possible reason for rapid share price decline?

Medusa Mining cuts target for Surigao gold production

MEDUSA MINING Ltd. has slashed targets for gold production from its site in Surigao del Sur due to construction work and a worker fatality.
The Australian miner now expects to produce 90,000 to 100,000 ounces of gold for the finanical year 2011 to 2012 instead of earlier targets that ranged as high as 110,000 ounces, citing “mine development taking precedence to prepare the mine for higher production output in 2013,” a transcript of Medusa Mining Chairman John Davis’ speech showed.

The firm earlier said it was constructing a new mill in the mine site.

He added that the production guidance for the current financial year was likewise reduced due to an unfortunate fatality in the mine in late October involving the collapse of a broken ore a miner was standing on.

The accident had prompted the miner to cease operation of stopes on the site.

By 2013, gold production from the so-called Co-O mine is expected to hit 120,000 ounces according to data from the company’s Web site.

Output from the Co-O mine is expected to then rise further to 200,000 in 2014 and to be maintained at that level until 2016. -- Louella D. Desiderio

http://www.bworldonline.com/content.php?section=Corporate&title=Medusa-Mining-cuts-target-for-Surigao-gold-production&id=41540

My comments:

Firstly, condolences to the deceased worker, family and firends.

The decision to cease operation of stopes could affect production. As per p.12 of the AGM preso, there are 6 levels at 50m spacing, approx 25 headings on ore, and 36 STOPES ON BREAKING CYCLE (APPROX 55,000 TONNES OF BROKEN ORE)

Hopefully management can contain this problem into the future, and that it's not the start of something more troublesome within the mine

Cheers