Medusa Mining Says Landslide At Philippines Ops A Minor Setback, Starts Drilling

Medusa Mining says landslide at Philippines ops a minor setback, starts drilling

Hemscott

10th January 2006

LONDON (AFX) - Medusa Mining LTD said a landslide at its Co-O mine in the Philippines is only a 'minor setback' and 'should not materially impact' its production targets.

Two weeks' torrential monsoonal rain caused the 60,000-70,000 tonne slip, which temporarily blocked the mine's horizontal entrance and cut power lines, Medusa said, adding the setback should be rectified within two weeks.

'At this stage, stockpiles which ran down over the Christmas period should keep the mill running until late this week,' the company said. Meanwhile, the gold mining firm has commenced vertical drilling at the site, results expected in late Feb.