TIDMMML
RNS Number : 6572T
Medusa Mining Limited
22 November 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
22 November 2013
CHAIRMAN'S ADDRESS AT AGM
(ASX & LSE: MML)
Please find attached the Chairman's address which will be
delivered at the Company's Annual General Meeting, to be held in
the Pagoda Room A, Esplanade River Suites, Como, Perth, Western
Australia on Friday, 22 November at 2.00pm.
For further information
please contact:
Peter Alphonso
Company Secretary
Phone: +618 9367 0601
Website: www.medusamining.com.au
CHAIRMAN'S ADDRESS - MEDUSA AGM 2013
22(nd) November 2013, 2.00 pm (WST),
Esplanade River Suites - Pagoda,
Como, West Australia, Australia.
Good afternoon,
My name is Geoff Davis and on behalf of my fellow Directors, I
welcome you to this, the 10th Annual General Meeting of Medusa
Mining Limited.
This year has again had its challenges as we commissioned the
new L8 Shaft in the March quarter and progressed with the new mill
construction. The frustrations began with a devastating off-course
typhoon which hit East Mindanao in early December 2012, the second
"once in 30 year event" in consecutive years, which caused
extensive vegetation damage but fortunately no serious structural
damage to our infrastructure. In the Compostella Valley to the
south, many people lost their lives, houses, infrastructure
services, crops and livelihoods. We were pleased that our mine
rescue teams were able to make a positive contribution to the
recovery process, and the Company provided material and financial
assistance wherever possible. Subsequently we also provided
assistance to residents of Bohol Island following a serious
earthquake, and are providing assistance to the Typhoon Haiyan
devastated regions of Leyte and Samar Islands.
In June this year as we were about to commence mill
commissioning, our project manager was put into administration,
necessitating the sourcing and appointment of a replacement
manager, and resulting in lost time. Additionally, as commissioning
progressed in July, failure of power cells on the new SAG mill
further delayed completion of commissioning and commencement of the
ramp up. Following a much longer repair time than initially
indicated by the manufacturer, the cells are finally en-route to
site, and a new set is completed ready for shipment.
At the mine, the Level 8 development initially underperformed on
new veins located adjacent to the L8 Shaft, but as development
progressed and intersected the main veins already being mined at
higher levels, as well as the discovery of a the new wide and
productive Don Pedro Vein at right angles to the strike of all the
other known veins, the Level 8 production has improved.
The Bananghilig Deposit progressed to the completion of a
Scoping Study which was published in April this year and which
indicated a positive outcome based on its resources of more than 1
million ounces. Subsequently, during sterilisation drilling for
potential mill, tailings dam and waste dump locations to the east
of the deposit, the first 6 holes all intersected strong
mineralisation, in an area now called B2, which is potentially
higher grade than the existing deposit. We are continuing to drill
B2 to an Inferred Resource status as it may provide additional
options for the future development of the project. At this point
the mineralisation at both locations is open in most directions,
and they are most probably connected. Consequently the significance
of the B2 potential has persuaded us to delay the completion of the
feasibility study in order to include it in future mining
plans.
The year has also been financially challenging due to reduced
gold prices and the delays beyond our control with respect to the
mill commissioning. Consequently exploration was reduced to US$24
million from over US$35 million in 2012, with only underground
drilling at the Co-O Mine and a reduced number of rigs working at
Bananghilig. Regional geological work has expanded resulting in the
identification of new areas of mineralisation potentially worthy of
future drilling. In addition we have continued to undertake induced
polarisation and resistivity and ground magnetics surveys as
regional mapping tools in key areas.
Mineral resources continued to grow with more than 200,000
ounces added after the production of 62,000 ounces. The total
resources now stand at 3.34 million ounces, and we expect this
total to continue to grow annually for some time yet.
Our work force has performed well during the year, again
demonstrating their diligence in adhering to safe work practices
and thus reducing the Lost Time Accident Frequency Ratefrom 1.01 in
2012 to 0.10 to 30 June 2013, a very good result for which I
congratulate all concerned. At the peak during the year our
workforce (inclusive of contractors) reached approximately
4,800.
Our host communities have again supported us and we support them
through a large number of carefully targeted community programmes
as outlined in our annual report.
The previously reported government review of the Philippines
mining industry issued by the President of the Philippines in
Executive Order number 079 has not yet resolved future additional
costs to the industry. In the meantime there is no immediate effect
on the Co-O operations, however we continue to caution that, under
current guidelines, timely receipt of the permits for new
operations cannot be guaranteed.
The Board thanks Mr Roy Daniel who retired as CFO on 1st July
2013 for his dedicated contribution since 2004, and welcomes Mr
Peter Alphonso as the new CFO. We also welcomed Messrs Raul
Villanueva and Gary Powell to the Board in January 2013.
I again wish to thank all our supportive and at times frustrated
shareholders, my fellow directors and Perth office staff, our
dedicated managers, staff and employees in the Philippines, and
numerous others in the stockbroking and financial communities who
support the Company's progress as production increases following
completion of the Co-O Phase 3 expansion.
Thank you.
Geoff Davis
Chairman
This information is provided by RNS
The company news service from the London Stock Exchange
END
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