Medusa Mining Limited Co-O Mine Update (5349K)

TIDMMML

RNS Number : 5349K

Medusa Mining Limited

22 August 2012

Medusa Mining Limited

("Medusa" or the "Company")

Co-O MINE UPDATE

22 August 2012

Medusa Mining Limited ("Medusa" or the "Company"), through its Philippines operating company Philsaga Mining Corporation advises that on Saturday morning, 18th August a fire broke out in the Baguio Shaft as a result of sparks caused by welding activities. The fire has damaged approximately 120 metres of timbering from Level 2 to surface. More importantly no injuries were sustained in the fire.

The Company has assessed the damage caused by the fire and implemented the following plans/actions:

(i) the immediate processing of stockpiles of the mine water settling pond fines from surface and underground which average around 3 g/t gold through a second ball mill at the main mill site.

This will offset the lost production from the Baguio Shaft, which hauls on average, approximately 250 tonnes per day. The production guidance of 100,000 to 120,000 ounces for this financial year remains intact.

(ii) commenced preparations for the re-timbering and re-engineering of the Baguio shaft which is expected to take three months.

(iii) Once re-furbished, the Baguio shaft will be capable of operating at higher haulage speeds with additional capacity.

Peter Hepburn-Brown, Managing Director of Medusa, commented:

"Whilst it is never pleasant to have any disruptions to production, the upside of re-furbishing the Baguio shaft by re-timbering and re-engineering will mean a more efficient, high speed shaft with additional capacity which will better service the western end of the mine as we continue to develop more ore sources.

Not only are we fortunate that no injuries were sustained in the fire, we are fortunate to have stockpiles of fines from our mine water settling ponds, as well as a second ball mill that we can utilise to off-set the temporary loss of production from the Baguio Shaft while it is out of action."

For further information please contact:

 
 Australia 
  Medusa Mining Limited 
  Peter Hepburn-Brown, Managing 
  Director                         [phone] 
 United Kingdom 
  Fairfax I.S. PLC, Financial 
  Adviser and Broker 
  Ewan Leggat/Laura Littley        [phone] 
 

DISCLAIMER

This announcement may contain 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

MSCSEISWEFESEDA