Hmmm....17 Jul 2009 08:36
LONDON (Dow Jones)--Medusa Mining Limited (MML.LN), said Friday through its Phillipines operating company, Philsaga Mining Corporation, it has completed a JORC compliant Ore Reserve estimation for the Co-O Mine, finding a 101% increase in probable reserves of gold. MAIN FACTS: -The Probable Reserve as at Jun. 14, now stands at 1,041,000 tonnes at 14.9 g/t gold containing 500,000 ounces of gold. -This represents an increase of 101% or 251,000 ounces over the Probable Reserve of 249,000 ounces at 10.8 g/t gold announced in August 2008. Mine depletion since the 2008 estimate is excluded from the new estimate. This ore reserve will allow a 5 year mine life at a production rate of 100,000 ounces per year. -Crosscut Consulting of Queensland, Australia was contracted to complete a reserve estimation based on the resource wireframe model provided by Cube Consulting Pty Ltd. An Indicated and Inferred Resource totalling 1,380,000 ounces at a grade of 10.8 g/t gold was announced on July 1. -The Probable Reserve was estimated from an Indicated Resource of 1,250,000 tonnes at 15.0 g/t gold containing 603,000 ounces of gold. The estimate was based on a gold price of $900 per ounce and a stope cut-off grade of 3.3 g/t gold. -By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com (END) Dow Jones Newswires July 17, 2009 02:32 ET (06:32 GMT)