Medusa Mining Limited have jumped 9c following chairman Mr Kelvin Tomlinson's address at the company's annual general meeting where he revealed his plans in early 2010 were to focus on attaining its immediate target production of 100,000 ounces annually.
Following the address by Mr Tomlinson at the company's annual general meeting this morning, shares in Medusa shot up 9c or 2.1% to USD 4.30.
Mr Tomlinson said that drilling at the Co-O Mine and nearby veins was on going to define extensions with the aim of increasing mine production to match mill capacity. He said that "Should the drilling prove successful, the company believes this could result in additional production of between 20,000 to 30,000 annualized ounces at minimal capital cost."
The company is currently expanding the high grade Co-O Mine operations to increase its production capacity to 100,000 ounces per year and is conducting near mine exploration to assess the possibilities of further expansion to 200,000 ounces per year.
Mr Tomlinson said that the company had diversified its shareholder base significantly, particularly on the back of the fund raising conducted in early March. The raising has had significant benefits with increased liquidity and the introduction of a number of funds and institutional investors onto the company’s share register, culminating in the company being included in the S&P/ASX200 in July 2009.
He said that the management team has been very active at marketing the Medusa story in the North American market. They have conducted several road shows to Toronto and presented at the Denver Gold Show in order to gauge investor appetite for the Company. These initiatives have emphasized to us the appetite for cash generating companies with significant exploration blue sky in these markets and I think you will agree, the Company has excellent exploration discovery potential for many years to come.
Mr Tomlinson said that the significant increase was partly due to new discoveries at Co-O announced in December 2008, increased resources in January 2009 and December 2008 quarterly production increases, which triggered the share price climb. Nevertheless, we are not intending to rest on our laurels and are continually looking at ways to maximize shareholder value.
(Sourced from www.proactiveinvestors.com.au)
