Medusa Mining Limited (TSX:MLL)(ASX:MML)(LSE:MML), through its Philippines operating company Philsaga Mining Corporation has announced that the Board has approved the construction of a new Co-O treatment plant and associated infrastructure.
In addition, a major mine expansion/development program ("Expansion") at the Co-O Mine to increase production capacity has commenced.
For the year ended 30 June 2010, the Co-O Mine and current mill produced 89,679 ounces of gold. Once fully operational, the New Plant is expected to provide processing capacity to produce 200,000 ounces of gold per annum based on the current grade of the Co-O Mine's reserves.
Preliminary cost estimates for the New Plant (with an initial design capacity to treat 750,000 tonnes per annum) and Expansion are expected to be approximately US$80 million and the Company intends to fund the cash requirements of the New Plant and Expansion internally.
The construction time for the New Plant after the necessary regulatory approvals are granted is estimated at between 18 to 24 months, and the full benefits of the Expansion are expected to be realised shortly thereafter.
Technical and scientific information in this report 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.
Source: Medusa Mining Limited