Co-O Operations - Unscheduled Mill Maintenance (6725Z)
March 20 2012 - 3:20AM
UK Regulatory
TIDMMML
RNS Number : 6725Z
Medusa Mining Limited
20 March 2012
Co-O Operations - Unscheduled Mill Maintenance
(ASX & LSE: MML)
20 March 2012
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation, advises
that:
(i) Co-O MILL: partly due to the tremors triggered by the
magnitude 6.9 earthquake centred near eastern Negros Island on 6
February 2012 in which more than 100 people lost their lives, in
combination with saturated ground conditions due to incessant rain
since December 2011, four large leach tanks constructed in the last
two years have been taken off-line due to subsidence of their
footings. The subsidence has caused the tanks to tilt.
It had initially been planned to rectify this issue in late June
2012, upon completion of a new large leach tank currently under
construction, however following routine inspection, it was evident
that the tilting problem had worsened and in the interest of
operational safety, the Company has decided to immediately take the
tanks off-line until they have been repaired. Remedial work on the
tanks, expected to take 4 to 5 months, will commence in April and
will be at the contractor's cost.
(ii) ELECTRICAL UPGRADES: Following consultant's inspections and
receipt of their report recommendations for electrical upgrades for
the new expanded mill and mine, and due to the advised early
arrival of major new switch boards and transformers during the June
2012 quarter, the Company has decided that these components will be
installed on arrival to increase the safety standards, operational
efficiencies and the quality of power delivered to the operations.
This will improve power usage as well as considerably reduce the
maintenance of electrical motors, in particular pumps at the mine
and in the mill.
It is expected that between 10 and 14 days of production will be
lost between the mill and the mine during the June 2012 quarter
while the electrical upgrades are undertaken.
The shut down of the four tanks will limit the throughput to
approximately 700 tonnes per day for the quarter, and in
combination with the electrical upgrades, the FY 2012 production
has been revised to 60,000 to 65,000 ounces.
The Company advises that all expansion work including the Saga
Shaft, underground development and new mill construction is on
schedule.
For further information please contact:
Australia
Medusa Mining Limited
Peter Hepburn-Brown, Managing Director +61 8 9367 0601
United Kingdom
Fairfax I.S. PLC (Financial Adviser
& Broker)
Ewan Leggat/Laura Littley +44 (0)20 7598 5368
This information is provided by RNS
The company news service from the London Stock Exchange
END
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