MEDUSA Mining’s Philippines operating company Philsaga Mining Corporation has completed the annual review and update of mineral resource and ore reserve estimates. Total inferred and indicated resources for the Co-O project in Mindanao are estimated at 4.34 million tonnes at a grade of 10.1 grams/tonne gold for a total of 1.41 million ounces.

This compares to the estimate reported in August 2013 of 6.88 million tonnes @ 9.9 grams/tonne for 2.19 million ounces. The reduction is primarily due to mining depletion; modified vein interpretations through increased geological knowledge of 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 the Bananghilig (24.52 million tonnes @ 1.44 grams/tonne) and Saugon (81.500 tonnes @ 5.97 grams/tonne) deposits, are unchanged.

A detailed review of 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 the update, which resulted in previously marginal ounces being excluded.

The Co-O probable ore reserves are 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 current probable reserves and those stated at June 30, 2013, shows a decrease of 22% or 124,000 ounces.

Changes 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.”

The company has also provided an update for drilling completed at the B2 Discovery area which along with Bananghilig deposit, form the Tambis project. Highlights are 11.85 metres @ 9.79 grams/tonne gold, 12.8 metres @ 1.36 grams/tonne and 11.65 metres @ 1.22 grams/tonne.

Geoff Davis says, “It is pleasing to finish the recent round of drilling with some more good results. While the drilling is still widespread at the B2 Discovery area, we have established mineralization over a large area of about 800 metres by 1000 metres and which appears to be open in most directions.”

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