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Medusa Mining Limited, through its Philippines operating company Philsaga Mining Corporation, announces the annual update of the JORC compliant Ore Reserve estimation for the Co-O Mine.
The Probable Reserve as at 30 June 2011, now stands at 502,000 ounces contained in 1,500,000 tonnes at 10.1 g/t gold. Conversion of resources during the year has maintained the Probable Reserve contained ounces when compared to that announced on 7 August 2010 of 505,000 ounces at 10.7 g/t gold in 1,465,000 tonnes. The Company policy is to at least maintain a reserve of approximately 500,000 ounces on a yearly basis. Carras Mining Pty Ltd of Perth, Western Australia was contracted to complete the reserve estimation based on the resource wireframe model provided by Cube Consulting Pty Ltd. Updated Indicated and Inferred Resources were announced on 27 July 2011. The Probable Reserve was estimated from an Indicated Resource of 1,601,000 tonnes at 12.0 g/t gold containing 616,000 ounces of gold. The estimate was based on a gold price of US$1000 per ounce, a minimum stope width of 1.2 metre and a stope cut-off grade of 3.0 g/t gold. Peter Hepburn-Brown, Managing Director of Medusa commented: “In line with our stated policy, we have again replaced the ounces mined during the last financial year through the conversion of Indicated Resources to Probable Reserves, primarily through underground development. This is consistent with the methodology of most narrow vein mines and, based on our large inferred resource base of 1,344,000 ounces, we anticipate being able to annually maintain the mine’s reserves of approximately 500,000 ounces and extend the mine’s life for many years to come”. |
