Medusa Mining Limited
TSX : MLL
ASX : MML
LSE : MML

Medusa Mining Limited

April 27, 2011 08:38 ET

Medusa Mining Limited: Quarterly Activities Report Period Ended 31 March 2011

TORONTO, ONTARIO--(Marketwire - April 27, 2011) - Medusa Mining Limited (TSX:MLL)(ASX:MML)(LSE:MML)

Snapshot of Medusa:

--  Un-hedged, low cost, dividend paying   OVERVIEW:
    gold producer focused on organic
    growth in the Philippines              Co-O MINE PRODUCTION &
                                           DEVELOPMENT
--  5 years growth path to production      - New Co-O plant with
    of 400,000 ozs per year                  capacity for 200,000
                                             ounces per year
--  Growth underpinned by strong            (750,000 tonnes per year)
    cashflow from Co-O Mine                  permitting in progress, design
    (narrow vein underground)                and supervising engineers
                                             appointed
    --  FY 2010/11: revised
        target 102,000 ozs at cash         - Quarterly production
        costs circa US$190/oz                of 25,114 ounces at
                                             an average recovered grade of
    --  FY 2011/12: target 120,000           11.58 g/t at cash cost of
        to 130,000 ozs at cash               US$191 per ounce
        costs circa US$190/oz
                                           - Saga Shaft: revised plan to
--  Current Mineral Resources                Level 7 depth, accelerated
    comprise                                 development commenced,
                                             shaft currently at 32 metres,
    --  Co-O Mine: Indicated 603k            temporary headframe erected
        ozs at 13.2 g/t gold;
        Inferred  898k ozs                 - New Level 1 adit advanced
        at 9.6 g/t gold                      to 65 metres
    --  Bananghilig: Inferred 650k         Co-O MINE & REGIONAL DRILLING
        ozs at 1.3 g/t gold
                                           - Discovery of new wide high
--  Current Probable Reserves : Co-O Mine    grade vein below Level 5
    505k ozs @ 10.7 g/t gold
                                           - Drilling is continuing with six
--  Co-O Mine Resources and Reserves         surface and four underground
    to be maintained at current levels       rigs.
--  Conceptual exploration target size     - Results include 2.00 metres at
    (ii) of Co-O Mine of 3 to 7              219.70 g/t gold, 0.80
    million ozs                              metres at 42.33 g/t
                                             gold, 4.80 metres at
--  Excellent exploration upside:            13.84 g/t gold, 9.65
    high grade vein and disseminated         metres at 12.58 g/t gold
    bulk gold targets, plus seven            and 13.10 metres at 47.81
    copper targets                           g/t gold
--  820 km2 of tenements and exploration   BANANGHILIG DEPOSIT
    budget for FY 2010/11 of US$21M
                                           - Resource validation drilling
Board of Directors:                          continuing with two rigs
                                             and extensional drilling
Peter R. Jones (Non-executive Chairman)      with four rigs
Geoffrey Davis (CEO)
Peter Hepburn-Brown (COO)                  - Regional mapping continuing
Roy Daniel (CFO)
Robert Weinberg (Non-executive Director)   SAUGON PROJECT
Andrew Teo (Non-executive Director)
                                           - Drilling with three rigs
                                             continuing
Capital Structure:
                                           TENEMENTS
Ordinary shares: 188,233,911
Unlisted options: 750,000                  - Lingig & Tambis MPSAs 343,
                                             344-2010-XIII resp. and
Listings:                                    EPs 030 & 031-XIII
                                             have been granted
ASX and LSE (Code: MML),TSX (Code: MLL)
Address and Contact Details:               FINANCIALS & CORPORATE
PO Box 860                                 - Total cash and cash equivalent
Canning Bridge WA 6153                       in gold on metal account
Telephone: +618 9367 0601                    at end of quarter of
Facsimile: +618 9367 0602                    approximately US$92.4 million
Email: admin@medusamining.com.au
Website: www.medusamining.com.au           - An interim dividend of A$0.05
                                             per share was paid to
                                             shareholders on 23 March 2011
(ii) The potential target size and grade is conceptual in nature, and there
has been insufficient exploration to define a mineral resource, and it is
uncertain if further exploration will result in the target being defined as
a mineral resource. Refer to Stock Exchange announcement dated 18 January
2010.

PROJECT OVERVIEW

The locations of the Company's projects are shown on Figures 1 and 2.

To view "Figure 1. Location diagram showing the Company's tenement areas and prominent East-West structures", please visit the following link:

http://media3.marketwire.com/docs/mll_fg1_427.jpg

To view "Figure 2. Regional tenement map showing mines and prospects", please visit the following link:

http://media3.marketwire.com/docs/mll_fg2_427.jpg

Co-O MINE

Gold Production

The production statistics for the March 2011 quarter with comparatives for the previous three quarters as well as the year-to-date production statistics are summarised in Table I below.

Table I. Gold production statistics
                                     Qtr      Qtr      Qtr      Qtr
                                   ended    ended    ended    ended      YTD
                                  31 Mar   31 Dec   30 Sep   30 Jun   31 Mar
Period                      Unit      11       10       10       10       11
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Tonnes mined (1)            WMT   71,060   61,621   60,367   53,872  193,048
----------------------------------------------------------------------------
Ore milled                  DMT   71,747   66,038   52,463   60,611  190,248
----------------------------------------------------------------------------
Recovered grade             gpt    11.58    13.09    15.77    13.65    13.26
----------------------------------------------------------------------------
Recovery                    %        94%      94%      94%      94%      94%
----------------------------------------------------------------------------
Gold produced (2)           ozs   25,114   26,123   25,004   25,012   76,241
----------------------------------------------------------------------------
Cash costs (3)              US$     $191     $185     $187     $182     $188
----------------------------------------------------------------------------
Gold sold                   ozs   25,911   23,224   25,659   24,858   74,794
----------------------------------------------------------------------------
Average gold price received US$   $1,401   $1,384   $1,208   $1,182   $1,329
----------------------------------------------------------------------------
Note:
(1) The moisture content in wet tonnes ranges between 6 to 7%
(2) Gold production is actual gold poured (and requires no further
    processing) during the period and does not reflect changes in the
    balance of gold in circuit. It includes any gold awaiting shipment
(3) Cash costs refers to the cost of gold mined (net of development costs),
    produced but not necessarily sold and includes royalties and local
    business taxes of US$52 per ounce for the current qtr (Dec 10 qtr:
    US$51/oz, Sep 10 qtr: US$50/oz, Jun 2010 qtr: US$46/oz, YTD 2010/11:
    US$51/oz)

Gold production for the quarter was marginally higher than budget at 25,114 ounces, at an average recovered grade of 11.58 g/t gold and cash costs of US$191 per ounce, inclusive of royalties and local business taxes of US$52 per ounce.

Medusa, an un-hedged gold producer, sold 25,911 ounces of gold at an average price of US$1,401 per ounce during the quarter.

A breakdown of actual and forecasted production ounces and cost per ounce by quarters for the last seven quarters and the remaining quarter of this fiscal year is highlighted in Graph 1.

To view "Graph 1. Co-O quarterly production graph with unit costs (Actual-fiscal year 2009/10, actual-Sep/Dec 2010 & Mar 2011 quarters and forecast-remainder fiscal year 2010/11)", please visit the following link:

http://media3.marketwire.com/docs/mll_gr1_427.jpg

Operations

New Co-O Plant

In November 2010, the Board approved the construction of a new plant with capacity to produce 200,000 ounces of gold per year based on processing up to 750,000 tonnes per year at the current reserve grade of the Co-O Mine.

Permitting is in progress with a timeline of late September 2011 for completion.

The Company has contracted Arccon (WA) Pty Ltd for the process engineering, plant design and construction supervision.

The construction time for the new plant after the necessary regulatory approvals are granted is estimated at approximately 21 months, and the full benefits of the expansion are expected to be realised from mid calendar year 2013.

Mine Development

The Saga Shaft sinking has reached 32 metres and erection of a temporary headframe has been completed. The shaft plan has been revised so that this shaft will initially be sunk to Level 5 (200 metres below surface as originally planned), and then extended to Level 7 (300 metres below surface). Completion to Level 5 is estimated to be during the December 2011 quarter, subject to ground conditions, and to Level 7 during the June quarter of 2012.

Plate 1 shows the collar area of the Saga Shaft and the temporary headframe.

Accelerated development was commenced during the quarter to ensure the underground infrastructure and on-vein development will be in place as the shaft reaches Level 5 then Level 7. This accelerated development, from approximately 500 metres per month to approximately 800 metres per month, is programmed to continue for approximately the next 18 months and will increase the proportion of development ore supplied to the mill.

Development on Level 6 is focussing mainly to the east from the Sabor Shaft.

The new Level 1 adit (Fig. 3) to access the Royal Veins and North Tinago Veins has advanced 65 metres. At 80 metres the first cross-cut to the south to the Saga Shaft will commence which will also cut some of the NT veins identified by surface drilling. This adit will also be used as a drilling platform to delineate parallel veins.

To view "Plate 1. Saga Shaft collar area and temporary headframe", please visit the following link:

http://media3.marketwire.com/docs/mll_fg3_427.jpg

Mine Production

Production has continued uninterrupted at the mine. Surface stockpiles are approximately 7,000 tonnes and underground broken ore is approximately 55,000 tonnes.

Mill Expansion

Installation of two new leach tanks will be completed late May and will increase the leaching capacity to approximately 1,000 tonnes per day.

Expansion and upgrading of the gold room will be completed in late April.

Mine Resource Drilling

Surface drilling with two rigs has continued at the Co-O Mine mainly at the eastern end of the deposit focusing on infill drilling east of the Agsao River (Figure 3 and Table II). Underground drilling with four rigs (Figure 4 and Table III) is on-going for resource delineation and pre-development drilling. The announcement of 5 April 2011 contains additional detailed results for the MD series of holes and the underground drill holes with intersections down to 0.20 metres width which are summarised at greater than or equal to 0.5 metre down hole widths in Tables II and III.

The underground drilling has located a new exceptionally wide high grade vein section east of the Oriental Fault and below Level 5 as shown by the intersections in holes L5-039 and L5-041.

Table II. Surface drill hole results greater than or equal to 3 g/t gold and
 greater than or equal to 0.5 metres downhole for new holes MD 300 to MD 305
 and complete assays for a previously partly reported hole designated(ii)
----------------------------------------------------------------------------
                                                                       Grade
Hole                           Dip     Azimuth      From    Width    (uncut)
number     East   North  (degrees)   (degrees)  (metres) (metres) (g/t gold)
----------------------------------------------------------------------------
MD291
 (ii)    614223  913120        -55         192    334.10     1.20       4.13
                                                  --------------------------
                                                  378.40     0.55      11.92
                                                  --------------------------
                                                  452.60     1.40       5.69
----------------------------------------------------------------------------
MD295
 (ii)    614223  913120        -65         193    400.45     5.65       6.05
                                                  --------------------------
                                                  462.00     0.60       6.16
                                                                         (i)
                                                  --------------------------
                                                  612.90     0.50       3.41
                                                                         (i)
----------------------------------------------------------------------------
MD297
 (ii)    614018  913157        -64         205     97.40     1.00       3.17
                                                                         (i)
                                                  --------------------------
                                                  179.50     2.45       3.39
                                                                         (i)
                                                  --------------------------
                                                  296.65     1.00       3.03
                                                                         (i)
----------------------------------------------------------------------------
MD298
 (ii)    614160  913111        -50         193    265.45     0.65      12.87
                                                                         (i)
                                                  --------------------------
                                                  425.40     2.00     219.17
                                                                         (i)
                                                  --------------------------
                                                  443.10     1.10      14.07
                                                                         (i)
                                                  --------------------------
                                                  489.20     1.60       7.89
                                                                         (i)
----------------------------------------------------------------------------
MD300    614160  913113        -60         196      0.00     4.00       5.89
                                                                         (i)
                                                  --------------------------
                                                  342.50     0.60       5.07
                                                                         (i)
----------------------------------------------------------------------------
MD301    614020  913156        -55         188    143.65     0.55      15.13
                                                                         (i)
                                                  --------------------------
                                                  549.75     0.55       4.57
                                                                         (i)
----------------------------------------------------------------------------
MD302    614021  913156        -52         174    143.10     2.70       6.24
                                                                         (i)
                                                  --------------------------
                                                  176.15     2.15      14.33
                                                                         (i)
                                                  --------------------------
                                                  216.90     1.80       5.56
                                                                         (i)
                                                  --------------------------
                                                  295.70     0.80      42.33
                                                                         (i)
----------------------------------------------------------------------------
MD303    614114  913101        -57         206     55.00     2.50       7.76
                                                                         (i)
                                                  --------------------------
                                                  205.80     0.85      54.70
                                                                         (i)
                                                  --------------------------
                                                  315.35     1.00       4.05
                                                                         (i)
                                                  --------------------------
                                                  366.35     1.00      31.45
                                                                         (i)
                                                  --------------------------
                                                  400.60     0.80       3.70
                                                                         (i)
                                                  --------------------------
                                                  429.50     0.60       6.30
                                                                         (i)
                                                  --------------------------
                                                  610.00     0.80       5.81
                                                                         (i)
----------------------------------------------------------------------------
Notes:
(1)   Intersection widths are downhole drill widths not true widths;
(2)   Assays denoted by (i) are by Philsaga Mining Corporation's laboratory,
      all other assays are by McPhar Geoservices Inc. in Manila;
(3)   Grid co-ordinates based on the Philippine Reference System 92.
Table III. Underground drill hole results greater than or equal to 3 g/t
 gold and greater than or equal to 0.5 metres downhole.
----------------------------------------------------------------------------
                                                                       Grade
Hole                           Dip     Azimuth      From    Width    (uncut)
number     East   North  (degrees)   (degrees)  (metres) (metres) (g/t gold)
----------------------------------------------------------------------------
LEVEL 2
L2-041   613313  912873          3         193     60.80     0.55       5.63
                                                                         (i)
----------------------------------------------------------------------------
LEVEL 3
L3-014   613965  913136          3          36     61.40     0.60  24.47 (i)
----------------------------------------------------------------------------
L3-016   613730  912861          3         225     69.60     3.30   5.06 (i)
                                              ------------------------------
                                                   75.60     0.80   4.67 (i)
----------------------------------------------------------------------------
L3-017   613728  912863          3         231    102.10     0.60  17.58 (i)
----------------------------------------------------------------------------
LEVEL 4
L4-010   613563  912804          3         359     43.05     3.05   5.32 (i)
----------------------------------------------------------------------------
L4-011   613561  912804          3         322     95.75     1.40   3.59 (i)
----------------------------------------------------------------------------
LEVEL 5
L5-027   613942  912887        -19         203     71.80     1.20   4.93 (i)
----------------------------------------------------------------------------
L5-028   614136  912893        -19         190     25.30     0.50   3.63 (i)
 (ii)                                         ------------------------------
                                                   69.70     0.60  10.41 (i)
                                              ------------------------------
                                                  162.40     4.80  13.84 (i)
                                              ------------------------------
                                                  208.20     0.80  49.93 (i)
----------------------------------------------------------------------------
L5-031  613945   912887          0         140    120.05     1.50   6.38 (i)
                                              ------------------------------
                                                  143.80     3.70   7.31 (i)
                                              ------------------------------
                                                  223.40     0.60   3.65 (i)
----------------------------------------------------------------------------
L5-033  613943   912887          0         162     55.10     0.60  13.47 (i)
----------------------------------------------------------------------------
L5-034  613942   912887          0         183    110.40     0.55  27.96 (i)
----------------------------------------------------------------------------
L5-035  613942   912887          0         200    117.10     0.80   7.93 (i)
----------------------------------------------------------------------------
L5-039  613943   912887        -53         187    180.95     9.65  12.58 (i)
----------------------------------------------------------------------------
L5-041  613943   912887        -53         183    162.80    13.10  47.81 (i)
----------------------------------------------------------------------------
Notes:
(1)   Intersection widths are downhole drill widths not true widths;
(2)   Assays denoted by (i) are by Philsaga Mining Corporation's
      laboratory, all other assays are by McPhar Geoservices Inc. in Manila;
(3)   Grid co-ordinates based on the Philippine Reference System 92.

To view "Figure 3. Map of the Co-O Mine showing the locations of drill holes MD300 to MD305 and EXP54 to EXP65", please visit the following link:

http://media3.marketwire.com/docs/mll_fg4m_427.jpg

To view "Figure 4. Map of the Co-O Mine showing the location of the underground drill holes", please visit the following link:

http://media3.marketwire.com/docs/mll_fg3m_427.jpg

Regional Drilling

Mapping, trenching and surface drilling around the Co-O Mine with four rigs is continuing (Fig. 3). The announcement of 5 April 2011 contains additional detailed results down to 0.2 metre widths which are summarised at greater than or equal to 0.5 metre downhole widths in Table IV.

Some holes have returned multiple intersections increasing the potential of the North Tinago vein set.

It should be emphasised that, as new vein systems are drilled, drill intersections in veins rarely provide ore-grade intersections in every hole. As the data base grows, and the characteristics of each vein become clearer, statistical assessment of the percentage of oregrade drill hole intersections required, maybe as low as 40% of holes with ore grade intersections, will increasingly provide the levels of certainty for turning exploration drill results into ore that can be developed with confidence.

Table IV. Regional drill hole EXP 054-065 results greater than or equal to
 3 g/t gold and greater than or equal to 0.5 metres downhole
----------------------------------------------------------------------------
                                                                       Grade
Hole                           Dip     Azimuth      From    Width    (uncut)
number     East   North  (degrees)   (degrees)  (metres) (metres) (g/t gold)
----------------------------------------------------------------------------
EXP054   614102  913410        -50         160    710.60     1.15  12.49 (i)
                                                 ---------------------------
                                                  782.25     0.55   8.29 (i)
----------------------------------------------------------------------------
EXP055   613438  913741        -50         180    586.55     0.70   5.10 (i)
----------------------------------------------------------------------------
EXP062   614354  913289        -50         160    482.20     0.70  30.43 (i)
----------------------------------------------------------------------------
                                                  594.15     1.00   8.87 (i)
                                                 ---------------------------
                                                  736.10     1.00   3.74 (i)
----------------------------------------------------------------------------
EXP064   613972  913316        -50         160    348.50     1.00   3.42 (i)
----------------------------------------------------------------------------
Notes:
(1)   Intersection widths are downhole drill widths not true widths;
(2)   Assays denoted by (i) are by Philsaga Mining Corporation's
      laboratory, all other assays are by McPhar Geoservices Inc. in Manila;
(3)   Grid coordinates based on the Philippine Reference System 92.

Co-O Drill Hole Sampling and Assaying Procedures

Samples are taken from mainly HQ sized (hole outside diameter 96 mm, hole inside diameter 63.5 mm) and some NQ sized (hole outside diameter 75.8 mm, hole inside diameter 47.6 mm) drill core. The selected sample intervals are halved by diamond saw and half the core was bagged, numbered and sent to the Company laboratory. In a small number of cases to confirm the geological logging, the selected interval was re-split and 1/4 core re-submitted for assay.

Initial sample preparation and assaying is undertaken at the Company's on-site laboratory. Samples are dried at 105 degrees C for 6 to 8 hours, crushed to less than 1.25 cm by jaw crusher, re-crushed to less than 3 mm using a secondary crusher followed by ring grinding of 700 to 800 grams of sample to nominal particle size of less than 200 mesh. Barren rock wash is used between samples in the preparation equipment. The samples are assayed by fire assay with Atomic Absorption Spectrometer (AAS) finish on a 30 gram sample. All assays over 5 g/t gold are re-assayed using gravimetric fire assay techniques on a 30 gram sample.

Check assaying of the majority of samples used in the yearly resource estimates is undertaken by McPhar Geoservices Phils Inc ("McPhar"), a NATA and ISO 9001/2000 accredited laboratory in Manila. The pulps are airfreighted to McPhar who fire assay 30 grams of samples using AAS finish and a selected number of samples are checked using gravimetric fire assay techniques. Duplicate samples and standards are included in each batch of check samples.

When reporting results, where available, the assays of McPhar as an independent laboratory have been given priority over the Company laboratory's results.

TENEMENTS

Figure 5 shows the locations of the Company's granted tenements. During the quarter the Tambis tenement containing the Bananghilig Deposit was granted as Mineral Production Sharing Agreement ("MPSA") 344-2010-XIII, the Das-Agan tenement containing the Lingig copper prospect as MPSA 343-2010-XIII and Exploration Permits ("EP") numbers 030 and 031-2010-XIII.

TAMBIS-BAROBO REGION

The Tambis project, currently comprising the Bananghilig Gold Deposit and the Kamarangan copper-molybdenum porphyry prospect (Figure 2), is operated under a Mining Agreement with Philex Gold Philippines Inc. over application APSA-000022-XIII which covers 6,262 hectares.

Processing of the application is well advanced.

Bananghilig Gold Project

Validation drilling of the resource based on historical drilling has commenced with two man-portable rigs. Four other rigs are continuing with extensional and scout drilling.

The aim is to increase the resources to a level which could provide a 5 year minimum mining life at a production rate of approximately 200,000 ounces per year.

Regional mapping has been continuing around the deposit and an update on this will be provided in May.

Usa Porphyry Copper-Gold Prospect

The Usa prospect is located within Mineral Production Sharing Agreement application XIII-00077 and the Company has a Memorandum of Agreement with Corplex Resources Inc.

A programme of soil sampling over the favourable geology is planned.

LINGIG

Mineral Production Sharing Agreement 343-2010-XIII with an area of 3,824 hectares was granted.

ANOLING

The Mines Operating Agreement with Alcorn Gold Resources Inc. covers MPSA application 039-XIII situated approximately 8 kilometres north from the millsite as shown on Figure 2.

Processing of the MPSA is progressing.

Mapping and sampling is continuing. Drilling may recommence prior to the granting of the MPSA.

SAUGON PROJECT

First Hit Vein

Background

Figure 2 shows the Saugon Project located approximately 28 kilometres by road from the Co-O Mill. Work in 2004 involved drilling at the First Hit Vein (holes SDDH1 to SDDH35) in conjunction with underground development via a 30 metre deep inclined winze down the vein-breccia to assist in understanding the mineralisation.

Further details are contained in the announcements dated 20 April 2010 and 1 December 2010.

Drilling

Drilling is continuing with three drill rigs. Regional mapping and prospect trenching are also in progress.

To view "Figure 5. Map showing granted tenements", please visit the following link:

http://media3.marketwire.com/docs/mll_fg5_427.jpg

FINANCIALS (unaudited)

As at 31 December 2010, the Company which is debt free, had total cash and cash equivalent in gold on metal account of approximately US$92.4 million (31 Dec 2010: US$87.2 million).

During the quarter,

--  the Company sold 25,911 ounces of gold at an average price of US$1,401
    per ounce (Dec 2010 qtr: sold 23,224 ounces of gold at an average price
    of US$1,384 per ounce);
--  incurred exploration expenditure of US$7.1million (Dec 2010 qtr: US$7.1
    million);
--  expended US$2.4 million on capital works associated sustaining capital
    at the mine and mill and also with the construction and furnishing of
    the Group's new office premises in the Philippines (Dec 2010 qtr: US$2.2
    million); and
--  spent US$4.6 million on general and accelerated mine development,
    inclusive of shaft sinking costs (Dec 2010 qtr: US$2.1 million).

CORPORATE

Dividend

An interim unfranked dividend of A$0.05 per share was paid to shareholders on 23 March 2011.

Managing Director, Geoff Davis commented:

"The Company has attained its forecast gold production for the quarter and is on track to meet its annual forecast production.

At the Co-O Mine, the Saga Shaft is progressing and the Level 1 adit to access the Royal and NT veins is well underway. The accelerated development programme will continue to open up new levels and new veins.

Drilling at the Co-O Mine continues to deliver some outstanding results, and potential resource additions in the area of the Royal and North Tinago veins are taking shape.

The permitting process for the new Co-O Mill is progressing and currently on track to be completed by the end of September 2011.

At the Bananghilig prospect drilling with six rigs is continuing. Initial findings of an extensive regional mapping programme over the Tambis region will be reported shortly."

Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Mr Geoff Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Managing Director 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" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. 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.

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 Australasian Institute of Mining & Metallurgy 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" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. 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.

Information in this report relating to Ore Reserves is based on information compiled by Declan Franzmann, B Eng (Mining), MAusIMM. Mr Franzmann is a full-time employee of Crosscut Consulting. Mr Franzman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Franzmann consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Refer to the revised Technical Report which was filed on Sedar in August 2010 for further discussion of the Co-O Deposit's geology, structural controls, drilling, sampling and assaying information, and any known material environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issue.

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.

Contact Information

  • Australia
    Medusa Mining Limited
    Geoffrey Davis
    Managing Director
    +61 8 9367 0601

    Medusa Mining Limited
    Roy Daniel
    Finance Director
    +61 8 9367 0601
    www.medusamining.com.au

    United Kingdom
    Fairfax I.S. PLC
    Financial Adviser and Broker
    Ewan Leggat/Laura Littley
    +44 (0)20 7598 5368

    Lothbury Financial Services Limited
    Michael Padley
    +44 (0)20 7868 2010

    Canada
    Nicholas Sayce
    Investor Relations
    +1 416 822 4404