TIDMMML
RNS Number : 8451I
Medusa Mining Limited
31 July 2012
Medusa Mining Limited
("Medusa" or the "Company")
QUARTERLY ACTIVITIES REPORT
PERIOD ENDED 30 JUNE 2012
31 July 2012
Snapshot of Medusa:
- Un-hedged, low cost, dividend paying gold producer focused on
organic growth in the Philippines
- Growth path to annualised production of 400,000 ozs per year
by end 2015
- Growth underpinned by strong cashflow from Co-O Mine (narrow
vein underground)
- FY 2012/13: production guidance of 100-120,000 ozs at cash
costs circa US$210/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 eight copper targets
- 820 km2 of tenements and exploration revised budget for FY
2013/14 of US$30M
** 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: 1,715,000
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: admin@medusamining.com.au
Website: www.medusamining.com.au
OVERVIEW:
EXECUTIVE ORDER ON MINING IN THE PHILIPPINES
- Positive Executive Order No.79 on mining in the Philippines
was released on 9 July 2012.
Co-O MINE PRODUCTION & DEVELOPMENT
- New Mill: Construction on schedule. Tilted tanks back in
operation. New leach tank will be completed by mid-August.
Foundations for detoxification unit completed and for crusher and
SAG mill advancing. SAG mill 50% delivered. ECC approval is
progressing.
- Production: 15,557 ounces at a recovered grade of 8.1 g/t gold
and cash costs of US$283 per ounce. Production for the FY to 30
June 2012 totalled 60,595 ounces at a recovered grade of 8.1 g/t
gold and cash costs of US$261 per ounce. Mill availability was
influenced by on-going leach tank repairs.
- Saga Shaft:currently at 306 metres. Completion of sink to
Level 8 (350 metres) by end of August. Winder in transit to site.
Skips and loading pockets manufactured. Completion estimated Q4 in
CY12.
Co-O MINE RESOURCES & EXPLORATION
- The resource for Co-O is currently being compiled.
- Drilling is continuing with six surface and five underground
rigs.
- Results include: 2.15 metres at 52.06 g/t gold, 1.20 metres at
21.40 g/t gold, 1.35 metres at 185.21 g/t gold, 2.90 metres at
78.94 g/t gold, 1.55 metres at 31.33 g/t gold, 1.20 metres at 45.03
g/t gold.
TAMBIS AREA - BANANGHILIG DEPOSIT
- Infill resource drilling in progress with seven rigs with the
aim of upgrading majority of resources to Indicated category.
Infill drilling should be completed about the end of August
2012
- An updated Inferred resource is planned during the September
quarter followed by an Indicated resource and reserve when the
infill drilling and assaying is completed.
LINGIG PROJECT
- Lingig Induced Polarisation and Resistivity survey in
progress.
ANOLING
- Drilling with four rigs is continuing.
CORPORATE & FINANCIALS (unaudited)
- Total cash, cash equivalent in gold on metal account and
bullion at site at end of quarter of approximately US$53.5
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).
EXECUTIVE ORDER ON MINING IN THE PHILIPPINES
The President of the Philippines on 9 July 2012 released
Executive Order No.79 ("EO") designed to improve the alignment of
the Philippines' national and regional interests with those of the
mining industry through the updating of key policies, including but
not limited to:
- Improving transparency of the mining industry;
- Improving the fiscal return to the government from all future
projects, primarily through increased royalty payments. The fiscal
settings of current operations will be honoured.
- Improving the return and timing of financial benefits to local governments;
- Tightening controls on illegal mining such as banning the use
of mercury and restricting legitimate small scale mining activities
to gold, silver and chromite;
- Ensuring that mining is not allowed on designated key tourist
areas and prime agriculture lands; and
- Enforcement of strict environmental controls.
The EO requires the issuing of new implementing rules and
regulations within 60 days of the EO publication after which the
granting of exploration tenements will re-commence. The granting of
construction permits for new projects will commence only after the
new fiscal regime has been legislated. The fiscal settings of all
existing contracts will be honoured.
Implications of the EO
Co-O
The EO will have no effect on the Co-O operations and the status
quo will be maintained for this existing operation as it is linked
to an existing mining agreement.
There will be no change in the existing tax structure until such
time as Congress amends and approves new mining taxes and royalties
within the existing Mining Act.
Bananghilig
The EO will have no immediate impact on the project as the
Company can continue to explore, conduct feasibility studies and
planning.
However, should the feasibility study be positive and the
Company commits to constructing the project, timely issuance of the
relevant permits to commence construction will be subject to
legislation of the new law on mining taxes and royalties being
passed by Congress.
Updates will be provided as information becomes available.
Anoling
The EO will not have any immediate effect on the Anoling project
which requires the granting of its MPSA followed by completion of a
feasibility study before an application can be submitted for
construction permits.
The timing of the granting of the MPSA is still unclear and
updates will be provided as information becomes available following
the issue of new implementing rules within 60 days of the EO with
respect to granting of new tenements.
In the meantime, drilling can continue to advance the project,
however the Company is considering its drilling priorities.
Co-O MINE
Gold Production
The production statistics for the March 2012 quarter with
comparatives for the previous three quarters as well as the
year-to-date production statistics are summarised in Table I
below.
Table I. Gold production statistics
Unit Qtr ended Qtr ended Qtr ended Qtr ended YTD 30
30 Jun 31 Mar 31 Dec 30 Sep Jun 12
12 12 11 11
Tonnes mined WMT 74,969 85,748 71,872 41,596 274,185
Ore milled DMT 66,976 76,002 68,008 42,152 253,138
Recovered grade gpt 8.10 8.10 8.00 8.33 8.10
Recovery % 92% 92% 93% 93% 92%
Gold produced ozs 15,557 18,258 16,270 10,510 60,595
Cash costs
(1) US$/oz $283 $239 $242 $291 $261
Gold sold ozs 20,000 10,000 10,000 15,446 55,446
Average gold
price received US$ $1,624 $1,738 $1,761 $1,587 $1,658
Note:
(1) Net of development costs and includes royalties and local
business taxes
Gold production for the quarter was 15,557 ounces, at an average
recovered grade of 8.10 g/t gold and cash costs of US$283 per
ounce, inclusive of royalties and local business taxes.
As previously advised to the market, the mine continues to
operate pre-dominantly in development mode to prepare for the
future production increase and as a direct consequence of limited
shaft haulage capacity, 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 production levels for
the year, compared to quarters from the previous years. The
completion of the Saga Shaft (in the December 2012 quarter) with
haulage capacity of 1,500 tpd is expected to solve the current
shaft haulage issues.
Production for the June quarter was also disrupted due to
reduced availability of the milling circuit, as repairs were
carried out on four tilting leach tanks as reported on 20 March
2012.
Cash costs per ounce for the quarter increased to US$283 per
ounce (YTD: US$261 per ounce).
Medusa, an un-hedged gold producer, sold 20,000 ounces of gold
at an average price of US$1,624 per ounce during the quarter (YTD:
55,446 ounces at average price of US$1,658 per ounce).
Preliminary Development Timetable
Graph 1 is the Preliminary Development Timetable and Production
Guidance for the new Co-O Phase 3 Mill Expansion and 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 be 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 approval of the application to upgrade the Environmental
Clearance Certificate for the current Co-O Mill to 2,500 tonnes per
day is progressing.
Operations
Mine Development
Major renovations are continuing at the Co-O Mine to modernise
the mine for its expanded production.
Acceleration of the lateral development is on-going to ensure
the underground infrastructure and on-vein development will be in
place for the Saga Shaft. This accelerated development was
maintained at similar levels to the previous quarter and
consequently maintained the high proportion of development ore
supplied to the mill.
Sinking of the Saga Shaft progressed smoothly, and is currently
at 306 metres depth and is expected at Level 8 (350 metres) by end
of August. The winder is in transit to site, and the skips and
loading pockets have been manufactured. Manufacture of the
permanent headframe is commencing.
It is anticipated that the Saga Shaft with a haulage capacity of
1,500 tonnes per day will be completed during the December quarter
2012 and hauling from Level 8 will begin once on-vein development
and rises on-vein are commenced from Level 8 through to Level
6.
Whilst the milling requirements have been reduced due to the
tilting leach tank repairs, the opportunity has been used to
upgrade the Baguio Shaft by doubling the skip size and improving
the winder capability.
The average development metres has increased by 10% and at the
end of June 2012 there were 57 development headings of which 50
headings were following veins. Haulage through the current shafts
increased by10% during the quarter.
Mine Production
Ore trucked to the mill during the quarter was primarily
development ore and some stope ore.
Mill Expansion
The current status of activities is:
- Priority was given to the returning the tilting leach tanks
back into service which has been achieved;
- Construction of the new large leach tank should be completed by mid-August;
- Foundations for the new crushing and grinding sections are advancing on schedule;
- The de-toxification unit foundations are completed and form work is on schedule;
- Approximately 50% of the SAG mill components have been delivered;
- The electrical supply systems to the mine and mill are
advanced and the last stage will be completed when the mine is
re-wired through the Saga Shaft.
Exploration
Drilling with six surface rigs and five underground drilling
rigs is continuing.
Preparations are underway for an extensive regional Induced
Polarisation/Resistivity ("IP/Res") and ground magnetics programme
around the Co-O Mine.
Drilling results
Detailed information is contained in the announcement dated 9
July 2012 which lists intersections down to 0.2 metres downhole
width since 16 April 2012.
Figure 3 shows the locations of the recently completed or in
progress surface drill holes EXP146 to EXP175. Completed holes
(excluding EXP169, 170, and 172-175) comprise 25 holes for a total
of approximately 16,316 metres. Table II lists the EXP surface
diamond drill hole results >=3 g/t gold over >=0.5 metres
downhole. Assay results are awaited for holes EXP154, EXP161,
EXP163 and EXP165 to EXP175.
Figure 4 (attached) shows the locations of the recently
completed underground drill holes totalling 7,932 metres in 46
holes. Table III lists underground drill hole results >=3 g/t
gold over >=0.2 metres received since 31 March 2012 as well as
some previously completed holes whose locations were shown on
Figure 2 in the announcement dated 16 April 2012. Assays are
awaited for holes L2-2E-001, L5-35W-109, L5-43E-012, L5-20W-008 and
L6-23E-034.
Table II.Surface drill hole results >=3 g/t gold and >=0.5
metres downhole for previously completed holes EXP138 to EXP145 and
new holes EXP146 to EXP164.
Hole number East North Dip Azimuth From Width Grade (uncut)
([deg]) ([deg]) (metres) (metres) (g/t gold)
EXP 140 614659 913216 -54 180 309.20 1.00 3.07*
484.35 1.20 15.73*
488.05 1.00 6.08*
499.90 1.45 6.91*
604.60 0.50 27.93*
609.45 1.45 7.76*
640.15 1.35 5.94*
EXP 141 614550 912992 -69 180 344.20 1.00 4.30*
568.85 0.55 4.77*
746.00 1.00 3.75*
EXP 142 614604 913032 -55 180 593.75 1.00 4.22*
637.65 3.00 3.79*
EXP 144 614519 913082 -51 180 219.00 1.00 3.87*
459.00 1.00 8.93*
496.85 1.00 21.70*
532.70 0.90 7.19*
634.45 1.00 8.47*
EXP 145 614442 912987 -69 180 397.30 2.15 52.06*
620.00 2.25 3.25*
EXP 146 614550 913122 -66 180 370.80 1.60 3.27*
432.90 1.20 21.40*
527.50 0.75 60.46*
620.50 1.00 3.53*
735.05 1.35 16.66*
EXP 147 614394 913026 -67 180 520.60 1.00 9.70*
EXP 149 61439 913101 -64 180 141.20 1.40 3.41*
362.55 1.45 6.12*
528.25 0.50 8.43*
682.05 2.00 3.15*
742.25 2.10 3.32*
EXP 150 614129 913260 -51 180 154.45 0.55 3.28*
517.10* 1.00 4.73*
EXP 151 614442 912987 -57 180 349.60 2.70 5.67*
384.40 1.20 3.82*
535.30 1.85 5.20*
602.90 2.75 6.60*
644.15 0.90 52.33*
EXP 156 614199 913138 -55 180 187.05 0.75 15.33*
193.10 0.55 7.07*
303.00 1.00 3.86*
377.60 1.45 3.33*
423.85 1.00 3.32*
483.45 0.90 31.84*
536.05 1.35 185.21*
EXP 157 614510 913158 -49 180 310.30 1.00 4.19*
441.45 2.90 78.94*
543.90 3.00 10.20*
EXP 160 614354 912823 -52 180 226.60 1.50 8.17*
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 Intertek McPhar Mineral
Services Inc. in Manila;
(iii) Intersection widths are downhole drill widths not true
widths;
(iv) Grid coordinates based on the Philippine Reference System
92.
Table III.Underground drill hole results >=3 g/t gold and
>=0.5 metres downhole for new holes and previously completed
holes designated .
Hole number East North Dip Azimuth From (metres) Width Grade (uncut)
([deg]) ([deg]) (metres) (g/t gold)
LEVEL 2
L2-057 613275 912928 0 61 20.90 1.00 4.41*
LEVEL 3
L3-028 613733 912898 3 143 83.45 0.55 3.13*
-------------- -------- -------- --------- --------- -------------- ---------- --------------
LEVEL 5
L5-087 25.50 0.70 4.80*
-------------- ---------- --------------
82.75 0.90 16.50*
85.80 0.50 17.41*
127.55 0.70 3.32*
-------------- -------- -------- --------- ---------
L5-091 613615 912851 0 63 47.95 1.05 17.57*
-------------- ---------- --------------
288.80 0.90 3.47*
-------------- ---------- --------------
L5-092 613951 912921 -60 226 14.20 2.05 18.76*
-------------- ---------- --------------
97.65 1.05 3.42*
-------------- ---------- --------------
102.90 1.00 8.73*
-------------- ---------- --------------
121.30 1.35 4.34*
-------------- ---------- --------------
240.45 1.70 4.50*
-------------- ---------- --------------
243.60 0.70 3.59*
------------- -------- -------- --------- --------- -------------- ---------- --------------
L5-096 613613 912853 0 27 0.00 0.80 3.84*
-------------- ---------- --------------
67.15 0.95 9.37*
------------- -------- -------- --------- --------- -------------- ---------- --------------
L5-105 614196 912960 0 202 2.15 0.65 15.17*
-------------- ---------- --------------
67.15 0.95 9.37*
------------- -------- -------- --------- --------- -------------- ---------- --------------
L5-20W-003 613760 912853 0 177 5.30 0.55 26.40*
-------------- ---------- --------------
L5-20W-004 613759 912853 0 204 6.45 1.15 24.75*
-------------- ---------- --------------
L5-20W-007 613764 912855 -18 133 5.00 2.30 10.01*
-------------- ---------- --------------
L5-35W-108 613606 912814 0 171 1.10 0.90 5.34*
-------------- ---------- --------------
L5-35W-109 613605 912814 0 189 6.50 0.50 3.62*
-------------- ---------- --------------
L5-35W-110 613604 912814 0 215 61.00 0.60 29.33*
-------------- ---------- --------------
L5-35W-111 613602 912814 0 230 34.50 0.80 10.18*
-------------- ---------- --------------
60.80 0.60 8.50*
------------- -------- -------- --------- --------- -------------- ---------- --------------
L5-42E-013 614377 912690 -22 305 27.35 0.95 45.18*
-------------- ---------- --------------
70.05 0.75 13.25*
-------------- ---------- --------------
74.00 2.10 12.59*
-------------- ---------- --------------
246.80 1.60 26.85*
-------------- ---------- --------------
397.20 2.00 6.02*
------------- -------- -------- --------- --------- -------------- ---------- --------------
L5-42E-014 614378 912690 -22 314 137.60 1.60 10.92*
-------------- ---------- --------------
159.50 2.30 17.44*
-------------- ---------- --------------
184.70 1.00 4.61*
-------------- ---------- --------------
L5-42E-015 614379 912691 0 321 22.50 0.50 7.50*
-------------- ---------- --------------
130.85 0.75 3.57*
-------------- ---------- --------------
156.30 1.60 10.71*
------------- -------- -------- --------- --------- -------------- ---------- --------------
Hole number East North Dip Azimuth From (metres) Width Grade (uncut)
([deg]) ([deg]) (metres) (g/t gold)
LEVEL 6
L6-027 614213 912727 3 71 77.80 0.50 13.40*
L6-028 614213 912727 3 68 79.40 1.10 25.60*
L6-029 614213 912726 3 139 29.90 1.35 3.81*
L6-23E-030 614212 912724 0 167 5.30 1.20 23.37*
L6-23E-031 614208 912725 0 206 5.65 1.55 31.33*
L6-23E-033 614207 614207 0 225 8.40 1.20 45.03*
10.70 2.50 23.47*
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 Intertek McPhar Mineral
Services Inc. in Manila;
(iii) Intersection widths are downhole drill widths not true
widths;
(iv) Grid co-ordinates based on the Philippine Reference System
92.
Figure3 (please see link at the end of this announcement) shows
a map of the Co-O Mine Level 6 plan showing the locations of new
drill holes EXP146 to EXP175.
Figure 4 (please see link at the end of this announcement) shows
a map of the Co-O Mine Level 6 plan showing the locations of the
new underground drill holes.
Co-O Drill Hole Sampling and Assaying Procedures
Samples are taken from mainly HQ sized (hole outside diameter 96
mm, hole inside diameter 63.5mm) and some NQ sized (hole outside
diameter 75.8 mm, hole inside diameter 47.6 mm) drill core. The
selected sample intervals are halved by diamond saw and half the
core is bagged, numbered and sent to the Company laboratory. In a
small number of cases to confirm the geological logging, the
selected interval was re-split and [1/4] core re-submitted for
assay.
Initial sample preparation and assaying is undertaken at the
Company's on-site laboratory. Samples are dried at 105 C for 6 to
16 hours, crushed to less than 1.25 cm by jaw crusher, re-crushed
to less than 50 mm using a secondary crusher followed by ring
grinding of 1kilogram of sample to nominal particle size of less
than 200 mesh. Barren rock wash is used after every five samples in
the preparation equipment. The samples are assayed by fire assay
with Atomic Absorption Spectrometer (AAS) finish on a 30 gram
sample. All assays over 5 g/t gold are re-assayed using gravimetric
fire assay techniques on a 30 gram sample. Duplicate samples are
inserted every 10 samples and standard samples are included in
every sample batch.
Check assaying of samples used in the yearly resource estimates
is undertaken by Intertek McPhar Mineral Services ("Intertek"), a
NATA and ISO 9001/2000 accredited laboratory in Manila. The pulps
are airfreighted to Intertek who fire assay 30 grams of samples
using AAS finish and a selected number of samples are checked using
gravimetric fire assay techniques. Duplicate samples and standards
are included in each batch of check samples. When reporting
results, where available, the assays of Intertek as an independent
laboratory have been given priority over the Company laboratory's
results.
Health and Safety
Lost time accident frequency rate (LTAFR) for the year is 1.04
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.
There were no breaches of any of the project's operating
regulations during the quarter.
TAMBIS REGION
The Tambis project comprising the Bananghilig Gold Deposit (Fig.
2) 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.
The Executive Order on Mining dated 6 July 2012, issued by the
President of Philippines will have no immediate impact on the
Bananghilig Project as the Company can continue to explore, conduct
feasibility studies and planning.
However, should the feasibility study be positive and the
Company commits to constructing the project, timely issuance of the
relevant permits to commence construction will be subject to
legislation of the new law on mining taxes and royalties being
passed by Congress.
Updates will be provided as information becomes available.
BANANGHILIG PROJECT
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 and in a drilling update on 17 January 2012.
Current drilling is focused on infill to upgrade the resources
to the Indicated category. The infill programme totals
approximately 18,200 metres and is on track to be completed around
the end of August 2012.
A further update of drilling results and a new Inferred resource
estimate are planned for the September quarter 2012.
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.
The IP/Res and ground magnetics survey is underway.
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.
The Executive Order on Mining dated 6 July 2012, issued by the
President of Philippines will not have any immediate effect on the
Anoling Project which requires the granting of its MPSA followed by
completion of a feasibility study before an application can be
submitted for construction permits.
The timing of the granting of the MPSA is still unclear and
updates will be provided as information becomes available following
the issue of new implementing rules within 60 days of the EO with
respect to granting of new tenements.
Four drill rigs are currently operating with on-going mapping,
trenching and sampling, however the Company is assessing its
drilling priorities.
SAUGON PROJECT
First Hit Vein
Background
Figure 2 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 SDDH-001 to SDDH-035) 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 SDDH-64A
and the March 2012 quarterly report contained results for holes
SDDH 65-104.
Exploration
Regional mapping, trenching and sampling are continuing.
FINANCIALS (unaudited)
As at 30 June 2012, the Company which is debt free, had total
cash, cash equivalent in gold on metal account and bullion at site
of approximately US$53.5 million (31 Mar 2012: US$71.3
million).
During the June 2012 quarter,
- the Company sold 20,000 ounces of gold at an average price of
US$1,624 per ounce (Mar 2012 qtr: sold 10,000 ounces at an average
price of US$1,738 per ounce). Year to date gold sales totalled
US$91.98 million from the sale of 55,446 ounces at an average price
of US$1,659 per ounce;
- incurred exploration expenditure of US$11.6 million (Mar 2012
qtr: US$8.2 million, YTD: US$35.1 million);
- spent US$10.4 million on capital works, associated sustaining
capital at the mine and mill and also costs for the new mill
construction and infrastructure (Mar 2012 qtr: US$7.6 million, YTD:
US$27.0 million); and
- spent US$7.4 million on general and accelerated mine
development, inclusive of shaft sinking costs (Mar 2012 qtr:
US$9.0, YTD: US$31.0 million).
Peter Hepburn-Brown, Managing Director of Medusa, commented:
"We have made pleasing progress with the mill construction
during the quarter particularly with returning the tilting leach
tanks back into service, approaching completion for the new leach
tank, and establishing the foundation work for the crusher, SAG
mill and detoxification unit. It is also comforting that the SAG
mill components have started to arrive at site on schedule.
At the mine, the pace of ancilliary activities is picking up in
preparation for the Saga Shaft reaching target depth at the end of
August. This includes the imminent arrival of the winder, completed
manufacturing of the new skips and loading pockets, commencement of
manufacturing of the permanent headframe, and finishing the
installation of the surface electricals to accommodate the new
winder and then complete the re-wiring of the Co-O Mine
The commencement of haulage from the Saga Shaft in the December
quarter will mark a major achievement in the Co-O expansion
programme. This means that this FY's production guidance of
100-120,000 ounces will be weighted into the second half of the
year."
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.
To view Figures and Preliminary Development Timetable, please
click on or paste the following link in your browser:
http://www.rns-pdf.londonstockexchange.com/rns/8451I_-2012-7-30.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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