Medusa Share Discussion Threads

[tightfist] 11/1/2018 21:40

Economics are suppressed in Cambodia, to put it mildly. However the majority of the capex will be imported. I guess low labour costs will be a major contributor to modest AISC, (though the absence of local mining services will be a bind?).

[deka1] 11/1/2018 20:51

Thanks for the link TF I will read and get back.

[tightfist] 11/1/2018 11:24

Hi Deka,

Thanks for the text of the announcement. Rennaisance was bought-out by Emerald during 2016, started drilling in May 2016 and moved fast to produce a JORC Reserve by May 2017. I see that EMR provided exploration resources to support Angkor Gold's announcement under an earn-in agreement. The EMR release on 13/07/17 is well worth reading as it outlines the quadrupelling of their tenements.

The latest EMR presentation has a useful map on P5. It looks as though the proposed SEA/MML prospect lays on the south-west edge of the "Highly prospective intrusive related gold belt". Prek Kampi region appears to lay immediately West of the Kratie North property on the local map on P16.

This analyst review provides general context for mining and gold prospects in Eastern Cambodia:

hXXp://emeraldresources.com.au/sites/emeraldresources.com.au/files/Hartleys%20-%20EMR%2020170906%20Initiation%2C%206%20September%202017.pdf


It would be interesting to quantify how much has been spent getting EMR/Okvau to the current status. This research has tweaked my interest in this frontier territory; I may take a small punt on EMR or ANK.

As MML moves to generate FCF at Co-O during 2018 this does look an interesting place to invest and get second-mover(?) advantage. There is also the prospect of good news flow from the region.

Happy reading! Cheers, tightfist

[deka1] 10/1/2018 14:59

CAMBODIAN EXPLORATION OPPORTUNITY (ASX: MML) Medusa Mining Limited (ASX: MML) (Medusa or the Company) is pleased to announce that it has entered into a Memorandum of Understanding with SEA Resources Pty Ltd, Sovann Resources Co., LTD (a related Cambodian entity of SEA) and the shareholders of Sovann (together, referred to as SEA) regarding an exploration opportunity in the Prek Kampi region of Cambodia (MOU). The main target of the exploration project will be gold and copper, but the arrangement is exclusive and will also cover oil and gas and precious stones. SEA has been selected by the Government of Cambodia as a qualified and priority company to apply for the grant of a metallic mineral exploration licence in the Prek Kampi region of Cambodia. SEA is in the final stages of securing the grant of that licence by the Government of Cambodia. Under the terms of the MOU, Medusa and SEA have agreed to negotiate an Earn-in Agreement under which Medusa can acquire up to a 70% interest in that exploration licence. The MOU is a non-binding framework to guide the parties in the finalisation of the key terms of the arrangement that will be agreed in a binding Earn-in Agreement. Medusa and SEA have until 1 March 2018 to finalise the Earn-in Agreement. During that negotiation period, Medusa's rights are exclusive and SEA cannot negotiate with another party about acquiring an interest in the exploration opportunity. If Medusa and SEA do not enter into an Earn-in Agreement on or before 1 March 2018, the MOU will terminate and the parties will be released from any future obligations. The key terms set out in the MOU which are proposed to be contained in the Earn-in Agreement include the following. • SEA grants Medusa the option to acquire up to 70% of the shares of the SEA entity that is granted the Prek Kampi exploration licence in exchange for Medusa contributing up to a total of US$3,000,000 of exploration expenditure over a period of 4 years (inclusive of the US$700,000 mentioned below). • Once the earn-in period commences, Medusa and SEA will negotiate a shareholders' agreement setting out their rights and responsibilities in respect of the entity that holds the exploration licence.
• Once the Earn-in Agreement is signed and the exploration licence is granted, Medusa will be required to contribute at least $700,000 in expenditure before it can withdraw from the Earn-in Agreement. • During the earn-in period, SEA will be responsible for conducting exploration activities. Medusa will meet all exploration costs, and will be responsible for approving exploration activities. • Once a Project Economic Assessment or Pre-Feasibility Study for the project has been completed, Medusa and SEA will be responsible for meeting exploration costs in proportion to their respective interests in the project. Managing Director, Boyd Timler, made the following statement regarding the significance of the project for Medusa: Medusa considers Cambodia (an emerging business location) as an environment in Southeast Asia to conduct mineral exploration. Medusa is pleased to be partnering with SEA, who have significant knowledge of the geology, mineral endowment and exploration activities within Cambodia. This is Medusa’s opportunity to expand its presence in South East Asia and fully align to the company’s longer-term strategic diversification plan. Medusa continues to be a successful gold explorer and producer in the Philippines. This is exciting times for both Medusa and SEA Resources

[deka1] 10/1/2018 14:44

mineral industry facilities in the country.

Commodity Review
Metals
Gold.—In October 2013, Renaissance Minerals Ltd. of Australia announced it had identified a gold anomaly at the Rhyolite Ridge prospect within the Okvau gold project. The Rhyolite Ridge prospect is located 12 kilometers (km) from the Okvau gold deposit. The Joint Ore Reserves Committee (JORC)-compliant resource estimate for the deposit was 15.6 Mt at a grade of 2.4 grams per metric ton (g/t) gold for an estimated 37,300 kilograms of gold (reported as 1.2 million troy ounces). The license for the Okvau gold deposit, which is located in

Mondulkiri Province approximately 265 km northeast of the capital city of Phnom Penh, covered an area of approximately 400 square kilometers. The anomaly extended over 1,500 meters (m) in length and 200 m in width and had an average of 1.4 g/t gold. In May 2012, Renaissance Minerals had finalized the purchase transaction of the Okvau gold project from OZ Minerals of Australia (Swift, 2013; Renaissance Minerals Ltd., 2014).


Found this , not connected to mml but gives a bit of idea of whats out there, most of the gold found at this time seems to be in the same part of the country.

[deka1] 10/1/2018 14:26

Thanks TF all useful info, gona try a bit of looking myself at Cambodia operations that is, enjoy your Hols you lucky blighter you lol

[tightfist] 10/1/2018 12:05

Yes, it's an intriguing development and intimated to be a one-off in SE Asia.

I traveled throughout Cambodia last year and returned thoughtful about their economy and development potential; a large workforce of whom ~85% still work on the land but heavily committed to their youth and education. Wage rates are incredibly suppressed. Our guide was always emphasising the diverse inward investment from the US, Japan, Thailand, (China?, Vietnam?)in their road (and latterly rail) infrastructure. There were lots of dormant, fairly small, new-build factories seemingly built with foreign money.

This morning I took a look at their Stock Exchange; in the last five years they have accrued just five listed companies, internal capital appears to be in short supply:

hXXp://csx.com.kh/main.do

Here is a recent article with a useful overview:

hXXps://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/gold-mining-in-cambodia-attractive-but-risky/

It is frontier territory which has recently adopted Oz. mining licensing practice. Drilling is underway by the Indians and the Canadians being active through Ankor Gold (TSXV:ANK), now drilling in a couple of locations and private placings seem to be raising $500k fairly frequently. The ANK chart looks a bit of a basket case but blipped 4% yesterday presumably due to this positive update:

hXXps://finance.yahoo.com/news/angkor-reports-initial-exploration-program-140000938.html

Meanwhile Emerald Resources (EMR:AX) (it's a small world EMR are also HQ'd in Perth WA) are also focussed on Cambodia, have a JORC-compliant 900k Oz deposit, and it's a 5-bagger in three years:

hXXp://emeraldresources.com.au/


Early days, but this looks interesting for MML and a small expenditure could earn a useful foothold?


Cheers, tightfist

[chipperfrd] 10/1/2018 10:24

Thanks Deka/tightfist,

Well that came out of the blue!

Whoever would have expected MML to enter an early-stage project in Cambodia of all places!

Not much of a financial commitment required for the MOU. Will have to see if the parties agree to take this forward. Perhaps we will then start to get some details about the exploration area and the beginning of some actual exploration results as 2018 progresses.

An interesting if surprising development for MML.
Chip

[tightfist] 10/1/2018 09:59

Thanks deka, another MML surprise. This might work better:

hxxp://www.asx.com.au/asxpdf/20180110/pdf/43qr1w6rh485f8.pdf


I am off to Cambodia for my hols at the end of this month - must remember my bucket & spade! Cheers, tightfist

[eintracht] 10/1/2018 08:25

Deka,
Why have you specified a file location on your hard drive ?!!! I doubt we can get at that !!!!

[deka1] 10/1/2018 08:19

file:///C:/Users/hplaptop/AppData/Local/Microsoft/Windows/INetCache/IE/QB3ECF12/43qr1w6rh485f8.pdf

[deka1] 10/1/2018 08:02

cheers old pal,and all the best to you

[eintracht] 10/1/2018 07:17

Interesting news item just released on ASX. We are entering into a joint venture in Cambodia !!! Very interesting.

[arja] 08/1/2018 21:35

first time for ages that MML is starting to recover but who knows if it will last . Might be worth a trade again but not yet as an investment

[kimboy2] 03/1/2018 06:41

Presumably the flooding had zero effect

[chipperfrd] 02/1/2018 11:03

All the best to all MML holders for 2018. Hopefully, this will be the year when the company finally start to reap the benefits of their expansion investment - it's certainly long overdue!
Chip

[kimboy2] 02/1/2018 11:01

I would have thought that the important parameter was the price of gold in terms of the Peso as most of their costs will be in Pesos.

In the last year the price of gold in Pesos has risen 13% against an inflation rate of 3.5%.

That has got to be a fair wind.

[ilostthelot] 02/1/2018 10:54

Gold looking strong! HNY.

[deka1] 27/12/2017 07:47

Cheers TF, pray you correct with your wonderings .

[tightfist] 26/12/2017 10:43

Hi deka,

Yes, a good point - they have over the last two years they invested considerably in the new L8 pumping sump/lift system which I believe is now fully commissioned, and I think they very recently inferred that limited improvements are being made on L5 too?

There have been no comments here about the balance write-off of exploration expenditures. Is it a legal requirement, or arising from an ultra-prudent, conservative, accountant Chairman? The headline P&L figures will once again look appalling and the large discount (~57%) to NAV will shrink.

I did idly wonder if it is to discourage potential acquisitors as (hopefully!) the recovery gathers pace in the New Year?

Cheers, tightfist

[deka1] 24/12/2017 07:52

Hi TF , yes a lot of work was done to the infrastructure of the mine including a new pumping system underground.
all the best

[tightfist] 23/12/2017 22:07

Hi Chip,

Wishing you and yours a Happy Christmas too!

The terrible flooding in the Phillipines noted in the BBC item is a long way to the west of Co-O. Maybe we will see some reassurance from MML/Philsaga early next week, they usually seem to communicate on this type of weather issue. IIRC the ore trucking route from Co-O to the process plant was improved a few years ago following significant storm damage.

Cheers, tightfist

[deka1] 23/12/2017 20:35

Flooding every year at this time ,
all the best to all holders of MML

[chipperfrd] 23/12/2017 11:03

Happy Christmas everyone.
Chip