Medusa Mining Limited Co-O Mine Mineral Reserve Update (7923K)
August 28 2012 - 1:00AM
UK Regulatory
TIDMMML
RNS Number : 7923K
Medusa Mining Limited
28 August 2012
Medusa Mining Limited
("Medusa" or the "Company")
Co-O MINE MINERAL RESERVE UPDATE
27 August 2012
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation advises
that it has completed the annual update of the JORC compliant Ore
Reserve estimation for the Co-O Mine.
The Probable Reserve, as at 30 June 2012, now stands at 568,000
ounces contained in 1,820,000 tonnes at 9.7 g/t gold.
Conversion of resources during the year has increased the
Probable Reserve contained ounces by 10% when compared to that
announced on 21 June 2011 of 502,000 ounces at 10.1 g/t gold in
1,500,000 tonnes.
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 6 August 2012.
The Probable Reserve was estimated from an Indicated Resource of
1,890,000 tonnes at 11.8 g/t gold containing 715,000 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:
"It is pleasing to report that we have increased our Probable
Reserve 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 as described on our website."
DISCUSSION
Compared to the information available at the time of the
previous reserve estimate at 21 June 2010, the reserve grade has
reduced marginally due to:
- the reduction in Indicated Resource grade from 12.0 g/t gold
as at 21 June 2011 to 11.80 g/t gold as at 30 June 2012,
principally due to the increasing number of veins in the resource
estimate, and
- 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 has
been increased to 2.0 metres wide from 1.8 metres for safety
reasons.
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
and Broker
Ewan Leggat/Laura Littley + (0)20 7598 5368
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Cube Consulting Pty Ltd
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
Australian Institute of Geoscientists 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.
Carras Mining Pty Ltd
Information in this report relating to Ore Reserves is based on
information compiled by Dr Spero Carras, FAusIMM of Carras Mining
Pty Ltd. Dr Carras 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 a
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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