Medusa Mining, through its Philippines operating company Philsaga Mining Corporation, has completed the annual review and update to its mineral resource and ore reserve estimates.
Total inferred and indicated resources for the Co-O Mine are now estimated at 4.34 million tonnes at a grade of 10.1 grams/tonne gold for a total of 1.41 million ounces, compared to the estimate reported on August 8, 2013, of 6.88 million tonnes @ 9.9 grams/tonne for 2.19 million ounces.
The changes is resources are primarily due to mining depletion; modified vein interpretations through increased geological knowledge of the different vein sets obtained by further underground mapping; application of updated resource modelling parameters, and application of revised economic constraints and reporting in accordance with the JORC Code 2012.
Total inferred and indicated resources for Bananghilig (24.52 million tonnes @ 1.44 grams/tonne) and Saugon (81.500 tonnes @ 5.97 grams/tonne) deposits, remain unchanged from 2013.
A detailed review of all Co-O Mine and milling production data, including mining and metallurgical performances to determine appropriate physical mining parameters, cut-off grades and dilutions has been completed for this latest update to the resource and reserve statement. This has resulted in previously marginal ounces being excluded from the update and is reflected in the comparative changes to resources and reserves.
The Co-O probable ore reserves are now estimated at 1.92 million tonnes at a grade of 7.22 grams/tonne gold for a total 450,000 ounces, compared to the estimate reported on August 8, 2013, of 1.65 million tonnes @ 10.7 grams/tonne for 570,000 ounces. A comparison between the current ore reserves and that stated at June 30, 2013, shows a decrease in probable reserves of 22% or 124,000 ounces.
The changes is reserves are primarily due to mining depletion; modified vein interpretations through increased geological knowledge of the different vein sets obtained by further underground mapping; more conservative mining dilution parameters and resource modelling technique.
Medusa’s CEO Geoff Davis says, “Despite a major continuing re-interpretation of the geology at the Co-O Mine, it is pleasing that the company has maintained a high level of probable reserves in line with the past five years, especially after allowing for total cumulative gold production in excess of 450,000 recovered ounces since 2007.”