Medusa Mining Limited AGM Statement & Presentation (0895R)

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RNS Number : 0895R

Medusa Mining Limited

14 November 2012

 
              MEDUSA MINING LIMITED 
                ABN: 60 099 377 849 
          Unit 7, 11 Preston Street 
                       Como WA 6152 
                         PO Box 860 
             Canning Bridge WA 6153 
          Telephone: [phone] 
          Facsimile: [phone] 
   Email: [e-mail] 
  Internet: www.medusamining.com.au 
 

ANNOUNCEMENT

14 November 2012

CHAIRMAN'S ADDRESS AND AGM PRESENTATION

(ASX & LSE: MML)

Please find below the Chairman's address which will be delivered at the Company's Annual General Meeting, to be held in the Goldsworthy Room, Pan Pacific Hotel, 207 Adelaide Terrace, Perth, Western Australia on Thursday, 15 November 2012 at 11.00 am.

The PowerPoint Presentation which will be delivered at the Company's Annual General Meeting can be accessed via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0895R_-2012-11-14.pdf

CHAIRMAN'S ADDRESS - MEDUSA AGM 2012

15th November 2012, 11.00 am (WST),

Goldsworthy Room, Pan Pacific Hotel,

207 Adelaide Terrace, Perth, Australia

Dear shareholders,

My name is Geoff Davis and on behalf of my fellow Directors, I welcome you to this, the 9th Annual General Meeting of Medusa Mining Limited.

I am sure all shareholders are aware that this year has indeed been challenging as we've tried to balance production with development, upgrade existing shafts and infrastructure at both mine and mill, some of which has been exacerbated by adverse weather events. I am however pleased to point out that as a result of these unfortunate incidents we are now in a much stronger position as the deficiencies and weaknesses in the project (which was constructed in the late 1980s) which were not previously evident have now either been addressed, or are being attended to.

The Phase 3 expansion of the Co-O project with a capacity to produce 200,000 ounces per year has two major facets. The first facet is the Saga Shaft at the mine, which is currently in the final stages of construction and due for commissioning just before Christmas. I consider the Saga Shaft a "game changer" and am pleased to report that its completion is on schedule with the sinking to 350 metres completed in the first week of September, and the winder and headframe being installed.

The second facet is the mill expansion with construction of a large new leach tank completed and commissioned, and the foundations for the SAG mill, crusher and the detoxification plant completed. I am pleased to report that the last major concrete pour took place last Saturday. All major equipment items are on site and construction is on schedule for commissioning in June 2013.

The Company spent US$37million on exploration during the year and achieved a significant increase in its resource base now totaling over 3 million ounces for the first time. We also completed a major re-interpretation of the Co-O Mine geology which has enhanced the upside for the resources to continue to grow in future years. Our aim at Co-O is to increase the resources to around 2.5 million ounces, which will provide an on-going mine life of approximately 10 years based on the 80% conversion factor for converting resources to reserves through on-going development. The strategy is to replenish at a minimum, the 200,000 mined ounces each year with new resource ounces.

In this financial year we look forward to the finishing the expansion of Co-O culminating in the completion of the Saga Shaft in late December 2012 and the commissioning of the new mill in mid calendar year 2013. In addition we also look forward to positive outcomes from the Bananghilig Deposit feasibility study now underway, followed by submission to the government of the application for the necessary construction permits for this new 200,000 ounce per year project.

During the year our work force (inclusive of contractors) increased to approximately 3,000 and our community activities also expanded to provide additional services as well as partnering with a number of groups in a way that enables that expansion of services to be more effective. I am also pleased to report that our Lost Time Accident Rate for the year has decreased to 1, and for comparative purposes, is below the West Australian Gold Mining industry's latest figures. Health and Safety is and will always be a very important part of the Company's focus and activities.

In July this year a government review of the Philippines mining industry was completed and guidelines for future changes to its operation issued by the President of the Philippines in Executive Order number 079. There is no immediate effect on the Co-O operations, however we caution that, under current guidelines, timely receipt of the permits for the Bananghilig Deposit will require the government to pass new tax measures aimed at increasing its revenues before construction permits can issued.

Finally, I wish to thank all our supportive 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.

Thank you.

Geoff Davis

Chairman

 
 For further information 
  please contact: 
 Peter Alphonso 
  Company Secretary 
  Phone: [phone] 
  Website: www.medusamining.com.au 
 
 

Please find below Competent Persons' Consents in relation to resource and reserve information which appears in the AGM presentation.

Medusa Mining Limited

Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Mr Geoffrey Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Non-Executive Chairman of Medusa Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits 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 Davis consents to the inclusion in the report of the matters based on his 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 Australian 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, FAusIMM of Carras Mining Pty Ltd. Dr Carras 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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