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Medusa Mining www.medusamining.com.au
Full Medusa Mining profile here

Medusa Mining Limited ("Medusa" or the "Company"), a public company listed on the ASX and LSE, is an Australian based gold producer. Medusa's corporate strategy is to become a mid-tier, 400,000 ounce per year, low-cost gold producer.The Company has completed the two-phase expansion of its high grade Co-O Mine operations to a production level of 100,000 annualised ounces. The Company is in construction Phase 3 expansion of the mill to increase capacity to 200,000 ounces.Resource drilling at the Bananghilig Deposit has confirmed 1,100,000 ounces of Inferred Resources. Infill drilling to indicated status is nearing completion.Further potential upside exists for the discovery of copper and additional gold deposits within the tenement holding of more than 800km2.

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Medusa Mining's expansion of gold production on track at Co-O mill in Philippines

Medusa Mining (ASX & AIM: MML: TSX: MLL) has advised that the commissioning of the Co-O mill expansion is progressing well and the Company is set to meet its targeted production of 25,000 ounces of gold this quarter.

The company is currently expanding its high grade Co-O Mine operations in the Philippines (Indicated Resources 580,000 ounces of gold inclusive of a Probable Reserve of 500,000 ounces of gold, and Inferred Resources 660,000 ounces of gold) to increase its forecast production to 100,000 ounces per year in 2010.

Medusa is conducting near mine exploration to assess the possibilities of further expansion to 200,000 ounces per year.

Geoff Davis, Managing Director, commented, “the company is set to achieve another production milestone on schedule. We commend the efforts of those concerned at the Co-O Mine and Mill for meeting operational deadlines whilst continuing to produce gold at or above forecasted levels."

"This expansion increases the company’s ability to optimise future gold production,” he added.
 
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 Bananghilig Deposit (Inferred Resource of 650,000 ounces of gold) recently added and which is expected to expand, potentially in conjunction with nearby discoveries.

The company says further potential upside exists in the discovery of substantial copper deposits within the tenement holding of > 800km2.

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