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Gold producer Medusa Mining climbs after releasing quarterly activities report

Published: 18:26 22 Jul 2009 AEST

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Medusa Mining (LSE:MML) today released its quarterly report listing production highlights for the period ended June 30.

The company completed Phase I expansion to an annualised production of 60,000 ozs ahead of schedule, currently moving on to Phase II expansion, aimed at bringing the annualised production up to 100,000 ozs in Q1 2010.

The quarter also marked record production of 16,009 ounces (ozs), up from the previous quarter’s 12,716 ozs. The costs per ounce also went down to USD 198, or USD 152 before taxes, royalties and local production taxes.

The resource base and the reserve base have both increased, to 1,380,000 ozs at 10.8 gt/gold and 500,000 ozs at 14.9 gt/gold, respectively. The current reserve base is sufficient to support a 5 year mine life with annual production levels of 100,000 ounces per year.

“The Co-O Mine continues to vindicate its perceived upside with the continual discovery of new high grade veins and extensions of current known ones. The Management is confident of achieving the growth targets which the Company has set itself over the next financial year,” said Managing Director Geoff Davis.

Medusa has recently extended high grade gold vein system to 1,400 metres.

The report made a positive impact on the company’s stock, which climbed more than 4 percent today, bolstering the solid growth Medusa has enjoyed so far this year.

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