Australia's junior explorers - The ASIA Miner

DRILLING by CGA Mining has resulted in an
updated resource and reserve estimate that
replaces all ounces mined at Masbate Gold
Project. Total measured and indicated resources
have increased contained gold by 12.7%
to 5.13 million ounces compar ed with 4.55
million ounces reported in the last release of
a NI 43-101 compliant r esource. After allowing
for ounces depleted from mining since
the last resource release, this represents an
increase of 1.06 million ounces or 23.3%.
The deposit also contains an estimated in -
ferred mineral resource containing 2.83 million
ounces compared with 3.22 million ounces reported
in the last resource release. The reduction
is associated with mining depletion and
conversion to the measured and indicated categories.
The updated estimates are based on
drilling completed to the end of June 2011,
which represents only the addition of about
42,000 metres of new drilling. Drilling continues
within and adjacent to the current mineralization,
with intercepts subsequent to the
preparation of this model showing potential to
upgrade mineral classification and further increase
the total resources.
The update covers a geographic ar ea
slightly larger than the earlier estimate and includes
resources for the Old Lady deposit reported
for the first time. It does not include
resources for the Pajo prospect as drilling at
this location commenced after the cut-of f
date for inclusion in the updated estimate.
As of October 31, 2011, the total pr oven
and probable reserves estimation has increased
to contain 3.097 million ounces compared
to 3.02 million ounces r eported in the
BROKER Fairfax has increased its price target
for Medusa Mining and says that the curr ent
market represents a golden opportunity to buy
into the stock. It has impr oved its forecasts
owing to an expected reduction in cash costs
at Medusa’s flagship Co-O Gold Project as well
as an increase in production during 2012.
Fairfax analyst John Meyer says exploration
at the Co-O mine continues to pr ogress and
that the JORC resource should continue to expand
to replace ounces that have been unearthed
and to extend the overall resource to more
than 2 million ounces, up from 1.96 million. He
says the r ecent Bananghilig gold discovery ,
where production is targeted for 2016, should
also extend to more than 1 million ounces although
mine planning will be for a potential
200,000 ounce per annum operation for a five
year mine life at a $550 per ounce cash cost.
In terms of copper, John Meyer says the
Medusa team is working to pr ove up a significant
body of mineralization with a view
to selling its copper portfolio.
“Medusa is a relatively safe gold stock with
Philippines
CGA replaces ounces mined at Masbate
previous reserve estimate. This represents an
overall increase of 455,000 ounces or 17.2%
from the previous estimate after allowing for
production of 378,000 ounces.
Since the drilling cut-off date a further 60,600
metres of exploration drilling has been completed.
Further updates to the r eserve and r esource
estimates are planned to be completed
on an annual basis, with the next drilling cut-of
date June 30, 2012. The exploration team r emains
confident, given CGA ’s demonstrated
commitment to incr ease exploration activity,
that the ability to further gr ow the reserve and
resource base of the project is strong.
CGA achieved record monthly production of
20,007 ounces of gold in May , eclipsing the
previous record of 18,318 ounces in December
2010. The record came from processing
a record of 642,816 tonnes, with the previous
record being 605,330 tonnes in May 2011, at
1.15 grams/tonne gold head grade and an
average hourly throughput rate of 919 tonnes.
Since the SAG mill was br ought back into
production in late December 2011,
throughput has averaged 802 tonnes/hour
with an availability of 93%.
A gold pour at CGA Mining’s Masbate Gold Project. The project achieved record monthly production of 20,007
ounces during May.
Broker says Medusa is ‘golden’ opportunity
a strong cash and gold balance and relatively
well set gold production growth from here. It
is consistently mining and pr ocessing high
grade gold material from the Co-O gold mine,
which is highly cash generative and its expansion
to an annual 200,000 ounces is largely
compete. We view the current market as a
‘golden’ opportunity to buy into Medusa Mining
stock as gold production rates improve.”
Medusa says that it is on a growth path to
annual production of 400,000 ounces by the
end of 2015 or early 2016.
July/August 2012 | ASIA Miner | 11