Medusa Mining Ltd New Co-O Plant to Increase Production Capacity
November 17 2010 - 2:00AM
UK Regulatory
TIDMMML
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
ANNOUNCEMENT
17 November 2010
NEW Co-O PLANT TO INCREASE PRODUCTION CAPACITY
Medusa Mining Limited (ASX and LSE - MML; TSX - MLL) ("Medusa" or the
"Company"), through its Philippines operating company Philsaga Mining
Corporation is pleased to announce that the Board has approved the construction
of a new Co-O treatment plant and associated infrastructure ("New Plant"). In
addition, a major mine expansion/development program ("Expansion") at the Co-O
Mine to increase production capacity has commenced.
For the year ended 30 June 2010, the Co-O Mine and current mill produced
89,679 ounces of gold. Once fully operational, the New Plant is expected to
provide processing capacity to produce 200,000 ounces of gold per annuam based
on the current grade of the Co-O Mine's reserves.
Preliminary cost estimates for the New Plant (with an initial design capacity
to treat 750,000 tonnes per annum) and Expansion are expected to be
approximately US$80 million and the Company intends to fund the cash
requirements of the New Plant and Expansion internally.
The construction time for the New Plant after the necessary regulatory
approvals are granted is estimated at between 18 to 24 months, and the full
benefits of the Expansion are expected to be realised shortly thereafter.
The Company is currently in preliminary discussions with engineering groups and
will provide further details in due course.
Geoff Davis, Managing Director of Medusa, commented:
"This decision heralds a new era for the Co-O Project, and demonstrates the
Board's confidence in the future of its Co-O operations. It also confirms a
measured approach to our growth strategy.
The drill results released on 29 October 2010 re-inforce the growth potential
of the Co-O Mine and surrounding area.
It is also pleasing that the capital requirements of the New Plant and
Expansion will be funded out of cashflow and that the cashflow generated from
the New Plant once it is operational is intended to in turn fund the Company's
next project, Bananghilig."
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
United Kingdom
Fairfax I.S. PLC +44 (0)20 7598 5368
Financial Adviser and Broker
Ewan Leggat/Laura Littley
Lothbury Financial Services +44 (0)20 7868 2010
Michael Padley/Libby Moss
Canada
Nicholas Sayce, Investor Relations +1 416 822 4404
Technical and scientific information in this report 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 Managing Director 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.
Refer to the Technical Report which was filed onSEDAR in August 2010 for
further discussion of the Co-O Deposit's geology, structural controls, drilling,
sampling and assaying information, and any known material environmental,
permitting, legal, title, taxation, socio-political, marketing or other relevant
issue.
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.
[HUG#1463180]
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Medusa Mining Ltd via Thomson Reuters ONE
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