TIDMMML
RNS Number : 2421L
Medusa Mining Limited
08 August 2013
MEDUSA MINING LIMITED
ABN: 60 099 377 849
Unit 7, 11 Preston Street
Como WA 6152
PO Box 860
Canning Bridge WA 6153
Telephone: +618-9367 0601
Facsimile: +618-9367 0602
Email: admin@medusamining.com.au
Internet: www.medusamining.com.au
08 August 2013
MINERAL RESERVE & RESOURCE UPDATE
(ASX & LSE: MML)
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company, Philsaga Mining Corporation
("Philsaga"), advises that it has completed the annual reserve and
resource estimate update.
Co-O MINE
Resources
In line with the mine expansion, the FY 2013 drilling has
focused on infill drilling to increase confidence levels in key
mining areas as well as step out drilling along strike and at depth
to demonstrate the excellent upside of the deposit. The deposit is
still open in all directions continuing to demonstrate excellent
potential to add more resources in future years.
A 3 g/t gold lower cut-off has been applied to the resource,
resulting in total combined Indicated and Inferred Mineral
Resources of 6,880,000 tonnes containing 2,195,000 ounces at a
grade of 9.9 g/t gold (compared to 2,019,000 ounces at 10.1 g/t
gold in FY2012 and after taking into account gold produced of
62,243 ounces since 01 July 2012). The Indicated Mineral Resource
ounces have increased by 14% to 820,000 ounces at 12.1 g/t gold
(from 715,000 ounces at 11.8 g/t gold).
Reserves
The Probable Ore Reserve ounces have been maintained at 570,000
ounces (compared to 568,000 ounces) at 10.7 g/t gold in 1,650,000
tonnes after allowing for mining depletion.
BANANGHILIG GOLD DEPOSIT
Indicated & Inferred Mineral Resource Estimation
A 0.8 g/t gold lower cut-off has been applied to the resource
estimate, resulting in total combined Indicated and Inferred
Resources of 24,520,000 tonnes containing 1,136,000 ounces at a
grade of 1.44 g/t gold (compared to 1,080,000 ounces in 20,900,000
tonnes at 1.60 g/t gold as reported on 29(th) January 2013). The
Indicated Resource ounces have increased by 26% to 766,000 ounces
at 1.48 g/t gold (from 608,000 ounces at 1.59 g/t gold).
Table I. Mineral Reserve and Resource estimate at 30 June 2013
(using JORC 2004)
Deposit Category Tonnes Grade Ounces
g/t gold
gold
---------------------- ------------- -------------------- --------- ----------
RESOURCES
---------------------- ------------- -------------------- --------- ----------
Co-O Resources Indicated 2,100,000 12.1 820,000
---------------------- ------------- -------------------- --------- ----------
Inferred 4,780,000 9.0 1,375,000
------------------------------------ -------------------- --------- ----------
Indicated
Total Co-O Resources & Inferred 6,880,000 9.9 2,195,000
---------------------- ------------- -------------------- --------- ----------
Bananghilig
Resources Indicated 16,060,000 1.48 766,000
---------------------- ------------- -------------------- --------- ----------
Inferred 8,460,000 1.36 370,000
------------------------------------ -------------------- --------- ----------
Total Bananghilig Indicated
Resources & Inferred 24,520,000 1.44 1,136,000
---------------------- ------------- -------------------- --------- ----------
Saugon Resources Indicated 47,500 6.99 10,700
---------------------- ------------- -------------------- --------- ----------
Inferred 34,000 4.55 5,000
------------------------------------ -------------------- --------- ----------
Total Saugon Indicated
Resources & Inferred 81,500 5.97 15,700
---------------------- ------------- -------------------- --------- ----------
Indicated
TOTAL RESOURCES & Inferred 31,481,500 3.31 3,346,700
---------------------- ------------- -------------------- --------- ----------
Total Indicated
Resources 18,207,500 2.73 1,596,700
------------------------------------- -------------------- --------- ----------
Total Inferred
Resources 13,274,000 4.10 1,750,000
------------------------------------- -------------------- --------- ----------
RESERVES
---------------------- ------------- -------------------- --------- ----------
Co-O Reserves Probable 1,650,000 10.7 570,000
---------------------- ------------- -------------------- --------- ----------
Notes: (Resources includes Reserves)
Resources:
- a lower cut-off of 3.0 g/t gold has been applied at Co-O
- various upper cut-off gold grades up to 300 g/t gold have been
applied to different veins at Co-O
- a lower cut-off of 0.8 g/t gold has been applied at
Bananghilig and various upper cuts
- a lower cut-off of 2.0 g/t gold has been applied at Saugon
- rounding to the nearest 1,000 may result in some slight
discrepancies in totals
Reserves:
- Reserves are a subset of Resources
- a cut-off grade of 4.0 g/t gold has been applied to developed
ore
- a cut-off grade of 4.7 g/t gold has been applied to
un-developed ore
- a gold price of US$1,200 has been applied
Co-O MINERAL RESOURCE MODEL
Discussion
Compared to the previous reserve estimate at 30 June 2012, the
reserve grade has increased marginally mainly due to:
-- the increase in Indicated Resource grade from 11.80 g/t gold
(as at 30 June 2012) to 12.1 g/t gold (as at 30 June 2013), and
-- new veins added to the reserve estimate.
Vein modelling
Cube Consulting Pty Ltd of Perth, Western Australia, was
contracted to undertake the resource estimate. A wireframe model of
the vein system and the mine depletions were based on all available
information as at 30 June 2013. A Specific Gravity value of 2.62
was used in the estimations. A 2D longitudinal modelling approach
was used and is based on an accumulation variable incorporating
mineralised vein horizontal width and intercept grade. Variography
was used to analyse the spatial continuity of the horizontal width
and accumulation variables within the mineralised veins and to
determine appropriate estimation inputs to the interpolation
process. The accumulation variables were interpolated into blocks
using Ordinary Kriging. High grade limits were applied to gold
prior to the calculation of the accumulation variable.
The Co-O Mineral Resources have been reported in accordance with
The 2004 Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code).
BANANGHILIG MINERAL RESOURCE MODEL
Resources
Compared to the information available at the time of the
previous resource estimate at 30 June 2012, the total resource
ounces have increased marginally to 1,136,000 ounces. Infill
drilling has increased the Indicated Resource category ounces by
26%.
Resource modelling
Cube Consulting Pty Ltd of Perth, Western Australia, was
contracted to undertake the resource estimate. The Bananghilig
Mineral Resource estimate is based on a number of factors and
assumptions, some of which are listed below:
-- all available drilling data as at 30 June 2013 was used for the Mineral Resource estimate;
-- wireframes were generated on plan and cross sectional
interpretations based on available geology and assay data
available. A lower cut off of approximately 0.3 g/t Au was used to
define a single mineralised domain;
-- all wireframes were corrected for artisanal miners' depletion;
-- upper cut of40 g/t was applied to the 2 metre composites prior to grade estimation;
-- the bulk densities used range from 1.8 to 2.76 t/m(3)
depending on the modelled lithology. A total of 4,000 bulk density
measurements have been completed;
-- the Resource has been estimated using Ordinary Block Kriging
and Uniform Conditioning (UC). UC is a mathematical method that
allows the discrimination of ore and waste at an assumed selective
mining unit size within an estimated panel of significantly larger
size. In theory, this provides a more correct prediction of
estimated resource grade and tonnes above a cut off than an
Ordinary block Kriging alone. The method draws information from the
composite data variogram model and Krige's Relationship; and
-- the application of the (UC) technique at Bananghilig is based
on the premise that mining would be by open pit extraction. A
Selective Mining Unit ("SMU") of 5 metres by 5 metres by 2 metres
was evaluated within Ordinary Kriged panels Y = 25 metres; X = 25
metres and Z = 5 metres for the purposes of reporting recoverable
resources.
The Bananghilig Mineral Resources have been reported in
accordance with The 2004 Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC
Code).
Peter Hepburn-Brown, Managing Director of Medusa, commented:
"The increase in total Indicated Resources is pleasing as
confidence levels have been significantly improved in key areas of
the Co-O Mine and at Bananghilig. The step-out drilling at both the
Co-O Mine and Bananghilig strongly supports future resource
additions as both mineralised systems remain open in all directions
including at depth.
Drilling is planned to continue at the B2 area contiguous with
the Bananghilig Deposit with 2 surface rigs and underground at Co-O
Mine with 4 underground rigs during FY 2014."
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Peter Hepburn-Brown, Managing
Director
United Kingdom
SP Angel Corporate Finance
LLP (Financial Adviser
& Broker) +44 (0)20 3463 2260
Ewan Leggat/Laura Littley
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results has
been reviewed and is based on information compiled by Messrs Geoff
Davis and Gary Powell who are members of The Australian Institute
of Geoscientists. Mr Davis is the Non-Executive Chairman of Medusa
Mining Limited and Mr Powell is a Non-Executive Director and both
have sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and to the
activity which they are undertaking to qualify as a "Competent
Person" as defined in the 2004 Edition of the "Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Messrs Davis and Powell consent to the inclusion in the
report of the matters based on their information in the form and
context in which it appears.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has
been estimated and compiled by Mark Zammit of Cube Consulting Pty
Ltd of Perth, Western Australia. Mr Zammit is a member of The
Australasian Institute of Geoscientists and has sufficient
experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr Zammit consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears.
Carras Mining Pty Ltd
Information in this report relating to Ore Reserves is based on
information compiled by Dr Spero Carras of Carras Mining Pty Ltd.
Dr Carras is a Fellow of the Australasian Institute of Mining &
Metallurgy and has 30 years of experience which is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Dr Carras consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
DISCLAIMER
This report contains certain forward-looking statements. The
words 'anticipate', 'believe', 'expect', 'project', 'forecast',
'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target',
'plan' and other similar expressions are intended to identify
forward-looking statements. Indications of, and guidance on, future
earnings and financial position and performance are also
forward-looking statements.
Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and
other factors, many of which are beyond the control of Medusa, and
its officers, employees, agents and associates, that may cause
actual results to differ materially from those expressed or implied
in such statements.
Actual results, performance or outcomes may differ materially
from any projections and forward-looking statements and the
assumptions on which those assumptions are based.
You should not place undue reliance on forward-looking
statements and neither Medusa nor any of its directors, employees,
servants or agents assume any obligation to update such
information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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