Medusa Mining delivered quarterly activities report for the period ended 31 December 2010.
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Co-O MINE PRODUCTION & DEVELOPMENT
Board approval for construction of new Co-O plant with capacity for 200,000 ounces per year (750,000 tonnes ore per year)
Record quarterly production of 26,123 ounces at an average recovered grade of 13.09 g/t at cash cost of US$185 per ounce
Saga Shaft: collar completed and sinking of 3-compartment shaft has commenced. Headframe steel work is being erected
Royal Veins: New portal for 800 metre long Level 1 adit to the Tinago Shaft will commence in the last week of January 2011
Co-O MINE & REGIONAL DRILLING
Drilling is continuing with six surface rigs and four underground rigs. A fifth underground rig has been ordered.
Results include 1.00 metre at 76.51g/t gold, 1.00 metre at 69.90 g/t gold, 2.75 metres at 50.38g/t gold and 1.20 metres at 48.72g/t gold
BANANGHILIG DEPOSIT
Extensional drilling is progressing with four rigs with two more to commence work on validation of the known resource
SAUGON PROJECT
Drilling with three rigs continuing. Results include 2.15 metres at 13.30 g/t Au and 179 g/t Ag, 3.90 metres at 9.63 g/t Au and 125 g/t Ag, 3.35 metres at 11.71 g/t Au and 154 g/t Ag, 1.40 metres at 27.65 g/t Au and 398 g/t Ag
FINANCIALS & CORPORATE
Total cash and gold on metal account at end of quarter approximately US$87.2 million
A maiden unfranked dividend of A$0.05 per share was paid to shareholders on 8 November 2010
Medusa commenced trading on the Main Market of the London Stock Exchange on 28 October 2010.
