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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	MML
Latest Price:	6.16 (1.82% )
52-week High:	8.71
52-week Low:	4.34
Market Cap:	1,163.18M

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Medusa Mining Full Medusa Mining profile here

Medusa Mining (ASX: MML) is an Australian based gold producer, focused solely on the Philippines. Medusa's corporate strategy is to become a mid-tier, 300,000 to 400,000 ounce per year, low-cost gold producer.

Medusa Mining achieves record gold production for the quarter

Thursday, January 21, 2010

Philippines-focused Gold producer Medusa Mining (ASX: MML) has announced record gold production of 21,108 ozs at the Co-O Mine during the quarter.

This compared to 18,054 ozs in the previous quarter, with the latest gold production at an average grade of 18.68 g/t gold and average cash cost of US$184 per oz (US$136 per oz before taxes, royalties and local production taxes)

The Co-O mine expansion to raise production to100,000 ozs per annum in early 2010 has been completed, while mill construction wrapped up and commissioning commenced.

In the quarter, the New MPSA 299-2009-XIII with area of 2,200 hectares was granted abutting the east side of the Co-O Mine MPSA.

The re-interpreted resource model of the Co-O Mine, consistent with Agsao Shaft Level 5 development, now provides an accurate development based model for expanding the mine to the east.

It contains a conceptual target size range from 3 million ozs in 9.3 million tonnes to 7 million ozs in 22 million 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.

Meanwhile, planning is underway to commence a pre-feasibility study drilling campaign at Bananghilig deposit in July 2010, while drilling with three surface rigs at the Lingig Copper deposit is continuing.

The exploration budget for the full year increased to US$18M, with a consolidated cash balance of US$35.5 million.

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.

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