TIDMMML
RNS Number : 7654M
Medusa Mining Limited
22 August 2011
MEDUSA MINING LIMITED
ABN: 60 099 377 849
Unit 7, 11 Preston Street
Como WA 6152
PO Box 860
Canning Bridge WA 6153
Telephone: +618-9367 0601
Facsimile: +618-9367 0602
Email: admin@medusamining.com.au
Internet: www.medusamining.com.au
22 August 2011
Co-O MINE MINERAL RESERVE ESTIMATE
(ASX & LSE: MML)
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation,
announces the annual update of the JORC compliant Ore Reserve
estimation for the Co-O Mine.
The Probable Reserve as at 30 June 2011, now stands at 502,000
ounces contained in 1,500,000 tonnes at 10.1 g/t gold.
Conversion of resources during the year has maintained the
Probable Reserve contained ounces when compared to that announced
on 7 August 2010 of 505,000 ounces at 10.7 g/t gold in 1,465,000
tonnes. The Company policy is to at least maintain a reserve of
approximately 500,000 ounces on a yearly basis.
Carras Mining Pty Ltd of Perth, Western Australia was contracted
to complete the reserve estimation based on the resource wireframe
model provided by Cube Consulting Pty Ltd. Updated Indicated and
Inferred Resources were announced on 27 July 2011.
The Probable Reserve was estimated from an Indicated Resource of
1,601,000 tonnes at 12.0 g/t gold containing 616,000 ounces of
gold. The estimate was based on a gold price of US$1000 per ounce,
a minimum stope width of 1.2 metre and a stope cut-off grade of 3.0
g/t gold.
Peter Hepburn-Brown, Managing Director of Medusa commented:
"In line with our stated policy, we have again replaced the
ounces mined during the last financial year through the conversion
of Indicated Resources to Probable Reserves, primarily through
underground development. This is consistent with the methodology of
most narrow vein mines and, based on our large inferred resource
base of 1,344,000 ounces, we anticipate being able to annually
maintain the mine's reserves of approximately 500,000 ounces and
extend the mine's life for many years to come".
DISCUSSION
Compared to the information available at the time of the
previous reserve estimate at 21 June 2010, the reserve grade has
reduced slightly due to:
- a reduction in the Indicated Resource grade from 13.2 g/t gold
as at 21 June 2010 to 12.0 g/t gold as at 30 June 2011, primarily
as a result of the addition of more veins into the resource
estimate.
- some of the new veins added to the reserve estimate are
narrower than the minimum stoping width of 1.2 metres assumed for
the reserve estimate, hence additional dilution has been
introduced, particularly during on-vein level development which is
1.8 metres wide.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Peter Hepburn-Brown, Managing
Director
Geoff Davis, Chairman
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 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". 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". 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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