JOHANNESBURG (miningweekly.com) – ASX-listed gold producer Medusa Mining, though its Philippines operating company, Philsaga Mining Corporation, has completed a Joint Ore Reserve Committee compliant ore reserve estimation for the Co-O mine.

Thee probable reserve now stood at 1,04-million tons, at 14,9 g/t gold, containing 500 000 oz of gold.

This represented an increase of 101% over the 251 000 oz over the probable reserve of 249 000 oz at 18,8 g/t gold, announced in August last year. Mine depletion since the 2008 estimate was excluded from the new estimate.

Medusa said in a statement that this ore reserve would allow for an estimated five years life of mine, at a production rate of 100 000 oz a year.

“A mine life of five years based on reserves is a major achievement for a narrow vein mine, and is the culmination of over 40 000 m of drilling, and over 6 000 m of underground development that has been completed during the last year,” said Medusa MD Geoff Davis.

“The company anticipates that it will be able to maintain this level of reserves on a yearly basis through continuing conversion of inferred resource to reserves, as the mine develops,” he added.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.