18th Jan 2007 07:00
Medusa Mining Limited18 January 2007 MEDUSA MINING LIMITED Co-O MINE ADIT UPDATE Medusa Mining Limited ("Medusa" or "The Company"), the Australian based companyoperating and developing gold mines in the Philippines, advises that followingthe announcement of 10 January regarding the landslide that blocked the aditentrance to the Co-O mine, round the clock work has cleared the adit entranceand services have been restored to the mine. The landslide occurred after twoweeks of monsoonal rain, which continued until Monday this week. Mine drainage at adit level was re-established on Friday 12th and power wasreconnected on Sunday night enabling the pumps on both the main levels below theadit to be re-started. Water levels in the bottom level of the mine (3,050 metrelevel) had risen approximately one metre in the main drive and should be clearedfrom the mine during the next week or so, along with rock and silt accumulationsresulting from the uncontrolled water flow down through the workings while thepower and drainage were cut. An assessment of the slope above the adit has been carried out by a companyengineer who advised that a full stabilisation programme could take in the orderof 3 - 4 months to complete. In order to reduce the risk of losing future accessto the mine, the Company has commenced excavating a new by-pass adit which willaim to connect with the 3W shaft position, thereby providing an improved looprail system and improved safety. The current adit is undergoing repairs including installation of closed drainageto prevent future blocking. During the repair work, the adit will be used duringperiods of no or low rainfall and at this stage it cannot be predicted whatvolume of material will be able to be hauled from the mine. Full operation ofthe mine is anticipated to be back on track towards the end of the month. Repairs to the mine access road are nearing completion to a standard whereby orestockpiled at the mine can be transported to the mill. A further update will be provided in the forthcoming quarterly report. Geoffrey Davis, Managing Director of Medusa, commented: "As we said, the landslide is a minor setback and the action we are taking willreduce the risk of a similar event happening. We expect to be back in fullproduction by the end of the month." 18th January 2007For further information, please contact: Medusa Mining Limited +61 8 9367 0601Geoffrey Davis, Managing DirectorRoy Daniel, Finance Director Ambrian Partners +44 (0)20 7776 6417Richard Brown / Richard Greenfield Bankside Consultants +44 (0)20 7367 8888Michael Padley / Daniela Hale This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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