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Additional Information
Market: LSE / ASX
Sector: Gold Mining
EPIC: MLL
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Medusa Mining
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.

Full Medusa Mining profile here
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FairFax Securities notes Medusa Mining’s 'solid reserve base'

11th Aug 2010, 1:00 pm
FairFax Securities notes Medusa Mining’s 'solid reserve base'

In a note to investors, FairFax Securities said that Medusa Mining (ASX:MML, LON:MML, TSX:MLL) “continues to demonstrate a solid reserve base” for its Co-O gold mine in the Philippines. 

Last week, Medusa reported a new resource estimate for Co-O, which put the probable reserve at 505,000oz of gold contained within 1.46 Mt (million tonnes) grading 10.7g/t gold. Just a week earlier, the company reported record gold production at the property - with 25,012oz being produced for US$182/oz - for the fourth quarter.

The stockbroker highlighted that Medusa has maintained a 5 year mining reserve at the mine, and “since Co-O is a narrow high grade vein deposit, it is not cost effective to extend the reserve base further” for the Co-O’s current production profile. 

Fairfax also noted that whilst the grade of the new reserve is lower, “we do not feel that this materially affects the valuation for the company.  It is also a feature of the operation that the reserve grade at times underestimates the grade of the ore processed”.

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