Medusa reports 16% hike in indicated resource

MANILA, Philippines - Australian Miner Medusa Mining, which operates the Co-O gold mine in Augusan del Sur, saw a 16-percent increase in the indicated resources of the mine as it completes its annual resource estimate.

Medusa operates the mine through its Philippine operating arm Philsaga Mining Corp.

In a disclosure to the Australian Securities Exchange, Medusa said that as of June 30, indicated resources at the Co-O mine for fiscal year 2012 rose by 16 percent to 715,000 ounces at a grade per ton of 11.8 from 616,000 ounces at 12 grade per ton in the previous year. Total resources, on the other hand, was placed at 2,019,000 ounces at 10.1 grade per ton.

In fiscal year 2011, total resources were placed at 1,960,000 ounces at 9.6 grade per ton.

A 3 grade per ton gold cut-off was used to identify present resources. Last year, a zero grade per ton was used.

“This increase in indicated resources is pleasing as confidence levels have been significantly improved in key areas of the mine,” said Medusa managing director Peter Hepburn.

He said the step-out drilling operations “strongly supports” future resource additions as the mineralised system remains open in all directions including at depth where the deepest ore grade intersection achieved to date is at 1,073 meters below surface.

The drilling campaign will continue until fiscal year 2013 with the aim of raising the resource level to approximately 2,500,000 ounces.

Since June last year, the Co-O gold mine mine produced 60,595 ounces of gold. The original guidance was 65,000 ounces but frequent rains in the mine site forced Medusa to cut it production expectation to 60,000 ounces.