oriental Fault.
"Estimates of the conceptual potential target size of Co-O indicate 3 to 7 million ounces of gold. On-going drilling and development is continuing with the aim of unlocking this potential," Mr Davis said.
"The sole purpose of the re-interpretation was to correct inconsistencies to the east of the Oriental Fault between previous drillhole based interpretations and the on-going development on Level 5 from the Agsao Shaft."
Diamond drilling has continued since the resource model update announced on 1 July 2009 and focused on extending the Co-O vein system. A total of 52 drill holes have been completed since the previous resource estimation and considered for inclusion in the re-interpreted resource model in conjunction with available underground sampling data, and excluding mined material.
Thirty five veins now have resources allocated to them, with a number of the new veins, particularly the East Agsao series of veins, being open in almost all directions. The vein system is open at depth.
With current mineral resources comprising Indicated 580,000 ounces of gold and Inferred 1,310,000 ounces of gold, Medusa’s corporate strategy is to become a mid tier 300,000 to 400,000 ounce per year, low cost gold producer.
The Company is currently expanding its high grade Co-O Mine operations to increase its forecast production to 100,000 ounces per year in 2010, and is conducting near mine exploration to assess the possibilities of further expansion to 200,000 ounces per year. Current cash costs at the Co-O Mine are approximately US$200 per ounce.
A pipe-line of deposits is now being established with the Bananghilig Deposit (Inferred Resource of 650,000 ounces of gold) recently added and which is expected to expand, potentially in conjunction with nearby discoveries.
Other Medusa Mining articles
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08/03/10 Medusa Mining announces 1:10 bonus issue
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07/09/09 Medusa Mining reports 216% full year revenue hike, aims for growth in 2010
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12/08/09 Medusa Mining increases resource inventory to 2 million ounces of gold
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27/07/09 Medusa Mining on schedule to produce 100,000 ounces of gold from Co-0 Mine in 2010
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10/07/09 Geoff Davis, Managing Director of Medusa Mining talks to Proactive Investors
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28/01/09 Medusa Mining to increase gold production to 60,000 ozs in 2009
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19/01/09 Medusa Mining increases gold resource to 1.2 million ounces in Philippines
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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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16/03/10 Fairfax positive on Medusa Mining following Co-O mill update
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16/03/10 Medusa Mining says on track to meet Co-O gold mine target production this quarter
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16/03/10 Medusa Mining's expansion of gold production on track at Co-O mill in Philippines
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24/02/10 Medusa Mining reveals record breaking first half, net profit up 201%
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21/01/10 Medusa Mining achieves record gold production for the quarter
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19/01/10 Fairfax upgrades Medusa Mining after resource estimate revision for Co-O gold mine
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14/01/10 Medusa Mining chairman resigns due to increased work commitments elsewhere
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10/12/09 Medusa Mining delivers high-grade drill results at Co-O Mine
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27/11/09 Medusa Mining starts trading on the Toronto Stock Exchange
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18/11/09 Shares in Medusa Mining increase 9c after 2010 vision revealed
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