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Medusa Mining Ltd (MML)

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Monday 30 January, 2012

Medusa Mining Ltd

Quarterly Activities Report

RNS Number : 3474W
Medusa Mining Limited
30 January 2012
 



Medusa Mining Limited

("Medusa" or "the Company")

 

QUARTERLY ACTIVITIES REPORT

 

PERIOD ENDED 31 DECEMBER 2011

 

30 January 2012

 

Snapshot of Medusa:

 

-   Un-hedged, low cost, dividend paying gold producer focused on organic growth in the Philippines

 

-   Growth path to production of 400,000 ozs per year by end 2015/early 2016

 

-   Growth underpinned by strong cashflow from Co-O Mine (narrow vein underground)

        -   FY 2011/12: revised production guidance of 75,000 ozs at cash costs circa US$230/oz

 

-   Current Mineral Resources comprise

        -   Co-O Mine: Indicated 616k ozs at 12.0 g/t gold; Inferred 1,344k ozs at 8.8 g/t gold

        -   Bananghilig: Inferred 650k ozs at 1.3 g/t gold

 

-   Current Probable Reserves: Co-O Mine 502k ozs @ 10.1 g/t gold

 

-   Co-O Mine Resources and Reserves to be maintained at current levels

 

-   Conceptual exploration target size ** of Co-O Mine of 3 to 7 million ozs

 

-   Excellent exploration upside: high grade vein and disseminated bulk gold targets, plus seven copper targets

 

-   820 km2 of tenements and exploration budget for FY 2011/12 of US$27M

 

** The potential target size and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being defined as a mineral resource. Refer to Stock Exchange announcement dated 24 August 2011.

 

Board of Directors:

 

Geoffrey Davis (Non-executive Chairman)

Peter Hepburn-Brown (Managing Director)

Ciceron Angeles (Non-executive Director)

Robert Weinberg (Non-executive Director)

Andrew Teo (Non-executive Director)

 

Capital Structure:

 

Ordinary shares: 

188,903,911

Unlisted options:         

715,000

Performance rights:

250,000

 

Listings:

 

ASX and LSE (Code: MML)

 

Address and Contact Details:

 

PO Box 860

Canning Bridge  WA  6153   

Telephone: +618 9367 0601   

Facsimile: +618 9367 0602

Email: [email protected]

Website: www.medusamining.com.au

 

 

OVERVIEW:

 

Co-O MINE PRODUCTION & DEVELOPMENT

 

-   New Mill: Construction commencing on new large leach tank, detoxification circuit, thickener upgrade.

 

-   Production: 16,270 ounces at a recovered grade of 8.00 g/t gold and cash costs of US$242 per ounce. Production influenced by accelerated development and operational disruptions by tropical storm Sendong (mid December 2011) and continued torrential rainfall over the Christmas and New Year period.

 

-   Saga Shaft: currently at 210 metres. Re-optimisation of development plan recommends sinking directly to Level 8 (350 metres below surface) to install loading facilities. Completion estimated Q4 in CY12. Production revised due to high percentage of development ore produced to support Level 8 development.

 

-   Emergency assistance: two mines rescue teams assisted at the Pantukan landslide site 50km from the Company's operations.

 

 

Co-O MINE EXPLORATION

 

-   Drilling is continuing with six surface and five underground rigs. Exploratory drilling for new deep vertical shaft is underway to the east of the Agsao Shaft.

 

-   Drilling update planned for the next quarter and regional IP survey planned.

 

 

TAMBIS AREA - BANANGHILIG DEPOSIT

 

-   Primarily infill resource drilling in progress with seven rigs with the aim of upgrading a majority of resources to Indicated category. 

 

-   Drill results announced on 17 January 2012 include 6.05 metres at 17.09 g/t gold,  28.55 metres at 1.54 g/t gold, 12.70 metres at 2.44 g/t gold, 14.05 metres at 1.20 g/t gold, 10.70 metres at 1.88 g/t gold, 11.95 metres at 1.19 g/t gold and 7.45 metres at 3.55 g/t gold.

 

 

SAUGON PROJECT

 

-   Drilling completed, IP survey nearing completion.

 

 

ANOLING

 

-   Drilling with four rigs is underway.

 

 

CORPORATE & FINANCIALS(unaudited)

 

-   Total cash, cash equivalent in gold on metal account and bullion at end of quarter of approximately US$80.2 million

 

 

PROJECT OVERVIEW

 

The locations of the Company's projects are shown on Figures 1 and 2 (please see link at the end of this announcement).

 

 

Co-O MINE

 

Gold Production

 

The production statistics for the December 2011 half-year and quarter with comparatives for the previous three quarters are summarised in Table I below.

 

Table I. Gold production statistics

 


Unit

Qtr ended                  31 Dec 11

Qtr ended                  30 Sep 11

Qtr ended                  30 Jun 11

Qtr ended                  31 Mar 11

HY ended                  31 Dec 11

Tonnes mined

WMT

71,872

41,596

69,562

 71,060

113,468

Ore milled

DMT

 68,008

 42,152

 76,365

 71,747

110,160

Recovered grade

gpt

  8.00

  8.33

  11.05

  11.58

8.10

Recovery

%

93%

93%

93%

94%

93%

Gold produced

ozs

16,270

10,510

 25,233

 25,114

25,780

Cash costs (1)

US$/oz

$242

$291

$194

$191

$261

Gold sold

ozs

10,000

15,446

21,423

25,911

25,446

Average gold price received

US$

$1,761

$1,587

$1,518

$1,401

$1,655

 

Note:

(1) Net of development costs and includes royalties and local business taxes

 

Gold production for the quarter was 16,270 ounces, at an average recovered grade of 8.00 g/t gold and cash costs of US$242 per ounce, inclusive of royalties and local business taxes.

 

As previously advised to the market, the mine continues to operate predominantly in development mode to prepare for the future production increase and all development ore mined to date has been treated through the mill.  The increased amount of development ore treated is the primary reason for the lower recovered grade for the past two quarters, compared to quarters from the previous years.

 

Disruption to production during the quarter was experienced following the passing of tropical storm Sendong (see announcement 19 December 2011) followed by continued torrential rain over the Christmas and New Year period. As a consequence of this disruption over several weeks, in combination with the accelerated development program currently undertaken to prepare for the future production increase and the decision to sink the Saga Shaft to Level 8 (previous target Level 6), the Company has revised its production guidance to 75,000 ounces for the financial year.

 

Whilst cash costs per ounce for the quarter is relatively high at US$242 per ounce (YTD: US$261 per ounce), primarily as a result of a drop in gold production, the Company anticipates, that the unit costs will average circa US$230 per ounce for the year as production increases in the second half of the financial year.

 

Medusa, an un-hedged gold producer, sold 10,000 ounces of gold at an average price of US$1,761 per ounce during the quarter.

 

 

Preliminary Development Timetable

 

Graph 1 (please see link at the end of this announcement) is the updated Preliminary Development Timetable and Production Guidance for the new Co-O Mill followed by the Bananghilig Project.

 

The total estimated Capex (inclusive of mine development and shaft sinking) for the Phase 3 expansion of Co-O is US$70 million which will funded entirely from the Company's cash flow.

 

 

New Co-O Mill

 

In November 2010, the Board approved the construction of a new mill with capacity to produce 200,000 ounces of gold per year based on processing up to 750,000 tonnes per year at the current reserve grade of the Co-O Mine.

 

The application to upgrade the Environmental Clearance Certificate for the current Co-O Mill to 2,500 tonnes per day awaits signing in Manila pending completion of a mining industry policy review.

 

 

Operations

 

Mine Development

 

Major renovations are continuing at the Co-O Mine to modernise the mine for its expected long life.

 

Acceleration of the lateral development is ongoing to ensure the underground infrastructure and on-vein development will be in place for the Saga Shaft. This accelerated development reached a record during the quarter and consequently increased the proportion of development ore supplied to the mill which is expected comprise the majority of the mill feed during this accelerated development period.

 

Sinking of the Saga Shaft progressed smoothly, except for interruptions in December during the passing of tropical storm Sendong and subsequent torrential rainfall, and is currently at 210 metres depth.

 

A re-optimisation of the development programme has determined that the best outcome is to sink the Saga Shaft directly to Level 8 (approximately 350 metres below surface) and by-pass Level 6 as envisaged in the earlier design. The re-optimisation is based on

 

-   70% of the resources (approximately 1.3 million ounces) are above Level 8;

 

-   The successful up-grading of the Agsao Shaft during the September quarter;

 

-   Continuing good underground exploration results; and

 

-   The increasing rate of development.

 

The successful upgrading of the Agsao Shaft means the mine can now haul approximately 1,000 tonnes per day to feed the mill at its current capacity. Minor fine tuning is continuing at the Agsao Shaft.

 

Development on Level 6 is continuing mainly to the east from the Sabor Shaft. A second internal shaft between Levels 5 and 6 has been completed to increase production from Level 6. Preparations are underway to sink ore passes from Level 5 to Level 8.

 

Mine Production

 

Production was disrupted by the passing of tropical storm Sendong (Washi) on 16th and 17th of December 2011 (as announced on 19 December 2011). Torrential rain disrupted transport of ore from the mine to the mill due to haul road damage. Torrential rain continued over the Christmas and New Year period triggering landslides and overflowing the Agsao River bridge immediately adjacent to the mine resulting in erosion around the bridge abutments, and also, separately, of some embankments within close proximity of the Saga Shaft.

 

The continual rain has severely hampered the haul road repairs and forced reduction of ore haulage to avoid damaging the road.  Repairs are continuing but are dependent on weather conditions.

 

Ore trucked to the mill during the quarter was predominantly development ore, low grade stockpiles and some stope ore.

 

The re-optimisation of the sinking of the Saga Shaft to Level 8 will mean that the high rate of development will continue until this shaft is completed, continuing the high percentage of development ore in the mill feed. Once the Saga Shaft is completed with an estimated haulage capacity to 1,500 tonnes per day, then it will be possible to increase the amount of stope ore that is hauled and processed.

 

It is estimated that the Saga Shaft will be completed and hauling from Level 8 commenced during the December quarter 2012.

 

The Company provided two of its mine rescue teams to local authorities in the Compostella Valley region approximately 50 kilometres to the south of the Company's operations to assist with rescue activities at the isolated Pantukan landslide disaster area. The landslide hit the village of Pantukan during the same period of torrential rain that the Co-O Mine site experienced in early January 2012.

 

Mill Expansion

 

The current status of activities is:

 

-   Construction of a new large leach tank and a detoxification plant, and planned re-furbishment of four small leach tanks to commence in February;

 

-   Site works for the construction of new crushing and grinding sections (separate from the   current crushing and grinding sections) to commence in February 2012;

 

-   Upgrading of the thickener and the elution circuit to commence in March 2012;

 

-   80% completion of tailings dam number 5, which was interrupted during November and December by rain. Approximately 2 weeks of work remain to be completed.

 

 

Exploration

 

Drilling with six surface rigs and five underground drilling rigs is continuing. Drilling of two vertical holes located east of the Agsao River to approximately 1,000 metres is underway to test for suitable positions for a new deep shaft, likely to target 750 metres depth initially.

 

The Company plans to announce drilling results during April 2012.

 

Planning has commenced of an extensive regional Induced Polarisation/Resistivity ("IP/Res") and ground magnetics programme around the Co-O Mine.

 

 

Health and Safety

 

Lost time accident frequency rate (LTAFR) for the six months to 31 December 2012 is 1.10 including exploration. By comparison, the latest West Australian gold mining industry figure available to 30 September 2011 was 3.10, excluding exploration statistics of 6.70.

 

As reported on 31 October 2011, an underground miner on afternoon shift was involved in a fatal accident in a shrinkage stope at the mine. The broken ore that the miner was standing on collapsed due to an undetectable cavity caused by bridging above the full ore chute.

 

There were no breaches of any of the project's operating regulations during the quarter.

 

 

Graph 1 - Primary Development Timetable (please see link at the end of this announcement)

 

 

TAMBIS REGION

 

The Tambis project comprising the Bananghilig Gold Deposit (Figure 2 - please see link at the end of this announcement) is operated under a Mining Agreement with Philex Gold Philippines Inc. over Mineral Production Sharing Agreement ("MPSA") 344-2010-XIII which covers 6,262 hectares.

 

Figure 3 (please see link at the end of this announcement) shows the Interpreted geological map showing drill hole locations for TDH 103-130 & 135-141.

 

 

BANANGHILIG GOLD DEPOSIT

 

In July 2010, new regional and detailed mapping and drilling programmes were commenced with the aim of validating the current resource of 650,000 ounces of gold and extending it to provide a reserve of approximately 1,000,000 ounces. This reserve would form the basis for a feasibility study which would target production of 200,000 ounces of gold per year from a new milling facility.

 

The announcement of 12 September 2011 summarises the Tambis regional geological setting, local geological setting, deposit description and mineralisation, shows a typical cross-section through the deposit and the drill hole intersections obtained for the period 24 July 2010 to 31 August 2011. Additional information is contained in the September 2011 quarterly report dated 24 October 2011.

 

On 17 January 2012 a drilling update contained continuing good results. Drilling is now focused on infill to upgrade as much of the resources as possible to the Indicated category. A new resource estimate is planned for the September quarter 2012.

 

 

DRILL RESULTS

 

During the period 31 August 2011 to 31 December 2011, 8,568.95 metres of diamond drilling in 21 holes has been completed. The drilling continues with 7 rigs in the area.

 

Figure 3 (please see link at the end of this announcement) shows only the drill holes with new assays, being holes TDH 103 to 141 excluding TDH 131 to 134 which have been drilled outside the Bananghilig area.

 

First pass assaying for gold has been undertaken on all samples submitted to the laboratory. Additional assaying is ongoing from selected intervals for base metals, silver and other elements. The announcement dated 17 January 2012 contains additional detailed information and drill hole intersections are reported down to 0.5 g/t gold. The results are summarised in Table II where significant intercepts are defined on the following basis:

 

(i)   lower cut off grade of 0.5 g/t Au, and

(ii)   ≥ 5 metres downhole intercept width at ≥ 1.00 g/t Au, or

(iii)  ≤ 5 metres downhole intercept width at ≥ 5 gram*metres, and

(iv)  maximum of 3 metres of downhole internal dilution at ≤ 0.5 g/t Au.

 

Table II. Bananghilig surface drill hole results ≥1 g/t gold.

 

Hole number

East

North

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (g/t gold)

 

 

TDH 103

945228

612334

-60

130

169.80

1.00

9.74

 

TDH 105

945493

612520

-60

130

55.95

3.00

3.12

 






62.95

6.05

17.09

 






80.15

2.85

3.98

 






136.10

0.70

22.19

 

TDH 107

945331

612443

-60

130

45.80

2.45

2.06

 






103.60

3.05

2.59

 






136.70

1.30

43.75

 

TDH 108

945320

612748

-60

130

106.75

1.45

4.01

 






122.80

14.35

1.09

 






388.10

1.00

5.68

 






402.10

1.00

13.20

 

TDH 109

945018

612911

-60

130

347.15

16.55

1.00

 






406.70

10.25

1.13

 

TDH 110

945447

612974

-60

130

438.55

1.00

5.93

 






455.45

1.00

20.19

 

TDH 113

945296

612481

-60

130

6.40

1.50

10.53

 






116.65

4.25

2.20

 

TDH 114

944947

613088

-60

130

75.90

1.65

3.14

 






94.15

5.95

1.26

 






454.15

2.15

4.38

 

 

Hole number

East

North

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (g/t gold)

TDH 115

945367

612381

-60

40

89.95

0.70

9.23






135.80

28.55

1.54






116.90

0.80

8.51






140.45

5.45

2.75






181.25

3.55

10.03






201.20

4.75

1.20






292.65

3.45

6.98






332.80

1.40

4.48

TDH 118

945037

612514

-60

130

38.80

4.40

8.90






109.20

12.70

2.44

TDH 119

945294

612578

-60

130

37.55

2.00

5.54

TDH 120

945239

612383

-60

130

241.00

1.00

6.42






338.05

6.00

1.43

TDH 122

944983

612713

-60

130

139.00

4.70

1.87

TDH 123

945200

612496

-60

130

228.10

4.50

2.99

TDH 124

945108

612614

-60

130

107.20

3.50

2.30

TDH 127

945259

612994

-60

130

22.30

5.10

1.76






232.35

1.00

10.87






242.60

6.65

2.17






265.40

7.50

1.92






275.90

14.05

1.20






299.95

7.00

1.01

TDH 130

945606

612511

-60

130

24.70

1.40

6.25






165.25

2.35

5.32






187.90

2.00

2.68






194.10

10.70

1.88






264.85

4.35

2.63






287.60

0.90

14.02






317.25

9.65

1.50






331.90

5.00

1.41

TDH 137

945522

612397

-60

130

446.45

5.95

2.13

TDH 138

945278

613055

-60

130

151.30

5.80

2.36

TDH 140

945406

612631

-70

130

3.25

8.75

3.01






17.00

6.00

1.52






67.00

4.70

3.04






108.15

11.95

1.19






121.10

6.05

1.15






175.45

9.35

1.45






285.90

6.25

1.33

TDH 141

945630

612542

-60

130

41.50

15.90

1.18






61.15

5.75

1.18






127.00

2.65

6.18






143.60

2.30

17.19






262.15

7.45

3.55

 

Notes:

 

(i)   Intersection widths are downhole drill widths not true widths;

 

(ii)   Assays denoted by (*) are by Philsaga Mining Corporation's laboratory, all other assays are by McPhar Geoservices Inc. in Manila;

 

(iii)   Check surveying of collar positons in progress;

 

(iv)   Grid coordinates based on the Philippine Reference System 92.

 

 

DRILLING, DRILL HOLE SAMPLING AND ASSAYING PROCEDURES

 

Drilling Procedures

 

Drilling, sampling and analytical methodologies are of internationally acceptable standards. Drilling and analyses are carried out by independent contractors, SBF Philippines Drilling Resources Corp. (SBF), and Intertek Testing Services Philippines, Inc. (Intertek) respectively.

 

Drilling is carried out by SBF using wireline diamond coring techniques, with the core being predominantly HQ triple-tube (HQ3) diameter (OD 61mm). The holes are initially collared using PQ drillbits (OD 123mm) to recover PQ3 core (OD 83mm) until the drillbit encounters competent ground, then the coring bit is reduced to HQ3 for the remainder of the drill hole.  If difficult conditions are encountered, then the drill bit is changed to NQ3 (core OD 45mm) and the hole continued until the planned depth or bad ground conditions prevent further drilling, whichever occurs first. Core recovery is generally better than 95% and is considered to be good.

 

Drill Core Sampling

 

Drill core is recovered from the inner tube and handled carefully to preserve the integrity of the drill core.  Structural measurements are taken: Rock Quality Determinations (RQD,) and Fracture Densities. The core is then placed in plastic core trays, aligned, photographed and marked up for sampling.

 

The drill core is then cut in half by diamond core saw and sampled at one (1) metre intervals or at lithological boundaries. The samples are placed in individually labelled plastic sample bags, a sample number ticket included, and then sealed for despatch to Intertek's Sample Preparation laboratory in Surigao City. The integrity of the core samples are supervised at all times by the geologist until despatch to the laboratory where they are accompanied by company personnel until receipt by Intertek.

 

One Certified Reference Material (CRM), one Blank and if possible, one Duplicate is included within each successive group of twenty samples that are submitted to the laboratory. QA/QC monitoring of the drilling program and the results is ongoing.

 

Analytical Procedures

 

Sample preparation is undertaken by Intertek at their Surigao City laboratory, where each sample is dried at 105ºC for 6 to 8 hours and crushed to 95% passing 2 mm by jaw crusher, before a 1kg split is taken for fine pulverising, using a riffle splitter or rotary sample divider.  Pulverised sample is nominally pulverised to 95% passing 75μm (200 mesh).

 

Quality control procedures include a 1 in 15 resplit after crushing for partial preparation and after pulverising for total preparation. These resplits are also analysed and included in the analysis report.  Sizing tests are carried out on 1 in 20 assay pulps at 75μm (200 mesh) to monitor the pulverising stage. Four 250 gram splits are obtained, one for sample analyses and the remaining three for storage for future reference.

 

Standard laboratory procedure is to clean the crusher and pulveriser regularly with barren material and/or bowl wash, to minimise carry-over contamination.

 

Pulverised samples are analysed by classical fire assay techniques on a 50 gram charge with Atomic Absorption Spectrometer (AAS) finish. All assays over 5 g/t gold and other selected samples are re-assayed using gravimetric fire assay techniques on a 50 gram sample.

 

USA PORPHYRY COPPER-GOLD PROSPECT

 

A Memorandum of Agreement with Corplex Resources Inc. covers the Usa prospect which is located within MPSA application XIII-00077. Processing of the tenement application is progressing.

 

LINGIG

 

The Lingig prospect is located in Mineral Production Sharing Agreement 343-2010-XIII with an area of 3,824 hectares over which the Company has an operating agreement.

 

An IP/Res and ground magnetics programme will commence shortly.

 

ANOLING

 

The Mines Operating Agreement with Alcorn Gold Resources Inc. covers MPSA application 039-XIII situated approximately 8 kilometres by road to the north of the millsite as shown on Figure 2 (please see link at the end of this announcement). Approval of the MPSA is awaited.

 

Four drill rigs are currently operating. It is anticipated that results will be announced in June 2012.

 

Mapping, trenching and sampling are on-going.

 

SAUGON PROJECT

 

First Hit Vein 

 

Background

 

Figure 2 (please see link at the end of this announcement) shows the Saugon Project located approximately 28 kilometres by road from the Co-O Mill. Work in 2004 involved drilling at the First Hit Vein (holes SDDH1 to SDDH35) in conjunction with underground development via a 30 metre deep inclined winze down the vein-breccia to assist in understanding the mineralisation.

 

Further details are contained in the announcements dated 20 April 2010 which summarised the historical results and 1 December 2010 which contained drilling results for holes SDDH 36 to 64A. Some additional results for hole SDDH 69 are contained in the 2011 Annual Report.

 

Exploration

 

Drilling has been completed. Regional mapping and prospect trenching are continuing and the IP/Res and ground magnetics programme is nearing completion.

 

An update of results is expected to be provided in the March 2012 quarterly report.

 

FINANCIALS (unaudited)

 

As at 31 December 2011, the Company which is debt free, had total cash, cash equivalent in gold on metal account and bullion of approximately US$80.2 million (30 Sep 2011: US$80.9 million).

 

During the quarter,

 

-   the Company sold 10,000 ounces of gold at an average price of US$1,761 per ounce (Sep 2011 qtr: sold 15,446 ounces of gold at an average price of US$1,587 per ounce);

 

-   incurred exploration expenditure of US$7.3 million (Sep 2011 qtr: US$8.0 million);

 

-   spent US$3.6 million on capital works, associated sustaining capital at the mine and mill and also costs for the new mill construction and infrastructure (Sep 2011 qtr: US$5.4 million);  and

 

-   spent US$7.9 million on general and accelerated mine development, inclusive of shaft sinking costs (Sep 2011 qtr: US$6.7 million).

 

 

Managing Director, Peter Hepburn-Brown commented:

 

"I am pleased to advise that the expansion of the Co-O operation to 200,000 ounces per annum is picking up pace with the commencement of construction activities at the mill commencing in January 2012.

 

A review of the underground shaft haulage system in the December quarter, together with the successful upgrading of the Agsao Shaft in the September quarter has shown that the Saga Shaft, currently being sunk, is best optimized by sinking directly to the Level 8 before installing ore hoisting facilities rather than the Level 6 as previously announced. This will allow accelerated development to occur, not only on the Level 6, but also Levels 7 and 8 and will allow ore to be stockpiled prior to completion of the expanded mill in mid-2013, thus allowing a smooth transition to 200,000 ounces in FY 2014.

 

Completion of the Saga Shaft and commencement of ore haulage is now expected in the last quarter of Calendar Year 2012.

 

Tropical storm Sendong and continued torrential rains in late December and January caused disruptions to the Company's operations and adversely impacted gold production. However despite these short term setbacks, the Company remains in a healthy financial position.

 

I continue to urge all shareholders to focus on our long term objectives of developing a profitable long term asset."

 

 

For further information please contact:

 

Australia


Medusa Mining Limited

+61 8 9367 0601

Geoffrey Davis, Chairman


Peter Hepburn-Brown, Managing Director


United Kingdom


Fairfax I.S. PLC

+44 (0)20 7598 5368

Financial Adviser and Broker


Ewan Leggat/Laura Littley


 

Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Mr Geoff Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Chairman of Medusa Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators.  Mr Davis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

Information in this report relating to Mineral Resources has been estimated and compiled by Mark Zammit of Cube Consulting Pty Ltd of Perth, Western Australia. Mr Zammit is a member of  The Australasian Institute of Mining & Metallurgy and  has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Zammit consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

Information in this report relating to Ore Reserves is based on information compiled by Dr Spero Carras of Carras Mining Pty Ltd. Dr Carras is a Fellow of the Australasian Institute of Mining & Metallurgy and has 30 years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Dr Carras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 

 

DISCLAIMER

 

This announcement may contain certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

 

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Medusa, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements.

 

Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based.

 

You should not place undue reliance on forward-looking statements and neither Medusa nor any of its directors, employees, servants or agents assume any obligation to update such information.

 

 

Click on, or paste the following link into your web browser, to view the associated PDF document:
http://www.rns-pdf.londonstockexchange.com/rns/3474W_-2012-1-27.pdf


This information is provided by RNS
The company news service from the London Stock Exchange
 
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