$36 million of extra gold.

$36 million of extra gold.

Medusa's Annual Reserves and Resources Update Statement last month provided some new information on the gold contained in tailings pond #1. This has been measured to be 28.2k oz at 1.7 gm/t gold worth $36 million at current prices just below $1300. This gold was in waste from high grade mining in the early days before Medusa was on the scene or had efficient recovery from the old mill. It is a valuable resource that could be monetized by Medusa's under utilized mill operating currently at only 63% capacity.

$36 million of extra gold that was mined long ago could be extracted from the tailings pond and put through the mill at low cost of recovery. It should be low AISC and would be a very nice earner that would completely transform Medusa's finances. I don't know why this has not been done already but it should be a top priority project to get this done this year.

Medusa says:
"A more detailed study into the feasibility of mining and processing the material from TSF#1 is ongoing."

This has been ongoing for years now with no progress. It is not good enough. Drilling and assessment was completed in 2015. So 3.5 years later the company still has no idea or plan to recover the gold that it can communicate. This goes with 3.5 years to build the E15 shaft with umpteen extensions to the time scale, redesign, you name it.

New management needs to give top priority to getting this gold recovered this year with no more prevarication. The company needs to adopt a 'can do' attitude and move quickly rather than move at a snail's pace with any project they are involved with.

TSF# 1 Tailings Drilling Project

The Tailings Storage Facility (“TSF”) #1 was the TSF utilised by the original processing plant since the 1980s. The TSF#1 material is from the earlier higher gold grade Co-O mine ore and was processed with techniques used at that time. Assessment completed in October 2015 was based on a 63-holeBangka drilling program with a total meterage of 516 metres. The drilling results were modelled in Surpac and a resource estimation using a lower cut-off grade of 0.85 g/t gold gave 510,169 DMT with 1.72 g/t gold containing 28,200 ounces of gold in the Indicated category that is compliant to the JORC 2012 code reporting standard. A more detailed study into the feasibility of mining and processing the material from TSF#1 is ongoing.

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