www.medusamining.com
Medusa Mining, a public company listed on the ASX and LSE, is an Australian based gold producer, focused solely on the Philippines. Medusa's corporate strategy is to become a mid-tier, 400,000 ounce per year, low-cost gold producer.
The Company has completed the two-phase expansion of its high grade Co-O Mine operations to a production level of 100,000 annualised ounces. The Company has approved a Phase 3 expansion to build an expanded mill with capacity for 200,000 ounces of production.
Ongoing drilling is verifying and expanding the Bananghilig Deposit with the aim of defining one million ounces of reserves to initiate feasibility studies.
Further potential upside exists for the discovery of copper and additional gold deposits within the tenement holding of more than 800km2.
Fairfax issues upbeat note on Medusa Mining following Co-O gold mine visit
Fairfax Securities has issued a note on Medusa Mining (ASX, AIM: MML; TSX: MLL), following a recent visit to the group’s Co-O mine in the Philippines, saying it feels that future developments at the project will continue to add value.
The visit helped the broker gain a clearer idea how future production growth is likely to evolve.”We have taken a conservative approach to this by raising the production profile from 100,000 ozpa to 130,000 ozpa by 2012 through incremental expansions from Co-O, maintaining a long term cash cost of US$200/oz” it said. It sees considerable organic potential for Medusa to expand production substantially.
It called Co-O well developed with considerable infrastructure in place and significant stockpiles which puts the mine in a strong position minimising risks from production difficulties. The operation has expanded considerably in the two years since the broker’s last visit to site.
“The company has provided considerable newsflow in recent months on various projects which include additional potential at Co-O, other gold projects and copper targets. Management is budgeting US$18m on exploration this year and next and anticipates expanding its production base to 300,000-400,000ozpa through organic growth,” Fairfax noted.
